Analysis for FICO

📈 Growth & Financial Trajectory

Over the eight quarters, revenues rose from about $453.8M in 2024 Q4 to about $674.2M in 2026 Q3, a gain of roughly 48%. Net income grew from about $135.7M to $237.2M, up roughly 75%, signaling improving profitability despite quarterly fluctuations. The trend shows sustained top-line momentum and earnings expansion into 2026, with a mild pullback only in late 2025 before resuming growth.

💰 Margins & Cash Flow

Gross margins remained high, ranging roughly from 83% to 96%, peaking near 96% in early 2025 and stabilizing around the 82-87% band thereafter. Operating margins tracked strongly, often in the 40-50%+ range, with a peak around 58% in 2026 Q2. Cash flow from operations stayed positive every quarter, delivering sizable liquidity; financing activities caused cash-flow swings in several quarters.

🛡️ Balance Sheet & Liquidity

Assets ($2.04B total) are exceeded by liabilities ($6.13B), yielding negative equity (around -$4.10B by 2026 Q3). Current assets ($0.88B) vs current liabilities ($0.75B) provide a modest cushion, and operating cash flow remains a key resilience driver. Substantial long-term debt (~$5.58B) elevates leverage risk.

⚠️ Key Drivers & Risks

• Drivers: High-margin model; strong demand for analytics/credit-scoring insights.
• Risks: Persistent negative equity and high leverage; quarterly cash-flow sensitivity to financing activities.