Fair Isaac (FICO): High-Margin Scores Franchise With Structural Pricing Power & Deep Benchmark Entrenchment Are Driving Their Moat!

Fair Isaac Corporation (FICO) presented an earnings report for the fourth quarter of 2025 that highlights both the strengths and challenges facing the company. Revenues for the quarter reached $516 million, a 14% increase compared to the previous year, and for the full fiscal year, revenues totaled $1.991 billion, up 16% year-over-year. In their software segment, revenues were $204 million, with a mixed outlook. While platform revenues grew by 17%, non-platform revenues saw a 7% decline due to legacy product retirements and timing issues. This segment’s annual revenues were $822 million, marking a modest 3% growth. The slow growth and decline in non-platform revenues highlight a challenge for FICO in transitioning clients from legacy products to newer, platform-based services. Conversely, the scores segment performed robustly with $312 million in quarterly revenues, a 25% increase from the prior year, heavily driven by B2B scores. Annual scores revenues reached $1.