A maker of analytics software behind the FICO® Score, the standard measure of consumer credit risk in the US, distributed mainly through Experian, TransUnion, and Equifax and sold directly to consumers at myFICO.com. Founded in 1956 by engineer Bill Fair and mathematician Earl Isaac, the company took its name from the founders' surnames, Fair and Isaac. The two started in a small San Rafael apartment; the name is so familiar that most people know the company only as FICO.
Q3 FY2026 revenue rose 25.7% to $674.2M as Scores revenue rose 41% on higher mortgage score prices
Scores rose 41% on higher mortgage origination unit prices. Total revenue rose 25.7% to $674.2M, widened 3.4 points to 87.1%, and rose 41.2% to $10.45, driven by the Scores 's 91% . The company's debt now stands at $5.6B after funding $3.1B in buybacks, leaving equity deeply negative.
Key takeaways
Scores rose 41% to $458.9M in Q3 FY2026, primarily from a higher unit price for mortgage origination scores, driving total revenue up 25.7% to $674.2M.
rose 38.1% to $362.6M, with Scores at 91% while Software margin fell to 26% from 32% on higher hosting costs and a shift away from point-in-time license .
Net increased 82% to $59.9M from a higher average debt balance after the issuance of $1.5B in 2025 , $1.0B in 2026 Senior Notes, and a $1.5B .
Section summaries
Management's Discussion and Analysis
Total revenues rose 26% to $674M in Q3 FY2026, driven by a 41% surge in Scores segment revenue from higher mortgage origination unit prices.
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Scores increased 41% to $458.9M in Q3 FY2026, primarily due to a higher unit price for mortgage origination scores.
for the nine months was $777.9M, up from $555.1M, while total debt rose to $5.6B as of June 30, 2026 to fund $3.1B in share repurchases including a $1.5B .
Software grew 2% to $215.3M; Software reached $815.8M, up 10% , with up 62% to $412.8M and down 17%.
A Sherman Act Section 2 class action claim and state law claims against FICO proceed to discovery in the Northern District of Illinois after surviving dismissal.
What changed
Q3 FY2026 Scores growth was 41%, below the 60% Q2 figure but above the 29% Q1 and 34% Q3 FY2025 rates flagged to watch — the FHFA credit-score choice change has not reversed the rise.
Software grew 2% in Q3, continuing the 2% Q1 and 7% Q2 pattern; rose 62% versus the 49% Q2 comparison flagged, while declined 17%.
Net rose 82% to $59.9M, reflecting the $3.4B fixed-rate and new flagged after the Q2 $1.0B issuance; variable-rate was $710M at 5.643% and term loan $1.5B at 5.863%.
Total debt rose to $5.6B from $2.8B at FY2025 year-end after $3.1B in buybacks, deepening to a negative $4,097.1M from negative $1,745.8M.
The Sherman Act Section 2 class action claim carried over from the FY2025 10-K and all prior quarters, now proceeding to discovery with no material change in the risk factor disclosure.
What to watch
Q4 FY2026 Scores growth rate to see if the 41% Q3 rise holds or fades as the FHFA credit-score choice change and B2B pricing normalize.
Q4 FY2026 Software to see if the 2% Q3 rise holds as laps its 62% comparison and continues to decline.
Next quarter's net on $3.4B fixed-rate plus $2.21B ($710M at 5.643%, $1.5B at 5.863%) against $248.4M cash at 2.97% yield.
Progress of the Sherman Act Section 2 class action claim proceeding to discovery in the Northern District of Illinois.
Software grew 2% to $215.3M, with on-premises and SaaS software up 5% but professional services down 24% as the company emphasizes higher-margin software.
rose 38% to $362.6M, with Scores expanding to 91% from 88%, while Software segment margin fell to 26% from 32% due to higher hosting costs and a shift away from point-in-time license .
, net increased 82% to $59.9M in Q3 FY2026, driven by a higher average debt balance following the issuance of $1.5B in 2025 Senior Notes, $1.0B in 2026 Senior Notes, and a $1.5B term loan.
was $777.9M for the nine months, up from $555.1M, while total debt rose to $5.6B as of June 30, 2026, largely to fund $3.1B in share repurchases including a $1.5B accelerated .
Software reached $815.8M as of June 30, 2026, up 10% , with Platform ARR surging 62% to $412.8M and non-platform ARR declining 17%.
Quantitative and Qualitative Disclosures About Market Risk
The company faces interest rate and foreign exchange risks, managing them through investment policies, variable-rate debt, and short-term currency forwards.
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Cash equivalents of $248.4 million at June 30, 2026, yield 2.97%, up from 1.77% at September 30, 2025, exposing the portfolio to falling values if rates rise.
Fixed-rate totaling $3.4 billion face value have a fair value of $3.33 billion at June 30, 2026, sensitive to market rate changes.
Variable-rate debt includes $710 million drawn on a at 5.643% and a $1.5 billion term loan at 5.863%, both tied to plus margins.
Foreign exchange risk from and cash is hedged with under three months; at June 30, 2026, contracts covered EUR 4.3M, GBP 5.9M, and SGD 6.9M.
No sensitivity analysis or quantitative impact of rate shifts on earnings or cash flows is provided.
FICO is a defendant in consolidated putative class action lawsuits brought in the Northern District of Illinois against FICO and the credit bureaus, Equifax, Experian and TransUnion, alleging antitrust claims in connection with the distribution of FICO Scores. On November 24, 20…
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FICO is a defendant in consolidated putative class action lawsuits brought in the Northern District of Illinois against FICO and the credit bureaus, Equifax, Experian and TransUnion, alleging antitrust claims in connection with the distribution of FICO Scores. On November 24, 2024, the court ruled on FICO’s and the credit bureaus’ motions to dismiss the plaintiffs’ amended complaints. The court dismissed with prejudice all claims in the lawsuit other than a Sherman Act Section 2 claim and accompanying state law claims against FICO, which were allowed to proceed through the discovery stage of the litigation. FICO intends to vigorously defend against the remaining claims in this proceeding.
In addition to the other information set forth in this Quarterly Report, you should carefully consider the factors discussed in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for our fiscal year ended September 30, 2025 (our “Annual Report on Form 10-K”). The r…
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In addition to the other information set forth in this Quarterly Report, you should carefully consider the factors discussed in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for our fiscal year ended September 30, 2025 (our “Annual Report on Form 10-K”). The risks discussed in our Annual Report on Form 10-K could materially affect our business, financial condition and future results. The risks described in our Annual Report on Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be insignificant also may materially and adversely affect our business, financial condition or operating results in the future. There have been no material changes from the risk factors disclosed in our Annual Report on Form 10-K.