FAIR ISAAC CORP
For the period ended Mar 31, 2026. Filed Apr 28, 2026.
View on SEC.govAbout this filing
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, 2026 · Filed Apr 28, 2026
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 2025-12-31; filed 2026-01-28.
0000814547-26-000011
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-28.
0000814547-26-000021
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 91 previous paragraphs and 106 current paragraphs.
50 unchanged; 34 reworded; 18 added; 7 removed; 0 previous and 4 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 (18)
Current report
•Total revenues were $691.7 million during the quarter ended March 31, 2026, a 39% increase from the quarter ended March 31, 2025, and $1.2 billion during the six months ended March 31, 2026, a 28% increase from the six months ended March 31, 2025.
Current report
•Operating income was $402.5 million during the quarter ended March 31, 2026, a 64% increase from the quarter ended March 31, 2025, and $636.5 million during the six months ended March 31, 2026, a 50% increase from the six months ended March 31, 2025.
Current report
•Net income was $264.5 million during the quarter ended March 31, 2026, a 63% increase from the quarter ended March 31, 2025, and $422.8 million during the six months ended March 31, 2026, a 34% increase from the six months ended March 31, 2025.
Current report
•Diluted EPS was $11.14 during the quarter ended March 31, 2026, a 69% increase from the quarter ended March 31, 2025, and $17.73 during the six months ended March 31, 2026, a 39% increase from the six months ended March 31, 2025.
Current report
•Cash flows from operating activities were $397.4 million during the six months ended March 31, 2026, compared with $268.9 million during the six months ended March 31, 2025.
Current report
Quarter Ended March 31, 2026 Compared to Quarter Ended March 31, 2025
Current report
Six Months Ended March 31, 2026 Compared to Six Months Ended March 31, 2025
Current report
Scores
Current report
Software
Current report
The year-to-date period-over-period increase in cost of revenues of $3.5 million was primarily attributable to a $4.7 million increase in infrastructure and facilities costs, partially offset by a $1.2 million decrease in direct materials and other costs. The increase in infrastructure and facilities costs was primarily attributable to an increase in third-party data center hosting costs. The decrease in direct materials and other costs was primarily attributable to decreased telecommunications costs that support FICO® Customer Communications Services revenue. Cost of revenues as a percentage of revenues decreased to 15% during the six months ended March 31, 2026 from 19% during the six months ended March 31, 2025, primarily due to increased sales of our higher-margin Scores products.
Current report
The year-to-date period-over-period increase in research and development expenses of $13.6 million was primarily attributable to a $10.0 million increase in infrastructure and facilities costs and a $7.2 million increase in personnel and labor costs, partially offset by a $3.6 million decrease in outside services and other costs. The increase in infrastructure and facilities costs was primarily attributable to increased third-party data center hosting costs. The increase in personnel and labor costs was primarily attributable to increased headcount, increased share-based compensation costs, and increased incentive costs. The decrease in outside services and other costs was primarily attributable to decreased third-party contractor costs. Research and development expenses as a percentage of revenues decreased to 9% during the quarter ended March 31, 2026 from 10% during the quarter ended March 31, 2025.
Current report
The year-to-date period-over-period increase in selling, general and administrative expenses of $36.5 million was primarily attributable to a $24.8 million increase in personnel and labor costs and an $11.7 million increase in marketing and other costs. The increase in personnel and labor costs was primarily attributable to increased headcount, increased share-based compensation costs, and increased commission costs. The increase in marketing and other costs was primarily attributable to increased advertising and other promotional costs, increased third-party consulting costs, and increased third-party contractor costs. Selling, general and administrative expenses as a percentage of revenues decreased to 23% during the six months ended March 31, 2026 from 26% during the six months ended March 31, 2025.
Current report
Other Expense, Net
Current report
The year-to-date period-over-period increase in other expense, net of $0.8 million was primarily attributable to an increase in foreign exchange rate losses resulting from remeasurement of foreign-currency-denominated receivables and cash balances held by our various reporting entities into their respective functional currencies at period-end market rates.
Current report
Provision for Income Taxes
Current report
The year-to-date period-over-period increase of $211.3 million in operating income was primarily attributable to a $264.9 million increase in segment revenues, partially offset by a $36.2 million increase in segment operating expenses, a $10.2 million increase in corporate expenses, and a $7.2 million increase in share-based compensation expense.
Current report
At the segment level, the year-to-date period-over-period increase of $228.7 million in segment operating income was the result of a $231.6 million increase in our Scores segment operating income, partially offset by a $2.9 million decrease in our Software segment operating income.
Current report
The year-to-date period-over-period $231.6 million increase in Scores segment operating income was attributable to a $246.8 million increase in segment revenue, partially offset by a $15.2 million increase in segment operating expenses. Scores segment operating income as a percentage of segment revenue increased to 90% from 88%, primarily due to higher business-to-business scores revenue driven by a higher unit price and an increase in volume of mortgage originations.
Removed paragraphs (7)
Previous report
•Total revenues were $512.0 million during the quarter ended December 31, 2025, a 16% increase from the quarter ended December 31, 2024.
Previous report
•Operating income was $234.0 million during the quarter ended December 31, 2025, a 30% increase from the quarter ended December 31, 2024.
Previous report
•Net income was $158.4 million during the quarter ended December 31, 2025, a 4% increase from the quarter ended December 31, 2024.
Previous report
•Diluted EPS was $6.61 during the quarter ended December 31, 2025, an 8% increase from the quarter ended December 31, 2024.
Previous report
•Cash flows from operating activities were $174.1 million during the quarter ended December 31, 2025, compared with $194.0 million during the quarter ended December 31, 2024.
Previous report
Other Income (Expense), Net
Previous report
Income Tax Provision (Benefit)
Reworded paragraphs (34)
Previous wording
Highlights from the quarter ended December 31, 2025
Current wording
Highlights from the quarter and six months ended March 31, 2026
Previous wording
•Revenues for our Scores segment were $304.5 million during the quarter ended December 31, 2025, a 29% increase from the quarter ended December 31, 2024.
Current wording
•Revenues for our Scores segment were $475.0 million during the quarter ended March 31, 2026, a 60% increase from the quarter ended March 31, 2025, and $779.5 million during the six months ended March 31, 2026, a 46% increase from the six months ended March 31, 2025.
Previous wording
•Annual Recurring Revenue for our Software segment as of December 31, 2025 was $766.0 million, a 5% increase from December 31, 2024.
Current wording
•Annual Recurring Revenue for our Software segment as of March 31, 2026 was $788.8 million, a 10% increase from March 31, 2025.
Previous wording
•Dollar-Based Net Retention Rate for our Software segment was 103% as of December 31, 2025.
Current wording
•Dollar-Based Net Retention Rate for our Software segment was 109% as of March 31, 2026.
Previous wording
•Cash and cash equivalents were $162.0 million as of December 31, 2025, compared with $134.1 million as of September 30, 2025.
Current wording
•Cash and cash equivalents were $219.4 million as of March 31, 2026, compared with $134.1 million as of September 30, 2025.
Previous wording
•Total debt balance was $3.2 billion as of December 31, 2025, compared with $3.1 billion as of September 30, 2025.
Current wording
•We issued $1.0 billion of senior notes during March 2026, and used the net proceeds to make a payment against the revolving line of credit and repay the $400 million of senior notes due in May 2026. Total debt balance was $3.6 billion as of March 31, 2026, compared with $3.1 billion as of September 30, 2025.
Previous wording
•Total share repurchases during the quarter ended December 31, 2025 were $162.7 million, compared with $159.7 million during the quarter ended December 31, 2024.
Current wording
•Total share repurchases during the quarter ended March 31, 2026 were $611.3 million, compared with $207.0 million during the quarter ended March 31, 2025, and during the six months ended March 31, 2026 were $773.9 million, compared with $366.8 million during the six months ended March 31, 2025.
Previous wording
ACV Bookings is calculated by dividing the total expected contract value by the contract term in years. The expected contract value equals the fixed amount — including guaranteed minimums, if any — stated in the contract, plus estimates of future usage-based fees. We develop estimates from discussions with our customers and examinations of historical data from similar products and customer arrangements. Differences between estimates and actual results occur due to variability in the estimated usage. This variability can be the result of the economic trends in our customers’ industries, individual performance of our customers relative to their competitors, and regulatory and other factors that affect the business environment in which our customers operate. For the periods presented, ACV Bookings related to estimates of future usage-based fees was approximately 30% of the total ACV Bookings amount on an annualized basis. Differences between the initial estimates of future usage-based fees and actual results historically have not been material and we do not currently expect that they will be materially different in the future.
Current wording
ACV Bookings is calculated by dividing the total expected contract value by the contract term in years. The expected contract value equals the fixed amount — including guaranteed minimums, if any — stated in the contract, plus estimates of future usage-based fees. We develop estimates from discussions with our customers and examinations of historical data from similar products and customer arrangements. Differences between estimates and actual results occur due to variability in the estimated usage. This variability can be the result of the economic trends in our customers’ industries, individual performance of our customers relative to their competitors, and regulatory and other factors that affect the business environment in which our customers operate. For the periods presented, ACV Bookings related to estimates of future usage-based fees was approximately 20% of the total ACV Bookings amount on an annualized basis. Differences between the initial estimates of future usage-based fees and actual results historically have not been material and we do not currently expect that they will be materially different in the future.
Previous wording
The following tables set forth certain summary information on a segment basis related to our revenues for the quarters ended December 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 six-month periods ended March 31, 2026 and 2025:
Previous wording
Scores segment revenues increased $68.9 million due to an increase of $66.2 million in our business-to-business scores revenue and an increase of $2.7 million in our business-to-consumer scores 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 scores 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 $177.9 million due to an increase of $175.1 million in our business-to-business scores revenue and an increase of $2.8 million in our business-to-consumer scores 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 scores 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 $3.1 million due to a $2.2 million increase in our on-premises and SaaS software revenue and a $0.9 million increase in our 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.
Current wording
Software segment revenues increased $18.1 million due to a $17.6 million increase in our on-premises and SaaS software revenue and a $0.5 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
Operating Expenses and Other Income (Expense), Net
Current wording
Operating Expenses and Other Expense, Net
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, 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 six-month periods ended March 31, 2026 and 2025:
Previous wording
Cost of revenues remained consistent quarter-over-prior year quarter. Cost of revenues as a percentage of revenues decreased to 17% during the quarter ended December 31, 2025 from 20% during the quarter ended December 31, 2024, primarily due to increased sales of our higher-margin Scores products.
Current wording
The quarter-over-prior year quarter increase in cost of revenues of $3.6 million was primarily attributable to a $3.0 million increase in infrastructure and facilities costs and a $0.6 million increase in personnel, labor and other 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 13% during the quarter ended March 31, 2026 from 18% during the quarter ended March 31, 2025, 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 $4.8 million was primarily attributable to a $4.1 million increase in infrastructure and facilities costs, and a $2.4 million increase in personnel and labor costs, partially offset by a $1.7 million decrease in outside services and other costs. The increase in infrastructure and facilities costs was primarily attributable to increased third-party data center hosting costs. The increase in personnel and labor costs was primarily attributable to increased headcount and increased share-based compensation costs. The decrease in outside services and other costs was primarily attributable to decreased third-party contractor costs. Research and development expenses as a percentage of revenues remained consistent at 10% during each of the quarters ended December 31, 2025 and 2024.
Current wording
The quarter-over-prior year quarter increase in research and development expenses of $8.9 million was primarily attributable to a $6.0 million increase in infrastructure and facilities costs and a $4.8 million increase in personnel and labor costs, partially offset by a $1.9 million decrease in outside services and other costs. The increase in infrastructure and facilities costs was primarily attributable to increased third-party data center hosting costs. The increase in personnel and labor costs was primarily attributable to increased headcount and increased incentive costs. The decrease in outside services and other costs was primarily attributable to decreased third-party contractor costs. Research and development expenses as a percentage of revenues decreased to 8% during the quarter ended March 31, 2026 from 9% during the quarter ended March 31, 2025.
Previous wording
The quarter-over-prior year quarter increase in selling, general and administrative expenses of $12.8 million was primarily attributable to a $9.0 million increase in personnel and labor costs, a $2.3 million increase in outside services costs, and a $1.5 million increase in marketing and other costs. The increase in personnel and labor costs was primarily attributable to increased headcount, share-based compensation costs, market base-pay adjustments, and fringe benefit costs related to our supplemental retirement and savings plan. The increase in outside services costs was primarily attributable to increased legal costs. The increase in marketing and other costs was primarily attributable to increased advertising costs, partially offset by decreased non-income tax costs and decreased bad debt costs. Selling, general and administrative expenses as a percentage of revenues decreased to 27% during the quarter ended December 31, 2025 from 29% during the quarter ended December 31, 2024.
Current wording
The quarter-over-prior year quarter increase in selling, general and administrative expenses of $23.7 million was primarily attributable toa$15.8 million increase in personnel and labor costs and a $7.9 million increase in marketing and other costs. The increase in personnel and labor costs was primarily attributable to increased headcount, increased share-based compensation costs, increased incentive costs, and increased commission costs. The increase in marketing and other costs was primarily attributable to increased advertising and other promotional costs. Selling, general and administrative expenses as a percentage of revenues decreased to 21% during the quarter ended March 31, 2026 from 24% during the quarter ended March 31, 2025.
Previous wording
Interest expense includes interest on the senior notes issued in May 2025, December 2021, December 2019 and May 2018, as well as interest and credit agreement fees on the revolving line of credit and, for the prior year quarter, term loans. On our condensed consolidated statements of income and comprehensive income, interest expense is netted with interest income, which is derived primarily from the investment of funds in excess of our immediate operating requirements.
Current wording
Interest expense includes interest on the senior notes issued in March 2026, May 2025, December 2021, December 2019 and May 2018, as well as interest and credit agreement fees on the revolving line of credit and, for the prior year quarter and prior year-to-date period, term loans. On our condensed consolidated statements of income and comprehensive income, interest expense is netted with interest income, which is derived primarily from the investment of funds in excess of our immediate operating requirements.
Previous wording
The quarter-over-prior year quarter increase in net interest expense of $12.5 million was primarily attributable to the $1.5 billion of 2025 Senior Notes (as defined below), partially offset by a lower average outstanding balance and a lower average interest rate on borrowings under our credit agreement during the quarter ended December 31, 2025.
Current wording
The quarter-over-prior year quarter increase in net interest expense of $13.2 million was primarily attributable to the $1.5 billion of 2025 Senior Notes (as defined below) and the $1.0 billion of 2026 Senior Notes (as defined below), partially offset by a lower average outstanding balance and a lower average interest rate on borrowings under our credit agreement during the quarter ended March 31, 2026.
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 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 receivables 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 change in other income (expense), net of $0.2 million was primarily attributable to an increase in foreign exchange rate 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.
Current wording
The quarter-over-prior year quarter increase in other expense, net of $0.6 million was primarily attributable to a decrease in foreign exchange rate gains resulting from remeasurement of foreign-currency-denominated receivables and cash balances held by our various reporting entities into their respective functional currencies at period-end market rates.
Previous wording
The effective income tax rate was 17.5% and (1.6)% during the quarters ended December 31, 2025 and 2024, 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.
Current wording
The effective income tax rate was 25.7% and 23.7% during the quarters ended March 31, 2026 and 2025, respectively, and 22.8% and 13.2% during the six months ended March 31, 2026 and 2025, 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.
Previous wording
The effective tax rates for the quarters ended December 31, 2025 and 2024 were both favorably impacted by the recording of excess tax benefits relating to stock awards. The impact is dependent upon grants of share-based compensation and the future stock price in relation to the fair value of awards on the grant date. The decrease in stock price for awards that vested in December 2025 resulted in a decreased net excess tax benefit for the quarter ended December 31, 2025.
Current wording
The effective tax rates for the quarters and six months ended March 31, 2026 and 2025 were favorably impacted by the recording of excess tax benefits relating to stock awards. The impact is dependent upon grants of share-based compensation and the future stock price in relation to the fair value of awards on the grant date. The decrease in stock price for awards that vested in December 2025 resulted in a decreased net excess tax benefit for the six months ended March 31, 2026.
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, 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 six-month periods ended March 31, 2026 and 2025:
Previous wording
The quarter-over-prior year quarter increase in operating income of $54.5 million was primarily attributable to a $72.0 million increase in segment revenues, partially offset by a $10.0 million increase in segment operating expenses, a $3.8 million increase in corporate expenses, and a $3.6 million increase in share-based compensation expense.
Current wording
The quarter-over-prior year quarter increase in operating income of $156.8 million was primarily attributable to a $192.9 million increase in segment revenues, partially offset by a $26.2 million increase in segment operating expenses, a $6.3 million increase in corporate expenses, and a $3.6 million increase in share-based compensation expense.
Previous wording
At the segment level, the quarter-over-prior year quarter increase in segment operating income of $62.0 million was the result of a $64.1 million increase in our Scores segment operating income, partially offset by a $2.1 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 $166.8 million was the result of a $167.5 million increase in our Scores segment operating income, partially offset by a $0.7 million decrease in our Software segment operating income.
Previous wording
The quarter-over-prior year quarter increase in Scores segment operating income of $64.1 million was due to a $68.9 million increase in segment revenue, partially offset by a $4.8 million increase in segment operating expenses. Scores segment operating income as a percentage of segment revenue increased to 88% from 86%, primarily due to higher business-to-business scores revenue driven by increased unit pricing and greater mortgage origination volumes.
Current wording
The quarter-over-prior year quarter increase in Scores segment operating income of $167.5 million was due to a $177.9 million increase in segment revenue, partially offset by a $10.4 million increase in segment operating expenses. Scores segment operating income as a percentage of segment revenue increased to 91% from 89%, primarily due to higher business-to-business scores revenue driven by a higher unit price and an increase in volume of mortgage originations.
Previous wording
The quarter-over-prior year quarter decrease in Software segment operating income of $2.1 million was due to a $5.2 million increase in segment operating expenses, partially offset by a $3.1 million increase in segment revenue. Software segment operating income as a percentage of segment revenue decreased to 28% from 30%, primarily attributable to an increase in third-party data center hosting costs and a decrease in sales of higher-margin software recognized at a point in time.
Current wording
The quarter-over-prior year quarter decrease in Software segment operating income of $0.7 million was due to a $15.7 million increase in segment operating expenses, partially offset by a $15.0 million increase in segment revenue. Software segment operating income as a percentage of segment revenue decreased to 29% from 31%, primarily attributable to an increase in third-party data center hosting costs and a decrease in sales of higher-margin software recognized at a point in time.
Previous wording
As of December 31, 2025, we had $162.0 million in cash and cash equivalents, which included $109.1 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.
Current wording
As of March 31, 2026, we had $219.4 million in cash and cash equivalents, which included $104.0 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. Under our current financing arrangements, we have no 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 decreased to $174.1 million during the quarter ended December 31, 2025 from $194.0 million during the quarter ended December 31, 2024. The $19.9 million decrease was attributable to a $43.9 million decrease due to the timing of receipts and payments in our ordinary course of business, partially offset by an $18.1 million increase in non-cash items and a $5.9 million increase in net income.
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 $397.4 million during the six months ended March 31, 2026 from $268.9 million during the six months ended March 31, 2025. The $128.5 million increase was attributable to a $107.7 million increase in net income and a $35.9 million increase in non-cash items, partially offset by a $15.1 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 $12.7 million for the quarter ended December 31, 2025 from $8.9 million for the quarter ended December 31, 2024. The $3.8 million increase was primarily attributable to a $2.2 million increase in purchases, net of proceeds, of marketable securities and a $2.2 million increase in capitalized internal-use software costs.
Current wording
Net cash used in investing activities increased to $21.1 million for the six months ended March 31, 2026 from $19.9 million for the six months ended March 31, 2025. The $1.3 million increase was primarily attributable to a $3.6 million increase in capitalized internal-use software costs, partially offset by a $2.5 million decrease in purchases of property and equipment.
Previous wording
Net cash used in financing activities decreased to $133.5 million for the quarter ended December 31, 2025 from $144.2 million for the quarter ended December 31, 2024. The $10.7 million decrease was primarily attributable to a $91.7 million decrease in taxes paid related to net share settlement of equity awards, partially offset by a $71.3 million decrease in proceeds, net of payments, from our revolving line of credit and term loans and an $8.6 million increase in repurchases of common stock.
Current wording
Net cash used in financing activities increased to $289.2 million for the six months ended March 31, 2026 from $247.7 million for the six months ended March 31, 2025. The $41.5 million increase was primarily attributable to a $396.8 million increase in repurchases of common stock, a $327.5 million increase in payments, net of proceeds, on our revolving line of credit and term loans, and the $400.0 million repayment of 2018 Senior Notes (as defined below), partially offset by the proceeds from the issuance of our $1.0 billion 2026 Senior Notes (as defined below) and a $92.8 million decrease in taxes paid related to net share settlement of equity awards.
Previous wording
In June 2025, our Board of Directors approved a stock repurchase program (the “June 2025 program”), replacing our previously authorized July 2024 stock repurchase 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 December 31, 2025, we had $180.9 million remaining under the June 2025 program. We expended $162.7 million during the quarter ended December 31, 2025 under the June 2025 program and $159.7 million during the quarter ended December 31, 2024 under previously authorized stock repurchase programs.
Current wording
In June 2025, our Board of Directors approved a stock repurchase program (the “June 2025 program”), replacing our previously authorized July 2024 stock repurchase program, which was terminated prior to its expiration. The June 2025 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 February 2026, our Board of Directors approved a new stock repurchase program (the “February 2026 program”), replacing the June 2025 program, which was terminated prior to its expiration. The February 2026 program is open-ended and authorizes repurchases of shares of our common stock from time to time up to an aggregate cost of $1.5 billion in the open market or in negotiated transactions. The February 2026 program remains in effect until the total authorized amount is expended or until further action by our Board of Directors. As of March 31, 2026, we had $1.1 billion remaining under the February 2026 program. We expended $611.3 million and $773.9 million during the quarter and six months ended March 31, 2026, respectively, under the June 2025 program and the February 2026 program. We expended $207.0 million and $366.8 million during the quarter and six months ended March 31, 2025, respectively, under previously authorized stock repurchase programs.
Previous wording
As of December 31, 2025, we had $415.0 million in borrowings outstanding under the revolving line of credit at a weighted-average interest rate of 5.000%, and we were in compliance with all financial covenants under the credit agreement.
Current wording
As of March 31, 2026, we had $265.0 million in borrowings outstanding under the revolving line of credit at a weighted-average interest rate of 4.931%, and we were in compliance with all financial covenants under the credit agreement.
Previous wording
On May 8, 2018, we issued $400 million of senior notes in a private offering to qualified institutional investors (the “2018 Senior Notes”). The 2018 Senior Notes require interest payments semi-annually at a rate of 5.25% per annum and will mature on May 15, 2026. On December 6, 2019, we issued $350 million of senior notes in a private offering to qualified institutional investors (the “2019 Senior Notes”). The 2019 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028. On December 17, 2021, we issued $550 million of additional senior notes of the same class as the 2019 Senior Notes in a private offering to qualified institutional investors (the “2021 Senior Notes”). The 2021 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028, the same date as the 2019 Senior Notes. On May 13, 2025, we issued $1.5 billion of senior notes in a private offering to qualified institutional investors (the “2025 Senior Notes,” and collectively with the 2018 Senior Notes, the 2019 Senior Notes and the 2021 Senior Notes, the “Senior Notes”). The 2025 Senior Notes require interest payments semi-annually at a rate of 6.00% per annum and will mature on May 15, 2033. The indentures for the Senior Notes contain certain covenants typical of unsecured obligations. As of December 31, 2025, the carrying value of the Senior Notes was $2.8 billion and we were in compliance with all financial covenants under these obligations.
Current wording
On May 8, 2018, we issued $400 million of senior notes in a private offering to qualified institutional investors (the “2018 Senior Notes”). The 2018 Senior Notes required interest payments semi-annually at a rate of 5.25% per annum and were to mature on May 15, 2026. On March 26, 2026, prior to the maturity date, we repaid in full the 2018 Senior Notes, utilizing proceeds from the issuance of the 2026 Senior Notes (as defined below). On December 6, 2019, we issued $350 million of senior notes in a private offering to qualified institutional investors (the “2019 Senior Notes”). The 2019 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028. On December 17, 2021, we issued $550 million of additional senior notes of the same class as the 2019 Senior Notes in a private offering to qualified institutional investors (the “2021 Senior Notes”). The 2021 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028, the same date as the 2019 Senior Notes. On May 13, 2025, we issued $1.5 billion of senior notes in a private offering to qualified institutional investors (the “2025 Senior Notes”). The 2025 Senior Notes require interest payments semi-annually at a rate of 6.00% per annum and will mature on May 15, 2033. On March 20, 2026, we issued $1.0 billion of senior notes in a private offering to qualified institutional investors (the “2026 Senior Notes,” and collectively with the 2018 Senior Notes, the 2019 Senior Notes, the 2021 Senior Notes, and the 2025 Senior Notes, the “Senior Notes”). The 2026 Senior Notes require interest payments semi-annually at a rate of 6.25% per annum and will mature on September 15, 2034. The indentures for the Senior Notes contain certain covenants typical of unsecured obligations. As of March 31, 2026, the carrying value of the Senior Notes was $3.4 billion and we were in compliance with all financial covenants under these obligations.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Software segment revenues increased $15.0 million due to a $15.4 million increase in our on-premises and SaaS software revenue, partially offset by a $0.4 million decrease in our 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.
Current report — wording carried from elsewhere
Scores segment revenues increased $246.8 million due to an increase of $241.4 million in our business-to-business scores revenue and an increase of $5.4 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 scores 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
The year-to-date period-over-period increase in interest expense of $25.7 million was primarily attributable to the $1.5 billion of 2025 Senior Notes (as defined below) and the $1.0 billion of 2026 Senior Notes (as defined below), partially offset by a lower average outstanding balance and a lower average interest rate on borrowings under our credit agreement during the six months ended March 31, 2026.
Current report — wording carried from elsewhere
The year-to-date period-over-period $2.9 million decrease in Software segment operating income was due to a $21.0 million increase in segment operating expenses, partially offset by an $18.1 million increase in segment revenue. Software segment operating income as a percentage of segment revenue decreased to 29% from 31%, primarily attributable to an increase in third-party data center hosting costs and a decrease in sales of higher-margin software recognized at a point in time.