📊 FICO Key Takeaways
Is Fair Isaac Corp. (FICO) a Good Investment?
FICO demonstrates exceptional operational performance with a 52.9% operating margin, 35.1% net margin, and earnings growth (27.1% YoY) significantly outpacing revenue growth (15.9% YoY). The company generates robust free cash flow ($397M annually, 33% FCF margin) with 10.5x interest coverage. However, negative stockholders' equity of -$2.1B and liabilities ($4.1B) exceeding assets ($2.0B) reflect an aggressive capital structure dependent on sustained operational cash generation.
FICO shows high-quality fundamental performance with double-digit revenue growth, faster net income growth, and exceptional operating and free cash flow margins. The business appears highly scalable and efficient, but the balance sheet is aggressive, with negative equity, heavy long-term debt, and only moderate interest coverage limiting the rating from a stronger level.
Why Buy Fair Isaac Corp. Stock? FICO Key Strengths
- Exceptional profitability with 52.9% operating margin and 35.1% net margin indicating pricing power and operational efficiency
- Strong earnings growth (27.1% YoY) exceeding revenue growth, demonstrating margin expansion and operational leverage
- Excellent free cash flow generation ($397M, 33% FCF margin) with near-complete conversion of operating cash flow to free cash flow
- Adequate liquidity and debt servicing capability with 2.22x current ratio and 10.5x interest coverage ratio
- Strong top-line and bottom-line growth, with revenue up 15.9% and net income up 27.1% YoY
- Exceptional profitability, including 45.7% operating margin, 30.9% net margin, and 34.0% free cash flow margin
- Very low capital intensity, allowing most operating cash flow to convert into free cash flow
FICO Stock Risks: Fair Isaac Corp. Investment Risks
- Negative stockholders' equity (-$2.1B) indicates highly leveraged balance sheet with liabilities significantly exceeding assets, limiting financial flexibility
- Total debt ($3.6B long-term) is 180% of total assets, creating vulnerability to operational disruptions or market stress
- Capital structure dependent on continuous strong cash generation with limited equity cushion; any operational deterioration would strain financial viability
- Insider activity elevated at 10 Form 4 filings in 90 days, potentially indicating trading by informed parties amid structural concerns
- Negative stockholders equity and $3.20B of long-term debt indicate an aggressive capital structure
- Interest coverage of 3.8x is adequate but not especially strong for a leveraged company
- Liquidity is somewhat tight, with current and quick ratios both at 0.93x
Key Metrics to Watch
- Operating cash flow sustainability and FCF margin maintenance (currently 33%)
- Revenue growth trajectory and operating margin stability (monitor for compression)
- Long-term debt reduction progress and interest coverage ratio sustainability
- Interest coverage and total debt reduction progress
- Sustained revenue growth and free cash flow conversion
Fair Isaac Corp. (FICO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 33.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.22x current ratio provides a solid financial cushion.
FICO Profit Margin, ROE & Profitability Analysis
FICO vs Services Sector: How Fair Isaac Corp. Compares
How Fair Isaac Corp. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Fair Isaac Corp. Stock Overvalued? FICO Valuation Analysis 2026
Based on fundamental analysis, Fair Isaac Corp. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Fair Isaac Corp. Balance Sheet: FICO Debt, Cash & Liquidity
FICO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Fair Isaac Corp.'s revenue has grown significantly by 51% over the 5-year period, indicating strong business expansion. The most recent EPS of $16.93 reflects profitable operations.
FICO Revenue Growth, EPS Growth & YoY Performance
FICO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $498.7M | $162.6M | $6.59 |
| Q1 2026 | $440.0M | $152.5M | $6.14 |
| Q3 2025 | $447.8M | $126.3M | $5.05 |
| Q2 2025 | $433.8M | $129.8M | $5.16 |
| Q1 2025 | $382.1M | $121.1M | $4.80 |
| Q3 2024 | $398.7M | $126.3M | $5.05 |
| Q2 2024 | $380.3M | $101.6M | $4.00 |
| Q1 2024 | $344.9M | $97.6M | $3.84 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Fair Isaac Corp. Dividends, Buybacks & Capital Allocation
FICO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Fair Isaac Corp. (CIK: 0000814547)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FICO
What is the AI rating for FICO?
Fair Isaac Corp. (FICO) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FICO's key strengths?
Claude: Exceptional profitability with 52.9% operating margin and 35.1% net margin indicating pricing power and operational efficiency. Strong earnings growth (27.1% YoY) exceeding revenue growth, demonstrating margin expansion and operational leverage. ChatGPT: Strong top-line and bottom-line growth, with revenue up 15.9% and net income up 27.1% YoY. Exceptional profitability, including 45.7% operating margin, 30.9% net margin, and 34.0% free cash flow margin.
What are the risks of investing in FICO?
Claude: Negative stockholders' equity (-$2.1B) indicates highly leveraged balance sheet with liabilities significantly exceeding assets, limiting financial flexibility. Total debt ($3.6B long-term) is 180% of total assets, creating vulnerability to operational disruptions or market stress. ChatGPT: Negative stockholders equity and $3.20B of long-term debt indicate an aggressive capital structure. Interest coverage of 3.8x is adequate but not especially strong for a leveraged company.
What is FICO's revenue and growth?
Fair Isaac Corp. reported revenue of $1.2B.
Does FICO pay dividends?
Fair Isaac Corp. does not currently pay dividends.
Where can I find FICO SEC filings?
Official SEC filings for Fair Isaac Corp. (CIK: 0000814547) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FICO's EPS?
Fair Isaac Corp. has a diluted EPS of $17.73.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FICO a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Fair Isaac Corp. has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is FICO stock overvalued or undervalued?
Valuation metrics for FICO: ROE of N/A (sector avg: 16%), net margin of 35.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy FICO stock in 2026?
Our dual AI analysis gives Fair Isaac Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is FICO's free cash flow?
Fair Isaac Corp.'s operating cash flow is $397.4M, with capital expenditures of $492.0K. FCF margin is 33.0%.
How does FICO compare to other Services stocks?
Vs Services sector averages: Net margin 35.1% (avg: 10%), ROE N/A (avg: 16%), current ratio 2.22 (avg: 1.5).