Fair Isaac delivered a strong Q3 FY2026, marked by 26% revenue growth driven by record B2B mortgage origination pricing, and raised its full-year guidance. The growth momentum was seen across both the Scores and Software segments, with notable highlights including the first-ever quarter where Platform ARR exceeded non-platform ARR. Management remained confident on the strategic outlook despite the VantageScore Lender Choice program, emphasizing that gaming is additive and not leading to volume loss. Q3 revenue of $674M (+26% YoY), beating estimates; GAAP EPS of $10.45 (+41% YoY).
Fair Isaac delivered a strong Q3 FY2026, marked by 26% revenue growth driven by record B2B mortgage origination pricing, and raised its full-year guidance. The growth momentum was seen across both the Scores and Software segments, with notable highlights including the first-ever quarter where Platform ARR exceeded non-platform ARR. Management remained confident on the strategic outlook despite the VantageScore Lender Choice program, emphasizing that gaming is additive and not leading to volume loss. Q3 revenue of $674M (+26% YoY), beating estimates; GAAP EPS of $10.45 (+41% YoY).
Fair Isaac delivered a strong Q3 FY2026, marked by 26% revenue growth driven by record B2B mortgage origination pricing, and raised its full-year guidance. The growth momentum was seen across both the Scores and Software segments, with notable highlights including the…
Q3 revenue of $674M (+26% YoY), beating estimates; GAAP EPS of $10.45 (+41% YoY).
Full-year FY2026 guidance raised to $2.53B revenue and $42.43 Non-GAAP EPS.
Scores segment grew 41%, B2B scores up 49%, driven by higher mortgage origination unit price.
Management emphasized accelerating AI adoption across customers, with FICO Platform positioned as the leading AI decisioning platform. They highlighted AI-driven capabilities, including fraud consortium data and responsible AI, as key differentiators, and noted upcoming next-generation platform with enterprise fraud solution to drive growth.
Guidance was raised due to a better-than-expected mortgage market and strong momentum across the Scores and Platform businesses.
Capex is characterized as limited, leveraging cloud providers for scalability. Management noted investments are focused on development and distribution of IP, with no significant capital expenditure required.
Management expresses confidence in strategic initiatives, growth momentum, and competitive positioning despite macro headwinds, backed by strong segment performance and raised guidance.
“We don't anticipate more than the 20s for bandage share because... when you do the math on what percent of the time a consumer is advantaged by using a higher bandage score than a FICO score, that number... is in the 20s.”
“we're literally waiting for their okay... we are also very close to signing two additional resellers.”
“The new score combines the FICO score with consumer permission cash flow data from Plaid's network of more than 12,000 financial institutions, giving lenders a more complete view of credit risk”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| EPS | FY2026 | $36.86 | $36.86 | RAISED |
| EPS | FY2026 | $42.43 | $42.43 | RAISED |
| Revenue | FY2026 | $2.53B | $2.53B | RAISED |
GSE release of data is a positive step for FICO 10T adoption, but final certification is still pending.
“Fannie Mae and Freddie Mac recently released expanded historical level datasets for FICO Score 10T, enabling mortgage ecosystem participants to independently evaluate credit score performance using real world GSE mortgage data.”
Good afternoon, and thank you for attending FICO's third quarter audience call.
… on page six, score segment revenues in our third quarter were $459 million, up 41% versus the prior year. While B2B scores were the key driver of growth, we also experienced continued growth in B2C scores. In our software segment, we delivered $215 million in Q3 revenues, up 2% year over year. Results included 66% platform revenue growth and a 25% decline in non-platform revenue. Steve will provide additional revenue segment level details later. Beyond the financial results, we continue to make meaningful progress against the strategic priorities that position FICO for long-term growth. With more than 70 years of innovation, FICO has been the trusted backbone of high-stakes decision making, turning data into intelligence and intelligence into better business outcomes. That leadership continued this quarter with the GSE release of the FICO Score 10T datasets and ultra FICO general availability. Fannie Mae and Freddie Mac recently released expanded historical level datasets for FICO Score 10T, enabling mortgage ecosystem participants to independently evaluate credit score performance using real world GSE mortgage data. Independence analysis by Millman, leading global actuarial and risk management firm, reinforced these findings, concluding that FICO score 10T outperforms Vantage 4 on all three key statistical measures of predictiveness and across every origination year studied, both individually and in aggregate. Milliman found that FICO score 10T delivers more than a 10% predictive advantage for first-time homebuyers. and more than an 8% predictive advantage over Vantage 4 for the most recent origination years, an especially important cohort because it exhibits some of the highest default rates in the data set. FICO's predictive advantage is not driven by access to different data. FICO score 10T and Vantage 4 are built on the same underlying data sets. The comparison of the models can be found in our investor presentation on page 10. The difference lies in FICO's decades of experience developing predictive credit risk models and how FICO transforms that data into a more accurate assessment of default risk. That predictive advantage has meaningful implications across the mortgage ecosystems. For lenders and originators, a more predictive score enables better risk assessment, more confident lending decisions, improved portfolio performance, and the …
Accenture partnership expands distribution channel for FICO Platform, addressing FICO's historically weak indirect sales presence.
“in July, we expanded our collaboration with Accenture by pairing the FICO platform with Accenture's experience in risk, AI, and industry operations.”
Good afternoon, and thank you for attending FICO's third quarter audience call.
… 70 years of domain expertise in financial services. Second, FICO Platform benefits from proprietary data sets such as our fraud consortium data spanning thousands of financial institutions. Third, FICO platform clients that leverage multiple use cases benefit from a compounding feedback loop that can create a more complete picture of the customer, utilizing the always on and always available AI powered customer profile engine. Fourth, our FICO platform architecture enables responsible AI through decisions that are auditable, transparent, and explainable, allowing clients to more easily adhere to governance and regulatory requirements. Fifth, FICO platform decisioning capabilities are deeply embedded into enterprise workflows, delivering complex decisions in real time at scale in milliseconds and with a high degree of reliability. Our investments are focused on development and distribution of market leading and differentiated intellectual property. These include the development of FICO platform and technologies such as focus sequence models and focused language models. This requires limited CapEx as we leverage cloud providers for scalability. We continue to deliver healthy year-over-year growth in bookings, ARR, DBNRR, and enterprise platform clients, demonstrating real-world value for our customers and tangible results from our investments. Our near-term focus has been on driving top-line growth, while our long-term focus is on driving margin expansion. We've advanced two initiatives that will support these objectives. First, in July, we expanded our collaboration with Accenture by pairing the FICO platform with Accenture's experience in risk, AI, and industry operations. This partnership will help enterprises turn investments into real business results, faster decisions, stronger risk controls, and outcomes that hold up under regulatory scrutiny. Our immediate focus is go-to-market and enablement with a phased-in geographic rollout. Second, later this calendar year, we anticipate the general availability of our next generation FICO platform, which includes our enterprise fraud solution. With incremental IP and expanded distribution, we anticipate greater penetration of FICO platform within our current 500 named target accounts and an expansion of our operating market beyond those accounts. I'll now pass this to Steve to provide further financial details.
FICO is now actively pursuing a new Ultra FICO score that incorporates cash flow data from Plaid, positioning it as a next-generation product beyond the traditional credit file, targeting '79% of non-prime applicants'. — This marks a strategic expansion beyond traditional credit bureau data, with potential to increase FICO's addressable market in underbanked segments.
Good afternoon, and thank you for attending FICO's third quarter audience call.
… 587 billion in eligible annual originations based on 2025 under data, and more than 1.87 trillion in eligible annual servicing. Complementing the adopter program, FICO has expanded the technology infrastructure supporting FICO Score 10T adoption. To further streamline implementation and deployment, FICO Score 10T is now integrated into Optimal Blue's market-leading mortgage platform and LoanPass's automated product pricing and eligibility platform. These integrations enable lenders to leverage the industry's most predictive credit score throughout the mortgage life cycle, including loan eligibility, pricing, hedging, trading, and portfolio evaluation. This allows lenders to adopt FICO Score 10T using the platforms and workflows they already rely on today. Now, turning to Ultra FICO, we recently announced the general availability of the next generation Ultra FICO Score, developed in partnership with Plaid. The new score combines the FICO score with consumer permission cash flow data from Plaid's network of more than 12,000 financial institutions, giving lenders a more complete view of credit risk on the same score scale they already use today. Our initial target market for this score is subprime and near prime consumers across card, personal loan, and auto lending. Our analysis shows that 79% of non-prime applicants with a history of positive account balances saw higher scores under Ultra FICO. reflecting the score's ability to recognize positive financial behavior that isn't captured by traditional credit file data for this population. We also found a 7% relative increase in approvals with no incremental risk and a 15% relative performance lift for prime applicants with limited credit histories, showing that predictiveness improves beyond what traditional credit scoring alone can capture. Since general availability began just this past May, we're still in the early days of adoption A pipeline of lender interest exists today. As we continue to build that pipeline, we expect onboard clients for testing. Another strategic priority is the FICO Mortgage Direct Licensing Program, which is still under review by the GSEs. This remains the key milestone for the program to go live and for lenders to realize cost savings through performance model pricing. Lender interest in the program remains strong, and we continue to expand reseller participation. We signed …
FICO sees 10T/VantageScore 'gaming' as additive, not a replacement, and expects Vantage's share to cap out in the low-to-mid 20s based on the theoretical maximum borrowers who would get a higher score.