fico-20240331
00008145479/302024Q2false00008145472023-10-012024-03-3100008145472024-04-12xbrli:shares00008145472024-03-31iso4217:USD00008145472023-09-30iso4217:USDxbrli:shares0000814547fico:OnPremisesAndSaaSSoftwareMember2024-01-012024-03-310000814547fico:OnPremisesAndSaaSSoftwareMember2023-01-012023-03-310000814547fico:OnPremisesAndSaaSSoftwareMember2023-10-012024-03-310000814547fico:OnPremisesAndSaaSSoftwareMember2022-10-012023-03-310000814547us-gaap:TechnologyServiceMember2024-01-012024-03-310000814547us-gaap:TechnologyServiceMember2023-01-012023-03-310000814547us-gaap:TechnologyServiceMember2023-10-012024-03-310000814547us-gaap:TechnologyServiceMember2022-10-012023-03-310000814547fico:ScoresProductsMember2024-01-012024-03-310000814547fico:ScoresProductsMember2023-01-012023-03-310000814547fico:ScoresProductsMember2023-10-012024-03-310000814547fico:ScoresProductsMember2022-10-012023-03-3100008145472024-01-012024-03-3100008145472023-01-012023-03-3100008145472022-10-012023-03-310000814547us-gaap:CommonStockMember2023-12-310000814547us-gaap:AdditionalPaidInCapitalMember2023-12-310000814547us-gaap:TreasuryStockCommonMember2023-12-310000814547us-gaap:RetainedEarningsMember2023-12-310000814547us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-3100008145472023-12-310000814547us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310000814547us-gaap:CommonStockMember2024-01-012024-03-310000814547us-gaap:TreasuryStockCommonMember2024-01-012024-03-310000814547us-gaap:RetainedEarningsMember2024-01-012024-03-310000814547us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310000814547us-gaap:CommonStockMember2024-03-310000814547us-gaap:AdditionalPaidInCapitalMember2024-03-310000814547us-gaap:TreasuryStockCommonMember2024-03-310000814547us-gaap:RetainedEarningsMember2024-03-310000814547us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310000814547us-gaap:CommonStockMember2022-12-310000814547us-gaap:AdditionalPaidInCapitalMember2022-12-310000814547us-gaap:TreasuryStockCommonMember2022-12-310000814547us-gaap:RetainedEarningsMember2022-12-310000814547us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-3100008145472022-12-310000814547us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310000814547us-gaap:CommonStockMember2023-01-012023-03-310000814547us-gaap:TreasuryStockCommonMember2023-01-012023-03-310000814547us-gaap:RetainedEarningsMember2023-01-012023-03-310000814547us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310000814547us-gaap:CommonStockMember2023-03-310000814547us-gaap:AdditionalPaidInCapitalMember2023-03-310000814547us-gaap:TreasuryStockCommonMember2023-03-310000814547us-gaap:RetainedEarningsMember2023-03-310000814547us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-3100008145472023-03-310000814547us-gaap:CommonStockMember2023-09-300000814547us-gaap:AdditionalPaidInCapitalMember2023-09-300000814547us-gaap:TreasuryStockCommonMember2023-09-300000814547us-gaap:RetainedEarningsMember2023-09-300000814547us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300000814547us-gaap:AdditionalPaidInCapitalMember2023-10-012024-03-310000814547us-gaap:CommonStockMember2023-10-012024-03-310000814547us-gaap:TreasuryStockCommonMember2023-10-012024-03-310000814547us-gaap:RetainedEarningsMember2023-10-012024-03-310000814547us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-10-012024-03-310000814547us-gaap:CommonStockMember2022-09-300000814547us-gaap:AdditionalPaidInCapitalMember2022-09-300000814547us-gaap:TreasuryStockCommonMember2022-09-300000814547us-gaap:RetainedEarningsMember2022-09-300000814547us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-3000008145472022-09-300000814547us-gaap:AdditionalPaidInCapitalMember2022-10-012023-03-310000814547us-gaap:CommonStockMember2022-10-012023-03-310000814547us-gaap:TreasuryStockCommonMember2022-10-012023-03-310000814547us-gaap:RetainedEarningsMember2022-10-012023-03-310000814547us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-012023-03-31fico:country0000814547us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000814547us-gaap:FairValueMeasurementsRecurringMember2024-03-310000814547us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000814547us-gaap:FairValueMeasurementsRecurringMember2023-09-300000814547fico:ForeignExchangeContractsToSellEuropeanEuroForUnitedStatesDollarMemberus-gaap:NondesignatedMemberus-gaap:ShortMemberus-gaap:ForeignExchangeForwardMember2024-03-31iso4217:EUR0000814547fico:ForeignExchangeContractsToSellEuropeanEuroForUnitedStatesDollarMember2024-03-310000814547us-gaap:NondesignatedMemberfico:ForeignExchangeContractsToPurchaseBritishPoundsWithUnitedStatesDollarsMemberus-gaap:ShortMemberus-gaap:ForeignExchangeForwardMember2024-03-31iso4217:GBP0000814547fico:ForeignExchangeContractsToPurchaseBritishPoundsWithUnitedStatesDollarsMember2024-03-310000814547us-gaap:NondesignatedMemberfico:ForeignExchangeContractsToPurchaseSingaporeDollarsWithUnitedStatesDollarsMemberDomainus-gaap:ShortMemberus-gaap:ForeignExchangeForwardMember2024-03-31iso4217:SGD0000814547fico:ForeignExchangeContractsToPurchaseSingaporeDollarsWithUnitedStatesDollarsMemberDomain2024-03-310000814547fico:ForeignExchangeContractsToSellEuropeanEuroForUnitedStatesDollarMemberus-gaap:NondesignatedMemberus-gaap:ShortMemberus-gaap:ForeignExchangeForwardMember2023-09-300000814547fico:ForeignExchangeContractsToSellEuropeanEuroForUnitedStatesDollarMember2023-09-300000814547us-gaap:NondesignatedMemberfico:ForeignExchangeContractsToPurchaseBritishPoundsWithUnitedStatesDollarsMemberus-gaap:ShortMemberus-gaap:ForeignExchangeForwardMember2023-09-300000814547fico:ForeignExchangeContractsToPurchaseBritishPoundsWithUnitedStatesDollarsMember2023-09-300000814547us-gaap:NondesignatedMemberfico:ForeignExchangeContractsToPurchaseSingaporeDollarsWithUnitedStatesDollarsMemberDomainus-gaap:ShortMemberus-gaap:ForeignExchangeForwardMember2023-09-300000814547fico:ForeignExchangeContractsToPurchaseSingaporeDollarsWithUnitedStatesDollarsMemberDomain2023-09-300000814547us-gaap:ForeignExchangeForwardMember2024-03-310000814547us-gaap:ForeignExchangeForwardMember2023-09-300000814547us-gaap:ForeignExchangeForwardMember2024-01-012024-03-310000814547us-gaap:ForeignExchangeForwardMember2023-01-012023-03-310000814547us-gaap:ForeignExchangeForwardMember2023-10-012024-03-310000814547us-gaap:ForeignExchangeForwardMember2022-10-012023-03-310000814547fico:ScoresMember2023-09-300000814547fico:SoftwareMember2023-09-300000814547fico:ScoresMember2023-10-012024-03-310000814547fico:SoftwareMember2023-10-012024-03-310000814547fico:ScoresMember2024-03-310000814547fico:SoftwareMember2024-03-310000814547us-gaap:MachineryAndEquipmentMember2024-03-310000814547us-gaap:MachineryAndEquipmentMember2023-09-300000814547us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2024-03-310000814547us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2023-09-300000814547us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2024-03-310000814547us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2023-09-300000814547us-gaap:LoansPayableMemberus-gaap:RevolvingCreditFacilityMember2024-03-310000814547us-gaap:LoansPayableMemberus-gaap:RevolvingCreditFacilityMember2023-09-300000814547us-gaap:SeniorNotesMemberfico:SeniorNotesMayTwentyEighteenMember2024-03-310000814547us-gaap:SeniorNotesMemberfico:SeniorNotesMayTwentyEighteenMember2023-09-300000814547fico:SeniorNotes2019And2021Memberus-gaap:SeniorNotesMember2024-03-310000814547fico:SeniorNotes2019And2021Memberus-gaap:SeniorNotesMember2023-09-300000814547us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2018-05-080000814547us-gaap:LoansPayableMemberus-gaap:RevolvingCreditFacilityMember2021-10-2000008145472018-05-082018-05-080000814547us-gaap:LoansPayableMemberus-gaap:RevolvingCreditFacilityMember2021-10-202021-10-200000814547us-gaap:FederalFundsEffectiveSwapRateMemberus-gaap:RevolvingCreditFacilityMember2018-05-082018-05-08xbrli:pure0000814547us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:RevolvingCreditFacilityMember2018-05-082018-05-080000814547us-gaap:BaseRateMembersrt:MinimumMember2018-05-082018-05-080000814547srt:MaximumMemberus-gaap:BaseRateMember2018-05-082018-05-080000814547srt:MinimumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2018-05-082018-05-080000814547srt:MaximumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2018-05-082018-05-0800008145472018-05-080000814547us-gaap:SeniorNotesMemberfico:SeniorNotesMayTwentyEighteenMember2018-05-080000814547us-gaap:SeniorNotesMemberfico:SeniorNotesMayTwentyEighteenMember2018-05-082018-05-080000814547fico:SeniorNotesDecemberSix2019Memberus-gaap:SeniorNotesMember2019-12-060000814547fico:SeniorNotesDecemberSix2019Memberus-gaap:SeniorNotesMember2019-12-062019-12-060000814547fico:SeniorNotesDecember2021Memberus-gaap:SeniorNotesMember2021-12-170000814547fico:SeniorNotesDecember2021Memberus-gaap:SeniorNotesMember2021-12-172021-12-170000814547us-gaap:SeniorNotesMember2024-03-310000814547us-gaap:SeniorNotesMember2023-09-300000814547fico:ScoresMembersrt:AmericasMember2024-01-012024-03-310000814547fico:SoftwareMembersrt:AmericasMember2024-01-012024-03-310000814547srt:AmericasMember2024-01-012024-03-310000814547srt:AmericasMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-01-012024-03-310000814547fico:ScoresMemberus-gaap:EMEAMember2024-01-012024-03-310000814547fico:SoftwareMemberus-gaap:EMEAMember2024-01-012024-03-310000814547us-gaap:EMEAMember2024-01-012024-03-310000814547us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:EMEAMember2024-01-012024-03-310000814547fico:ScoresMembersrt:AsiaPacificMember2024-01-012024-03-310000814547fico:SoftwareMembersrt:AsiaPacificMember2024-01-012024-03-310000814547srt:AsiaPacificMember2024-01-012024-03-310000814547srt:AsiaPacificMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-01-012024-03-310000814547fico:ScoresMember2024-01-012024-03-310000814547fico:SoftwareMember2024-01-012024-03-310000814547us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-01-012024-03-310000814547fico:ScoresMembersrt:AmericasMember2023-01-012023-03-310000814547fico:SoftwareMembersrt:AmericasMember2023-01-012023-03-310000814547srt:AmericasMember2023-01-012023-03-310000814547srt:AmericasMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-03-310000814547fico:ScoresMemberus-gaap:EMEAMember2023-01-012023-03-310000814547fico:SoftwareMemberus-gaap:EMEAMember2023-01-012023-03-310000814547us-gaap:EMEAMember2023-01-012023-03-310000814547us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:EMEAMember2023-01-012023-03-310000814547fico:ScoresMembersrt:AsiaPacificMember2023-01-012023-03-310000814547fico:SoftwareMembersrt:AsiaPacificMember2023-01-012023-03-310000814547srt:AsiaPacificMember2023-01-012023-03-310000814547srt:AsiaPacificMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-03-310000814547fico:ScoresMember2023-01-012023-03-310000814547fico:SoftwareMember2023-01-012023-03-310000814547us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-03-310000814547fico:ScoresMembersrt:AmericasMember2023-10-012024-03-310000814547fico:SoftwareMembersrt:AmericasMember2023-10-012024-03-310000814547srt:AmericasMember2023-10-012024-03-310000814547srt:AmericasMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-10-012024-03-310000814547fico:ScoresMemberus-gaap:EMEAMember2023-10-012024-03-310000814547fico:SoftwareMemberus-gaap:EMEAMember2023-10-012024-03-310000814547us-gaap:EMEAMember2023-10-012024-03-310000814547us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:EMEAMember2023-10-012024-03-310000814547fico:ScoresMembersrt:AsiaPacificMember2023-10-012024-03-310000814547fico:SoftwareMembersrt:AsiaPacificMember2023-10-012024-03-310000814547srt:AsiaPacificMember2023-10-012024-03-310000814547srt:AsiaPacificMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-10-012024-03-310000814547us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-10-012024-03-310000814547fico:ScoresMembersrt:AmericasMember2022-10-012023-03-310000814547fico:SoftwareMembersrt:AmericasMember2022-10-012023-03-310000814547srt:AmericasMember2022-10-012023-03-310000814547srt:AmericasMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2022-10-012023-03-310000814547fico:ScoresMemberus-gaap:EMEAMember2022-10-012023-03-310000814547fico:SoftwareMemberus-gaap:EMEAMember2022-10-012023-03-310000814547us-gaap:EMEAMember2022-10-012023-03-310000814547us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:EMEAMember2022-10-012023-03-310000814547fico:ScoresMembersrt:AsiaPacificMember2022-10-012023-03-310000814547fico:SoftwareMembersrt:AsiaPacificMember2022-10-012023-03-310000814547srt:AsiaPacificMember2022-10-012023-03-310000814547srt:AsiaPacificMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2022-10-012023-03-310000814547fico:ScoresMember2022-10-012023-03-310000814547fico:SoftwareMember2022-10-012023-03-310000814547us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2022-10-012023-03-310000814547fico:SoftwareMemberfico:OnPremisesProductsMember2024-01-012024-03-310000814547fico:SoftwareMemberfico:OnPremisesProductsMember2023-01-012023-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:OnPremisesProductsMemberus-gaap:RevenueFromContractWithCustomerMember2024-01-012024-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:OnPremisesProductsMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-03-310000814547fico:SoftwareMemberfico:OnPremisesProductsMember2023-10-012024-03-310000814547fico:SoftwareMemberfico:OnPremisesProductsMember2022-10-012023-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:OnPremisesProductsMemberus-gaap:RevenueFromContractWithCustomerMember2023-10-012024-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:OnPremisesProductsMemberus-gaap:RevenueFromContractWithCustomerMember2022-10-012023-03-310000814547fico:SoftwareMemberfico:SaaSProductsMember2024-01-012024-03-310000814547fico:SoftwareMemberfico:SaaSProductsMember2023-01-012023-03-310000814547us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberfico:SaaSProductsMember2024-01-012024-03-310000814547us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberfico:SaaSProductsMember2023-01-012023-03-310000814547fico:SoftwareMemberfico:SaaSProductsMember2023-10-012024-03-310000814547fico:SoftwareMemberfico:SaaSProductsMember2022-10-012023-03-310000814547us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberfico:SaaSProductsMember2023-10-012024-03-310000814547us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberfico:SaaSProductsMember2022-10-012023-03-310000814547fico:SoftwareMemberfico:OnPremisesAndSaaSSoftwareMember2024-01-012024-03-310000814547fico:SoftwareMemberfico:OnPremisesAndSaaSSoftwareMember2023-01-012023-03-310000814547us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-01-012024-03-310000814547us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-03-310000814547fico:SoftwareMemberfico:OnPremisesAndSaaSSoftwareMember2023-10-012024-03-310000814547fico:SoftwareMemberfico:OnPremisesAndSaaSSoftwareMember2022-10-012023-03-310000814547us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-10-012024-03-310000814547us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2022-10-012023-03-310000814547fico:SoftwareMemberfico:PlatformSoftwareMember2024-01-012024-03-310000814547fico:SoftwareMemberfico:PlatformSoftwareMember2023-01-012023-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:PlatformSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2024-01-012024-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:PlatformSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-03-310000814547fico:SoftwareMemberfico:PlatformSoftwareMember2023-10-012024-03-310000814547fico:SoftwareMemberfico:PlatformSoftwareMember2022-10-012023-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:PlatformSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2023-10-012024-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:PlatformSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2022-10-012023-03-310000814547fico:SoftwareMemberfico:NonPlatformSoftwareMember2024-01-012024-03-310000814547fico:SoftwareMemberfico:NonPlatformSoftwareMember2023-01-012023-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:NonPlatformSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2024-01-012024-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:NonPlatformSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-03-310000814547fico:SoftwareMemberfico:NonPlatformSoftwareMember2023-10-012024-03-310000814547fico:SoftwareMemberfico:NonPlatformSoftwareMember2022-10-012023-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:NonPlatformSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2023-10-012024-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:NonPlatformSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2022-10-012023-03-310000814547fico:SoftwareMemberus-gaap:TransferredAtPointInTimeMemberfico:OnPremisesAndSaaSSoftwareMember2024-01-012024-03-310000814547fico:SoftwareMemberus-gaap:TransferredAtPointInTimeMemberfico:OnPremisesAndSaaSSoftwareMember2023-01-012023-03-310000814547us-gaap:ProductConcentrationRiskMemberus-gaap:TransferredAtPointInTimeMemberfico:OnPremisesAndSaaSSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2024-01-012024-03-310000814547us-gaap:ProductConcentrationRiskMemberus-gaap:TransferredAtPointInTimeMemberfico:OnPremisesAndSaaSSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-03-310000814547fico:SoftwareMemberus-gaap:TransferredAtPointInTimeMemberfico:OnPremisesAndSaaSSoftwareMember2023-10-012024-03-310000814547fico:SoftwareMemberus-gaap:TransferredAtPointInTimeMemberfico:OnPremisesAndSaaSSoftwareMember2022-10-012023-03-310000814547us-gaap:ProductConcentrationRiskMemberus-gaap:TransferredAtPointInTimeMemberfico:OnPremisesAndSaaSSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2023-10-012024-03-310000814547us-gaap:ProductConcentrationRiskMemberus-gaap:TransferredAtPointInTimeMemberfico:OnPremisesAndSaaSSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2022-10-012023-03-310000814547us-gaap:TransferredOverTimeMemberfico:SoftwareMemberfico:OnPremisesAndSaaSSoftwareMember2024-01-012024-03-310000814547us-gaap:TransferredOverTimeMemberfico:SoftwareMemberfico:OnPremisesAndSaaSSoftwareMember2023-01-012023-03-310000814547us-gaap:TransferredOverTimeMemberus-gaap:ProductConcentrationRiskMemberfico:OnPremisesAndSaaSSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2024-01-012024-03-310000814547us-gaap:TransferredOverTimeMemberus-gaap:ProductConcentrationRiskMemberfico:OnPremisesAndSaaSSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-03-310000814547us-gaap:TransferredOverTimeMemberfico:SoftwareMemberfico:OnPremisesAndSaaSSoftwareMember2023-10-012024-03-310000814547us-gaap:TransferredOverTimeMemberfico:SoftwareMemberfico:OnPremisesAndSaaSSoftwareMember2022-10-012023-03-310000814547us-gaap:TransferredOverTimeMemberus-gaap:ProductConcentrationRiskMemberfico:OnPremisesAndSaaSSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2023-10-012024-03-310000814547us-gaap:TransferredOverTimeMemberus-gaap:ProductConcentrationRiskMemberfico:OnPremisesAndSaaSSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2022-10-012023-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:OnPremisesAndSaaSSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2024-01-012024-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:OnPremisesAndSaaSSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:OnPremisesAndSaaSSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2023-10-012024-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:OnPremisesAndSaaSSoftwareMemberus-gaap:RevenueFromContractWithCustomerMember2022-10-012023-03-310000814547fico:BusinessToBusinessScoresMemberfico:ScoresMember2024-01-012024-03-310000814547fico:BusinessToBusinessScoresMemberfico:ScoresMember2023-01-012023-03-310000814547fico:BusinessToBusinessScoresMemberus-gaap:ProductConcentrationRiskMemberfico:ScoresMemberus-gaap:RevenueFromContractWithCustomerMember2024-01-012024-03-310000814547fico:BusinessToBusinessScoresMemberus-gaap:ProductConcentrationRiskMemberfico:ScoresMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-03-310000814547fico:BusinessToBusinessScoresMemberfico:ScoresMember2023-10-012024-03-310000814547fico:BusinessToBusinessScoresMemberfico:ScoresMember2022-10-012023-03-310000814547fico:BusinessToBusinessScoresMemberus-gaap:ProductConcentrationRiskMemberfico:ScoresMemberus-gaap:RevenueFromContractWithCustomerMember2023-10-012024-03-310000814547fico:BusinessToBusinessScoresMemberus-gaap:ProductConcentrationRiskMemberfico:ScoresMemberus-gaap:RevenueFromContractWithCustomerMember2022-10-012023-03-310000814547fico:ScoresMemberfico:BusinessToConsumerScoresMember2024-01-012024-03-310000814547fico:ScoresMemberfico:BusinessToConsumerScoresMember2023-01-012023-03-310000814547fico:BusinessToConsumerScoresMemberus-gaap:ProductConcentrationRiskMemberfico:ScoresMemberus-gaap:RevenueFromContractWithCustomerMember2024-01-012024-03-310000814547fico:BusinessToConsumerScoresMemberus-gaap:ProductConcentrationRiskMemberfico:ScoresMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-03-310000814547fico:ScoresMemberfico:BusinessToConsumerScoresMember2023-10-012024-03-310000814547fico:ScoresMemberfico:BusinessToConsumerScoresMember2022-10-012023-03-310000814547fico:BusinessToConsumerScoresMemberus-gaap:ProductConcentrationRiskMemberfico:ScoresMemberus-gaap:RevenueFromContractWithCustomerMember2023-10-012024-03-310000814547fico:BusinessToConsumerScoresMemberus-gaap:ProductConcentrationRiskMemberfico:ScoresMemberus-gaap:RevenueFromContractWithCustomerMember2022-10-012023-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:ScoresMemberus-gaap:RevenueFromContractWithCustomerMember2024-01-012024-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:ScoresMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:ScoresMemberus-gaap:RevenueFromContractWithCustomerMember2023-10-012024-03-310000814547us-gaap:ProductConcentrationRiskMemberfico:ScoresMemberus-gaap:RevenueFromContractWithCustomerMember2022-10-012023-03-310000814547us-gaap:CustomerConcentrationRiskMemberfico:TransUnionEquifaxAndExperianCustomersMemberus-gaap:RevenueFromContractWithCustomerMember2024-01-012024-03-310000814547us-gaap:CustomerConcentrationRiskMemberfico:TransUnionEquifaxAndExperianCustomersMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-03-310000814547us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-01-012024-03-31fico:Segment0000814547us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-03-310000814547us-gaap:CustomerConcentrationRiskMemberfico:TransUnionEquifaxAndExperianCustomersMemberus-gaap:RevenueFromContractWithCustomerMember2023-10-012024-03-310000814547us-gaap:CustomerConcentrationRiskMemberfico:TransUnionEquifaxAndExperianCustomersMemberus-gaap:RevenueFromContractWithCustomerMember2022-10-012023-03-310000814547us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-10-012024-03-310000814547us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2022-10-012023-03-310000814547us-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2024-03-31fico:customer0000814547us-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2023-09-300000814547srt:MinimumMember2023-10-012024-03-310000814547srt:MaximumMember2023-10-012024-03-3100008145472024-04-012024-03-310000814547us-gaap:OperatingSegmentsMemberfico:ScoresMemberfico:OnPremisesAndSaaSSoftwareMember2024-01-012024-03-310000814547us-gaap:OperatingSegmentsMemberfico:SoftwareMemberfico:OnPremisesAndSaaSSoftwareMember2024-01-012024-03-310000814547us-gaap:TechnologyServiceMemberus-gaap:OperatingSegmentsMemberfico:ScoresMember2024-01-012024-03-310000814547us-gaap:TechnologyServiceMemberus-gaap:OperatingSegmentsMemberfico:SoftwareMember2024-01-012024-03-310000814547us-gaap:OperatingSegmentsMemberfico:ScoresMemberfico:ScoresProductsMember2024-01-012024-03-310000814547us-gaap:OperatingSegmentsMemberfico:SoftwareMemberfico:ScoresProductsMember2024-01-012024-03-310000814547us-gaap:OperatingSegmentsMemberfico:ScoresMember2024-01-012024-03-310000814547us-gaap:OperatingSegmentsMemberfico:SoftwareMember2024-01-012024-03-310000814547us-gaap:CorporateNonSegmentMember2024-01-012024-03-310000814547us-gaap:OperatingSegmentsMember2024-01-012024-03-310000814547us-gaap:OperatingSegmentsMemberfico:ScoresMemberfico:OnPremisesAndSaaSSoftwareMember2023-01-012023-03-310000814547us-gaap:OperatingSegmentsMemberfico:SoftwareMemberfico:OnPremisesAndSaaSSoftwareMember2023-01-012023-03-310000814547us-gaap:TechnologyServiceMemberus-gaap:OperatingSegmentsMemberfico:ScoresMember2023-01-012023-03-310000814547us-gaap:TechnologyServiceMemberus-gaap:OperatingSegmentsMemberfico:SoftwareMember2023-01-012023-03-310000814547us-gaap:OperatingSegmentsMemberfico:ScoresMemberfico:ScoresProductsMember2023-01-012023-03-310000814547us-gaap:OperatingSegmentsMemberfico:SoftwareMemberfico:ScoresProductsMember2023-01-012023-03-310000814547us-gaap:OperatingSegmentsMemberfico:ScoresMember2023-01-012023-03-310000814547us-gaap:OperatingSegmentsMemberfico:SoftwareMember2023-01-012023-03-310000814547us-gaap:CorporateNonSegmentMember2023-01-012023-03-310000814547us-gaap:OperatingSegmentsMember2023-01-012023-03-310000814547us-gaap:OperatingSegmentsMemberfico:ScoresMemberfico:OnPremisesAndSaaSSoftwareMember2023-10-012024-03-310000814547us-gaap:OperatingSegmentsMemberfico:SoftwareMemberfico:OnPremisesAndSaaSSoftwareMember2023-10-012024-03-310000814547us-gaap:OperatingSegmentsMemberfico:OnPremisesAndSaaSSoftwareMember2023-10-012024-03-310000814547us-gaap:TechnologyServiceMemberus-gaap:OperatingSegmentsMemberfico:ScoresMember2023-10-012024-03-310000814547us-gaap:TechnologyServiceMemberus-gaap:OperatingSegmentsMemberfico:SoftwareMember2023-10-012024-03-310000814547us-gaap:OperatingSegmentsMemberus-gaap:TechnologyServiceMember2023-10-012024-03-310000814547us-gaap:OperatingSegmentsMemberfico:ScoresMemberfico:ScoresProductsMember2023-10-012024-03-310000814547us-gaap:OperatingSegmentsMemberfico:SoftwareMemberfico:ScoresProductsMember2023-10-012024-03-310000814547us-gaap:OperatingSegmentsMemberfico:ScoresProductsMember2023-10-012024-03-310000814547us-gaap:OperatingSegmentsMemberfico:ScoresMember2023-10-012024-03-310000814547us-gaap:OperatingSegmentsMemberfico:SoftwareMember2023-10-012024-03-310000814547us-gaap:CorporateNonSegmentMember2023-10-012024-03-310000814547us-gaap:OperatingSegmentsMember2023-10-012024-03-310000814547us-gaap:OperatingSegmentsMemberfico:ScoresMemberfico:OnPremisesAndSaaSSoftwareMember2022-10-012023-03-310000814547us-gaap:OperatingSegmentsMemberfico:SoftwareMemberfico:OnPremisesAndSaaSSoftwareMember2022-10-012023-03-310000814547us-gaap:OperatingSegmentsMemberfico:OnPremisesAndSaaSSoftwareMember2022-10-012023-03-310000814547us-gaap:TechnologyServiceMemberus-gaap:OperatingSegmentsMemberfico:ScoresMember2022-10-012023-03-310000814547us-gaap:TechnologyServiceMemberus-gaap:OperatingSegmentsMemberfico:SoftwareMember2022-10-012023-03-310000814547us-gaap:OperatingSegmentsMemberus-gaap:TechnologyServiceMember2022-10-012023-03-310000814547us-gaap:OperatingSegmentsMemberfico:ScoresMemberfico:ScoresProductsMember2022-10-012023-03-310000814547us-gaap:OperatingSegmentsMemberfico:SoftwareMemberfico:ScoresProductsMember2022-10-012023-03-310000814547us-gaap:OperatingSegmentsMemberfico:ScoresProductsMember2022-10-012023-03-310000814547us-gaap:OperatingSegmentsMemberfico:ScoresMember2022-10-012023-03-310000814547us-gaap:OperatingSegmentsMemberfico:SoftwareMember2022-10-012023-03-310000814547us-gaap:CorporateNonSegmentMember2022-10-012023-03-310000814547us-gaap:OperatingSegmentsMember2022-10-012023-03-31
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 (Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File Number 1-11689  
Fair Isaac Corporation
(Exact name of registrant as specified in its charter) 
Delaware94-1499887
(State or other jurisdiction of(I.R.S. Employer
incorporation or organization)Identification No.)
5 West Mendenhall, Suite 10559715
Bozeman,Montana
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: 406-982-7276  
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareFICONew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large accelerated filerAccelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


Table of Contents
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
No
The number of shares of common stock outstanding on April 12, 2024 was 24,710,938 (excluding 64,145,845 shares held by us as treasury stock).


Table of Contents
TABLE OF CONTENTS
 
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
 


i

Table of Contents
PART I – FINANCIAL INFORMATION
Item 1. Unaudited Financial Statements
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, 2024September 30, 2023
 (In thousands, except par value data)
Assets
Current assets:
Cash and cash equivalents$135,667 $136,778 
Accounts receivable, net469,025 387,947 
Prepaid expenses and other current assets36,780 31,723
Total current assets641,472 556,448
Marketable securities41,407 33,014
Other investments1,252 1,223 
Property and equipment, net27,224 10,966 
Operating lease right-of-use assets28,283 25,703 
Goodwill776,376 773,327 
Intangible assets, net367 917 
Deferred income taxes72,249 59,136 
Other assets 114,487 114,547 
Total assets$1,703,117 $1,575,281 
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable$18,835 $19,009 
Accrued compensation and employee benefits68,805 102,471 
Other accrued liabilities68,936 59,478 
Deferred revenue143,544 136,730 
Current maturities on debt15,000 50,000 
Total current liabilities315,120 367,688 
Long-term debt 2,028,652 1,811,658 
Operating lease liabilities20,558 23,903 
Other liabilities74,447 60,022 
Total liabilities2,438,777 2,263,271 
Commitments and contingencies
Stockholders’ deficit:
Preferred stock ($0.01 par value; 1,000 shares authorized; none issued and outstanding)
  
Common stock ($0.01 par value; 200,000 shares authorized, 88,857 shares issued and 24,753 and 24,770 shares outstanding at March 31, 2024 and September 30, 2023, respectively)
248 248 
Additional paid-in-capital1,281,577 1,350,713 
Treasury stock, at cost (64,104 and 64,087 shares at March 31, 2024 and September 30, 2023, respectively)
(5,558,809)(5,324,865)
Retained earnings3,638,923 3,388,059 
Accumulated other comprehensive loss(97,599)(102,145)
Total stockholders’ deficit(735,660)(687,990)
Total liabilities and stockholders’ deficit$1,703,117 $1,575,281 
See accompanying notes.
1

Table of Contents
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)

 Quarter Ended March 31,Six Months Ended March 31,
 2024202320242023
 (In thousands, except per share data)
Revenues:
On-premises and SaaS software$177,180 $154,584 $345,848 $299,144 
Professional services19,744 27,175 41,023 49,497 
Scores236,885 198,507 428,997 376,495 
Total revenues433,809 380,266 815,868 725,136 
Operating expenses:
Cost of revenues86,946 79,806 170,407 156,375 
Research and development40,880 40,266 83,515 76,899 
Selling, general and administrative110,867 100,158 215,196 193,153 
Amortization of intangible assets275 275 550 550 
Gain on product line asset sale   (1,941)
Total operating expenses238,968 220,505 469,668 425,036 
Operating income194,841 159,761 346,200 300,100 
Interest expense, net(26,093)(23,897)(50,255)(46,697)
Other income, net3,986 1,605 7,379 1,969 
Income before income taxes172,734 137,469 303,324 255,372 
Provision for income taxes42,935 35,919 52,460 56,179 
Net income129,799 101,550 250,864 199,193 
Other comprehensive income (loss):
Foreign currency translation adjustments(4,157)6,552 4,546 24,933 
Comprehensive income$125,642 $108,102 $255,410 $224,126 
Earnings per share:
Basic$5.23 $4.04 $10.12 $7.94 
Diluted$5.16 $4.00 $9.96 $7.83 
Shares used in computing earnings per share:
Basic24,819 25,116 24,791 25,080 
Diluted25,154 25,419 25,186 25,431 

See accompanying notes.

2

Table of Contents
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
(Unaudited)
Common StockAdditional
Paid-in-Capital
Treasury StockRetained EarningsAccumulated Other
Comprehensive Loss
Total
Stockholders’ Deficit
(In thousands) SharesPar Value
Balance at December 31, 202324,879 $249 $1,239,131 $(5,380,827)$3,509,124 $(93,442)$(725,765)
Share-based compensation— — 35,448 — — — 35,448 
Issuance of treasury stock under employee stock plans18  6,998 1,566 — — 8,564 
Repurchases of common stock(144)(1)— (179,548)— — (179,549)
Net income— — — — 129,799 — 129,799 
Foreign currency translation adjustments— — — — — (4,157)(4,157)
Balance at March 31, 202424,753 $248 $1,281,577 $(5,558,809)$3,638,923 $(97,599)$(735,660)
Common StockAdditional
Paid-in-Capital
Treasury StockRetained EarningsAccumulated Other
Comprehensive Loss
Total
Stockholders’ Deficit
(In thousands) SharesPar Value
Balance at December 31, 202225,155 $252 $1,244,271 $(4,996,624)$3,056,327 $(106,321)$(802,095)
Share-based compensation— — 27,053 — — — 27,053 
Issuance of treasury stock under employee stock plans32  9,946 2,468 — — 12,414 
Repurchases of common stock(171)(2)— (116,265)— — (116,267)
Net income— — — — 101,550 — 101,550 
Foreign currency translation adjustments— — — — — 6,552 6,552 
Balance at March 31, 202325,016 $250 $1,281,270 $(5,110,421)$3,157,877 $(99,769)$(770,793)
Common StockAdditional
Paid-in-Capital
Treasury StockRetained EarningsAccumulated Other
Comprehensive Loss
Total
Stockholders’ Deficit
(In thousands) SharesPar Value
Balance at September 30, 202324,770 $248 $1,350,713 $(5,324,865)$3,388,059 $(102,145)$(687,990)
Share-based compensation— — 67,022 — — — 67,022 
Issuance of treasury stock under employee stock plans205 2 (136,158)17,307 — — (118,849)
Repurchases of common stock(222)(2)— (251,251)— — (251,253)
Net income— — — — 250,864 — 250,864 
Foreign currency translation adjustments— — — — — 4,546 4,546 
Balance at March 31, 202424,753 $248 $1,281,577 $(5,558,809)$3,638,923 $(97,599)$(735,660)
Common StockAdditional
Paid-in-Capital
Treasury StockRetained EarningsAccumulated Other
Comprehensive Loss
Total
Stockholders’ Deficit
(In thousands) SharesPar Value
Balance at September 30, 202225,154 $252 $1,299,588 $(4,935,769)$2,958,684 $(124,702)$(801,947)
Share-based compensation— — 56,755 — — — 56,755 
Issuance of treasury stock under employee stock plans212 2 (75,073)16,615 — — (58,456)
Repurchases of common stock(350)(4)— (191,267)— — (191,271)
Net income— — — — 199,193 — 199,193 
Foreign currency translation adjustments— — — — — 24,933 24,933 
Balance at March 31, 202325,016 $250 $1,281,270 $(5,110,421)$3,157,877 $(99,769)$(770,793)
See accompanying notes.
3

Table of Contents
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Six Months Ended March 31,
 20242023
 (In thousands)
Cash flows from operating activities:
Net income$250,864 $199,193 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization6,178 8,294 
Share-based compensation67,022 56,755 
Deferred income taxes(13,041)(18,360)
Net gain on marketable securities(6,727)(1,681)
Non-cash operating lease costs6,772 7,613 
Provision for doubtful accounts838 738 
Gain on product line asset sale (1,941)
Net loss on sales and abandonment of property and equipment408 24 
Changes in operating assets and liabilities:
Accounts receivable(72,661)(13,789)
Prepaid expenses and other assets(12,490)(17,078)
Accounts payable(579)(2,810)
Accrued compensation and employee benefits(34,170)(32,318)
Other liabilities(5,049)(2,425)
Deferred revenue5,790 29 
Net cash provided by operating activities 193,155 182,244 
Cash flows from investing activities:
Purchases of property and equipment(5,403)(2,377)
Capitalized internal-use software costs(5,380) 
Proceeds from sales of marketable securities15,571 4,631 
Purchases of marketable securities(16,828)(8,015)
Cash transferred, net of proceeds, from product line asset sale (6,126)
Net cash used in investing activities(12,040)(11,887)
Cash flows from financing activities:
Proceeds from revolving line of credit and term loan255,000 228,000 
Payments on revolving line of credit and term loan(74,500)(158,500)
Payments on finance leases(1,400) 
Proceeds from issuance of treasury stock under employee stock plans14,937 15,217 
Taxes paid related to net share settlement of equity awards(133,786)(73,672)
Repurchases of common stock(243,473)(184,290)
Net cash used in financing activities (183,222)(173,245)
Effect of exchange rate changes on cash996 7,457 
Increase (decrease) in cash and cash equivalents(1,111)4,569 
Cash and cash equivalents, beginning of period136,778 133,202 
Cash and cash equivalents, end of period$135,667 $137,771 
Supplemental disclosures of cash flow information:
Cash paid for income taxes, net of refunds of $320 and $548 during the six-month periods ended March 31, 2024 and 2023, respectively
$53,757 $72,800 
Cash paid for interest$50,331 $46,801 
Supplemental disclosures of non-cash investing and financing activities:
Purchase of property and equipment included in accounts payable$439 $9 
Unsettled repurchases of common stock$7,780 $6,981 
Finance lease obligations incurred$9,400 $ 

See accompanying notes.
4

Table of Contents
FAIR ISAAC CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Nature of Business
Fair Isaac Corporation
Fair Isaac Corporation (NYSE: FICO) (together with its consolidated subsidiaries, the “Company,” which may also be referred to in this report as “we,” “us,” “our,” or “FICO”) is a leading applied analytics company. We were founded in 1956 on the premise that data, used intelligently, can improve business decisions. Today, FICO’s software and the widely used FICO® Score operationalize analytics, enabling thousands of businesses in more than 100 countries to uncover new opportunities, make timely decisions that matter, and execute them at scale. Most leading banks and credit card issuers rely on our solutions, as do insurers, retailers, telecommunications providers, automotive lenders, consumer reporting agencies, public agencies, and organizations in other industries. We also serve consumers through online services that enable people to access and understand their FICO® Scores — the standard measure in the U.S. of consumer credit risk — empowering them to increase financial literacy and manage their financial health.
Principles of Consolidation and Basis of Presentation
We have prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with the instructions to Form 10-Q and the applicable accounting guidance. Consequently, we have not necessarily included all information and footnotes required for audited financial statements. In our opinion, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments, except as otherwise indicated) necessary for a fair presentation of our financial position and results of operations. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with our audited consolidated financial statements and notes thereto presented in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. The interim financial information contained in this report is not necessarily indicative of the results to be expected for any other interim period or for the entire fiscal year.
The condensed consolidated financial statements include the accounts of FICO and its subsidiaries. All intercompany accounts and transactions have been eliminated.
Use of Estimates
We make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the disclosures made in the accompanying notes. For example, we use estimates in determining the appropriate levels of various accruals; variable considerations included in the transaction price and standalone selling price of each performance obligation for our customer contracts; labor hours in connection with fixed-fee service contracts; the amount of our tax provision; and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and carrying values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Actual results may differ from our estimates.
New Accounting Pronouncements
Recent Accounting Pronouncements Adopted
In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”). ASU 2021-08 requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities from acquired contracts using the revenue recognition guidance under Accounting Standards Codification Topic 606, Revenue from Contacts with Customers, in order to align the recognition of a contract liability with the definition of a performance obligation. We adopted ASU 2021-08 in the first quarter of fiscal 2024 and the adoption did not have a significant impact on our condensed consolidated financial statements.
5

Table of Contents
Recent Accounting Pronouncements Not Yet Adopted
In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, which means that it will be effective for our annual periods beginning October 1, 2024, and our interim periods beginning October 1, 2025. Early adoption is permitted. We are currently evaluating the impact that the updated standard will have on our disclosures within our consolidated financial statements.
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as disaggregated information on income tax paid. The standard is effective for fiscal years beginning after December 15, 2024, which means that it will be effective for our fiscal years beginning October 1, 2025. Early adoption is permitted. We are currently evaluating the impact that the updated standard will have on our disclosures within our consolidated financial statements.
In March 2024, the Securities and Exchange Commission (“SEC”) issued Final Rule Release No. 33-11275, “The Enhancement and Standardization of Climate-Related Disclosures for Investors.” This rule will require registrants to provide certain climate disclosures in their annual reports, including certain climate-related financial metrics in their audited financial statements. The rule is effective for large accelerated filers beginning with annual reports for the fiscal year beginning in 2025, which means that it will be effective for our fiscal years beginning October 1, 2025. We are currently evaluating the impact that the final rule will have on our disclosures within our consolidated financial statements.
We do not expect that any other recently issued accounting pronouncements will have a significant effect on our consolidated financial statements.
2. Fair Value Measurements
Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities.
Level 1 — uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. Our Level 1 assets were comprised of money market funds and certain marketable securities and our Level 1 liabilities included senior notes as of March 31, 2024 and September 30, 2023.
Level 2 — uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data. We did not have any assets or liabilities that are valued using inputs identified under a Level 2 hierarchy as of March 31, 2024 and September 30, 2023.
Level 3 — uses one or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, and significant management judgment or estimation. We did not have any assets or liabilities that are valued using inputs identified under a Level 3 hierarchy as of March 31, 2024 and September 30, 2023.
6

Table of Contents
The following tables represent financial assets that we measured at fair value on a recurring basis at March 31, 2024 and September 30, 2023:
March 31, 2024Active Markets for
Identical Instruments
(Level 1)
Fair Value as of
March 31, 2024
(In thousands)
Assets:
Cash equivalents (1)
$19,165 $19,165 
Marketable securities (2)
41,407 41,407 
Total$60,572 $60,572 
September 30, 2023Active Markets for
Identical Instruments
(Level 1)
Fair Value as of September 30, 2023
(In thousands)
Assets:
Cash equivalents (1)
$23,621 $23,621 
Marketable securities (2)
33,014 33,014 
Total$56,635 $56,635 
(1)Included in cash and cash equivalents on our condensed consolidated balance sheets at March 31, 2024 and September 30, 2023. Not included in these tables are cash deposits of $116.5 million and $113.2 million at March 31, 2024 and September 30, 2023, respectively.
(2)Represents securities held under a supplemental retirement and savings plan for certain officers and senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheets at March 31, 2024 and September 30, 2023.
See Note 6 for the fair value of our senior notes.
There were no transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the quarters and six-month periods ended March 31, 2024 and 2023.
3. Derivative Financial Instruments
We use derivative instruments to manage risks caused by fluctuations in foreign exchange rates. The primary objective of our derivative instruments is to protect the value of foreign-currency-denominated receivable and cash balances from the effects of volatility in foreign exchange rates that might occur prior to conversion to their functional currencies. We principally utilize foreign currency forward contracts, which enable us to buy and sell foreign currencies in the future at fixed exchange rates and economically offset changes in foreign exchange rates. We routinely enter into contracts to offset exposures denominated in the British pound, Euro, and Singapore dollar.
Foreign currency-denominated receivable and cash balances are remeasured at foreign exchange rates in effect on the balance sheet date with the effects of changes in foreign exchange rates reported in other income, net. The forward contracts are not designated as hedges and are marked to market through other income, net. Fair value changes in the forward contracts help mitigate the changes in the value of the remeasured receivable and cash balances attributable to changes in foreign exchange rates. The forward contracts are short-term in nature and typically have average maturities at inception of less than three months.
7

Table of Contents
The following tables summarize our outstanding foreign currency forward contracts, by currency, at March 31, 2024 and September 30, 2023:
 March 31, 2024
 Contract AmountFair Value
 Foreign
Currency
USDUSD
 (In thousands)
Sell foreign currency:
Euro (EUR)EUR 9,000 $9,718 $ 
Buy foreign currency:
British pound (GBP)GBP 9,670 $12,200 $ 
Singapore dollar (SGD)SGD10,487 $7,800 $ 
 September 30, 2023
 Contract AmountFair Value
 Foreign
Currency
USDUSD
 (In thousands)
Sell foreign currency:
Euro (EUR)EUR 12,900 $13,621 $ 
Buy foreign currency:
British pound (GBP)GBP 10,700 $13,100 $ 
Singapore dollar (SGD)SGD8,569 $6,300 $ 
The foreign currency forward contracts were entered into on March 31, 2024 and September 30, 2023; therefore, their fair value was $0 on each of these dates.
Gains (losses) on derivative financial instruments were recorded in our condensed consolidated statements of income and comprehensive income as a component of other income, net, and consisted of the following: 
 Quarter Ended March 31,Six Months Ended March 31,
 2024202320242023
 (In thousands)
Gains (losses) on foreign currency forward contracts
$(180)$309 $361 $1,613 

4. Goodwill
The following table summarizes changes to goodwill during the six months ended March 31, 2024, both in total and as allocated to our segments. As of March 31, 2024, there was no accumulated goodwill impairment loss.
ScoresSoftwareTotal
 (In thousands)
Balance at September 30, 2023$146,648 $626,679 $773,327 
Foreign currency translation adjustment 3,049 3,049 
Balance at March 31, 2024$146,648 $629,728 $776,376 
    
8

Table of Contents
5. Composition of Certain Financial Statement Captions
The following table presents the composition of property and equipment, net and other accrued liabilities at March 31, 2024 and September 30, 2023:
March 31,
2024
September 30,
2023
 (In thousands)
Property and equipment, net:
       Property and equipment$99,269 $98,967 
       Internal-use software5,380  
       Less: accumulated depreciation and amortization(77,425)(88,001)
      Total$27,224 $10,966 
Other accrued liabilities:
Interest payable$21,384 $20,770 
Current operating leases14,586 16,336 
Other32,966 22,372 
     Total$68,936 $59,478 
6. Debt
The following table represents our debt at carrying value at March 31, 2024 and September 30, 2023:
March 31,
2024
September 30,
2023
(In thousands)
Current maturities on debt:
     Revolving line of credit$ $35,000 
     Term loan15,000 15,000 
          Current maturities on debt15,000 50,000 
Long-term debt:
     Revolving line of credit488,000 265,000 
     Term loan251,250 258,750 
     The 2018 Senior Notes400,000 400,000 
     The 2019 Senior Notes and the 2021 Senior Notes900,000 900,000 
      Less: debt issuance costs(10,598)(12,092)
           Long-term debt2,028,652 1,811,658 
           Total debt$2,043,652 $1,861,658 
9

Table of Contents
Revolving Line of Credit and Term Loan
We have a $600 million unsecured revolving line of credit and a $300 million unsecured term loan with a syndicate of banks that mature on August 19, 2026. Borrowings under the revolving line of credit and term loan can be used for working capital and general corporate purposes and may also be used for the refinancing of existing debt, acquisitions, and the repurchase of our common stock. The term loan requires principal payments in consecutive quarterly installments of $3.75 million on the last business day of each quarter. Interest rates on amounts borrowed under the revolving line of credit and term loan are based on (i) an adjusted base rate, which is the greatest of (a) the prime rate, (b) the Federal Funds rate plus 0.5%, and (c) one-month adjusted term Secured Overnight Financing Rate (“SOFR”) rate plus 1%, plus, in each case, an applicable margin, or (ii) an adjusted term SOFR rate plus an applicable margin. The applicable margin for base rate borrowings and for SOFR borrowings is determined based on our consolidated leverage ratio. The applicable margin for base rate borrowings ranges from 0% to 0.75% per annum and for SOFR borrowings ranges from 1% to 1.75% per annum. In addition, we must pay certain credit facility fees. The revolving line of credit and term loan contain certain restrictive covenants including a maximum consolidated leverage ratio of 3.5 to 1.0, subject to a step up to 4.0 to 1.0 following certain permitted acquisitions and subject to certain conditions, and a minimum interest coverage ratio of 3.0 to 1.0. The credit agreement also contains other covenants typical of unsecured credit facilities.
As of March 31, 2024, we had $488.0 million in borrowings outstanding under the revolving line of credit at a weighted-average interest rate of 6.673%, and $266.3 million in outstanding balance of the term loan at an interest rate of 6.674%. We were in compliance with all financial covenants under this credit agreement as of March 31, 2024.
Senior Notes
On May 8, 2018, we issued $400 million of senior notes in a private offering to qualified institutional investors (the “2018 Senior Notes”). The 2018 Senior Notes require interest payments semi-annually at a rate of 5.25% per annum and will mature on May 15, 2026.
On December 6, 2019, we issued $350 million of senior notes in a private offering to qualified institutional investors (the “2019 Senior Notes”). The 2019 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028.
On December 17, 2021, we issued $550 million of additional senior notes of the same class as the 2019 Senior Notes in a private offering to qualified institutional investors (the “2021 Senior Notes,” and collectively with the 2018 Senior Notes and the 2019 Senior Notes, the “Senior Notes”). The 2021 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028, the same date as the 2019 Senior Notes.
The indentures for the Senior Notes contain certain covenants typical of unsecured obligations and we were in compliance as of March 31, 2024.
The following table presents the face values and fair values for the Senior Notes at March 31, 2024 and September 30, 2023:
 March 31, 2024September 30, 2023
 Face ValueFair ValueFace ValueFair Value
 (In thousands)
The 2018 Senior Notes$400,000 $395,000 $400,000 $386,000 
The 2019 Senior Notes and the 2021 Senior Notes900,000 837,000 900,000 803,250 
       Total $1,300,000 $1,232,000 $1,300,000 $1,189,250 

10

Table of Contents
7. Revenue from Contracts with Customers
Disaggregation of Revenue
The following tables provide information about disaggregated revenue by primary geographical market:

Quarter Ended March 31, 2024
ScoresSoftwareTotalPercentage
(Dollars in thousands)
Americas$233,723 $130,294 $364,017 84 %
Europe, Middle East and Africa1,278 40,979 42,257 10 %
Asia Pacific1,884 25,651 27,535 6 %
      Total$236,885 $196,924 $433,809 100 %

Quarter Ended March 31, 2023
ScoresSoftwareTotalPercentage
(Dollars in thousands)
Americas$197,039 $121,264 $318,303 84 %
Europe, Middle East and Africa1,154 40,199 41,353 11 %
Asia Pacific314 20,296 20,610 5 %
      Total$198,507 $181,759 $380,266 100 %

Six Months Ended March 31, 2024
ScoresSoftwareTotalPercentage
(Dollars in thousands)
Americas$418,671 $263,856 $682,527 84 %
Europe, Middle East and Africa2,586 76,039 78,625 9 %
Asia Pacific7,740 46,976 54,716 7 %
      Total$428,997 $386,871 $815,868 100 %
Six Months Ended March 31, 2023
ScoresSoftwareTotalPercentage
(Dollars in thousands)
Americas$370,336 $239,094 $609,430 84 %
Europe, Middle East and Africa2,502 71,191 73,693 10 %
Asia Pacific3,657 38,356 42,013 6 %
      Total$376,495 $348,641 $725,136 100 %
The following table provides information about disaggregated revenue for our Software segment by deployment method:
Quarter Ended March 31,Percentage of revenuesSix Months Ended March 31,Percentage of revenues
20242023202420232024202320242023
(Dollars in thousands)
On-premises software$79,697 $73,473 45 %48 %$152,169 $138,395 44 %46 %
SaaS software97,483 81,111 55 %52 %193,679 160,749 56 %54 %
Total on-premises and SaaS software$177,180 $154,584 100 %100 %$345,848 $299,144 100 %100 %
11

Table of Contents
The following table provides information about disaggregated revenue for our Software segment by product features:
Quarter Ended March 31,Percentage of revenuesSix Months Ended March 31,Percentage of revenues
20242023202420232024202320242023
(Dollars in thousands)
Platform software$47,325 $38,682 27 %25 %$92,498 $69,510 27 %23 %
Non-platform software129,855 115,902 73 %75 %253,350 229,634 73 %77 %
Total on-premises and SaaS software$177,180 $154,584 100 %100 %$345,848 $299,144 100 %100 %
The following table provides information about disaggregated revenue for our Software segment by timing of revenue recognition:
Quarter Ended March 31,Percentage of revenuesSix Months Ended March 31,Percentage of revenues
20242023202420232024202320242023
(Dollars in thousands)
Software recognized at a point in time (1)
$20,177 $19,193 11 %12 %$33,959 $30,996 10 %10 %
Software recognized over contract term (2)
157,003 135,391 89 %88 %311,889 268,148 90 %90 %
Total on-premises and SaaS software$177,180 $154,584 100 %100 %$345,848 $299,144 100 %100 %
(1)Includes license portion of our on-premises subscription software and perpetual license, both of which are recognized when the software is made available to the customer, or at the start of the subscription.
(2)Includes maintenance portion and usage-based fees of our on-premises subscription software, maintenance revenue on perpetual licenses, as well as SaaS revenue.
The following table provides information about disaggregated revenue for our Scores segment by distribution method:

Quarter Ended March 31,Percentage of revenuesSix Months Ended March 31,Percentage of revenues
20242023202420232024202320242023
(Dollars in thousands)
Business-to-business Scores$185,508 $144,874 78 %73 %$325,950 $269,779 76 %72 %
Business-to-consumer Scores51,377 53,633 22 %27 %103,047 106,716 24 %28 %
     Total$236,885 $198,507 100 %100 %$428,997 $376,495 100 %100 %
We derive a substantial portion of revenues from our contracts with the three major consumer reporting agencies, TransUnion, Equifax and Experian. Revenues collectively generated by agreements with these customers accounted for 47% and 43% of our total revenues in the quarters ended March 31, 2024 and 2023, respectively, with all three consumer reporting agencies each contributing more than 10% of our total revenues in each of the quarters ended March 31, 2024 and 2023. Revenues collectively generated by agreements with these customers accounted for 43% and 40% of our total revenues in the six months ended March 31, 2024 and 2023, respectively, with three and two consumer reporting agencies each contributing more than 10% of our total revenues in the six months ended March 31, 2024 and 2023, respectively. At March 31, 2024 and September 30, 2023, two and one individual customers each accounted for 10% or more of total consolidated receivables, respectively.
Contract Balances
We record a receivable when we satisfy a performance obligation prior to invoicing if only the passage of time is required before payment is due or if we have an unconditional right to consideration before we satisfy a performance obligation. We record a contract asset when we satisfy a performance obligation prior to invoicing but our right to consideration is conditional. We record deferred revenue when the payment is made or due before we satisfy a performance obligation.
12

Table of Contents
Receivables at March 31, 2024 and September 30, 2023 consisted of the following: 
 March 31, 2024September 30, 2023
 (In thousands)
Billed$300,179 $234,745 
Unbilled213,023 203,896 
513,202 438,641 
Less: allowance for doubtful accounts(5,806)(4,978)
Net receivables507,396 433,663 
    Less: long-term receivables (*)(38,371)(45,716)
    Short-term receivables (*)$469,025 $387,947 
(*) Short-term receivables and long-term receivables were recorded in accounts receivable, net and other assets, respectively, within the accompanying condensed consolidated balance sheets.
Deferred revenue primarily relates to our maintenance and SaaS contracts billed annually in advance and generally recognized ratably over the term of the service period. Significant changes in the deferred revenues balances are as follows:
Six Months Ended  
March 31, 2024
(In thousands)
Deferred revenues, beginning balance (*)$143,235 
Revenue recognized that was included in the deferred revenues balance at the beginning of the period(102,063)
Increases due to billings, excluding amounts recognized as revenue during the period108,904 
Deferred revenues, ending balance (*)$150,076 
(*) Deferred revenues at March 31, 2024 included current portion of $143.6 million and long-term portion of $6.5 million that were recorded in deferred revenue and other liabilities, respectively, within the condensed consolidated balance sheets. Deferred revenues at September 30, 2023 included current portion of $136.7 million and long-term portion of $6.5 million that were recorded in deferred revenue and other liabilities, respectively, within the condensed consolidated balance sheets.
Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to provide customers with financing or to receive financing from our customers. Examples include multi-year on-premises licenses that are invoiced annually with revenue recognized upfront and invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period.
Performance Obligations
Revenue allocated to remaining performance obligations represents contracted revenue that will be recognized in future periods, which is comprised of deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This does not include:
Usage-based revenue that will be recognized in future periods from on-premises software subscriptions;
Consumption-based variable fees from SaaS software that will be recognized in the distinct service period during which it is earned; and
Revenue from variable considerations that will be recognized in accordance with the “right-to-invoice” practical expedient, such as fees from our professional services billed based on a time and materials basis.
Revenue allocated to remaining performance obligations was $481.7 million as of March 31, 2024, approximately 50% of which we expect to recognize over the next 16 months and the remainder thereafter. Revenue allocated to remaining performance obligations was $470.5 million as of September 30, 2023.
13

Table of Contents
8. Income Taxes
Effective Tax Rate
The effective income tax rate was 24.9% and 26.1% during the quarters ended March 31, 2024 and 2023, respectively, and 17.3% and 22.0% during the six months ended March 31, 2024 and 2023, respectively. The provision for income taxes during interim quarterly reporting periods is based on our estimates of the effective tax rates for the full fiscal year. The effective tax rate in any quarter can also be affected positively or negatively by adjustments that are required to be reported in the specific quarter of resolution.
A provision enacted as part of the 2022 Inflation Reduction Act imposes a 15% corporate minimum tax. The provision is effective for tax years beginning after December 31, 2022, which means that it was effective for our fiscal year beginning October 1, 2023. We do not expect any impact to our fiscal 2024 effective tax rate from the corporate minimum tax provision.
The total unrecognized tax benefit for uncertain tax positions was estimated to be $15.7 million and $13.8 million at March 31, 2024 and September 30, 2023, respectively. We recognize interest expense related to unrecognized tax benefits and penalties as part of the provision for income taxes in our condensed consolidated statements of income and comprehensive income. We accrued interest of $1.5 million and $0.9 million related to unrecognized tax benefits as of March 31, 2024 and September 30, 2023, respectively.
9. Earnings per Share
The following table presents reconciliations for the numerators and denominators of basic and diluted earnings per share (“EPS”) for the quarters and six-month periods ended March 31, 2024 and 2023: 
 Quarter Ended March 31,Six Months Ended March 31,
 2024202320242023
 (In thousands, except per share data)
Numerator for diluted and basic earnings per share:
Net income$129,799 $101,550 $250,864 $199,193 
Denominator — share:
Basic weighted-average shares24,819 25,116 24,791 25,080 
       Effect of dilutive securities335 303 395 351 
Diluted weighted-average shares25,154 25,419 25,186 25,431 
Earnings per share:
Basic$5.23 $4.04 $10.12 $7.94 
Diluted$5.16 $4.00 $9.96 $7.83 
Anti-dilutive share-based awards excluded from the calculations of diluted EPS were immaterial during the periods presented.
10. Segment Information
We are organized into two reportable segments: Scores and Software. Although we sell solutions and services to a large number of end user product and industry markets, our reportable business segments reflect the primary method in which management organizes and evaluates internal financial information to make operating decisions and assess performance.
Scores. This segment includes our business-to-business (“B2B”) scoring solutions and services which give our clients access to predictive credit and other scores that can be easily integrated into their transaction streams and decision-making processes. This segment also includes our business-to-consumer (“B2C”) scoring solutions, including our myFICO.com subscription offerings.
Software. This segment includes pre-configured analytic and decision management solutions designed for a specific type of business need or process — such as account origination, customer management, customer engagement, fraud detection, and marketing — as well as associated professional services. This segment also includes FICO® Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by our customers to address a wide variety of business use cases. These offerings are available to our customers as SaaS or as on-premises software.
14

Table of Contents
Our chief operating decision maker (“CODM”), who is our Chief Executive Officer, evaluates segment financial performance based on segment revenues and segment operating income. Segment operating expenses consist of direct and indirect costs principally related to personnel, facilities, IT infrastructure, consulting, travel and depreciation. Indirect costs are allocated to the segments generally based on relative segment revenues, fixed rates established by management based upon estimated expense contribution levels and other assumptions that management considers reasonable. We do not allocate broad-based incentive expense, share-based compensation expense, restructuring and acquisition-related expense, amortization expense, various corporate charges and certain other income and expense measures to our segments. These income and expense items are not allocated because they are not considered in evaluating the segment’s operating performance. Our CODM does not evaluate the financial performance of each segment based on its respective assets or capital expenditures; rather, depreciation amounts are allocated to the segments from their internal cost centers as described above.
The following tables summarize segment information for the quarters and six-month periods ended March 31, 2024 and 2023:
 Quarter Ended March 31, 2024
 ScoresSoftwareUnallocated
Corporate
Expenses
Total
 (In thousands)
Segment revenues:
On-premises and SaaS software$ $177,180 $— $177,180 
Professional services 19,744 — 19,744 
Scores236,885  — 236,885 
Total segment revenues236,885 196,924 — 433,809 
Segment operating expense(24,677)(132,762)(45,806)(203,245)
Segment operating income$212,208 $64,162 $(45,806)230,564 
Unallocated share-based compensation expense(35,448)
Unallocated amortization expense(275)
Operating income194,841 
Unallocated interest expense, net(26,093)
Unallocated other income, net3,986 
Income before income taxes$172,734 
Depreciation expense$107 $2,099 $16 $2,222 

 Quarter Ended March 31, 2023
 ScoresSoftwareUnallocated
Corporate
Expenses
Total
 (In thousands)
Segment revenues:
On-premises and SaaS software$ $154,584 $— $154,584 
Professional services 27,175 — 27,175 
Scores198,507  — 198,507 
Total segment revenues198,507 181,759 — 380,266 
Segment operating expense(23,102)(126,892)(43,183)(193,177)
Segment operating income$175,405 $54,867 $(43,183)187,089 
Unallocated share-based compensation expense(27,053)
Unallocated amortization expense(275)
Operating income159,761 
Unallocated interest expense, net(23,897)
Unallocated other income, net1,605 
Income before income taxes$137,469 
Depreciation expense$138 $2,723 $20 $2,881 
15

Table of Contents
 Six Months Ended March 31, 2024
 ScoresSoftwareUnallocated
Corporate
Expenses
Total
 (In thousands)
Segment revenues:
On-premises and SaaS software$ $345,848 $— $345,848 
Professional services 41,023 — 41,023 
Scores428,997  — 428,997 
Total segment revenues428,997 386,871 — 815,868 
Segment operating expense(48,135)(267,587)(86,374)(402,096)
Segment operating income$380,862 $119,284