Financial Analysis

Debt The following table represents our debt at carrying value at September 30, 2025 and 2024: September 30, 2025 September 30, 2024 (In thousands) Current maturities on debt: The $300 Million Term Loan $ $ 15,000 The 2018 Senior Notes 400,000 Less: debt issuance costs (459) Current maturities on debt 399,541 15,000 Long-term debt: Revolving line of credit 275,000 210,000 The $300 Million Term Loan 243,750 The $450 Million Term Loan 450,000 The 2018 Senior Notes 400,000 The 2019 Senior Notes and the 2021 Senior Notes 900,000 900,000 The 2025 Senior Notes 1,500,000 Less: debt issuance costs (18,850) (9,729) Long-term debt 2,656,150 2,194,021 Total debt $ 3,055,691 $ 2,209,021 Revolving Line of Credit and Term Loans On May 13, 2025, we amended our credit agreement with a syndicate of banks, increasing our borrowing capacity under the unsecured revolving line of credit from $600 million to $1.0 billion and extending its maturity to May 13, 2030. Also on May 13, 2025, we repaid in full and terminated the $300 million unsecured term loan (the $300 Million Term Loan) and the $450 million unsecured term loan (the $450 Million Term Loan) outstanding under our credit agreement, utilizing proceeds from the issuance of the 2025 Senior Notes (as defined below). Borrowings under the revolving line of credit can be used for working capital and general corporate purposes and may also be used for the refinancing of existing debt, acquisitions, and the repurchase of our common stock. Interest …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables provide information about disaggregated revenue by primary geographical market: Year Ended September 30, 2025 Scores Software Total Percentage (Dollars in thousands) Americas $ 1,154,470 $ 577,915 $ 1,732,385 87 % Europe, Middle East and Africa 6,984 152,819 159,803 8 % Asia Pacific 7,121 91,560 98,681 5 % Total $ 1,168,575 $ 822,294 $ 1,990,869 100 % Year Ended September 30, 2024 Scores Software Total Percentage (Dollars in thousands) Americas $ 905,266 $ 544,622 $ 1,449,888 84 % Europe, Middle East and Africa 5,908 163,618 169,526 10 % Asia Pacific 8,476 89,636 98,112 6 % Total $ 919,650 $ 797,876 $ 1,717,526 100 % Year Ended September 30, 2023 Scores Software Total Percentage (Dollars in thousands) Americas $ 763,874 $ 523,076 $ 1,286,950 85 % Europe, Middle East and Africa 5,802 135,562 141,364 9 % Asia Pacific 4,152 81,091 85,243 6 % Total $ 773,828 $ 739,729 $ 1,513,557 100 % The following table provides information about disaggregated revenue for on-premises and SaaS software within our Software segment by deployment method: Year Ended September 30, Percentage of revenues 2025 2024 2023 2025 2024 2023 (Dollars in thousands) On-premises software $ 320,425 $ 313,632 $ 292,763 43 % 44 % 46 % SaaS software 419,720 397,708 347,419 57 % 56 % 54 % Total $ 740,145 $ 711,340 $ 640,182 100 % 100 % 100 % The following table provides information about disaggregated revenue for on-premises and SaaS software within our Software segment by product features: Year …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Share-Based Employee Benefit Plans Description of Stock Option and Share Plans We maintain the 2021 Long-Term Incentive Plan (the 2021 Plan). The 2021 Plan authorizes the issuance of up to 5,900,000 shares of our common stock, plus additional shares that become available due to the expiration, forfeiture or cancellation of awards outstanding under the 2012 Long-Term Incentive Plan. Under the terms of the 2021 Plan, the pool of shares available for issuance may be used for all types of equity awards available under the 2021 Plan, which include stock options, stock appreciation rights, restricted stock awards, stock unit awards and other share-based awards. All employees, consultants and advisors of FICO or any subsidiary, as well as all non-employee directors, are eligible to receive awards under the 2021 Plan. The 2021 Plan will remain in effect until the earliest of the following: all shares subject to the Plan are distributed, the Board terminates the Plan, or the tenth anniversary of the effective date of the Plan. Stock option awards have a maximum term of ten years. In general, stock option awards and stock unit awards not subject to market or performance conditions vest annually over four years. Stock unit awards subject to market or performance conditions generally vest annually over three years based on the achievement of specified criteria. At September 30, 2025, there were 4,309,793 shares available for issuance as new awards under the 2021 Plan. Description of Empl …

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Fair Value Measurements Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. Level 1 uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. Our Level 1 assets were comprised of money market funds and certain marketable securities and our Level 1 liabilities included senior notes as of September 30, 2025 and 2024. Level 2 uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data. We did not have any assets or liabilities that are valued using inputs identified under a Level 2 hierarchy as of September 30, 2025 and 2024. Level 3 uses one …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The provision for income taxes was as follows during fiscal 2025, 2024 and 2023: Year ended September 30, 2025 2024 2023 (In thousands) Current: Federal $ 123,340 $ 110,402 $ 112,456 State 23,818 10,199 16,844 Foreign 35,977 35,943 42,327 183,135 156,544 171,627 Deferred: Federal (26,949) (26,227) (37,884) State (3,330) (1,712) (15,025) Foreign (2,207) 609 5,531 (32,486) (27,330) (47,378) Total provision $ 150,649 $ 129,214 $ 124,249 The foreign provision was based on foreign pre-tax earnings of $144.5 million, $150.8 million and $172.7 million in fiscal 2025, 2024 and 2023, respectively. Current foreign tax expense related to foreign tax withholdings was $15.6 million, $14.6 million and $12.3 million in fiscal 2025, 2024 and 2023, respectively. Foreign withholding tax and related foreign tax credits are included in current tax expense above. Deferred tax assets and liabilities at September 30, 2025 and 2024 were as follows: September 30, 2025 2024 (In thousands) Deferred tax assets: Loss and credit carryforwards $ 6,876 $ 7,717 Compensation benefits 31,638 32,093 Operating lease liabilities 7,375 7,881 Research and development costs 100,304 67,795 Other assets 21,538 18,241 Total deferred tax assets 167,731 133,727 Deferred tax liabilities: Intangible assets (8,612) (7,812) Deferred commission (15,134) (14,484) Operating lease right-of-use assets (6,479) (7,240) Other liabilities (18,953) (17,678) Total deferred tax liabilities (49,178) (47,214) Deferred tax ass …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Contingencies We are in disputes with certain customers regarding amounts owed in connection with the sale of certain of our products and services. We also have had claims asserted by former employees relating to compensation and other employment matters. We are also involved in various other claims and legal actions arising in the ordinary course of business. We record litigation accruals for legal matters which are both probable and estimable. For legal proceedings for which there is a reasonable possibility of loss (meaning those losses for which the likelihood is more than remote but less than probable), we have determined we do not have a material exposure, either individually or in the aggregate.

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Leases We lease office space and data centers under operating lease arrangements, which constitute the majority of our lease obligations. We also enter into finance lease agreements from time to time for certain computer equipment. For any lease with a lease term in excess of 12 months, the related lease assets and liabilities are recognized on our consolidated balance sheets as operating leases or finance leases at the commencement of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components, and we have elected to combine these components together and account for them as a single lease component for all classes of assets. Leases with a lease term of 12 months or less are not recorded on our consolidated balance sheets. Furthermore, we recognize lease expense for these leases on a straight-line basis over the lease term. Operating lease assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at the commencement date. We use a collateralized incremental borrowing rate based on the information available at the commencement date, including the lease term, in determining the present value of future payments. In calculating the incremental borrowing rates, we consider recent rating …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

New Accounting Pronouncements Recent Accounting Pronouncements Adopted In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07). ASU 2023-07 expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. We adopted ASU 2023-07 in fiscal 2025 and the adoption did not have a significant impact on our disclosures within our consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires disaggregated information about a reporting entitys effective tax rate reconciliation as well as disaggregated information on income tax paid. The standard is effective for fiscal years beginning after December 15, 2024, which means that it will be effective for our fiscal years beginning October 1, 2025. Early adoption is permitted. We are currently evaluating the impact that the updated standard will have on our disclosures within our consolidated financial statements. In November 2024, the FASB issued ASU No. 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). ASU 2024-0 …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Employee Benefit Plans Defined Contribution Plans We sponsor the Fair Isaac Corporation 401(k) plan for eligible employees in the U.S. Under this plan, eligible employees may contribute up to 25% of compensation, not to exceed statutory limits. We also provide a company matching contribution. Investment in FICO common stock is not an option under this plan. Our contributions into all 401(k) plans, including former-acquired-company-sponsored plans that have since merged into the Fair Isaac Corporation 401(k) plan or have been frozen, totaled $10.2 million, $9.5 million and $8.9 million during fiscal 2025, 2024 and 2023, respectively. Employee Incentive Plans We maintain various employee incentive plans for the benefit of eligible employees, including officers. The awards generally are based upon the achievement of certain financial and performance objectives subject to the discretion of management. For executive officers, such discretion is exercised by the Leadership Development and Compensation Committee of our Board of Directors. Total expenses under our employee incentive plans were $60.8 million, $62.5 million and $57.8 million during fiscal 2025, 2024 and 2023, respectively.

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Restructuring Charges During fiscal 2025, we incurred restructuring charges of $10.9 million in employee separation costs due to the elimination of 226 positions throughout the Company. Cash payments for all the employee separation costs will be paid by the end of fiscal 2026. There were no restructuring charges incurred during fiscal 2024 or 2023. The following table summarizes our restructuring accrual for employee separation costs. At September 30, 2025, the balance was classified as current liabilities and recorded in other accrued liabilities within the accompanying consolidated balance sheets. Year Ended September 30, 2025 (In thousands) Restructuring accrual, beginning balance $ Expense additions 10,922 Cash payments (948) Restructuring accrual, ending balance $ 9,974 …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Revenue from Contracts with Customers Contracts with Customers Our revenue is primarily derived from on-premises software and SaaS subscriptions, professional services and scoring services. For contracts with customers that contain various combinations of products and services, we evaluate whether the products or services are distinct distinct products or services will be accounted for as separate performance obligations, while non-distinct products or services are combined with others to form a single performance obligation. For contracts with multiple performance obligations, the transaction price is allocated to each performance obligation on a relative standalone selling price (SSP) basis. Revenue is recognized when control of the promised goods or services is transferred to our customers. Our on-premises software is primarily sold on a subscription basis, which includes a term-based license and post-contract support or maintenance, both of which generally represent distinct performance obligations and are accounted for separately. The transaction price is either a fixed fee, or a usage-based fee sometimes subject to a guaranteed minimum. When the amount is fixed, including the guaranteed minimum in a usage-based fee, license revenue is recognized at the point in time when the software is made available to the customer. Maintenance revenue is recognized ratably over the contract period as customers simultaneously consume and receive benefits. Any usage-based fees not subj …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Information We are organized into two reportable segments: Scores and Software. Although we sell solutions and services into a large number of end user product and industry markets, our reportable business segments reflect the primary method in which management organizes and evaluates internal financial information to make operating decisions and assess performance. Scores. This segment includes our business-to-business (B2B) scoring solutions and services which give our clients access to predictive credit and other scores that can be easily integrated into their transaction streams and decision-making processes. This segment also includes our business-to-consumer (B2C) scoring solutions, including our myFICO.com subscription offerings. Software. This segment includes pre-configured analytic and decision management solutions designed for a specific type of business need or process such as account origination, customer management, customer engagement, fraud detection, and marketing as well as associated professional services. This segment also includes 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 our customers to address a wide variety of business use cases. These offerings are available to our customers as SaaS or as on-premises software. Our chief operating decision maker (CODM), who is our Chief Executive Officer, evaluates s …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Debt The following table represents our debt at carrying value at June 30, 2026 and September 30, 2025: June 30, 2026 September 30, 2025 (In thousands) Current maturities on debt: Term loan $ 300,000 $ The 2018 Senior Notes 400,000 Less: debt issuance costs (459) Current maturities on debt 300,000 399,541 Long-term debt: Revolving line of credit 710,000 275,000 Term loan 1,200,000 The 2019 Senior Notes and the 2021 Senior Notes 900,000 900,000 The 2025 Senior Notes 1,500,000 1,500,000 The 2026 Senior Notes 1,000,000 Less: debt issuance costs (27,611) (18,850) Long-term debt 5,282,389 2,656,150 Total debt $ 5,582,389 $ 3,055,691 Revolving Line of Credit and Term Loan We have a credit agreement with a syndicate of banks that provides for a $1.0 billion unsecured revolving line of credit that matures on May 13, 2030. On June 5, 2026, we amended our credit agreement to provide for the issuance of a $1.5 billion unsecured term loan that was borrowed in full on June 5, 2026 and matures on May 15, 2028. The credit agreement also provides for an option for us to request additional incremental term loans and/or incremental increases to the revolving line of credit from time to time, in each case subject to the terms and conditions of the credit agreement. Borrowings under the credit agreement can be used for working capital and general corporate purposes and may also be used for the refinancing of existing debt, acquisitions, and the repurchase of our common stock. Principal on the te …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables provide information about disaggregated revenue by primary geographical market: Quarter Ended June 30, 2026 Scores Software Total Percentage (Dollars in thousands) Americas ( * ) $ 457,267 $ 154,667 $ 611,934 91 % Europe, Middle East and Africa 1,072 40,351 41,423 6 % Asia Pacific 558 20,273 20,831 3 % Total $ 458,897 $ 215,291 $ 674,188 100 % (*) Americas revenue included U.S. revenue of $552.4 million for the quarter ended June 30, 2026. Quarter Ended June 30, 2025 Scores Software Total Percentage (Dollars in thousands) Americas ( * ) $ 321,154 $ 149,003 $ 470,157 87 % Europe, Middle East and Africa 1,553 39,844 41,397 8 % Asia Pacific 1,602 23,259 24,861 5 % Total $ 324,309 $ 212,106 $ 536,415 100 % (*) Americas revenue included U.S. revenue of $422.7 million for the quarter ended June 30, 2025. Nine Months Ended June 30, 2026 Scores Software Total Percentage (Dollars in thousands) Americas ( * ) $ 1,230,488 $ 456,745 $ 1,687,233 90 % Europe, Middle East and Africa 5,281 122,471 127,752 7 % Asia Pacific 2,635 60,204 62,839 3 % Total $ 1,238,404 $ 639,420 $ 1,877,824 100 % (*) Americas revenue included U.S. revenue of $1.5 billion for the nine months ended June 30, 2026. Nine Months Ended June 30, 2025 Scores Software Total Percentage (Dollars in thousands) Americas ( * ) $ 846,102 $ 432,932 $ 1,279,034 87 % Europe, Middle East and Africa 5,097 116,059 121,156 8 % Asia Pacific 5,824 69,104 74,928 5 % Total $ 857,023 $ 618,095 $ 1,475,118 100 % (*) Ameri …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Fair Value Measurements Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. Level 1 uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. Our Level 1 assets were comprised of bank time deposits and certain marketable securities and our Level 1 liabilities included senior notes as of June 30, 2026 and September 30, 2025. Level 2 uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data. We did not have any assets or liabilities that are valued using inputs identified under a Level 2 hierarchy as of June 30, 2026 and September 30, 2025. …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes Effective Tax Rate The effective income tax rate was 24.6% and 23.3% during the quarters ended June 30, 2026 and 2025, respectively, and 23.5% and 17.2% during the nine months ended June 30, 2026 and 2025, respectively. The provision for income taxes during interim quarterly reporting periods is based on our estimates of the effective tax rates for the full fiscal year. The effective tax rate in any quarter can also be affected positively or negatively by adjustments that are required to be reported in the specific quarter of resolution. The One Big Beautiful Bill Act (OBBBA) of 2025 was signed into law on July 4, 2025. Included among the provisions is the ability to immediately expense domestic research and experimental (R&E) expenditures, as well as an election to accelerate any unamortized domestic R&E expenditures over a one- or two-year period. Both provisions are effective for FICO in fiscal 2026. The impacts of the OBBBA were reflected in FICOs results for the nine months ended June 30, 2026. The total unrecognized tax benefit for uncertain tax positions was estimated to be $23.2 million and $19.5 million at June 30, 2026 and September 30, 2025, respectively. We recognize interest expense related to unrecognized tax benefits and penalties as part of the provision for income taxes in our condensed consolidated statements of income and comprehensive income. We accrued interest of $2.9 million and $1.9 million related to unrecognized tax benefits as o …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Contingencies We are in disputes with certain customers regarding amounts owed in connection with the sale of certain of our products and services. We also have had claims asserted by former employees relating to compensation and other employment matters. We are also involved in various other claims and legal actions arising in the ordinary course of business. We record litigation accruals for legal matters which are both probable and estimable. For legal proceedings for which there is a reasonable possibility of loss (meaning those losses for which the likelihood is more than remote but less than probable), we have determined we do not have a material exposure, either individually or in the aggregate.

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New Accounting Pronouncements Recent Accounting Pronouncements Not Yet Adopted In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires disaggregated information about a reporting entitys effective tax rate reconciliation as well as disaggregated information on income tax paid. The standard is effective for fiscal years beginning after December 15, 2024, which means that it will be effective for our annual periods beginning with the fiscal year ending September 30, 2026. We are currently evaluating the impact that the updated standard will have on our disclosures within our consolidated financial statements. In November 2024, the FASB issued ASU No. 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). ASU 2024-03 requires disaggregated disclosure of certain income statement expenses an entity presents on the face of the income statement into specified categories in disclosures within the footnotes to the financial statements, including employee compensation, depreciation, intangible asset amortization, and certain other expenses, when applicable. The standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, whi …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Revenue from Contracts with Customers Disaggregation of Revenue The following tables provide information about disaggregated revenue by primary geographical market: Quarter Ended June 30, 2026 Scores Software Total Percentage (Dollars in thousands) Americas ( * ) $ 457,267 $ 154,667 $ 611,934 91 % Europe, Middle East and Africa 1,072 40,351 41,423 6 % Asia Pacific 558 20,273 20,831 3 % Total $ 458,897 $ 215,291 $ 674,188 100 % (*) Americas revenue included U.S. revenue of $552.4 million for the quarter ended June 30, 2026. Quarter Ended June 30, 2025 Scores Software Total Percentage (Dollars in thousands) Americas ( * ) $ 321,154 $ 149,003 $ 470,157 87 % Europe, Middle East and Africa 1,553 39,844 41,397 8 % Asia Pacific 1,602 23,259 24,861 5 % Total $ 324,309 $ 212,106 $ 536,415 100 % (*) Americas revenue included U.S. revenue of $422.7 million for the quarter ended June 30, 2025. Nine Months Ended June 30, 2026 Scores Software Total Percentage (Dollars in thousands) Americas ( * ) $ 1,230,488 $ 456,745 $ 1,687,233 90 % Europe, Middle East and Africa 5,281 122,471 127,752 7 % Asia Pacific 2,635 60,204 62,839 3 % Total $ 1,238,404 $ 639,420 $ 1,877,824 100 % (*) Americas revenue included U.S. revenue of $1.5 billion for the nine months ended June 30, 2026. Nine Months Ended June 30, 2025 Scores Software Total Percentage (Dollars in thousands) Americas ( * ) $ 846,102 $ 432,932 $ 1,279,034 87 % Europe, Middle East and Africa 5,097 116,059 121,156 8 % Asia Pacific 5,824 69,104 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Information We are organized into two reportable segments: Scores and Software. Although we sell solutions and services to a large number of end user product and industry markets, our reportable business segments reflect the primary method in which management organizes and evaluates internal financial information to make operating decisions and assess performance. Scores. This segment includes our business-to-business (B2B) scoring solutions and services which give our clients access to predictive credit and other scores that can be easily integrated into their transaction streams and decision-making processes. This segment also includes our business-to-consumer (B2C) scoring solutions, including our myFICO.com subscription offerings. Software . This segment includes pre-configured analytic and decision management solutions designed for a specific type of business need or process such as account origination, customer management, customer engagement, fraud detection, and marketing as well as associated professional services. This segment also includes 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 our customers to address a wide variety of business use cases. These offerings are available to our customers as SaaS or as on-premises software. Our chief operating decision maker (CODM), who is our Chief Executive Officer, evaluates se …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing