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NEW YORK - Analytics software leader FICO (NYSE:FICO), currently trading at $1,736.16 with impressive gross profit margins of 82.23%, announced Thursday a strategic partnership with financial data network Plaid to develop an enhanced version of the UltraFICO Score that incorporates cash flow data into credit assessments.
The collaboration aims to combine FICO's credit scoring expertise with Plaid's real-time financial data from over 12,000 financial institutions to create a more comprehensive consumer risk assessment tool for lenders. This strategic move aligns with FICO's strong financial health, rated "GREAT" according to InvestingPro metrics.
The enhanced UltraFICO Score will analyze money flowing into and out of consumers' transaction accounts, including checking, savings, and money market accounts, through Plaid's consumer-permissioned data network. According to the press release, Plaid facilitates nearly 1 million secure financial connections daily.
"By bringing together FICO's trusted credit score intelligence with Plaid's cash flow data, we're creating the foundation for more comprehensive lending decisions," said Julie May, vice president and general manager of B2B Scores at FICO.
The companies stated the new scoring solution will maintain alignment with the traditional FICO Score scale used by 90% of top U.S. lenders, while offering streamlined implementation and universal compatibility across different channels.
Adam Yoxtheimer, head of partnerships at Plaid, noted that "high-quality cash flow data is becoming essential for lenders who want a more comprehensive view of a consumer's financial picture."
The partnership builds on FICO's previous work with cash flow scoring in the initial UltraFICO Score release. The enhanced version will be distributed through Plaid Check, Plaid's Consumer Reporting Agency.
According to the announcement, the solution is designed to help lenders make more inclusive credit decisions while minimizing operational complexity in implementation.
In other recent news, Fair Isaac Corporation reported its fourth-quarter earnings for 2025, significantly surpassing analysts' expectations. The company achieved an earnings per share (EPS) of $7.74, exceeding the forecasted $7.34. Additionally, revenues reached $516 million, higher than the anticipated $513.21 million. This robust performance was largely driven by growth in Fair Isaac's Scores segment and strategic innovations. Meanwhile, the company repurchased approximately $550 million in shares during the fourth quarter, setting a new quarterly record for share repurchases. Analyst firms have adjusted their price targets following these results; BMO Capital lowered its target to $2,200 while maintaining an Outperform rating, and Jefferies reduced its target to $2,100, continuing with a Buy rating. Goldman Sachs has reiterated a Buy rating with a $2,070 price target, highlighting the potential approval of the FICO 10T credit score model by the Federal Housing Finance Agency as a positive development for Fair Isaac. These recent developments reflect ongoing analyst confidence in the company's competitive position and financial performance.
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