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Investing.com -- Fair Isaac Corporation (NYSE:FICO), the analytics software leader known for its credit scoring system, reported third quarter fiscal 2025 results that exceeded analyst expectations, with revenue growing 20% compared to the same period last year.
The company posted adjusted earnings per share of $8.57, significantly above the analyst estimate of $7.68. Revenue reached $536 million, surpassing the consensus estimate of $515.33 million. The company’s shares remained flat following the announcement, as strong quarterly results were offset by cautious forward guidance.
FICO’s Scores segment, which includes business-to-business and business-to-consumer solutions, saw a 34% revenue increase to $324.3 million, driven primarily by a 42% jump in B2B revenue. Software (ETR:SOWGn) revenues increased 3% to $212.1 million.
"In our third fiscal quarter, we again delivered strong results with revenue growth of 20%, and even stronger earnings growth," said Will Lansing, chief executive officer. "We are pleased to announce that we are raising our full year guidance."
The company updated its fiscal 2025 guidance, projecting revenue of $1.98 billion, in line with analyst consensus. FICO now expects adjusted earnings per share of $29.15, slightly below the consensus estimate of $29.26.
Free cash flow for the quarter was $276.2 million, up from $205.7 million in the prior year period. Software Annual Recurring Revenue increased 4% YoY, with platform ARR growing 18% while non-platform ARR declined 2%.
FICO’s B2B revenue growth was primarily attributed to higher unit pricing, increased mortgage origination volumes, and a multi-year US license renewal for its insurance score product.
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