Fair Isaac (FICO) AI Stock Analysis

• Market Cap: $37.49B
• Dividend Yield: N/A
• Average Volume (3M): 200.43K
• Price to Earnings (P/E): 59.0
• Beta (1Y): 1.30
• Revenue Growth: 15.91%
• EPS Growth: 29.42%
• Country: US
• Employees: 3,718
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 7.74
• Shares Outstanding: 23,709,047
• 10 Day Avg. Volume: 223,624
• 30 Day Avg. Volume: 200,433
• PEG Ratio: 1.89
• Price to Book (P/B): -20.78
• Price to Sales (P/S): 18.22
• P/FCF Ratio: 47.12
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 19.45
• Enterprise Value/Gross Profit: 23.65
• Enterprise Value/Ebitda: 40.71
• 1Y Price Target: $2,111.00
• Price Target Upside: 33.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 40.41
• Revenue Forecast (FY): $2.44B

• Rating: 69 Neutral
• Price Target: $1,834.00 ▲(15.99% Upside)

Fair Isaac's strong earnings call and technical momentum are the most significant factors driving the score. However, high leverage and valuation concerns weigh on the overall assessment. The company's robust cash flow and positive future guidance provide a solid foundation, but balance sheet risks and high P/E ratio limit the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for FICO's products, suggesting effective business strategies and market expansion.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and debt reduction.

Product Innovation

Innovative products like FICO Score 10 BNPL expand market reach and address evolving consumer credit trends, supporting long-term growth.

Negative Factors

Balance Sheet Risks

Negative equity and high leverage pose financial risks, potentially limiting investment capacity and increasing vulnerability to economic shifts.

Mortgage Market Challenges

Ongoing mortgage market challenges could impact FICO's growth in this segment, affecting revenue from related products and services.

Uncertainties in FHFA Decision

Regulatory uncertainties could affect FICO's market position and revenue from the mortgage industry, impacting long-term strategic planning.

Fair Isaac Business Overview & Revenue Model

Company Description

Fair Isaac Corporation develops analytic, software, and data management products and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Scores and Software. The Software segment offers pre-configured decision management solution designed for various business problems or processes, such as marketing, account origination, customer management, customer engagement, fraud detection, financial crimes compliance, collection, and marketing, as well as associated professional services. This segment also provides FICO Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by customers to address a wide range of business use cases. The Scores segment provides business-to-business scoring solutions and services for consumers that give clients access to analytics to be integrated into their transaction streams and decision-making processes, as well as business-to-consumer scoring solutions comprising myFICO.com subscription offerings. Fair Isaac Corporation markets its products and services primarily through its direct sales organization and indirect channels, as well as online. The company was formerly known as Fair Isaac & Company, Inc. and changed its name to Fair Isaac Corporation in July 1992. Fair Isaac Corporation was founded in 1956 and is headquartered in Bozeman, Montana.

How the Company Makes Money

FICO generates revenue primarily through its software licensing, subscription services, and consulting services. The company has a diversified revenue model that includes selling licenses for its analytics software and providing ongoing maintenance and support services. Additionally, FICO earns significant income from its FICO Score product, which is utilized by lenders and financial institutions to assess borrower creditworthiness. The company also offers analytics and consulting services that help clients implement and optimize their decision management processes. Strategic partnerships with major financial institutions and technology providers further enhance FICO's revenue streams, as these collaborations often involve joint product development and integrated solutions that extend FICO's market reach.

Fair Isaac Financial Statement Overview

Summary

Fair Isaac shows strong income statement performance with consistent revenue and profit growth, supported by robust margins. However, the balance sheet highlights significant leverage and negative equity, posing risks if not managed carefully. The cash flow position is strong, with healthy operating and free cash flows, although growth rates have shown signs of slowing.

Income Statement

Fair Isaac has demonstrated consistent revenue growth over the years, with a notable increase in total revenue from $1.29 billion in 2020 to $1.99 billion in 2025. The company maintains strong profitability metrics, with gross profit margins consistently above 75% and net profit margins improving over time, reaching approximately 32.7% in 2025. The EBIT and EBITDA margins are also robust, indicating efficient operational management. However, the revenue growth rate has slowed slightly in recent years, which could be a potential concern if it continues.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative stockholders' equity position and a high debt-to-equity ratio. This indicates that the company is heavily reliant on debt financing, which poses a risk in terms of financial stability. The return on equity is negative due to the negative equity, which is a concern for long-term sustainability. Despite these issues, the company has managed to grow its total assets over time, which is a positive sign.

Cash Flow

Fair Isaac's cash flow statements show a healthy operating cash flow, which has grown consistently over the years. The free cash flow has also increased, demonstrating strong cash generation capabilities. The free cash flow to net income ratio is close to 1, indicating efficient conversion of earnings into cash. However, the free cash flow growth rate has slowed in recent years, which could be a potential area of concern if it continues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.99B	1.99B	1.72B	1.51B	1.38B	1.32B
Gross Profit	1.64B	1.64B	1.37B	1.20B	1.08B	984.07M
EBITDA	951.19M	951.19M	761.49M	663.81M	560.74M	538.83M
Net Income	651.95M	651.95M	512.81M	429.38M	373.54M	392.08M
Balance Sheet
Total Assets	1.87B	1.87B	1.72B	1.58B	1.44B	1.57B
Cash, Cash Equivalents and Short-Term Investments	134.14M	134.14M	150.67M	136.78M	133.20M	195.35M
Total Debt	3.07B	3.07B	2.24B	1.90B	1.91B	1.33B
Total Liabilities	3.61B	3.61B	2.68B	2.26B	2.24B	1.68B
Stockholders Equity	-1.75B	-1.75B	-962.68M	-687.99M	-801.95M	-110.94M
Cash Flow
Free Cash Flow	748.05M	769.88M	607.41M	464.68M	503.42M	416.25M
Operating Cash Flow	778.81M	778.81M	632.96M	468.92M	509.45M	423.82M
Investing Cash Flow	-43.72M	-43.72M	-27.99M	-15.95M	-5.67M	137.85M
Financing Cash Flow	-750.33M	-750.33M	-592.92M	-455.00M	-547.16M	-523.57M

Fair Isaac Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1581.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FICO, the sentiment is Negative. The current price of 1581.19 is below the 20-day moving average (MA) of 1670.90, below the 50-day MA of 1726.69, and below the 200-day MA of 1693.56, indicating a bearish trend. The MACD of -42.18 indicates Positive momentum. The RSI at 34.60 is Neutral, neither overbought nor oversold. The STOCH value of 23.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FICO.

Fair Isaac Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DT	77 Outperform	$11.87B	23.92	20.57%	―	18.50%	207.45%
WDAY	73 Outperform	$50.69B	78.46	7.34%	―	13.35%	-60.76%
TTD	70 Outperform	$17.52B	40.48	16.78%	―	20.82%	41.82%
FICO	69 Neutral	$37.49B	59.04	―	―	15.91%	29.42%
DDOG	69 Neutral	$42.38B	403.18	3.52%	―	26.63%	-46.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TEAM	59 Neutral	$33.80B	-168.39	-15.35%	―	19.51%	53.35%