FAIR ISAAC CORP

Previous 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.

Current wording

•Revenues for our Scores segment were $324.3 million during the quarter ended June 30, 2025, a 34% increase from the quarter ended June 30, 2024, and $857.0 million during the nine months ended June 30, 2025, a 28% increase from the nine months ended June 30, 2024.

Previous wording

•Annual Recurring Revenue for our Software segment as of March 31, 2025 was $714.6 million, a 3% increase from March 31, 2024.

Current wording

•Annual Recurring Revenue for our Software segment as of June 30, 2025 was $739.1 million, a 4% increase from June 30, 2024.

Previous wording

•Dollar-Based Net Retention Rate for our Software segment was 102% as of March 31, 2025.

Current wording

•Dollar-Based Net Retention Rate for our Software segment was 103% as of June 30, 2025.

Previous 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.

Current wording

•Operating income was $262.5 million during the quarter ended June 30, 2025, a 38% increase from the quarter ended June 30, 2024, and $687.7 million during the nine months ended June 30, 2025, a 28% increase from the nine months ended June 30, 2024.

Previous wording

•Cash and cash equivalents were $146.6 million as of March 31, 2025, compared with $150.7 million as of September 30, 2024.

Current wording

•Cash and cash equivalents were $189.0 million as of June 30, 2025, compared with $150.7 million as of September 30, 2024.

Previous wording

•Total debt balance was $2.5 billion as of March 31, 2025, compared with $2.2 billion as of September 30, 2024.

Current wording

•We issued $1.5 billion of senior notes and used the net proceeds to repay all the outstanding balances on our term loans and revolving line of credit. We also amended our credit agreement to increase our borrowing capacity under the unsecured revolving line of credit to $1.0 billion and extended its maturity. Total debt balance was $2.8 billion as of June 30, 2025, compared with $2.2 billion as of September 30, 2024.

Previous 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.

Current wording

•Total share repurchases during the quarter ended June 30, 2025 were $511.3 million, compared with $255.5 million during the quarter ended June 30, 2024, and during the nine months ended June 30, 2025 were $878.1 million, compared with $506.8 million during the nine months ended June 30, 2024.

Previous 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:

Current wording

The following tables set forth certain summary information on a segment basis related to our revenues for the quarters and nine-month periods ended June 30, 2025 and 2024:

Previous 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.

Current wording

Scores segment revenues increased $82.9 million due to an increase of $79.7 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, an increase in volume of mortgage originations and a multi-year license renewal in the U.S. recognized on our insurance score product during the quarter ended June 30, 2025. 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 $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 wording

Software segment revenues increased $5.7 million due to a $4.1 million increase in our on-premises and SaaS software revenue and a $1.6 million increase in professional services revenue. The increase in our on-premises and SaaS software revenue was primarily attributable to an increase in revenue recognized over time largely driven by SaaS growth for our Platform products.

Previous wording

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 wording

Scores segment revenues increased $186.6 million due to an increase of $178.7 million in our business-to-business scores revenue and an increase of $7.9 million in our business-to-consumer revenue. The increase in business-to-business scores revenue was primarily attributable to a higher unit price, an increase in volume of mortgage originations and a multi-year license renewal in the U.S. recognized on our insurance score product during the nine months ended June 30, 2025. 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 $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.

Current wording

Software segment revenues increased $24.8 million due to a $28.1 million increase in our on-premises and SaaS software revenue, partially offset by a $3.3 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 and six-month periods ended March 31, 2025 and 2024:

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 nine-month periods ended June 30, 2025 and 2024:

Previous 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.

Current wording

The quarter-over-prior year quarter decrease in cost of revenues of $0.7 million was primarily attributable to a $1.6 million decrease in personnel and labor costs and a $1.1 million decrease in outside services costs, partially offset by a $2.3 million increase in infrastructure and facilities costs. The decrease in personnel and labor costs was primarily attributable to decreased incentive expense. The decrease in outside services costs was primarily attributable to decreased third-party contractor costs. The increase in infrastructure and facilities costs was primarily attributable to an increase in third-party data center hosting costs. Cost of revenues as a percentage of revenues decreased to 16% during the quarter ended June 30, 2025 from 20% during the quarter ended June 30, 2024, primarily due to increased sales of our higher-margin Scores products.

Previous wording

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 wording

The year-to-date period-over-period increase in cost of revenues of $3.9 million was primarily attributable to a $7.4 million increase in infrastructure and facilities costs, partially offset by a $1.5 million decrease in outside services costs and a $1.5 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 and an increase in depreciation on data center computer hardware. The decrease in outside services costs was primarily attributable to decreased third-party contractor costs. The decrease in personnel and labor costs was primarily attributable to decreased incentive expense and headcount. Cost of revenues as a percentage of revenues decreased to 18% during the nine months ended June 30, 2025 from 21% during the nine months ended June 30, 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 $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 wording

The quarter-over-prior year quarter increase in research and development expenses of $3.0 million was primarily attributable to a $1.9 million increase in outside services costs and a $1.1 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. Research and development expenses as a percentage of revenues decreased to 9% during the quarter ended June 30, 2025 from 10% during the quarter ended June 30, 2024.

Previous 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.

Current wording

The year-to-date period-over-period increase in research and development expenses of $9.7 million was primarily attributable to a $5.5 million increase in outside services costs and a $4.0 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 decreased to 9% during the nine months ended June 30, 2025 from 10% during the nine months ended June 30, 2024.

Previous 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.

Current wording

The quarter-over-prior year quarter increase in selling, general and administrative expenses of $14.2 million was primarily attributable to a $7.0 million increase in advertising and other promotional expenses, a $5.1 million increase in personnel and labor costs, a $1.3 million increase in travel expenses, and a $1.1 million increase in non-income tax costs. The increase in advertising and other promotional expenses was primarily attributable to increased costs for advertising campaigns and corporate events. The increase in personnel and labor costs was primarily attributable to increased headcount, market base-pay adjustments, fringe benefit costs related to our supplemental retirement and savings plan, and commission expense, partially offset by decreased incentive expense and share-based compensation expense. The increase in travel costs was primarily attributable to promotional and corporate events. The increase in non-income tax costs was attributable to a foreign tax law change related to transfer pricing, effective during the quarter ended June 30, 2025, that impacted a non-U.S. subsidiary. Selling, general and administrative expenses as a percentage of revenues decreased to 26% during the quarter ended June 30, 2025 from 28% during the quarter ended June 30, 2024.

Previous wording

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 wording

The year-to-date period-over-period increase in selling, general and administrative expenses of $47.4 million was primarily attributable to a $23.6 million increase in personnel and labor costs, a $17.2 million increase in advertising and other promotional costs, a $4.0 million increase in non-income tax costs, and a $2.6 million increase in travel costs. The increase in personnel and labor costs was primarily attributable to increased share-based compensation expense, headcount, market base-pay adjustments, 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 foreign tax law change related to transfer pricing, effective during the nine months ended June 30, 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 nine months ended June 30, 2025 from 27% during the nine months ended June 30, 2024.

Previous wording

The quarter-over-prior year quarter increase in interest expense of $5.3 million was primarily attributable to a higher average outstanding balance on borrowings under our credit agreement during the quarter ended March 31, 2025, partially offset by a lower average interest rate on borrowings under our credit agreement during the quarter ended March 31, 2025.

Current wording

The quarter-over-prior year quarter increase in interest expense of $6.0 million was primarily attributable to the $1.5 billion of 6.00% senior notes issued in May 2025, partially offset by a lower average outstanding balance and a lower average interest rate on borrowings under our credit agreement during the quarter ended June 30, 2025.

Previous wording

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 wording

The year-to-date period-over-period increase in interest expense of $16.6 million was primarily attributable to the $1.5 billion of 6.00% senior notes issued in May 2025 and a higher average outstanding balance on borrowings under our credit agreement during the nine months ended June 30, 2025, partially offset by a lower average interest rate on borrowings under our credit agreement during the nine months ended June 30, 2025.

Previous 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.

Current 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.

Previous 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.

Current wording

The quarter-over-prior year quarter increase in other income, net of $3.4 million was primarily attributable to an increase 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 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.

Current wording

The effective income tax rate was 23.3% and 24.5% during the quarters ended June 30, 2025 and 2024, respectively, and 17.2% and 19.9% during the nine months ended June 30, 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 nine months ended June 30, 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 and six-month periods ended March 31, 2025 and 2024:

Current wording

The following tables set forth certain summary information on a segment basis related to our operating income for the quarters and nine-month periods ended June 30, 2025 and 2024:

Previous 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.

Current wording

The quarter-over-prior year quarter increase in operating income of $72.3 million was primarily attributable to an $88.6 million increase in segment revenues and a $2.2 million decrease in corporate expenses, partially offset by a $19.2 million increase in segment operating expenses.

Previous 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.

Current wording

At the segment level, the quarter-over-prior year quarter increase in segment operating income of $71.5 million was the result of a $71.7 million increase in our Scores segment operating income and a $2.2 million decrease in corporate expenses, partially offset by a $2.4 million decrease in our Software segment operating income.

Previous 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.

Current wording

The quarter-over-prior year quarter increase in Scores segment operating income of $71.7 million was due to an $82.8 million increase in segment revenue, partially offset by an $11.1 million increase in segment operating expenses. Scores segment operating income as a percentage of segment revenue was 88%, consistent with the quarter ended June 30, 2024.

Previous wording

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 wording

The quarter-over-prior year quarter decrease in Software segment operating income of $2.4 million was due to an $8.1 million increase in segment operating expenses, partially offset by a $5.7 million increase in segment revenue. Software segment operating income as a percentage of segment revenue decreased to 32% from 34%, primarily attributable to the increase in third-party data center hosting costs.

Previous wording

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 wording

The year-to-date period-over-period increase of $151.2 million in operating income was primarily attributable to a $211.4 million increase in segment revenues and a $3.3 million decrease in corporate expenses, partially offset by a $49.4 million increase in segment operating expenses and a $14.8 million increase in share-based compensation cost.

Previous wording

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 wording

At the segment level, the year-to-date period-over-period increase of $165.2 million in segment operating income was the result of a $159.6 million increase in our Scores segment operating income, a $3.3 million decrease in corporate expenses, and a $2.4 million increase in our Software segment operating income.

Previous wording

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 wording

The year-to-date period-over-period $159.6 million increase in Scores segment operating income was attributable to a $186.6 million increase in segment revenue, partially offset by a $27.0 million increase in segment operating expenses. Scores segment operating income as a percentage of segment revenue was 88%, materially consistent with the nine months ended June 30, 2024.

Previous wording

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.

Current wording

The year-to-date period-over-period $2.4 million increase in Software segment operating income was attributable to a $24.8 million increase in segment revenue, partially offset by a $22.4 million increase in segment operating expenses. Software segment operating income as a percentage of segment revenue was 31%, materially consistent with the nine months ended June 30, 2024.

Previous 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.

Current wording

As of June 30, 2025, we had $189.0 million in cash and cash equivalents, which included $121.9 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 $1.0 billion 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 $400.0 million principal payment on the 2018 Senior Notes (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 $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.

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 $555.1 million during the nine months ended June 30, 2025 from $406.5 million during the nine months ended June 30, 2024. The $148.7 million increase was attributable to a $119.8 million increase in net income, a $19.1 million increase in non-cash items, and a $9.8 million increase due to the timing of receipts and payments in our ordinary course of business.

Previous 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.

Current wording

Net cash used in investing activities increased to $30.4 million for the nine months ended June 30, 2025 from $20.4 million for the nine months ended June 30, 2024. The $10.0 million increase was primarily attributable to a $10.5 million increase in capitalized internal-use software costs.

Previous 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.

Current wording

Net cash used in financing activities increased to $486.8 million for the nine months ended June 30, 2025 from $365.0 million for the nine months ended June 30, 2024. The $121.8 million increase was primarily attributable to a $1.2 billion increase in payments, net of proceeds, on our revolving line of credit and term loans, a $368.3 million increase in repurchases of common stock, a $66.0 million increase in taxes paid related to net share settlement of equity awards, and a $16.5 million increase in debt issuance costs, partially offset by the proceeds from issuance of $1.5 billion senior notes.

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 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.

Current wording

In July 2024, our Board of Directors approved a 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 was open-ended and authorized 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. In June 2025, our Board of Directors approved a new stock repurchase program (the “June 2025 program”), replacing the July 2024 program, which was terminated prior to its expiration. The June 2025 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 June 2025 program remains in effect until the total authorized amount is expended or until further action by our Board of Directors. As of June 30, 2025, we had $880.1 million remaining under the June 2025 program. We expended $511.3 million and $878.1 million during the quarter and nine months ended June 30, 2025, respectively, under the July 2024 program and the June 2025 program. We expended $255.5 million and $506.8 million during the quarter and nine months ended June 30, 2024, respectively, under previously authorized stock repurchase programs.

Previous wording

We have a $600 million unsecured revolving line of credit, a $300 million unsecured term loan (the “$300 Million Term Loan”), and a $450 million unsecured term loan (the “$450 Million Term Loan”) with a syndicate of banks that mature on August 19, 2026. Borrowings under the revolving line of credit and the term loans 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 $300 Million Term Loan requires principal payments in consecutive quarterly installments of $3.75 million on the last business day of each quarter. We have no obligation to make scheduled principal payments on the $450 Million Term Loan prior to the maturity date, but may prepay the $450 Million Term Loan, without premium or penalty, in whole or in part. Interest rates on amounts borrowed under the revolving line of credit and the term loans 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”) plus 1%, plus, in each case, an applicable margin, or (ii) an adjusted term SOFR plus an applicable margin (or, if such rate is no longer available, a successor benchmark rate determined in accordance with the terms of the credit agreement). Adjusted term SOFR is defined as term SOFR for the relevant interest period plus a SOFR adjustment of 0.10% per annum. 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 the term loans 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.

Current wording

On May 13, 2025, we amended our credit agreement with a syndicate of banks, increasing our borrowing capacity under the unsecured revolving line of credit from $600 million to $1.0 billion and extending its maturity to May 13, 2030. Also on May 13, 2025, we repaid in full and terminated the $300 million unsecured term loan (the “$300 Million Term Loan”) and the $450 million unsecured term loan (the “$450 Million Term Loan”) outstanding under our credit agreement, utilizing proceeds from the issuance of the 2025 Senior Notes (as defined below). Borrowings under the revolving line of credit 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. Interest rates on amounts borrowed under the revolving line of credit 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) the Daily Simple Secured Overnight Financing Rate (“SOFR”) plus 1%, plus, in each case, an applicable margin, (ii) the Daily Simple SOFR plus an applicable margin (or, if such rate is no longer available, a successor benchmark rate determined in accordance with the terms of the credit agreement), or (iii) term SOFR (without a credit spread adjustment) plus an applicable margin (or, if such rate is no longer available, a successor benchmark rate determined in accordance with the terms of the credit agreement). 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 credit agreement contains 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 contains other covenants typical of an unsecured credit facility.

Previous 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.

Current wording

As of June 30, 2025, there were no borrowings outstanding under the revolving line of credit and we were in compliance with all financial covenants under the credit agreement.