Stocks / FICO
Fair Isaac Corp.'s 10-K, read.
Bob rates Fair Isaac Corp. (FICO) 72/100, bullish, on the 10-K filed November 7, 2025, updated through the 10-Q filed July 29, 2026.
FICO is a high-quality analytics software business with strong revenue growth and dominant market position in credit scoring, but faces significant leverage strain from aggressive acquisition financing and share buybacks that have created a negative stockholders' deficit exceeding $4 billion as of Q3 FY2026.
- Leverage has surged to unsustainable levels: long-term debt reached $5.3B (up from $2.7B in nine months), with negative stockholders' equity of $4.1B; covenant ratios approaching 4.5x maximum through end of 2026
- Heavy reliance on three consumer reporting agencies (Equifax, Experian, TransUnion) for 60% of revenues in 9M FY2026, up from 51% in prior year—contract renegotiations or terminations would materially impair business
- Active antitrust litigation in Northern District of Illinois alleging Sherman Act Section 2 violations; court allowed claims to proceed past dismissal stage in November 2024
- Aggressive capital allocation: $3.1B in share repurchases in 9M FY2026 plus $1.5B accelerated share repurchase agreement; cash generation may not support both debt service and buyback commitments
- Scores segment revenue growth (45% YoY to $1.24B in 9M FY2026) appears driven by one-time or unsustainable pricing rather than volume gains; B2B scores grew 54% but composition shift raises sustainability questions
Not investment advice — general research, the same for every reader. You make your own calls.
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Read FICO in Bob →Last read October 1, 2026. Bob's Research is a financial publisher, not an investment adviser. Everything here is general research and education — not personalized advice, and not a recommendation to buy or sell any security. Ratings are the same for every reader. You make your own calls.