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Fair Isaac Misses EPS Expectations Despite Revenue Growth

Fair Isaac's first-quarter earnings showed revenue growth but fell below forecasts. Analysts expected an EPS of $6.09, yet actual earnings were $5.79. The company remains optimistic for the fiscal year ahead despite the earnings shortfall.

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AI Rating:   5

Earnings Per Share (EPS)
Fair Isaac reported an adjusted EPS of $5.79, which is lower than the analysts' estimate of $6.09. This indicates that while the company had positive year-over-year growth of 20%, it nonetheless fell short of market expectations, potentially impacting investor sentiment negatively.

Revenue Growth
The company achieved revenue of $440 million for Q1 2025, reflecting a solid 15% increase compared to the $382.1 million reported in the same period last year. However, this revenue figure was below the anticipated $452 million, suggesting that despite the growth, the performance did not meet market expectations.

Net Income
Fair Isaac's GAAP net income reached $152.5 million, a significant 26% increase from the $121.1 million earned in Q1 2024. This positive trend in net income can be seen as a strong indicator of the company's profitability, despite the overall mix of results.

Free Cash Flow (FCF)
The reported free cash flow was $186.8 million, which shows a remarkable increase of 55% from the previous year's $120.8 million. This highlights robust cash-generating capabilities and provides a buffer for the company's operational and growth initiatives.

Overall Company Performance and Outlook
Fair Isaac has demonstrated significant growth metrics year-over-year, yet the missed EPS and revenue forecasts might lead to mixed reactions in the market. Management's guidance for double-digit growth in revenue and earnings for the fiscal year remains optimistic. Investors must keep an eye on how effectively the company can leverage its core business strengths while transitioning to the FICO Platform and addressing competition in the analytics space.

Stocks:  FICO