FAIR ISAAC CORP
For the period ended Mar 31, 2025. Filed Apr 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 29, 2025
FICO$704.55-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-31; filed 2025-02-04.
0000814547-25-000008
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-29.
0000814547-25-000014
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 90 previous paragraphs and 105 current paragraphs.
55 unchanged; 30 reworded; 15 added; 5 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 9 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
•Operating income was $245.6 million during the quarter ended March 31, 2025, a 26% increase from the quarter ended March 31, 2024, and $425.2 million during the six months ended March 31, 2025, a 23% increase from the six months ended March 31, 2024.
Current report
•Cash flows from operating activities were $268.9 million during the six months ended March 31, 2025, compared with $193.2 million during the six months ended March 31, 2024.
Current report
Quarter Ended March 31, 2025 Compared to Quarter Ended March 31, 2024
Current report
Six Months Ended March 31, 2025 Compared to Six Months Ended March 31, 2024
Current report
Scores
Current report
Software
Current report
The quarter-over-prior year quarter increase in research and development expenses of $4.2 million was primarily attributable to a $2.0 million increase in outside services costs, a $1.2 million increase in infrastructure and facilities costs, and a $0.8 million increase in personnel and labor costs. The increase in outside services costs was primarily attributable to increased third-party contractor costs. The increase in infrastructure and facilities costs was primarily attributable to increased third-party data center hosting costs and software royalty fees. The increase in personnel and labor costs was primarily attributable to increased headcount. Research and development expenses as a percentage of revenues remained consistent at 9% during the quarters ended March 31, 2025 and 2024.
Current report
The year-to-date period-over-period increase in selling, general and administrative expenses of $33.2 million was primarily attributable to an $18.5 million increase in personnel and labor costs, a $10.3 million increase in advertising and other promotional costs, a $2.9 million increase in non-income tax costs, and a $1.3 million increase in travel costs. The increase in personnel and labor costs was primarily attributable to increased share-based compensation expense, increased headcount, market base-pay adjustments, incentive expense, and commission expense, partially offset by decreased fringe benefits costs related to our supplemental retirement and savings plan. The increase in advertising and other promotional expenses was primarily attributable to increased costs for advertising campaigns and corporate events. The increase in non-income tax costs was attributable to a tax law change related to transfer pricing, effective during the six months ended March 31, 2025, that impacted a non-U.S. subsidiary. The increase in travel costs was primarily attributable to promotional and corporate events. Selling, general and administrative expenses as a percentage of revenues decreased to 26% during the six months ended March 31, 2025 from 27% during the six months ended March 31, 2024.
Current report
Other Income (Expense), Net
Current report
Provision for Income Taxes
Current report
The quarter-over-prior year quarter decrease in Software segment operating income of $0.8 million was due to a $5.6 million increase in segment operating expenses, partially offset by a $4.8 million increase in segment revenue. Software segment operating income as a percentage of segment revenue decreased to 31% from 33%, primarily attributable to the increase in third-party data center hosting costs.
Current report
The year-to-date period-over-period increase of $79.0 million in operating income was primarily attributable to a $122.8 million increase in segment revenues and a $1.1 million decrease in corporate expenses, partially offset by a $30.1 million increase in segment operating expenses and a $15.3 million increase in share-based compensation cost.
Current report
At the segment level, the year-to-date period-over-period increase of $93.8 million in segment operating income was the result of an $87.9 million increase in our Scores segment operating income, a $4.8 million increase in our Software segment operating income, and a $1.1 million decrease in corporate expenses.
Current report
The year-to-date period-over-period $87.9 million increase in Scores segment operating income was attributable to a $103.7 million increase in segment revenue, partially offset by a $15.8 million increase in segment operating expenses. Scores segment operating income as a percentage of segment revenue was 88%, materially consistent with the six months ended March 31, 2024.
Current report
The year-to-date period-over-period $4.8 million increase in Software segment operating income was attributable to a $19.1 million increase in segment revenue, partially offset by a $14.3 million increase in segment operating expenses. Software segment operating income as a percentage of segment revenue was 31%, consistent with the six months ended March 31, 2024.
Removed paragraphs (5)
Previous report
•Operating income was $179.5 million during the quarter ended December 31, 2024, a 19% increase from the quarter ended December 31, 2023.
Previous report
•Cash flows from operating activities were $194.0 million during the quarter ended December 31, 2024, compared with $122.1 million during the quarter ended December 31, 2023.
Previous report
Other Income, Net
Previous report
Income Tax Provision (Benefit)
Previous report
The quarter-over-prior year quarter increase in Scores segment operating income of $35.1 million was due to a $43.6 million increase in segment revenue, partially offset by an $8.4 million increase in segment operating expenses. Segment operating income as a percentage of segment revenue for Scores decreased to 86% from 88%, primarily attributable to an increase in marketing expenses.
Reworded paragraphs (30)
Previous wording
Highlights from the quarter ended December 31, 2024
Current wording
Highlights from the quarter and six months ended March 31, 2025
Previous wording
•Total revenues were $440.0 million during the quarter ended December 31, 2024, a 15% increase from the quarter ended December 31, 2023.
Current wording
•Total revenues were $498.7 million during the quarter ended March 31, 2025, a 15% increase from the quarter ended March 31, 2024, and $938.7 million during the six months ended March 31, 2025, a 15% increase from the six months ended March 31, 2024.
Previous wording
•Revenues for our Scores segment were $235.7 million during the quarter ended December 31, 2024, a 23% increase from the quarter ended December 31, 2023.
Current wording
•Revenues for our Scores segment were $297.0 million during the quarter ended March 31, 2025, a 25% increase from the quarter ended March 31, 2024, and $532.7 million during the six months ended March 31, 2025, a 24% increase from the six months ended March 31, 2024.
Previous wording
•Annual Recurring Revenue for our Software segment as of December 31, 2024 was $729.3 million, a 6% increase from December 31, 2023.
Current wording
•Annual Recurring Revenue for our Software segment as of March 31, 2025 was $714.6 million, a 3% increase from March 31, 2024.
Previous wording
•Dollar-Based Net Retention Rate for our Software segment was 105% as of December 31, 2024.
Current wording
•Dollar-Based Net Retention Rate for our Software segment was 102% as of March 31, 2025.
Previous wording
•Net income was $152.5 million during the quarter ended December 31, 2024, a 26% increase from the quarter ended December 31, 2023.
Current wording
•Net income was $162.6 million during the quarter ended March 31, 2025, a 25% increase from the quarter ended March 31, 2024, and $315.1 million during the six months ended March 31, 2025, a 26% increase from the six months ended March 31, 2024.
Previous wording
•Diluted EPS was $6.14 during the quarter ended December 31, 2024, a 28% increase from the quarter ended December 31, 2023.
Current wording
•Diluted EPS was $6.59 during the quarter ended March 31, 2025, a 28% increase from the quarter ended March 31, 2024, and $12.73 during the six months ended March 31, 2025, a 28% increase from the six months ended March 31, 2024.
Previous wording
•Cash and cash equivalents were $184.3 million as of December 31, 2024, compared with $150.7 million as of September 30, 2024.
Current wording
•Cash and cash equivalents were $146.6 million as of March 31, 2025, compared with $150.7 million as of September 30, 2024.
Previous wording
•Total debt balance was $2.4 billion as of December 31, 2024, compared with $2.2 billion as of September 30, 2024.
Current wording
•Total debt balance was $2.5 billion as of March 31, 2025, compared with $2.2 billion as of September 30, 2024.
Previous wording
•Total share repurchases during the quarter ended December 31, 2024 were $159.7 million, compared with $71.7 million during the quarter ended December 31, 2023.
Current wording
•Total share repurchases during the quarter ended March 31, 2025 were $207.0 million, compared with $179.5 million during the quarter ended March 31, 2024, and during the six months ended March 31, 2025 were $366.8 million, compared with $251.3 million during the six months ended March 31, 2024.
Previous wording
The following tables set forth certain summary information on a segment basis related to our revenues for the quarters ended December 31, 2024 and 2023:
Current wording
The following tables set forth certain summary information on a segment basis related to our revenues for the quarters and six-month periods ended March 31, 2025 and 2024:
Previous wording
Scores segment revenues increased $43.6 million due to an increase of $42.0 million in our business-to-business scores revenue and an increase of $1.6 million in our business-to-consumer revenue. The increase in business-to-business scores revenue was primarily attributable to a higher unit price and an increase in volume of mortgage originations.
Current wording
Scores segment revenues increased $103.7 million due to an increase of $98.9 million in our business-to-business scores revenue and an increase of $4.8 million in our business-to-consumer revenue. The increase in business-to-business scores revenue was primarily attributable to a higher unit price and an increase in volume of mortgage originations. The increase in business-to-consumer revenue was primarily attributable to an increase in royalties derived from scores sold indirectly to consumers through credit reporting agencies.
Previous wording
Software segment revenues increased $14.3 million due to a $17.3 million increase in our on-premises and SaaS software revenue, partially offset by a $3.0 million decrease in professional services revenue. The increase in our on-premises and SaaS software revenue was primarily attributable to an increase in license revenue recognized at a point in time due to a large license renewal and an increase in revenue recognized over time largely driven by SaaS growth for our Platform products. The decrease in professional services revenue was primarily attributable to our strategy to emphasize higher-margin software over professional services.
Current wording
Software segment revenues increased $19.1 million due to a $24.0 million increase in our on-premises and SaaS software revenue, partially offset by a $4.9 million decrease in professional services revenue. The increase in our on-premises and SaaS software revenue was primarily attributable to an increase in license revenue recognized at a point in time due to a large license renewal and an increase in revenue recognized over time largely driven by SaaS growth for our Platform products.
Previous wording
The following tables set forth certain summary information related to our condensed consolidated statements of income and comprehensive income for the quarters ended December 31, 2024 and 2023:
Current wording
The following tables set forth certain summary information related to our condensed consolidated statements of income and comprehensive income for the quarters and six-month periods ended March 31, 2025 and 2024:
Previous wording
The quarter-over-prior year quarter increase in cost of revenues of $3.9 million was primarily attributable to a $2.9 million increase in infrastructure and facilities costs and a $0.9 million increase in personnel and labor costs. The increase in infrastructure and facilities costs was primarily attributable to an increase in third-party data center hosting costs and an increase in depreciation on data center computer hardware. The increase in personnel and labor costs was primarily attributable to increased incentive expense and increased share-based compensation expense. Cost of revenues as a percentage of revenues decreased to 20% during the quarter ended December 31, 2024 from 22% during the quarter ended December 31, 2023, primarily due to increased sales of our higher-margin Scores products and decreased sales of our lower-margin professional services.
Current wording
The quarter-over-prior year quarter increase in cost of revenues of $0.7 million was primarily attributable to a $2.2 million increase in infrastructure and facilities costs, partially offset by a $0.8 million decrease in personnel and labor costs. The increase in infrastructure and facilities costs was primarily attributable to an increase in third-party data center hosting costs. The decrease in personnel and labor costs was primarily attributable to decreased headcount. Cost of revenues as a percentage of revenues decreased to 18% during the quarter ended March 31, 2025 from 20% during the quarter ended March 31, 2024, primarily due to increased sales of our higher-margin Scores products.
Previous wording
The quarter-over-prior year quarter increase in research and development expenses of $2.5 million was primarily attributable to a $1.7 million increase in infrastructure and facilities costs primarily attributable to increased third-party data center hosting costs and software royalty fees and a $1.6 million increase in third-party contractor costs, partially offset by a $1.3 million decrease in personnel and labor costs. Research and development expenses as a percentage of revenues decreased to 10% during the quarter ended December 31, 2024 from 11% during the quarter ended December 31, 2023.
Current wording
The year-to-date period-over-period increase in research and development expenses of $6.7 million was primarily attributable to a $3.6 million increase in outside services costs and a $2.9 million increase in infrastructure and facilities costs. The increase in outside services costs was primarily attributable to increased third-party contractor costs. The increase in infrastructure and facilities costs was primarily attributable to increased third-party data center hosting costs and software royalty fees. Research and development expenses as a percentage of revenues remained consistent at 10% during the six months ended March 31, 2025 and 2024.
Previous wording
The quarter-over-prior year quarter increase in selling, general and administrative expenses of $23.6 million was primarily attributable to a $12.6 million increase in personnel and labor costs and a $10.2 million increase in advertising and other promotional expenses. The increase in personnel and labor costs was primarily attributable to increased share-based compensation expense, increased headcount, and market base-pay adjustments. The increase in advertising and other promotional expenses was primarily attributable to increased costs for corporate events and advertising campaigns. Selling, general and administrative expenses as a percentage of revenues increased to 29% during the quarter ended December 31, 2024 from 27% during the quarter ended December 31, 2023.
Current wording
The quarter-over-prior year quarter increase in selling, general and administrative expenses of $9.6 million was primarily attributable to a $5.9 million increase in personnel and labor costs and a $3.6 million increase in advertising and other promotional expenses. The increase in personnel and labor costs was primarily attributable to increased share-based compensation expense, increased headcount, and market base-pay adjustments, partially offset by decreased fringe benefit costs related to our supplemental retirement and savings plan. The increase in advertising and other promotional expenses was primarily attributable to increased costs for advertising campaigns. Selling, general and administrative expenses as a percentage of revenues decreased to 24% during the quarter ended March 31, 2025 from 26% during the quarter ended March 31, 2024.
Previous wording
Other income, net consists primarily of unrealized investment gains/losses and realized gains/losses on marketable securities classified as trading securities, exchange rate gains/losses resulting from remeasurement of foreign-currency-denominated receivable and cash balances held by our various reporting entities into their respective functional currencies at period-end market rates, net of the impact of offsetting foreign currency forward contracts, and other non-operating items.
Current wording
Other income (expense), net consists primarily of unrealized investment gains/losses and realized gains/losses on marketable securities classified as trading securities, exchange rate gains/losses resulting from remeasurement of foreign-currency-denominated receivable and cash balances held by our various reporting entities into their respective functional currencies at period-end market rates, net of the impact of offsetting foreign currency forward contracts, and other non-operating items.
Previous wording
The quarter-over-prior year quarter decrease in other income, net of $3.3 million was primarily attributable to a decrease in net unrealized gains on investments classified as trading securities in our supplemental retirement and savings plan.
Current wording
The quarter-over-prior year quarter decrease in other income (expense), net of $5.2 million was primarily attributable to a decrease in net unrealized gains on investments classified as trading securities in our supplemental retirement and savings plan.
Previous wording
The effective income tax rate was (1.6)% and 7.3% during the quarters ended December 31, 2024 and 2023, respectively. The income tax provision (benefit) 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. The effective tax rate for the quarter ended December 31, 2024 was favorably impacted by the excess tax benefit relating to share-based compensation.
Current wording
The effective income tax rate was 23.7% and 24.9% during the quarters ended March 31, 2025 and 2024, respectively, and 13.2% and 17.3% during the six months ended March 31, 2025 and 2024, 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. The effective tax rates for the quarter and six months ended March 31, 2025 were favorably impacted by the excess tax benefit relating to share-based compensation.
Previous wording
The following tables set forth certain summary information on a segment basis related to our operating income for the quarters ended December 31, 2024 and 2023:
Current wording
The following tables set forth certain summary information on a segment basis related to our operating income for the quarters and six-month periods ended March 31, 2025 and 2024:
Previous wording
The quarter-over-prior year quarter increase in operating income of $28.2 million was primarily attributable to a $57.9 million increase in segment revenues, partially offset by a $17.2 million increase in segment operating expenses, a $9.1 million increase in share-based compensation cost, and a $3.8 million increase in corporate expenses.
Current wording
The quarter-over-prior year quarter increase in operating income of $50.8 million was primarily attributable to a $64.9 million increase in segment revenues and a $4.9 million decrease in corporate expenses, partially offset by a $13.0 million increase in segment operating expenses and a $6.3 million increase in share-based compensation cost.
Previous wording
At the segment level, the quarter-over-prior year quarter increase in segment operating income of $37.0 million was the result of a $35.1 million increase in our Scores segment operating income and a $5.6 million increase in our Software segment operating income, partially offset by a $3.8 million increase in corporate expenses.
Current wording
At the segment level, the quarter-over-prior year quarter increase in segment operating income of $56.8 million was the result of a $52.8 million increase in our Scores segment operating income and a $4.9 million decrease in corporate expenses, partially offset by a $0.8 million decrease in our Software segment operating income.
Previous wording
The quarter-over-prior year quarter increase in Software segment operating income of $5.6 million was due to a $14.3 million increase in segment revenue, partially offset by an $8.7 million increase in segment operating expenses. Segment operating income as a percentage of segment revenue for Software was 30%, materially consistent with the quarter ended December 31, 2023.
Current wording
The quarter-over-prior year quarter increase in Scores segment operating income of $52.8 million was due to a $60.2 million increase in segment revenue, partially offset by a $7.4 million increase in segment operating expenses. Scores segment operating income as a percentage of segment revenue was 89%, materially consistent with the quarter ended March 31, 2024.
Previous wording
As of December 31, 2024, we had $184.3 million in cash and cash equivalents, which included $123.9 million held by our foreign subsidiaries. We believe our cash and cash equivalents balances, including those held by our foreign subsidiaries, as well as available borrowings from our $600 million revolving line of credit and anticipated cash flows from operating activities, will be sufficient to fund our working and other capital requirements for at least the next 12 months and thereafter for the foreseeable future, including the $15.0 million principal payments on the $300 Million Term Loan (as defined below) due over the next 12 months. Under our current financing arrangements, we have no other significant debt obligations maturing over the next 12 months. For jurisdictions outside the U.S. where cash may be repatriated in the future, the Company expects the net impact of any repatriations to be immaterial to the Company’s overall tax liability.
Current wording
As of March 31, 2025, we had $146.6 million in cash and cash equivalents, which included $100.4 million held by our foreign subsidiaries. We believe our cash and cash equivalents balances, including those held by our foreign subsidiaries, as well as available borrowings from our $600 million revolving line of credit and anticipated cash flows from operating activities, will be sufficient to fund our working and other capital requirements for at least the next 12 months and thereafter for the foreseeable future, including the $15.0 million principal payments on the $300 Million Term Loan (as defined below) due over the next 12 months. Under our current financing arrangements, we have no other significant debt obligations maturing over the next 12 months. For jurisdictions outside the U.S. where cash may be repatriated in the future, the Company expects the net impact of any repatriations to be immaterial to the Company’s overall tax liability.
Previous wording
Our primary method for funding operations and growth has been through cash flows generated from operating activities. Net cash provided by operating activities increased to $194.0 million during the quarter ended December 31, 2024 from $122.1 million during the quarter ended December 31, 2023. The $71.9 million increase was attributable to a $31.5 million increase in net income, a $29.1 million increase due to the timing of receipts and payments in our ordinary course of business, and an $11.3 million increase in non-cash items.
Current wording
Our primary method for funding operations and growth has been through cash flows generated from operating activities. Net cash provided by operating activities increased to $268.9 million during the six months ended March 31, 2025 from $193.2 million during the six months ended March 31, 2024. The $75.8 million increase was attributable to a $64.3 million increase in net income and a $24.5 million increase in non-cash items, partially offset by a $13.0 million decrease due to the timing of receipts and payments in our ordinary course of business.
Previous wording
Net cash used in investing activities increased to $8.9 million for the quarter ended December 31, 2024 from $2.4 million for the quarter ended December 31, 2023. The $6.5 million increase was primarily attributable to a $6.3 million increase in capitalized internal-use software costs.
Current wording
Net cash used in investing activities increased to $19.9 million for the six months ended March 31, 2025 from $12.0 million for the six months ended March 31, 2024. The $7.8 million increase was primarily attributable to an $8.3 million increase in capitalized internal-use software costs.
Previous wording
Net cash used in financing activities increased to $144.2 million for the quarter ended December 31, 2024 from $99.9 million for the quarter ended December 31, 2023. The $44.4 million increase was primarily attributable to a $90.9 million increase in repurchases of common stock and a $64.2 million increase in taxes paid related to net share settlement of equity awards, partially offset by a $112.0 million increase in proceeds, net of payments, from our revolving line of credit and term loans.
Current wording
Net cash used in financing activities increased to $247.7 million for the six months ended March 31, 2025 from $183.2 million for the six months ended March 31, 2024. The $64.5 million increase was primarily attributable to a $136.3 million increase in repurchases of common stock and a $64.7 million increase in taxes paid related to net share settlement of equity awards, partially offset by a $137.0 million increase in proceeds, net of payments, from our revolving line of credit and term loans.
Previous wording
In July 2024, our Board of Directors approved a new stock repurchase program (the “July 2024 program”), replacing our previously authorized January 2024 stock repurchase program, which was terminated prior to its expiration. The July 2024 program is open-ended and authorizes repurchases of shares of our common stock from time to time up to an aggregate cost of $1.0 billion in the open market or in negotiated transactions. The July 2024 program remains in effect until the total authorized amount is expended or until further action by our Board of Directors. As of December 31, 2024, we had $600.7 million remaining under the July 2024 program. We expended $159.7 million during the quarter ended December 31, 2024 under the July 2024 program and $71.7 million during the quarter ended December 31, 2023 under previously authorized stock repurchase programs.
Current wording
In July 2024, our Board of Directors approved a new stock repurchase program (the “July 2024 program”), replacing our previously authorized January 2024 stock repurchase program, which was terminated prior to its expiration. The July 2024 program is open-ended and authorizes repurchases of shares of our common stock from time to time up to an aggregate cost of $1.0 billion in the open market or in negotiated transactions. The July 2024 program remains in effect until the total authorized amount is expended or until further action by our Board of Directors. As of March 31, 2025, we had $394.1 million remaining under the July 2024 program. We expended $207.0 million and $366.8 million during the quarter and six months ended March 31, 2025, respectively, under the July 2024 program. We expended $179.5 million and $251.3 million during the quarter and six months ended March 31, 2024, respectively, under previously authorized stock repurchase programs.
Previous wording
As of December 31, 2024, we had $425.0 million in borrowings outstanding under the revolving line of credit at a weighted-average interest rate of 5.762%, $255.0 million in outstanding balance of the $300 Million Term Loan at an interest rate of 5.794%, and $450.0 million in outstanding balance of the $450 Million Term Loan at an interest rate of 5.745%. We were in compliance with all financial covenants under the credit agreement as of December 31, 2024.
Current wording
As of March 31, 2025, we had $535.0 million in borrowings outstanding under the revolving line of credit at a weighted-average interest rate of 5.673%, $251.3 million in outstanding balance of the $300 Million Term Loan at an interest rate of 5.650%, and $450.0 million in outstanding balance of the $450 Million Term Loan at an interest rate of 5.647%. We were in compliance with all financial covenants under the credit agreement as of March 31, 2025.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Scores segment revenues increased $60.2 million due to an increase of $57.0 million in our business-to-business scores revenue and an increase of $3.2 million in our business-to-consumer revenue. The increase in business-to-business scores revenue was primarily attributable to a higher unit price. The increase in business-to-consumer revenue was primarily attributable to an increase in royalties derived from scores sold indirectly to consumers through credit reporting agencies.
Current report — wording carried from elsewhere
Software segment revenues increased $4.8 million due to a $6.6 million increase in our on-premises and SaaS software revenue, partially offset by a $1.9 million decrease in professional services revenue. The increase in our on-premises and SaaS software revenue was primarily attributable to an increase in license revenue recognized at a point in time.
Current report — wording carried from elsewhere
The year-to-date period-over-period increase in cost of revenues of $4.6 million was primarily attributable to a $5.1 million increase in infrastructure and facilities costs. The increase in infrastructure and facilities costs was primarily attributable to an increase in third-party data center hosting costs and an increase in depreciation on data center computer hardware. Cost of revenues as a percentage of revenues decreased to 19% during the six months ended March 31, 2025 from 21% during the six months ended March 31, 2024 primarily due to increased sales of our higher-margin Scores products.
Current report — wording carried from elsewhere
The year-to-date period-over-period increase in interest expense of $10.6 million was primarily attributable to a higher average outstanding balance on borrowings under our credit agreement during the six months ended March 31, 2025, partially offset by a lower average interest rate on borrowings under our credit agreement during the six months ended March 31, 2025.
Current report — wording carried from elsewhere
The year-to-date period-over-period decrease in other income (expense), net of $8.5 million was primarily attributable to a decrease in net unrealized gains on investments classified as trading securities in our supplemental retirement and savings plan.