FICO reported a net income of $175 million for the fiscal fourth quarter, up from $155 million in the same period last year. Earnings per share reached $8.12, compared to $6.42 previously. Adjusted earnings per share were $11.10, surpassing the analyst consensus of $10.69.
Quarterly revenue grew by 27% to $657 million, exceeding the expected $651.7 million. The credit score business saw a 33% revenue increase, while the business-facing scores segment grew by 39%. This growth was supported by higher pricing for mortgage origination scores, despite a general decline in mortgage originations.
The company is transitioning from a flat fee model for mortgage credit scores to customized pricing. This shift, combined with increased competition from VantageScore, has led FICO to withhold its 2027 financial guidance. The firm also faces pressure from regulators regarding its pricing practices, including a reported increase in wholesale royalties from 60 cents to $10 over five years.
Financial results were impacted by several non-recurring items, including a $65 million accrual for an antitrust lawsuit settlement, a $48 million gain from an equity investment sale, and a $27 million restructuring charge. Additionally, FICO announced plans in October to reduce its workforce by approximately 15%.
