Fair Isaac Corp

Company facts

Industry

Services-Business Services, NEC

Headquarters

Bozeman, Montana

Most recent report

10-K, filed Nov 6, 2026

Incorporated

Delaware

Filings on record

1,006+ filings

On EDGAR

CIK 814547

Fiscal year ends

September

Filer status

Large accelerated filer

What to read: FY2026 10-K

SECSift found 6 of 27 sections worth reading, with 5 positive, 15 notable, and 10 negative flags.

• Business (Item 1)

  Contains critical customer concentration data and a major distribution change.
  Notable

  • FICO Score 10T will be available to mortgage lenders via the new Direct License Program, aligning with FHFA modernization efforts.
  • New FICO Mortgage Direct License Program lets mortgage lenders bypass the three big agencies for FICO Scores, a major distribution shift.
  • Financial services is 92% of total revenue in FY2026; Americas is 89% of total revenue, showing extreme geographic and industry concentration.
  Negative

  • Revenue from three agencies (Experian, TransUnion, Equifax) grew to 60% of total revenue in FY2026, up from 51% in FY2025 and 45% in FY2024.

• Risk Factors (Item 1A)

  New regulatory approvals for VantageScore in U.S. mortgage market pose a direct, quantified threat to FICO's core Scores revenue.
  Notable

  • Incurred $27.3M pre-tax charge in Q4 FY2026 for workforce reduction; most will result in future cash outlays.
  • EU AI Act and U.S. state AI laws (California, Colorado) take effect 2026-2027, regulating credit scoring and automated decisions.
  • 20% of FY2026 revenues came from outside the U.S., exposing the company to currency, regulatory, and political risks.
  Negative

  • VantageScore has 'increased regulatory acceptance' in U.S. mortgage market, directly competing with FICO Score.
  • FHFA adopted 'lender choice' allowing VantageScore; HUD will permit VantageScore and FICO Score 10T for FHA mortgages starting Jan 2027.
  • Stock price has declined significantly after FHFA/HUD announcements; further declines possible if VantageScore use increases.
  • 92% of FY2026 revenues came from banking industry; a downturn or consolidation there would directly hit revenue.
  • Three major CRAs (Experian, TransUnion, Equifax) distribute FICO products but also own and sell competing VantageScore.

• Legal Proceedings (Item 3)

  Settlement term sheet for $65M cash resolves antitrust class action; court approval pending.
  Notable

  • Court dismissed all claims except Sherman Act Section 2 claim against FICO, which proceeded to discovery stage.
  • Settlement term sheet signed Sept 29, 2026; definitive agreements expected in Q1 fiscal 2027.
  Negative

  • FICO agreed to $65M cash settlement for antitrust class action; court approval pending, no assurance of approval.

• Market for the Stock (Item 5)

  Large buyback program details and ASR settlement with specific share counts and prices.
  Notable

  • No cash dividends declared since May 2017; no plans to pay dividends in the foreseeable future.
  • Board authorized a new $2.0 billion open-ended buyback program in June 2026, replacing the prior program.
  • FICO entered a $1.5 billion ASR agreement in June 2026, settling in July 2026 with 1,284,743 total shares repurchased.

• Management's Discussion (Item 7)

  MD&A with strong revenue growth, debt surge, restructuring, and a $65M antitrust settlement accrual.
  Positive

  • Total revenues $2.5B, up 27% from FY2025; Scores segment revenue $1.7B, up 41%.
  • Software segment ARR $850.9M, up 14% YoY; platform ARR surged 72% to $452.6M.
  • Software DBNRR 112%, up from 102% a year ago; platform DBNRR 156%, up from 112%.
  • Operating income $1.3B, up 37%; net income $835M, up 28%; diluted EPS $36.32, up 37%.
  • Cash from operations $1.1B, up from $778.8M in FY2025; a 41% increase.
  Notable

  • Share repurchases $3.1B in FY2026, up from $1.4B; funded partly by $1.5B term loan and $1.0B senior notes.
  • Other income $57.7M, up 406%, driven by a non-operating gain from sale of a minority equity investment.
  • Effective tax rate rose to 24.1% from 18.8%, due to lower excess tax benefits from share-based compensation.
  • Software segment operating margin fell to 28% from 30%, squeezed by data center costs and lower point-in-time license sales.
  Negative

  • Total debt $5.3B at Sept 30, 2026, up from $3.1B a year earlier; interest expense rose 67% to $223M.
  • Restructuring charges $27.3M in Q4 FY2026 for eliminating ~15% of positions across the company.

• Financial Statements (Item 8)

  Financial statements and notes with major balance-sheet and debt changes, a large settlement accrual, and customer concentration.
  Negative

  • Three customers (Experian, TransUnion, Equifax) accounted for 60% of total revenue in FY2026, up from 51% in FY2025.

What changed: FY2026 vs. FY2025

About 10% of FICO's FY2026 10-K is new information. 80 paragraphs were added, 398 changed, and 104 removed. Below are the most important lines SECSift identified.

• Financial Statements (Item 8) 112
• Risk Factors (Item 1A) 83
• Business (Item 1) 82
• Management's Discussion (Item 7) 64
• Exhibits (Item 15) 23
• Form 10-K Summary (Item 16) 10
• Cybersecurity (Item 1C) 6
• Market Risk (Item 7A) 6
• Directors and Officers (Item 10) 5
• Market for the Stock (Item 5) 4
• Other Information (Item 9B) 1
• Security Ownership (Item 12) 1
• Related Party Transactions (Item 13) 1