Weekly Real Estate News
FICO reported a 27% increase in quarterly revenue Wednesday, with higher mortgage credit-score prices helping drive growth even as mortgage origination volumes declined. The company also declined to issue fiscal 2027 guidance while it negotiates new pricing arrangements with lenders.
Mortgage score pricing drives growth
Fair Isaac Corporation reported $657.0 million in revenue for its fiscal fourth quarter ended September 30, 2026, up from $515.8 million a year earlier. Its Scores segment generated $413.8 million, an increase of 33%, while software revenue rose 19% to $243.2 million.
Business-to-business scores revenue increased 39%. FICO attributed that growth primarily to higher per-unit prices for mortgage-origination scores, partly offset by a decline in mortgage origination volume. That distinction matters for lenders: the company is generating substantially more revenue from business scoring even without a corresponding increase in mortgage transactions.
FICO reported GAAP net income of $175.0 million, compared with $155.0 million a year earlier. Diluted earnings per share increased to $8.12 from $6.42. The company reported non-GAAP diluted earnings of $11.10 per share, compared with $7.74.
Why FICO is withholding its 2027 forecast
In its November 4 earnings announcement, FICO said it is moving toward bespoke mortgage-origination pricing tailored to individual customers. Its FICO Preferred Program has already announced several agreements, while negotiations continue for arrangements covering calendar 2027.
FICO said elevated interest rates, affordability challenges and mortgage origination volumes below historical norms add uncertainty to that transition. Because pricing programs and agreements remain unfinished, the company is not providing fiscal 2027 guidance at this time.
The absence of guidance is significant for mortgage companies evaluating their credit-reporting costs and negotiating score-access terms. It does not, by itself, establish that any particular lender’s fees will increase or that FICO’s new pricing model will produce a specific industrywide cost.
Antitrust accrual and restructuring affect results
The quarter’s GAAP results included a $65 million accrual for a proposed settlement of antitrust class-action lawsuits concerning the Scores business. An accrual for a proposed settlement should not be confused with a final court-approved resolution. FICO also recorded a $27 million restructuring charge associated with a committed workforce-reduction plan and a $48 million nonoperating gain from selling a minority equity investment.
Those items complicate comparisons of reported earnings. FICO excluded them, along with other adjustments, from its non-GAAP results. The company’s operating cash flow for the quarter was $294.2 million, compared with $223.7 million a year earlier.
What lenders should watch next
Mortgage lenders are already reassessing how credit-score choices and credit-reporting costs fit into their origination workflows. FICO’s latest results put a financial measure on that debate: higher mortgage-score unit prices contributed to rapid growth in its business-to-business scores operation despite weaker loan volume.
The next material questions are how many additional lenders enter customer-specific agreements, what those agreements mean for lender costs, and how competition among eligible mortgage credit-scoring models develops. FICO’s announcement does not resolve those questions, and contract terms may vary by customer.
Source: FICO fiscal fourth-quarter 2026 earnings release, November 4, 2026. Financial figures are company-reported.
Simple Content Summary
FICO’s fiscal fourth-quarter revenue rose 27% to $657 million, with higher mortgage credit-score prices driving business scoring growth despite lower origination volume. The company withheld fiscal 2027 guidance as it negotiates customized lender pricing and disclosed a $65 million accrual for a proposed antitrust settlement.
