FICOFair Isaac

$1,132.42

Is the business good?

How good a business is FICO?

Fair Isaac earns 79% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.

79%

Return on invested capital · cost of capital 9.0% · 70 points above what the capital costs: growth creates value

Operating margin
52%

Operating margin · Software - Application median 8.2% · 12 months to Q3 2026

Cash conversion
1.22×

Cash conversion · 1.23× a year ago · every dollar of reported profit arrived as cash, and more

Share count, year on year
−7.6%

Share count, year on year · bought back, each share owns more of the company

Operating margin by fiscal year
YearOperating margin
FY202023%
FY202138%
FY202239%
FY202342%
FY202443%
FY202546%
Details
Gross margin12 months to Q3 2026
85%
Operating margin12 months to Q3 2026
52%
Net margin12 months to Q3 2026
34%
Free cash flow margin
42%
R&D as % of revenue
8.7%
Revenue, trailing twelve months
$2.39B
Free cash flow, trailing twelve months
$996M
Net income, trailing twelve months
$815M
Return on invested capitaloperating profit after tax ÷ debt + equity − cash
79%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.