FICO Q1 2026 Fair Isaac Corp Earnings Call | AllMind AI Earnings | AllMind AI
Q1 2026 Fair Isaac Corp Earnings Call
Patient will open up for questions to ask a question during the session and you need to press star 1 1 or your telephone. You then hear an automated message advising. Your hand is raised to withdraw your question. Please press star 1 1 again, please be advised. That today's conference is being recorded, I would like to hand it over to you for a speaker today. Dave? Singleton, please go ahead.
Good afternoon and thank you for attending fico's first quarter earnings call. I'm Dave Singleton vice president of investor relations and I'm joined today by our CEO will answering and our CFO Steve Weber
Today, we issued a press release that describes Financial results compared to the prior year. On this call management will also discuss results in comparison to the prior quarter to facilitate an understanding of the Run rate of the business.
Operator: Good day, and thank you for standing by. Welcome to the Q1 2026 FICO Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, we'll open up for questions. To ask a question during the session, you need to press star one one on your telephone. You'll then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand it over to your first speaker today, Dave Singleton. Please go ahead.
Operator: Good day, and thank you for standing by. Welcome to the Q1 2026 FICO Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, we'll open up for questions. To ask a question during the session, you need to press star one one on your telephone. You'll then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand it over to your first speaker today, Dave Singleton. Please go ahead.
Speaker #1: Good day, and thank you for standing by. Welcome to 2026 FAICO earnings conference the first quarter of call. At this time, all participants are on a listen-only mode.
Certain statements made in this presentation are forward-looking under the private Securities. Litigation Reform, Act of 1995
those statements involve many risks and uncertainties that could cause actual results to differ materially.
Speaker #1: After the
Information concerning these risks and uncertainties is contained in the company's filings with the SEC, particularly in the risk factors and forward-looking statements portions of such filings.
Copies are available from the SEC or the FICA website or from our investor relations team.
Dave Singleton: Good afternoon, and thank you for attending FICO's First Quarter Earnings Call. I'm Dave Singleton, Vice President of Investor Relations, and I'm joined today by our CEO, Will Lansing, and our CFO, Steve Weber. Today, we issued a press release that describes financial results compared to the prior year. On this call, management will also discuss results in comparison to the prior quarter to facilitate an understanding of the run rate of the business. Certain statements made in this presentation are forward-looking under the Private Securities Litigation Reform Act of 1995. Those statements involve many risks and uncertainties that could cause actual results to differ materially. Information concerning these risks and uncertainties is contained in the company's filings with the SEC, particularly in the Risk Factors and Forward-Looking Statements portions of such filings. Copies are available from the SEC, from the FICO website, or from our investor relations team.
Dave Singleton: Good afternoon, and thank you for attending FICO's First Quarter Earnings Call. I'm Dave Singleton, Vice President of Investor Relations, and I'm joined today by our CEO, Will Lansing, and our CFO, Steve Weber. Today, we issued a press release that describes financial results compared to the prior year. On this call, management will also discuss results in comparison to the prior quarter to facilitate an understanding of the run rate of the business. Certain statements made in this presentation are forward-looking under the Private Securities Litigation Reform Act of 1995. Those statements involve many risks and uncertainties that could cause actual results to differ materially. Information concerning these risks and uncertainties is contained in the company's filings with the SEC, particularly in the Risk Factors and Forward-Looking Statements portions of such filings. Copies are available from the SEC, from the FICO website, or from our investor relations team.
It's called will also include statements regarding certain non-gaap Financial measures. Please refer to the company's earnings release and regulation G schedule issued today for reconciliation of each of these non-gaap Financial measures to the most comparable gaap measure.
the earnings released in regulation G schedule available on the investor relations page of the company's website at fico.com or on the fcc's website at sec.gov
A replay of this webcast will be available through January, 28th 2027.
Speaker #2: statements made in this presentation are forward-looking. Under the private securities litigation reform act of 1995, those statements involve many risks and uncertainties. That could cause actual results to differ materially.
We have refreshed our quarterly investor presentation with additional content which is available in the investor relations section of our website. We will refer to this presentation during today's earnings announcement. I will now turn the call over to our CEO will Landing
Thanks, Dave, and thank you everyone for joining us, for our first quarter earnings call.
We had another strong quarter and a reiterating our fiscal 2026 guidance.
Dave Singleton: This call will also include statements regarding certain non-GAAP financial measures. Please refer to the company's earnings release and Regulation G schedule issued today for a reconciliation of each of these non-GAAP financial measures to the most comparable GAAP measure. The earnings release and Regulation G schedule are available on the investor relations page of the company's website at fico.com or on the SEC's website at sec.gov. A replay of this webcast will be available through January 28, 2027. We have refreshed our quarterly investor presentation with additional content, which is available in the investor relations section of our website. We will refer to this presentation during today's earnings announcement. I will now turn the call over to our CEO, Will Lansing.
This call will also include statements regarding certain non-GAAP financial measures. Please refer to the company's earnings release and Regulation G schedule issued today for a reconciliation of each of these non-GAAP financial measures to the most comparable GAAP measure. The earnings release and Regulation G schedule are available on the investor relations page of the company's website at fico.com or on the SEC's website at sec.gov. A replay of this webcast will be available through January 28, 2027. We have refreshed our quarterly investor presentation with additional content, which is available in the investor relations section of our website. We will refer to this presentation during today's earnings announcement. I will now turn the call over to our CEO, Will Lansing.
We reported q1 revenues of 512 million up to 16% over last year. As you can see on page 5 of our investor presentation for the quarter. We reported 158 million in gaap. Net income in the quarter up 4% and gaap earnings of $6.61 per share of 8% from the prior year.
Speaker #2: G schedule are available on the investor relations page of the company's website, at FAICO.com, or on the sec.gov. A replay SEC's website, at of this webcast will be available through January 28th,
We reported 176 million in non-gaap, net income up 22% and non-gaap earnings of $7.33 per share of 27% from the prior year.
We delivered free cash flow of 165 million in our first quarter. Over the last 4 quarters. We delivered 718 million in free, cash flow, an increase of 7% year-over-year.
Will Lansing: Thanks, Dave, and thank you, everyone, for joining us for our first quarter earnings call. We had another strong quarter and are reiterating our fiscal 2026 guidance. We reported Q1 revenues of $512 million, up 16% over last year, as you can see on page 5 of our investor presentation. For the quarter, we reported $158 million in GAAP net income in the quarter, up 4%, and GAAP earnings of $6.61 per share, up 8% from the prior year. We reported $176 million in non-GAAP net income, up 22%, and non-GAAP earnings of $7.33 per share, up 27% from the prior year. We delivered free cash flow of $165 million in our first quarter.
Will Lansing: Thanks, Dave, and thank you, everyone, for joining us for our first quarter earnings call. We had another strong quarter and are reiterating our fiscal 2026 guidance. We reported Q1 revenues of $512 million, up 16% over last year, as you can see on page 5 of our investor presentation. For the quarter, we reported $158 million in GAAP net income in the quarter, up 4%, and GAAP earnings of $6.61 per share, up 8% from the prior year. We reported $176 million in non-GAAP net income, up 22%, and non-GAAP earnings of $7.33 per share, up 27% from the prior year. We delivered free cash flow of $165 million in our first quarter.
We have refreshed our quarterly investor presentation with additional content which is available in the investor relations section of our website. We will refer to this presentation during today's earnings announcement. I will now turn the call over to our CEO willing.
We continue to return Capital to our shareholders. To buy backs by repurchasing 95,000 shares in q1 at an average price of 1,707 per share.
Thanks, Dave, and thank you everyone for joining us for our first quarter earnings call.
at the segment level on Page 6, you can see our first quarter score segment, revenues were 305 million
We had another strong quarter and a reiterating our fiscal 2026 guidance.
That's up, 29% versus the prior year, while B2B scores were the key driver of growth. We also saw continued growth in b2c scores,
And our software segment, we delivered 207 million in q1 revenues.
We reported q1 revenues of 512 million up to 16% over last year. As you can see on page 5 of our investor presentation for the quarter. We reported 158 million in gaap. Net income in the quarter up 4% and gaap earnings of $6.61 per share of 8% from the prior year.
That's up, 2% over last year, results included 37% platform, Revenue growth and a 13% decline in non-platform Revenue. Steve will provide additional Revenue, detail calls, details later in the call.
We reported $176 million in non-GAAP net income, up 22%, and non-GAAP earnings of $7.33 per share, up 27% from the prior year.
We had another strong execution quarter in our scores business, which we highlight on page 8.
Will Lansing: Over the last four quarters, we delivered $718 million in free cash flow, an increase of 7% year-over-year. We continued to return capital to our shareholders through buybacks by repurchasing 95,000 shares in Q1 at an average price of $1,707 per share. At the segment level, on page 6, you can see our Q1 score segment revenues were $305 million. That's up 29% versus the prior year. While B2B scores were the key driver of growth, we also saw continued growth in B2C scores. In our software segment, we delivered $207 million in Q1 revenues. That's up 2% over last year. Results included 37% platform revenue growth and a 13% decline in non-platform revenue. Steve will provide additional revenue details later in the call.
Will Lansing: Over the last four quarters, we delivered $718 million in free cash flow, an increase of 7% year-over-year. We continued to return capital to our shareholders through buybacks by repurchasing 95,000 shares in Q1 at an average price of $1,707 per share. At the segment level, on page 6, you can see our Q1 score segment revenues were $305 million. That's up 29% versus the prior year. While B2B scores were the key driver of growth, we also saw continued growth in B2C scores. In our software segment, we delivered $207 million in Q1 revenues. That's up 2% over last year. Results included 37% platform revenue growth and a 13% decline in non-platform revenue. Steve will provide additional revenue details later in the call.
Sixty-five million. In our first quarter, over the last four quarters, we delivered $718 million in free cash flow, an increase of 7% year-over-year.
The FICO mortgage direct licensing program allows resellers the ability to streamline score access and enhance price transparency and provide cost savings to lenders through reduced breakage fees. This quarter, we announced the addition of 4 new strategic reseller participants to the FICO mortgage direct licensing program. Zack this totality Ascend companies and cic credit.
We continue to return Capital to our shareholders. To buy backs by repurchasing 95,000 shares in q1 at an average price of 1,707 per share.
at the segment level on Page 6, you can see our first quarter score segment, revenues were 305 million
Additionally, we signed at the op agreement to add, another participant, Meridian, link a keycap platform provider to the mortgage industry.
We'll be releasing a press release on that soon.
That's up, 29% versus the prior year, while B2B scores were the key driver of growth. We also saw continued growth in b2c scores,
In our software segment, we delivered $207 million in Q1 revenues.
With strong demand from lenders, FICO is actively working. Alongside participants to support testing 1. Large reseller is close to completing production integration. Testing, another large reseller has completed that testing and is now testing system integration Downstream.
Will Lansing: We had another strong execution quarter in our scores business, which we highlight on page 8. The FICO Mortgage Direct Licensing Program allows resellers the ability to streamline score access, enhance price transparency, and provide cost savings to lenders through reduced breakage fees. This quarter, we announced the addition of 4 new strategic reseller participants to the FICO Mortgage Direct Licensing Program: Xactus, Cotality, Ascend Companies, and CIC Credit. Additionally, we signed a DLP agreement to add another participant, MeridianLink, a key platform provider to the mortgage industry. We'll be releasing a press release on that soon. With strong demand from lenders, FICO is actively working alongside participants to support testing. One large reseller is close to completing production integration testing. Another large reseller has completed that testing and is now testing system integration downstream.
Will Lansing: We had another strong execution quarter in our scores business, which we highlight on page 8. The FICO Mortgage Direct Licensing Program allows resellers the ability to streamline score access, enhance price transparency, and provide cost savings to lenders through reduced breakage fees. This quarter, we announced the addition of 4 new strategic reseller participants to the FICO Mortgage Direct Licensing Program: Xactus, Cotality, Ascend Companies, and CIC Credit. Additionally, we signed a DLP agreement to add another participant, MeridianLink, a key platform provider to the mortgage industry. We'll be releasing a press release on that soon. With strong demand from lenders, FICO is actively working alongside participants to support testing. One large reseller is close to completing production integration testing. Another large reseller has completed that testing and is now testing system integration downstream.
While we expect to go live soon with multiple partners, we also continue to work on finalizing and create finalizing agreements with additional reseller. Participants
That's up 2% over last year. Results included 37% platform revenue growth and a 13% decline in non-platform revenue. Steve will provide additional revenue details later in the call.
We had another strong execution quarter in our scores business, which we highlight on page 8.
we expect FICO score 10t to be available for direct Licensing, in both conforming and non-conforming in the first half of calendar, 26,
A high level overview of the direct license program and FICO score 10t can be found on page 9 and 10 of our presentation.
The FICO mortgage direct licensing program allows resellers the ability to streamline score access and hands price transparency and provide cost-saving cylinders through reduced breakage fees. This quarter, we announced the addition of 4 new strategic reseller participants to the FICO mortgage direct licensing program. This is actus Co totality Ascend companies and cic credit.
FICO score 10t is a meaningful step forward in credit risk assessment.
Additionally, we signed a DLP agreement to add another participant, MeridianLink, a key CAP platform provider to the mortgage industry.
We'll be releasing a press release on that soon.
FICO score, 10t offers significant improvements in predictive accuracy combined with a focus on fairness and model stability, offering tremendous benefits for lenders and investors and borrowers compared to other alternatives on the market.
Will Lansing: While we expect to go live soon with multiple partners, we also continue to work on finalizing agreements with additional reseller participants. The direct license program currently supports classic FICO. While the conforming market is anticipating the general availability of FICO Score 10T, we expect FICO Score 10T to be available for direct licensing in both conforming and non-conforming in the first half of calendar 2026. A high-level overview of the direct license program and FICO Score 10T can be found on page 9 and 10 of our presentation. FICO Score 10T is a meaningful step forward in credit risk assessment. FICO Score 10T offers significant improvements in predictive accuracy, combined with a focus on fairness and model stability, offering tremendous benefits for lenders, investors, and borrowers compared to other alternatives on the market.
Will Lansing: While we expect to go live soon with multiple partners, we also continue to work on finalizing agreements with additional reseller participants. The direct license program currently supports classic FICO. While the conforming market is anticipating the general availability of FICO Score 10T, we expect FICO Score 10T to be available for direct licensing in both conforming and non-conforming in the first half of calendar 2026. A high-level overview of the direct license program and FICO Score 10T can be found on page 9 and 10 of our presentation. FICO Score 10T is a meaningful step forward in credit risk assessment. FICO Score 10T offers significant improvements in predictive accuracy, combined with a focus on fairness and model stability, offering tremendous benefits for lenders, investors, and borrowers compared to other alternatives on the market.
With strong demand from lenders, FICO is actively working alongside participants to support testing. One large reseller is close to completing production integration testing; another large reseller has completed that testing and is now testing system integration downstream.
In the last year, we have nearly doubled. The number of lenders in our FICO score 10t adopter program. These lenders account for more than 377 billion in annual originations and more than 1.6 trillion in eligible servicing volume.
While we expect to go live soon with multiple partners, we also continue to work on finalizing. Finalizing agreements with additional reseller participants
Most making multi-year commitments to use FICO score for mortgage decisions in both the conforming and non-conforming markets.
The direct license program currently supports classic FICO, while the conforming Market is anticipating the general availability of FICO score 10t. We expect FICO score 10t to be available for direct Licensing in both conforming and non-conforming in the first half of calendar, 26,
This quarter, we also announced a strategic partnership with plaid to deliver the next generation of ultra FICO score. This score combines The Proven reliability of the FICO score with real-time cash flow data from plaid to provide lenders with a single and enhanced credit score, that delivers Superior consumer risk assessment without operational complexity.
A high level overview of the direct license program and FICO Score 10T can be found on page 9 and 10 of our presentation.
The enhanced Ultra FICO score solution, is credit bureau agnostic and will leverage cash flow data.
FICO Score 10T is a meaningful step forward in credit risk assessment.
Historical and current information about the money flowing into and out of a consumer's. Transaction accounts that's checking savings money market. Access through Cloud's open, finance network of consumer permissioned data.
Will Lansing: In the last year, we have nearly doubled the number of lenders in our FICO Score 10T adopter program. These lenders account for more than $377 billion in annual originations and more than $1.6 trillion in eligible servicing volume, most making multiyear commitments to use FICO Score for mortgage decisions in both the conforming and non-conforming markets. This quarter, we also announced a strategic partnership with Plaid to deliver the next generation of UltraFICO Score. This score combines the proven reliability of the FICO Score with real-time cash flow data from Plaid to provide lenders with a single enhanced credit score that delivers superior consumer risk assessment without operational complexity. The enhanced UltraFICO Score solution is credit bureau-agnostic and will leverage cash flow data, historical and current information about the money flowing into and out of a consumer's transaction accounts.
Will Lansing: In the last year, we have nearly doubled the number of lenders in our FICO Score 10T adopter program. These lenders account for more than $377 billion in annual originations and more than $1.6 trillion in eligible servicing volume, most making multiyear commitments to use FICO Score for mortgage decisions in both the conforming and non-conforming markets. This quarter, we also announced a strategic partnership with Plaid to deliver the next generation of UltraFICO Score. This score combines the proven reliability of the FICO Score with real-time cash flow data from Plaid to provide lenders with a single enhanced credit score that delivers superior consumer risk assessment without operational complexity. The enhanced UltraFICO Score solution is credit bureau-agnostic and will leverage cash flow data, historical and current information about the money flowing into and out of a consumer's transaction accounts.
FICO Score 10T offers significant improvements in predictive accuracy, combined with a focus on fairness and model stability, offering tremendous benefits for lenders, investors, and borrowers compared to other alternatives on the market.
Plaid Powers nearly 1 million, secure Financial connections each day, and has helped more than half of Americans. With a bank account, securely move more of their financial life online.
In the last year, we have nearly doubled. The number of lenders in our FICO score 10t adopter program. These lenders account for more than 377 billion in annual originations and more than 1.6 trillion in eligible servicing volume.
We see growing demand for the score which will launch for distribution with Platinum. The first half of calendar 2026.
Most making multi-year commitments to use FICO score for mortgage decisions in both the conforming and non-conforming markets.
Within the quarter, we continue to expand adoption of FICO score, mortgage simulator by partnering with sharper, Lending Solutions, credit Interlink and Ascend partners.
Including zakius and Meridian link announced in fiscal 2025 5 Rez have adopted the simulator and we're expecting another large reseller to sign shortly.
The FICO score. Mortgage simulator is the only simulation tool available to mortgage professionals. That use the FICO score algorithm.
This quarter, we also announced a strategic partnership with Plaid to deliver the next generation of UltraFICO Score. This score combines the proven reliability of the FICO Score with real-time cash flow data from Plaid to provide lenders with a single and enhanced credit score that delivers superior consumer risk assessment without operational complexity.
The enhanced Ultra FICO score solution is credit bureau agnostic and will leverage cash flow data.
It enables mortgage professionals to run credit events. Scenarios by applying mock changes in an applicant's credit report data to simulate potential changes to the applicant's FICO score.
Will Lansing: That's checking, savings, money market, accessed through Plaid's open finance network of consumer-permissioned data. Plaid powers nearly 1 million secure financial connections each day and has helped more than half of Americans with a bank account securely move more of their financial life online. We see growing demand for this score, which will launch for distribution with Plaid in the first half of calendar 2026. Within the quarter, we continued to expand adoption of FICO Score Mortgage Simulator by partnering with SharperLending Solutions, Credit Interlink, and Ascend Partners. Including Xactus and MeridianLink, announced in fiscal 2025, 5 resellers have adopted the simulator, and we're expecting another large reseller to sign shortly. The FICO Score Mortgage Simulator is the only simulation tool available to mortgage professionals that use the FICO Score algorithm.
Will Lansing: That's checking, savings, money market, accessed through Plaid's open finance network of consumer-permissioned data. Plaid powers nearly 1 million secure financial connections each day and has helped more than half of Americans with a bank account securely move more of their financial life online. We see growing demand for this score, which will launch for distribution with Plaid in the first half of calendar 2026. Within the quarter, we continued to expand adoption of FICO Score Mortgage Simulator by partnering with SharperLending Solutions, Credit Interlink, and Ascend Partners. Including Xactus and MeridianLink, announced in fiscal 2025, 5 resellers have adopted the simulator, and we're expecting another large reseller to sign shortly. The FICO Score Mortgage Simulator is the only simulation tool available to mortgage professionals that use the FICO Score algorithm.
The FICO score mortgage simulator supports simulations on all 3, credit bureaus and models potential changes to several FICO score versions used in mortgage lending.
Historical and current information about the money flowing into and out of a consumer's transaction accounts—that’s checking, savings, money market—accessed through Cloud's open finance network of consumer-permissioned data.
Platt power is nearly 1 million secure Financial connections each day, and has helped more than half of Americans. With a bank account. Securely move more of their financial life online.
Mortgage professionals can leverage valuable Insight from the simulator to help Drive smarter decisions that can present more loan options and favorable interest rates for customers.
We see growing demand for the score which will launch for distribution with Platinum. The first half of calendar 2026.
In our software business, we're thrilled to be recognized by Gartner as a leader in the January 2026 Gartner magic, quadrant for decision, intelligence platforms.
We are positioned the highest for our ability to execute.
Within the quarter, we continued to expand adoption of FICO score, mortgage simulator by partnering with sharper, Lending Solutions, credit Interlink and Ascend partners.
Including Zakius and MeridianLink announced in fiscal 2025, five RES have adopted the simulator, and we're expecting another large reseller to sign shortly.
We believe this recognition is a landmark moment for FICO further. We feel it. Reflects our commitments to empowering customers, and delivering lasting impact worldwide. As a market. Leader in decision intelligence FICO enables businesses to make real-time decisions at scale.
Will Lansing: It enables mortgage professionals to run credit event scenarios by applying mock changes in an applicant's credit report data to simulate potential changes to the applicant's FICO Score. The FICO Score Mortgage Simulator supports simulations on all three credit bureaus and models potential changes to several FICO Score versions used in mortgage lending. Mortgage professionals can leverage valuable insight from the simulator to help drive smarter decisions that can present more loan options and favorable interest rates for customers. In our software business, we're thrilled to be recognized by Gartner as a leader in the January 2026 Gartner Magic Quadrant for Decision Intelligence Platforms. We are positioned the highest for our ability to execute. We believe this recognition is a landmark moment for FICO. Further, we feel it reflects our commitments to empowering customers and delivering lasting impact worldwide.
Will Lansing: It enables mortgage professionals to run credit event scenarios by applying mock changes in an applicant's credit report data to simulate potential changes to the applicant's FICO Score. The FICO Score Mortgage Simulator supports simulations on all three credit bureaus and models potential changes to several FICO Score versions used in mortgage lending. Mortgage professionals can leverage valuable insight from the simulator to help drive smarter decisions that can present more loan options and favorable interest rates for customers. In our software business, we're thrilled to be recognized by Gartner as a leader in the January 2026 Gartner Magic Quadrant for Decision Intelligence Platforms. We are positioned the highest for our ability to execute. We believe this recognition is a landmark moment for FICO. Further, we feel it reflects our commitments to empowering customers and delivering lasting impact worldwide.
The FICO score. Mortgage simulator is the only simulation tool available to mortgage professionals. That use the FICO score algorithm.
The core of our strategy is to empower customers with always on Real Time. Customer insights that deliver connected decisions, and continuous learning throughout the entire customer life cycle.
It enables mortgage professionals to run credit events. Scenarios by applying mock changes in an applicant's credit report data to simulate potential changes to the applicant's FICO score.
Our Innovations will be on display at FICO World 2026, which is going to happen. May 19th through 22 in Orlando, Florida.
The FICO score mortgage simulator supports simulations on all three credit bureaus and models potential changes to several FICO score versions used in mortgage lending.
Or.
FICO World brings together customers and partners from around the world allowing participants to collaborate on how FICO platform makes real-time decisions at scale to optimize interactions with consumers.
Help Drive smarter decisions that can present more loan options and favorable interest rates for customers.
At FICO we're obsessed with power and Consumer Connections and delivering always on personalized experiences to drive outside business outcomes.
In our software business, we're thrilled to be recognized by Gartner as a leader in the January 2026 Gartner magic, quadrant for decision, intelligence platforms.
We are positioned the highest for our ability to execute.
At FICO World 26. You can network with the world's leading experts to learn, how you can power your organization. Apply best practices in advance platform, decisioning and drive Financial inclusion.
Will Lansing: As a market leader in decision intelligence, FICO enables businesses to make real-time decisions at scale. The core of our strategy is to empower customers with always-on, real-time customer insights that deliver connected decisions and continuous learning throughout the entire customer life cycle. Our innovations will be on display at FICO World 2026, which is gonna happen May 19 through 22 in Orlando, Florida. FICO World brings together customers and partners from around the world, allowing participants to collaborate on how FICO Platform makes real-time decisions at scale to optimize interactions with consumers. At FICO, we're obsessed with powering consumer connections and delivering always-on personalized experiences to drive outsized business outcomes. At FICO World 2026, you can network with the world's leading experts to learn how you can power your organization, apply best practices in advanced platform decisioning, and drive financial inclusion.
Will Lansing: As a market leader in decision intelligence, FICO enables businesses to make real-time decisions at scale. The core of our strategy is to empower customers with always-on, real-time customer insights that deliver connected decisions and continuous learning throughout the entire customer life cycle. Our innovations will be on display at FICO World 2026, which is gonna happen May 19 through 22 in Orlando, Florida. FICO World brings together customers and partners from around the world, allowing participants to collaborate on how FICO Platform makes real-time decisions at scale to optimize interactions with consumers. At FICO, we're obsessed with powering consumer connections and delivering always-on personalized experiences to drive outsized business outcomes. At FICO World 2026, you can network with the world's leading experts to learn how you can power your organization, apply best practices in advanced platform decisioning, and drive financial inclusion.
I'm going to now hand it over to Steve to provide further Financial details.
We believe this recognition is a landmark moment for FICO, further. We feel it. Reflect our commitments to empowering customers and delivering lasting impact worldwide. As a market leader in decision intelligence, FICO enables businesses to make real-time decisions at scale.
Thanks and good afternoon everyone as will mentioned our score, segment revenues for the quarter were 305 million up 29% from the prior year.
The core of our strategy is to empower customers with always on Real Time. Customer insights that deliver connected decisions, and continuous learning throughout the entire customer life cycle.
As shown on page 13 of our presentation B2B revenues were up, 36% primarily attributable to higher mortgage. Originations scores unit price and an increase of volume in mortgage originations
Our Innovations will be on display at FICO World 2026, which is going to happen. May 19th through 22 in Orlando, Florida.
our b2c revenues were up 5% versus the prior year driven, mainly by our indirect Channel partners,
Cycle World brings together customers and partners from around the world allowing participants to collaborate on how FICO platform makes real-time decisions at scale to optimize interactions with consumers.
Revenues accounted for 51% of, B2B revenue and 42% of total scores Revenue.
At FICO, we're obsessed with power and Consumer Connections, and delivering always-on personalized experiences to drive outside business outcomes.
Auto originations revenues were up 21%, while credit card, personal loan and other originations revenues were up 10% versus the prior year.
For your reference page. 14 of our presentation provides 5, quarter trending on all of our scores metrics.
Will Lansing: I'm gonna now hand it over to Steve to provide further financial details.
Will Lansing: I'm gonna now hand it over to Steve to provide further financial details.
At FICO World 26, you can network with the world's leading experts to learn how you can power your organization, apply best practices in advanced platforms and decisioning, and drive financial inclusion.
Steve Weber: Thanks, and good afternoon, everyone. As Will mentioned, our score segment revenues for the quarter were $305 million, up 29% from the prior year. As shown on page 13 of our presentation, B2B revenues were up 36%, primarily attributable to higher mortgage origination scores unit price, and an increase of volume in mortgage originations. Our B2C revenues were up 5% versus the prior year, driven mainly by our indirect channel partners. First quarter mortgage originations revenues were up 60% versus the prior year. Mortgage originations revenues accounted for 51% of B2B revenue and 42% of total scores revenue. Auto originations revenues were up 21%, while credit card, personal loan, and other originations revenues were up 10% versus the prior year.
Steve Weber: Thanks, and good afternoon, everyone. As Will mentioned, our score segment revenues for the quarter were $305 million, up 29% from the prior year. As shown on page 13 of our presentation, B2B revenues were up 36%, primarily attributable to higher mortgage origination scores unit price, and an increase of volume in mortgage originations. Our B2C revenues were up 5% versus the prior year, driven mainly by our indirect channel partners. First quarter mortgage originations revenues were up 60% versus the prior year. Mortgage originations revenues accounted for 51% of B2B revenue and 42% of total scores revenue. Auto originations revenues were up 21%, while credit card, personal loan, and other originations revenues were up 10% versus the prior year.
We're going to now hand it over to Steve to provide further Financial details.
Turning to our software segment. Our our software ACV, bookings for the quarter were a record of 38 million as shown on page 15 of the presentation. This quarter included an above average size, international, multi-use Case, platform deal.
On a trailing 12-month basis. ACV, bookings reached 119 million, this quarter and increase of 36% from the same period last year.
Thanks, and good afternoon, everyone. As Will mentioned, our Scores segment revenues for the quarter were $305 million, up 29% from the prior year, as shown on page 13 of our presentation. B2B revenue is up 36%, primarily attributable to higher mortgage origination scores unit price and an increase of volume in mortgage originations.
Our strong bookings. In recent quarters gives us increased confidence that our ARR growth will continue to accelerate in FY 26.
our B Toc revenues were up 5% versus the prior year driven, mainly by our indirect Channel partners,
Our total software, ARR has shown on page 16 with 766 million of 5% increase over the prior year.
Platform ARR with 303 million representing. 40% of our total q1 26 ARR,
First quarter mortgage originations revenues were up 60% versus the prior year. Mortgage origin rate. Mortgage originations revenues accounted for 51% of B2B revenue, and 42% of total Scores revenue.
Steve Weber: For your reference, page 14 of our presentation provides 5-quarter trending on all of our scores metrics. Turning to our software segment, our software ACV bookings for the quarter were a record of $38 million, as shown on page 15 of the presentation. This quarter included an above-average-sized international multi-use case platform deal. On a trailing twelve-month basis, ACV bookings reached $119 million this quarter, an increase of 36% from the same period last year. Our strong bookings in recent quarters gives us increased confidence that our ARR growth will continue to accelerate in FY 2026. Our total software ARR is shown on page 16, with $766 million, a 5% increase over the prior year. Platform ARR was $303 million, representing 40% of our total Q1 2026 ARR.
Steve Weber: For your reference, page 14 of our presentation provides 5-quarter trending on all of our scores metrics. Turning to our software segment, our software ACV bookings for the quarter were a record of $38 million, as shown on page 15 of the presentation. This quarter included an above-average-sized international multi-use case platform deal. On a trailing twelve-month basis, ACV bookings reached $119 million this quarter, an increase of 36% from the same period last year. Our strong bookings in recent quarters gives us increased confidence that our ARR growth will continue to accelerate in FY 2026. Our total software ARR is shown on page 16, with $766 million, a 5% increase over the prior year. Platform ARR was $303 million, representing 40% of our total Q1 2026 ARR.
Platform arrg grew 33% versus the prior year while non-platform declined 8% to 463 million. This quarter
Auto originations revenues were up 21%, while credit card, personal loan, and other originations revenues were up 10% versus the prior year.
For your reference page. 14 of our presentation provides 5, quarter trending on all of our scores metrics.
Platform ARR was driven by both new customer wins as well as expanded use cases and volumes from existing customers.
We also migrated our non-platform liquid credit solution to the platform.
Excluding that liquid credit migration. Our platform, our growth was on in the high 20% range.
Turning to our software segment. Our our software ACV, bookings for the quarter were a record of 38 million as shown on page 15 of the presentation. This quarter included in above average size, international multi-use Case, platform deal.
The non-platform year-over-year are decline was driven primarily by migrations the end of life of a legacy authentication, Suite solution and some usage clients.
On a trailing 12-month basis. ACV, bookings reached 119 million, this quarter and increase of 36% from the same period last year.
In our CCS business. ARR growth was relatively flat,
Our strong bookings in recent quarters give us increased confidence that our ARR growth will continue to accelerate in FY26.
Our dollar-based net retention rate in the quarter was 103% platform. Nrr was 122% while our non-platform and our I was 91%.
Our total software ARR, as shown on page 16, was $766 million, a 5% increase over the prior year.
Platform nrr was driven by a combination of new new use cases and increased usage of existing use cases.
Steve Weber: Platform ARR grew 33% versus the prior year, while non-platform declined 8% to $463 million this quarter. Platform ARR was driven by both new customer wins, as well as expanded use cases and volumes from existing customers. We also migrated our non-platform Liquid Credit solution to the platform. Excluding that Liquid Credit migration, our platform ARR growth was in the high 20% range. The non-platform year-over-year ARR decline was driven primarily by migrations, the end of life of a legacy authentication suite solution, and some usage declines. In our CCS business, ARR growth was relatively flat. Our dollar-based net retention rate in the quarter was 103%. Platform NRR was 122%, while our non-platform NRR was 91%.
Steve Weber: Platform ARR grew 33% versus the prior year, while non-platform declined 8% to $463 million this quarter. Platform ARR was driven by both new customer wins, as well as expanded use cases and volumes from existing customers. We also migrated our non-platform Liquid Credit solution to the platform. Excluding that Liquid Credit migration, our platform ARR growth was in the high 20% range. The non-platform year-over-year ARR decline was driven primarily by migrations, the end of life of a legacy authentication suite solution, and some usage declines. In our CCS business, ARR growth was relatively flat. Our dollar-based net retention rate in the quarter was 103%. Platform NRR was 122%, while our non-platform NRR was 91%.
Platform ARR with 303 million representing. 40% of our total q1 26 ARR,
We now have over 150 customers on FICO platform with more than half leveraging fee FICO platform for multiple use cases.
Platform ARR grew 33% versus the prior year, while non-platform declined 8% to $463 million. This quarter
First quarter software, segment revenues detailed on page 17 where 207 million dollars of 2% from the prior year.
Platform ARR was driven by both new customer wins, as well as expanded use cases and volumes from existing customers.
Within the segment, our SAS revenues grew, 12% driven by FICO platform.
We also migrated our non-platform Liquid Credit solution to the platform.
Our on premises revenues, declined, 12%. Primarily driven by lower point in time revenues.
Excluding that liquid credit migration, our platform, our growth was in the high 20% range.
The non-platform year-over-year. ARR decline was driven primarily by migrations the end of life of a legacy authentication Suite solution and some usage declines.
In our CCS business. ARR growth was relatively flat,
As a reminder, our FY, 26 Revenue guidance, reflects an expectation of lower point in time revenues throughout FY 26, due to fewer non-platform licensed, renewal opportunities compared to the prior year.
Steve Weber: Platform NRR was driven by a combination of new use cases and increased usage of existing use cases. We now have over 150 customers on FICO Platform, with more than half leveraging FICO Platform for multiple use cases. Q1 software segment revenues, detailed on page 17, were $207 million, up 2% from the prior year. Within the segment, our SaaS revenues grew 12%, driven by FICO Platform. Our on-premises revenues declined 12%, primarily driven by lower point-in-time revenues. Year-over-year, our platform revenues grew 37% and our non-platform revenues declined 13%. As a reminder, our FY 2026 revenue guidance reflects an expectation of lower point-in-time revenues throughout FY 2026, due to fewer non-platform license renewal opportunities compared to the prior year.
Steve Weber: Platform NRR was driven by a combination of new use cases and increased usage of existing use cases. We now have over 150 customers on FICO Platform, with more than half leveraging FICO Platform for multiple use cases. Q1 software segment revenues, detailed on page 17, were $207 million, up 2% from the prior year. Within the segment, our SaaS revenues grew 12%, driven by FICO Platform. Our on-premises revenues declined 12%, primarily driven by lower point-in-time revenues. Year-over-year, our platform revenues grew 37% and our non-platform revenues declined 13%. As a reminder, our FY 2026 revenue guidance reflects an expectation of lower point-in-time revenues throughout FY 2026, due to fewer non-platform license renewal opportunities compared to the prior year.
From a regional lens, 888% of total company revenue. Is this quarter were derived from our, our America's region, which is a combination of our North America and Latin America regions.
Our dollar-based net retention rate in the quarter was 103% platform. Nrr was 122% while our non-platform and our I was 91%.
Our Amia region, generate 8% of revenues. And the asia-pacific region, delivered 4%,
Platform NR was driven by a combination of new new use cases and increased usage of existing use cases.
We now have over 150 customers on the FICO platform, with more than half leveraging the FICO platform for multiple use cases.
Operating expenses for the quarter as shown on page, 18 where 278 million, this quarter versus 279 million in the prior quarter which included 10.9 million in restructuring charges.
First quarter Software segment revenues, detailed on page 17, were $207 million, up 2% from the prior year.
excluding restructuring expenses through 4% quarter Road, recorder driven primarily by Personnel expenses,
Within the second quarter, our SaaS revenues grew 12%, driven by the FICO Platform.
We expect operating expense dollars to continue to Trend upward modestly, throughout the fiscal year.
Our non-gaap operating margin is shown on page. 19 was 54% for the quarter compared with 50% in the same quarter last year, which means we delivered year-over-year. Non-gaap operating margin expansion of 432 basis points.
Steve Weber: From a regional lens, 88% of total company revenues this quarter were derived from our Americas region, which is a combination of our North America and Latin America regions. Our AMEA region generated 8% of revenues, and the Asia Pacific region delivered 4%. Operating expenses for the quarter, as shown on page 18, were $278 million this quarter versus $279 million in the prior quarter, which included $10.9 million in restructuring charges. Excluding restructuring, expenses grew 4% quarter-over-quarter, driven primarily by personnel expenses. We expect operating expense dollars to continue to trend upward modestly throughout the fiscal year.
Steve Weber: From a regional lens, 88% of total company revenues this quarter were derived from our Americas region, which is a combination of our North America and Latin America regions. Our AMEA region generated 8% of revenues, and the Asia Pacific region delivered 4%. Operating expenses for the quarter, as shown on page 18, were $278 million this quarter versus $279 million in the prior quarter, which included $10.9 million in restructuring charges. Excluding restructuring, expenses grew 4% quarter-over-quarter, driven primarily by personnel expenses. We expect operating expense dollars to continue to trend upward modestly throughout the fiscal year.
FY26 revenue guidance reflects an expectation of lower point-in-time revenues throughout FY26, due to fewer non-platform licensed renew opportunities compared to the prior year.
From a regional lens, 88% of total company revenues, disordered, were derived from our Americas region, which is a combination of our North America and Latin America regions.
The effective tax rate for the quarter was 17.5%. The operating tax rate was 25.7%. The primary difference between operating tax rate and net effective tax rate for the quarter is 15.7 million in excess tax benefit recognized upon the settlement or exercise of Employee Stock Awards.
Our AMIA region generated 8% of revenues. And the Asia-Pacific region delivered 4%.
We continue to expect a full year. Net effective tax rate of 24% and an operating tax rate of 25%.
At the end of the quarter, we had 218 million in cash and Market will Investments.
Operating expenses for the quarter are shown on page 18, with $278 million this quarter versus $279 million in the prior quarter, which included $10.9 million in restructuring charges.
Our total debt a quarter end with 3.2 billion with a weighted average interest rate of 5.22%.
Steve Weber: Our non-GAAP operating margin, as shown on page 19, was 54% for the quarter, compared with 50% in the same quarter last year, which means we delivered year-over-year non-GAAP operating margin expansion of 432 basis points. The effective tax rate for the quarter was 17.5%. The operating tax rate was 25.7%. The primary difference between operating tax rate and net effective tax rate for the quarter is $15.7 million in excess tax benefit recognized upon the settlement or exercise of employee stock awards. We continue to expect a full year net effective tax rate of 24% and an operating tax rate of 25%. At the end of the quarter, we had $218 million in cash and marketable investments.
Steve Weber: Our non-GAAP operating margin, as shown on page 19, was 54% for the quarter, compared with 50% in the same quarter last year, which means we delivered year-over-year non-GAAP operating margin expansion of 432 basis points. The effective tax rate for the quarter was 17.5%. The operating tax rate was 25.7%. The primary difference between operating tax rate and net effective tax rate for the quarter is $15.7 million in excess tax benefit recognized upon the settlement or exercise of employee stock awards. We continue to expect a full year net effective tax rate of 24% and an operating tax rate of 25%. At the end of the quarter, we had $218 million in cash and marketable investments.
We expect operating expense dollars to continue to trend upward modestly throughout the fiscal year.
As of December 31st 2025, 87% of our debt was held in senior notes with no term loans. We had 415 million balance on our revolving line of credit, which is repayable at any time.
Our non-gaap operating margin is shown on page, 19 with 54% for the quarter. Compared with 50% in the same quarter last year, which means we delivered year-over-year. Non-gaap operating margin expansion of 432 basis points.
For a total cost of 163 million and we continue to view share repurchases as an attractive use of cash.
With that, I'll turn it back to will for his closing comments. Thanks Steve.
We had a great start to the year and our well positioned to exceed our fiscal year guidance. As in Prior years, we will revisit our guidance on our Q2 earnings call.
The effective tax rate for the quarter was 17.5%. The operating tax rate was 25.7%. The primary difference between the operating tax rate and the net effective tax rate for the quarter is $15.7 million in excess tax benefit recognized upon the settlement or exercise of employee stock awards.
In our software business, we're seeing growth in bookings and ARR reflecting the value of our innovation in the market.
We continue to expect a full year net effective tax rate of 24% and an operating tax rate of 25%.
Steve Weber: Our total debt at quarter end was $3.2 billion, with a weighted average interest rate of 5.22%. As of 31 December 2025, 87% of our debt was held in senior notes with no term loans. We had $415 million balance on our revolving line of credit, which is repayable at any time. As Will highlighted, we continue to return capital to our shareholders through buybacks, as shown on page 20. In Q1, we repurchased 95,000 shares for a total cost of $163 million, and we continue to view share repurchases as an attractive use of cash. With that, I'll turn it back to Will for his closing comments.
Steve Weber: Our total debt at quarter end was $3.2 billion, with a weighted average interest rate of 5.22%. As of 31 December 2025, 87% of our debt was held in senior notes with no term loans. We had $415 million balance on our revolving line of credit, which is repayable at any time. As Will highlighted, we continue to return capital to our shareholders through buybacks, as shown on page 20. In Q1, we repurchased 95,000 shares for a total cost of $163 million, and we continue to view share repurchases as an attractive use of cash. With that, I'll turn it back to Will for his closing comments.
At the end of the quarter, we had $218 million in cash and marketable investments.
Our total debt is approximately $3.2 billion, with a weighted average interest rate of 5.22%.
Since by the world 2025, we achieve General availability of FICO Marketplace and FICO focused Foundation model. Our next Generation FICO platform and Enterprise broad Solution on FICO platform. Will soon be generally available. I'm excited to see our Innovation realized in the market and delighting our customers.
As of December 31, 2025, 87% of our debt was held in senior notes with no term loans. We had a $415 million balance on our revolving line of credit, which is repayable at any time.
In our scores business, our Innovations are driving increased engagement from Market. Participants there's continued participant adoption of our FICO mortgage direct licensing program.
As we’ve highlighted, we continue to return capital to our shareholders through buybacks, as shown on page 20 in Q1. We repurchased 95,000 shares for a total cost of $163 million, and we continue to view share repurchases as an attractive use of cash.
Will Lansing: Thanks, Dave. We had a great start to the year and are well positioned to exceed our fiscal year guidance. As in prior years, we will revisit our guidance on our Q2 earnings call. In our software business, we're seeing growth in bookings and ARR, reflecting the value of our innovation in the market. Since FICO World 2025, we achieved general availability of FICO Marketplace and FICO Focus Foundation model. Our next generation FICO Platform and FICO Enterprise Fraud Solution on FICO Platform will soon be generally available. I'm excited to see our innovation realized in the market and delighting our customers. In our scores business, our innovations are driving increased engagement for market participants. There's continued participant adoption of our FICO Mortgage Direct Licensing Program. Outside of conforming mortgages, there's continued adoption for FICO Score 10T. We see adoption of FICO Score Mortgage Simulator throughout the mortgage industry.
Will Lansing: Thanks, Dave. We had a great start to the year and are well positioned to exceed our fiscal year guidance. As in prior years, we will revisit our guidance on our Q2 earnings call. In our software business, we're seeing growth in bookings and ARR, reflecting the value of our innovation in the market. Since FICO World 2025, we achieved general availability of FICO Marketplace and FICO Focus Foundation model. Our next generation FICO Platform and FICO Enterprise Fraud Solution on FICO Platform will soon be generally available. I'm excited to see our innovation realized in the market and delighting our customers. In our scores business, our innovations are driving increased engagement for market participants. There's continued participant adoption of our FICO Mortgage Direct Licensing Program. Outside of conforming mortgages, there's continued adoption for FICO Score 10T. We see adoption of FICO Score Mortgage Simulator throughout the mortgage industry.
Outside of conforming mortgages. There's continued adoption for FICO score 10t. We see adoption of FICO score mortgage simulator throughout the mortgage industry. The FICO score continues to be the trusted industry standard. Used by 90% of top us lenders as the standard measure of consumer credit risk in the US,
With that, I'll turn it back to Will for his closing comments. Thanks, Steve.
With that, let me turn this over to Dave to open up the Q&A session.
Thanks. Will this concludes our prepared remarks and we're now ready to take questions. Operator. Please open the lines.
We had a great start to the year and our well positioned to exceed our fiscal year guidance. As in Prior years, we will revisit our guidance on our Q2 earnings call.
In our software business, we're seeing growth in bookings and ARR, reflecting the value of our innovation in the market.
Thank you. And at this time, we'll conduct a question answer session. As a reminder, to ask a question, you will need to press star 1 1 or your telephone and wait for a name to be announced to a draw a question. Please press star. 1 1 again.
Please stand by with the public Q&A roster, 1 moment for our first question.
Since Michael World 2025 we achieved General availability of FICO Marketplace and FICO focused Foundation model. Our next Generation FICO platform and Enterprise fraud Solution on FICO platform. Will soon be generally available. I'm excited to see our Innovation realized in the market and delighting our customers.
Our first question will come from line of manav Nike from Barclays, your line is open.
In our Sports business, our Innovations are driving increased engagement for Market, participants, there's continued participant adoption of our FICO mortgage direct licensing program.
Will Lansing: The FICO Score continues to be the trusted industry standard used by 90% of top US lenders as the standard measure of consumer credit risk in the US.
Will Lansing: The FICO Score continues to be the trusted industry standard used by 90% of top US lenders as the standard measure of consumer credit risk in the US.
Thank you. Uh, I just wanted to touch on the, you know, the the, the 10t. Uh, again, that slide you had was really helpful but you know, right before earnings you had this press release with loan pass and you know the the data sharing and the back testing and stuff that can be done. I was just hoping you could help us.
Steve Weber: ...With that, let me turn this over to Dave to open up the Q&A session.
Steve Weber: ...With that, let me turn this over to Dave to open up the Q&A session.
Appreciate the significance of that and any sense of you know, timing around when 10t, you know officially gets approved and and use Etc.
Outside of conforming mortgages. This is continued adoption for FICO score 10t. We see adoption of FICO score mortgage simulator throughout the mortgage industry. The FICO score continues to be the trusted industry standard. Used by 90% of top us lenders as the standard measure of consumer credit risk in the US,
Dave Singleton: Thanks, Will. This concludes our prepared remarks, and we're now ready to take questions. Operator, please open the lines.
Dave Singleton: Thanks, Will. This concludes our prepared remarks, and we're now ready to take questions. Operator, please open the lines.
With that, let me turn this over to Dave to open up the Q&A session.
Operator: Thank you. And at this time, we'll conduct a question-and-answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by. We'll compile the Q&A roster. One moment for our first question. Our first question will come from the line of Manav Patnaik from Barclays. Your line is open.
Operator: Thank you. And at this time, we'll conduct a question-and-answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by. We'll compile the Q&A roster. One moment for our first question. Our first question will come from the line of Manav Patnaik from Barclays. Your line is open.
Thank you. Well, this concludes our prepared remarks, and we're now ready to take questions. Operator, please open the line.
Yeah, thanks. And I think we're continuing to see a lot of adoption on the non-conforming side and the, you know, the the conforming side with the agencies, they're still doing a lot of testing, we don't really have a timeline. They they haven't published any kind of a timeline yet. So at this point, we really don't know that that, you know, when, when, when it will be generally available,
Thank you. And at this time, we'll conduct a question and answer session. As a reminder, to ask a question, you will need to press star 1, 1 1 or your telephone and wait for a name, to be announced to withdraw a question. Please press star 1 on 1 again.
Please stand by with the public Q&A roster. One moment for our first question.
Okay, got it. And then uh, maybe just on the performance model adoption. I was just wondering if you could give us any early signs, or basically, discussions, how you think that's going, is that going to be available to the credit bureau Channel as well?
Manav Patnaik: Thank you. I just wanted to touch on the, you know, the 10T. Again, that slide you had was really helpful. But, you know, right before earnings, you had this press release with LoanPass and, you know, the data sharing and the back testing and stuff that can be done. I was just hoping you could help us appreciate the significance of that and any sense of, you know, timing around when 10T, you know, officially gets approved and used, et cetera.
Manav Patnaik: Thank you. I just wanted to touch on the, you know, the 10T. Again, that slide you had was really helpful. But, you know, right before earnings, you had this press release with LoanPass and, you know, the data sharing and the back testing and stuff that can be done. I was just hoping you could help us appreciate the significance of that and any sense of, you know, timing around when 10T, you know, officially gets approved and used, et cetera.
Our first question will come from Manav Panjabi of Barclays. Your line is open.
Um, the performance model right now is uh, planned for the direct license program and it's going, well, we have a lot of interest and we're busy working towards bringing bringing the direct Channel live.
Thank you. Uh, I just wanted to touch on the, you know, the 10T. Uh, again, that slide you had was really helpful, but you know, right before earnings you had this press release with LoanPASS and, you know, the data sharing and the back testing and stuff that can be done. I was just hoping you could help us.
Appreciate the significance of that and any sense of you know, timing around when penty, you know, officially gets the proof and and use Etc.
Okay, fair enough. Uh maybe just sorry if I can squeeze 1 more and Steve just you know uh it was a good quarter, you maintained a guide. I know that's practiced but maybe you could just help us appreciate
Steve Weber: Yeah, thanks, Manav, and I think we're continuing to see a lot of adoption on the non-conforming side and the con-- you know, on the conforming side with the agencies. They're still doing a lot of testing. We don't really have a timeline. They haven't published any kind of a timeline yet. So at this point, we really don't know the, you know, when it will be generally available.
Steve Weber: Yeah, thanks, Manav, and I think we're continuing to see a lot of adoption on the non-conforming side and the con-- you know, on the conforming side with the agencies. They're still doing a lot of testing. We don't really have a timeline. They haven't published any kind of a timeline yet. So at this point, we really don't know the, you know, when it will be generally available.
There is no race to the guy at this time.
Yeah, thanks. I think we're continuing to see a lot of adoption on the non-conforming side and the, you know, the conforming side with the agencies, they're still doing a lot of testing. We don't really have a timeline. They they haven't published any kind of a timeline yet. So at this point, we really don't know that that, you know, when, when, when it will be generally available,
Manav Patnaik: Okay, got it. And then, maybe just on the performance model adoption, I was just wondering if you could give us any early signs or based on your discussions, how you think that's going. Is that going to be available to the credit bureau channel as well?
Manav Patnaik: Okay, got it. And then, maybe just on the performance model adoption, I was just wondering if you could give us any early signs or based on your discussions, how you think that's going. Is that going to be available to the credit bureau channel as well?
Yeah, thanks Mona. It's a good question. Um, you know, we're we're pretty confident. We're going to be able to meet our guidance and I know we talked about it was pretty conservative in the last quarter. At this point we're only 3 months in. Uh there's just a lot of questions out in the macro environment. I mean the you know, with the FED today and you know it's just I frankly we don't know probably know what numbers we would move to. So I think by next quarter, we'll have a much better idea of what the world looks like.
And what overall volumes are going to look like. So I think that that was our thinking behind that
Okay, fair enough. Thank you guys.
Will Lansing: The performance model right now is planned for the direct license program, and it's going well. We have a lot of interest, and we're busy working towards bringing the direct channel live.
Will Lansing: The performance model right now is planned for the direct license program, and it's going well. We have a lot of interest, and we're busy working towards bringing the direct channel live.
Any discussions, how you think that's going? Is that going to be available to the plant Bureau Channel as well?
Thank you. 1 moment for our next question.
In our next question will come flying of Jason house from Wells, Fargo. Your line is open.
Um, the performance model right now is uh, planned for the direct license program and it's going, well, we have a lot of interest and we're busy working towards bringing bringing the direct Channel live.
Manav Patnaik: Okay, fair enough. Maybe just... Sorry, if I can squeeze one more in, Steve. Just, you know, it was a good quarter. You maintained the guide. I know that's practice, but maybe you could just help us appreciate why there was no raise to the guide at this time.
Manav Patnaik: Okay, fair enough. Maybe just... Sorry, if I can squeeze one more in, Steve. Just, you know, it was a good quarter. You maintained the guide. I know that's practice, but maybe you could just help us appreciate why there was no raise to the guide at this time.
Hey, good afternoon, and thanks for taking my question. I'm curious. If you had any sense with the timeline looks like for the release of the llpa grids. And if you had any insight as to what those might look like.
Steve Weber: Yeah, thanks, Manav. It's a good question. You know, we're pretty confident we're going to be able to beat our guidance. I know we talked about it was pretty conservative last quarter. At this point, we're only three months in. There's just a lot of questions out in the macro environment. I mean, with the Fed today, you know, it's just frankly, we don't know, probably know what numbers we would move to. So I think by next quarter, we'll have a much better idea of what the world looks like and what overall volumes are gonna look like. So I think that was our thinking behind that.
Steve Weber: Yeah, thanks, Manav. It's a good question. You know, we're pretty confident we're going to be able to beat our guidance. I know we talked about it was pretty conservative last quarter. At this point, we're only three months in. There's just a lot of questions out in the macro environment. I mean, with the Fed today, you know, it's just frankly, we don't know, probably know what numbers we would move to. So I think by next quarter, we'll have a much better idea of what the world looks like and what overall volumes are gonna look like. So I think that was our thinking behind that.
Fair enough. Uh, maybe just—sorry if I can squeeze one, one. Steve, just, you know, uh, it was a good quarter; you maintained the guide. I know that's practiced, but maybe you could just help us appreciate why there’s no raise of the guide at this time.
Well the the short answer to that is no, I don't think anyone knows what the timeline for the llpa. Grids look looks like. Um, you know, and as we've discussed in the past
There's tremendous challenges with figuring out how to make those work because of the gaming and adverse selection issues and so um so no, 1 know what the timeline really looks like, certainly we don't, um, but but I think that we have some significant problems that have to be overcome before they can be released.
Yeah, thanks, Mo. It's a good question. Um, you know, we're pretty confident we're going to be able to beat our guidance, and I know we talked about it was pretty conservative the last quarter. At this point, we're only three months in. Uh, there's just a lot of questions out in the macro environment. I mean, you know, with the Fed today, you know, it's just, I frankly—we don't know, probably don't know what numbers we would move to. So I think by next quarter, we'll have a much better idea of what the world looks like.
And what overall volumes are going to look like. So I think that that was our thinking behind that
Operator: Thank you. One moment for our next question. Our next question will come from the line of Jason Haas from Wells Fargo. Your line is open.
Operator: Thank you. One moment for our next question. Our next question will come from the line of Jason Haas from Wells Fargo. Your line is open.
Okay, fair enough. Thank you, guys.
Thank you. 1 moment for our next question.
Jason Haas: Hey, good afternoon, and thanks for taking my question. I'm curious if you had any sense what the timeline looks like for the release of the LLPA grids, and if you had any insight as to what those might look like.
Jason Haas: Hey, good afternoon, and thanks for taking my question. I'm curious if you had any sense what the timeline looks like for the release of the LLPA grids, and if you had any insight as to what those might look like.
In our next question, we'll come flying out. Jason House from Wells Fargo, your line is open.
Will Lansing: Well, the short answer to that is no. I don't think anyone knows what the timeline for the LLPA grids looks like. You know, and as we've discussed in the past, there's tremendous challenges with figuring out how to make those work because of the gaming and adverse selection issues. And so, so no one knows what the timeline really looks like. Certainly, we don't. But, but I think that we have some significant problems that have to be overcome before they can be released.
Will Lansing: Well, the short answer to that is no. I don't think anyone knows what the timeline for the LLPA grids looks like. You know, and as we've discussed in the past, there's tremendous challenges with figuring out how to make those work because of the gaming and adverse selection issues. And so, so no one knows what the timeline really looks like. Certainly, we don't. But, but I think that we have some significant problems that have to be overcome before they can be released.
Hey, good afternoon, and thanks for taking my questions. I'm curious, if you had any sense with the timeline it looks like for the release of the LLPA grids, and if you had any insight as to what those might look like,
That for FICO direct. There's a concern that the resellers I guess could improperly calculate the scores and aren't taking, I guess legal responsibility for it. So I think there's been some hesitancy from lenders. So it's curious if you could address that and then on the performance model, um, I believe some lenders are concerned um, about how The Regulators might view, uh, passing on that that performance fee uh, to the end consumer. Um, so curious, if you could, if you could comment on those 2 Hang-Ups, that may be out there,
Well, the short answer to that is no, I don't think anyone knows what the timeline for the LLPA grids looks like. Um, you know, and as we've discussed in the past,
There's tremendous challenges with figuring out how to make those work because of the gaming and adverse selection issues and so um so no, 1 know what the timeline really looks like, certainly we don't, um, but but I think that we have some significant problems that have to be overcome before they can be released.
Jason Haas: Got it. That's very helpful. And then as a follow-up, we've heard, I guess, two concerns around from lenders regarding FICO Direct and the performance model. One is that for FICO Direct, there's a concern that the resellers, I guess, could improperly calculate the scores and aren't taking, I guess, legal responsibility for it, so I think there's been some hesitancy from lenders. So I was curious if you could address that. And then on the performance model, I believe some lenders are concerned about how the regulators might view passing on that performance fee to the end consumer. So curious if you could comment on those two hang-ups that may be out there.
Jason Haas: Got it. That's very helpful. And then as a follow-up, we've heard, I guess, two concerns around from lenders regarding FICO Direct and the performance model. One is that for FICO Direct, there's a concern that the resellers, I guess, could improperly calculate the scores and aren't taking, I guess, legal responsibility for it, so I think there's been some hesitancy from lenders. So I was curious if you could address that. And then on the performance model, I believe some lenders are concerned about how the regulators might view passing on that performance fee to the end consumer. So curious if you could comment on those two hang-ups that may be out there.
Yeah, I I think that there that's uh, misplaced misguided concern, the um the scores calculated, by the resellers in the direct license program will be the same scores that are calculated by the bureaus today. It's it's the same algorithm and the same technology to to do it. Same data is being used and so I think that the any kind of concern about uh miscalculation or differences in scores is misplaced. Um, that said, I can tell you that we are in the midst of making sure that all the testing um, gives everyone every confidence that that's not an issue.
Um and then in terms of The Regulators, they also are looking at it to get comfortable with it and and that's preceding a pace.
Got it. That's very helpful. Thank you.
1 moment for our next question.
Our next question will come from line of Ashish sabadra from RBC. Your line is open,
Will Lansing: Yeah, I think that's a misplaced, misguided concern. The scores calculated by the resellers in the direct license program will be the same scores that are calculated by the bureaus today. It's the same algorithm and the same technology to do it; same data is being used. And so I think that any kind of concern about miscalculation or differences in scores is misplaced. That said, I can tell you that we are in the midst of making sure that all the testing gives everyone every confidence that that's not an issue. And then in terms of the regulators, they also are looking at it to get comfortable with it, and that's proceeding apace.
Will Lansing: Yeah, I think that's a misplaced, misguided concern. The scores calculated by the resellers in the direct license program will be the same scores that are calculated by the bureaus today. It's the same algorithm and the same technology to do it; same data is being used. And so I think that any kind of concern about miscalculation or differences in scores is misplaced. That said, I can tell you that we are in the midst of making sure that all the testing gives everyone every confidence that that's not an issue. And then in terms of the regulators, they also are looking at it to get comfortable with it, and that's proceeding apace.
Got it. That's very helpful and then as a follow-up um we've heard I guess 2 concerns around from lenders regarding FICO Direct in the performance model 1. Is that for FICO direct there's a concern that the resellers I guess could improperly calculate the scores and aren't taking, I guess legal responsibility for it. So I think there's been some hesitancy from lenders. So it's curious if you could address that and then on the performance model, um, I believe some lenders are concerned um, about how The Regulators might view, uh, passing on that that performance fee uh, to the end consumer. Um, so curious, if you could, if you could comment on those 2 Hang-Ups, that may be out there,
Thanks for taking my question, it's good to see that momentum in the direct license program with 5 Rez sellers signed. You talked about uh, them being in advanced stages of implementation. I was just wondering if you had some timelines around, when they would go live and then it, at least in that we've done, uh, checks with Brokers, they are not aware of the performance model as yet. So when do we start to see that gets, uh, communicated uh, to the to the mortgage brokers and the industry in general? Uh much more. Uh yeah much better communicated. Thanks.
Yeah, I I think that there that's uh, misplaced misguided concern the um the scores calculated, by the resellers in the direct license program will be the same scores that are calculated by the bureaus today. It's it's the same algorithm and the same technology to to do it. Same data as being used. And so I think that the any kind of concern about uh miscalculation or differences in scores is misplaced. Um, that said, I can tell you that we are in the midst of making sure that all the testing um, gives everyone every confidence that that's not an issue.
Jason Haas: Got it. That's very helpful. Thank you.
Jason Haas: Got it. That's very helpful. Thank you.
Um, and then in terms of the regulators, they also are looking at it to get comfortable with it, and that's proceeding apace.
Operator: One moment for our next question. Our next question will come from the line of Ashish Sabadra from RBC. Your line is open.
Operator: One moment for our next question. Our next question will come from the line of Ashish Sabadra from RBC. Your line is open.
Got it. That's very helpful. Thank you.
One moment for our next question.
Ashish Sabadra: Thanks for taking my question. It's good to see that momentum in the direct license program, with 5 resellers signed. You talked about them being in advanced stages of implementation. I was just wondering if you had some timelines around when they would go live. And then it- at least in when we've done checks with brokers, they are not aware of the performance model as yet. So when do we start to see that get communicated to the mortgage brokers and the industry in general? Much more, yeah, much better communicated. Thanks.
Ashish Sabadra: Thanks for taking my question. It's good to see that momentum in the direct license program, with 5 resellers signed. You talked about them being in advanced stages of implementation. I was just wondering if you had some timelines around when they would go live. And then it- at least in when we've done checks with brokers, they are not aware of the performance model as yet. So when do we start to see that get communicated to the mortgage brokers and the industry in general? Much more, yeah, much better communicated. Thanks.
Our next question will come from the line of Ashish Sabadra from RBC. Your line is open.
Um, and timeline, you know, I wish I could help you. I knew I wish that we knew at the time line was but, you know, this is, this is the mortgage market and we don't do anything without having everything extremely buttoned up. And so we are working through all the integration testing and all the downstream impacts and you can be assured that when, when it does go live, it'll go live without a hiccup. Um, but we're we're well on our way. I just can't give you. I can't give you a timeline. Um,
Well and so the performance model, first of all the performance model is optional, okay? No 1's being forced to take the performance model. So anyone who doesn't like it doesn't have to use it, they can just pay per per score per unit as they always have.
My question, it's good to see that momentum in the direct license program with 5 Rez sellers signed. You talked about uh, them being in advanced stages of implementation. I was just wondering if you had some timelines around, when they would go live and then it, at least in that we've done, let's checks with Brokers, they are, are not aware of the performance model as yet. So when do we start to see that gets, uh, communicated uh, to the to the mortgage brokers and is
Last year in general uh much more. Uh yeah much better communicated. Thanks.
Will Lansing: On timeline, you know, I wish I could help you. I wish that we knew what the timeline was, but, you know, this is, this is the mortgage market, and we don't do anything without having everything extremely buttoned up. And so we are working through all the integration testing and all the downstream impacts. And you can be assured that when, when it does go live, it'll go live without a hiccup. But we're, we're well on our way. I just can't give you, I, I can't give you a timeline.
Will Lansing: On timeline, you know, I wish I could help you. I wish that we knew what the timeline was, but, you know, this is, this is the mortgage market, and we don't do anything without having everything extremely buttoned up. And so we are working through all the integration testing and all the downstream impacts. And you can be assured that when, when it does go live, it'll go live without a hiccup. But we're, we're well on our way. I just can't give you, I, I can't give you a timeline.
So, um, you know, we introduced the performance model as an option to provide more flexibility for some Originators for some lenders, who prefer that approach. And so, um, you know, I people who don't like us a little hard to understand what the problem is, they they they don't have to use it, they can just go with a per unit price.
Um, and timeline, you know, I wish I could help you. I knew I wish that we knew at the Timeline was but you know, this is this is the mortgage market and we don't do anything without having everything extremely buttoned up. And so we are working through all the integration testing and all the downstream impacts and you can be assured that when, when it does go live, it'll go live without a hiccup.
That's helpful color. And maybe if I can just uh, clarify that your Revenue model is agnostic respective, whether the customers, adopt performance, or per score model, is that right? It's relatively agnostic. Yeah, it's nothing's ever truly agnostic. Um, but it's, it's, it's set up to basically be relatively agnostic.
That's helpful, thanks. Thank you.
Um, but we're we're well on our way. I just can't give you. I can't give you a timeline. Um,
[Analyst]: No, that's completely understandable.
No, that's completely understandable.
Thank you. 1 moment for our next question.
Steve Weber: Okay, there two-
Steve Weber: Okay, there two-
[Analyst]: I was just-
I was just-
Will Lansing: Oh, well, and so the performance model. First of all, the performance model is optional, okay? No one's being forced to take the performance model. So anyone who doesn't like it doesn't have to use it. They can just pay per score, per unit, as they always have. So, you know, we introduced the performance model as an option to provide more flexibility for some originators, for some lenders who prefer that approach. And so, you know, people who don't like it, it's a little hard to understand what the problem is. They don't have to use it. They can just go with a per unit price.
Will Lansing: Oh, well, and so the performance model. First of all, the performance model is optional, okay? No one's being forced to take the performance model. So anyone who doesn't like it doesn't have to use it. They can just pay per score, per unit, as they always have. So, you know, we introduced the performance model as an option to provide more flexibility for some originators, for some lenders who prefer that approach. And so, you know, people who don't like it, it's a little hard to understand what the problem is. They don't have to use it. They can just go with a per unit price.
Next question will come find of surrender. Thing from Jeffrey's your line is open.
Model is optional okay no 1's being forced to take the performance model. So anyone who doesn't like it doesn't have to use it, they can just pay per per score per unit as they always have.
[Analyst]: That's helpful, Color. Maybe if I can just clarify that your revenue model is agnostic, irrespective of whether the customers adopt performance or per score model. Is that right?
That's helpful, Color. Maybe if I can just clarify that your revenue model is agnostic, irrespective of whether the customers adopt performance or per score model. Is that right?
So, um, you know, we introduced the performance model as an option to provide more flexibility for some Originators, for some lenders who prefer that approach. And so, um, you know, people who don't like it or find it a little hard to understand what the problem is — they don't have to use it, they can just go with a per-unit price.
maybe if I can just
Um, thank you. Um, I'm going to switch over to the software business. Um, you know, some interesting, uh, you know, improvements there to think about can you maybe talk about the the target of the 500 named accounts globally. Um, you broke that into 350 and financial services and 150 outside. So how does this kind of compared to, you know, the your prior strategy under the Gen 1 platform and and how aggressively do you think you can get reach those customers and
Modify that your revenue model is agnostic.
Will Lansing: It's relatively agnostic.
Will Lansing: It's relatively agnostic.
Whether the customers adopt performance or per-score model, is that right?
[Analyst]: Close.
Close.
Will Lansing: Yeah. It's nothing's ever truly agnostic, but it's set up to basically be relatively agnostic.
Will Lansing: Yeah. It's nothing's ever truly agnostic, but it's set up to basically be relatively agnostic.
How much of this is a push to specifically go outside and expand beyond the financial institutions at this point, are we kind of entering this Phase 2 approach with the Gen 2 platform?
[Analyst]: That's helpful. Thanks. Thank you.
That's helpful. Thanks. Thank you.
It's relatively agnostic, yeah. Nothing's ever truly agnostic, um, but it's set up to basically be relatively agnostic.
Steve Weber: Thank you. One moment for our next question. Next question will come from Surinder Thind from Jefferies. Your line is open.
Steve Weber: Thank you. One moment for our next question. Next question will come from Surinder Thind from Jefferies. Your line is open.
That's helpful, thanks. Thank you.
Thank you. 1 moment for our next question.
Surinder Thind: Thank you. I'm gonna switch over to the software business. You know, some interesting improvements there to think about. Can you maybe talk about the target of the 500 named accounts globally? You broke that into 350 in financial services and 150 outside. So how does this kind of compare to, you know, your prior strategy under the Gen One platform? And how aggressively do you think you can reach those customers, and how much of this is a push to specifically go outside and expand beyond the financial institutions at this point? Are we kind of entering this phase two approach with the Gen Two platform?
Next question will come flying out of Surrender. From Jeffrey's, your line is open.
Surinder Thind: Thank you. I'm gonna switch over to the software business. You know, some interesting improvements there to think about. Can you maybe talk about the target of the 500 named accounts globally? You broke that into 350 in financial services and 150 outside. So how does this kind of compare to, you know, your prior strategy under the Gen One platform? And how aggressively do you think you can reach those customers, and how much of this is a push to specifically go outside and expand beyond the financial institutions at this point? Are we kind of entering this phase two approach with the Gen Two platform?
And in other verticals.
Um, thank you. Um, I'm going to switch over to the software business. Um, you know, some interesting, uh, you know, improvements there to think about can you maybe talk about the the target of the 500 named accounts globally? Um, you broke that into 350 in financial services and 150 out outside. So how does this kind of compared to you know the your prior strategy under the
Uh, further we're really committed to our partner program and and going taking our IP to Market through systems integrators and and other providers. And I think that's going to be the way we wind up expanding to other verticals. Our Marketplace is designed to be able to do that. Our our next gen platform is designed to be able to do that. And so we're we're still very interested in broadening our reach but our direct selling efforts are still primarily focused on financial services.
platform, and how aggressively do you think you can reach those customers and
Got it. And, and just quickly how many named accounts
Do you have right now in in financial services?
No, we don't disclose it.
Will Lansing: I think we're in the beginning of that phase two. Look, we are very heavy in financial services, have been historically, will continue to be. Let's be realistic about this. That said, the platform is very much designed to be horizontal and is highly appealing to other verticals. And so we're getting a lot of traction in telco and in other verticals. Further, we're really committed to our partner program and going, taking our IP to market through systems integrators and other providers. And I think that's gonna be the way we wind up expanding to other verticals. Our marketplace is designed to be able to do that, our next gen platform is designed to be able to do that.
Will Lansing: I think we're in the beginning of that phase two. Look, we are very heavy in financial services, have been historically, will continue to be. Let's be realistic about this. That said, the platform is very much designed to be horizontal and is highly appealing to other verticals. And so we're getting a lot of traction in telco and in other verticals. Further, we're really committed to our partner program and going, taking our IP to market through systems integrators and other providers. And I think that's gonna be the way we wind up expanding to other verticals. Our marketplace is designed to be able to do that, our next gen platform is designed to be able to do that.
How much of this is a push to specifically go outside and expand beyond the financial institutions at this point? Are we kind of entering this Phase 2 approach with the Gen 2 platform?
We don't got it. Okay. Sorry, but I mean it's an arbitrary number. We can name any we want. You know what number would you like it to be? Sure. It was just an attempt to kind of better. Understand the the new customers you have an approach that would just ballpark but that's understood. Understood look, I think there's I think the the the general answer to that is there's several hundred to go
Got it. Okay, that's helpful. And then is it is a follow-up here. Um,
If we back out um kind of the the international um multi-year deal here. We still solid growth in in the ARR.
Will Lansing: And so we're still very interested in broadening our reach, but our direct selling efforts are still primarily focused on financial services.
Will Lansing: And so we're still very interested in broadening our reach, but our direct selling efforts are still primarily focused on financial services.
But there's also a Divergence you guys did list the reasons. Why between platform our growth and non-platform. But is the idea that
Surinder Thind: Got it. And just quickly, how many named accounts do you have right now in financial services?
Surinder Thind: Got it. And just quickly, how many named accounts do you have right now in financial services?
I think we're in the beginning of that Phase 2. Um we look we are very heavy in Financial Services. Have been historically, will continue to be. Let's be realistic about this. That said the platform is very much designed to be horizontal and is highly appealing to other verticals. And so we're getting a lot of traction and and Telco. And um, and in other verticals, uh, further we're really committed to our partner program and, and going taking our IP to Market through systems integrators, and and other, uh, providers. And I think that's going to be the way we wind up expanding to other verticals. Our Marketplace is designed to be able to do that. Our, our next gen platform is designed to be able to do that. And so we're we're still very interested in broadening our reach but our direct selling efforts are still primarily focused on financial services.
[Analyst]: We don't disclose it.
We don't disclose it.
Got it and and just quickly. How, how many named accounts do you have right now in in financial services?
Will Lansing: We don't.
Will Lansing: We don't.
Surinder Thind: Got it.
Surinder Thind: Got it.
We're beginning to also see customers that ultimately want to move from non-platform to platform and so we should begin to see a sustained discrepancy in the our numbers.
Will Lansing: Okay. Sorry.
Will Lansing: Okay. Sorry.
No, we don't disclose it.
Surinder Thind: It's okay.
Surinder Thind: It's okay.
Will Lansing: But, I mean, it's an arbitrary number. We can name any we want, any if you want. It's an arbitrary number, you know.
Will Lansing: But, I mean, it's an arbitrary number. We can name any we want, any if you want. It's an arbitrary number, you know.
Steve Weber: What number would you like it to be?
Steve Weber: What number would you like it to be?
Surinder Thind: Sure. It was just an attempt to kind of better understand the new customers you haven't approached yet. It was just ballpark, but that's-
Surinder Thind: Sure. It was just an attempt to kind of better understand the new customers you haven't approached yet. It was just ballpark, but that's-
Will Lansing: Understood. Understood.
Will Lansing: Understood. Understood.
Surinder Thind: Uh-
Surinder Thind: Uh-
Will Lansing: Look, I think the general answer to that is there are several hundred to go.
Will Lansing: Look, I think the general answer to that is there are several hundred to go.
Surinder Thind: Got it. Okay, that's helpful. And then, as a kind of follow-up here, if we back out kind of the international multi-year deal here, still solid growth in the ARR, but there's also a divergence. You guys did list the reasons why between platform ARR growth and non-platform. But is the idea that we're beginning to also see customers that ultimately wanna move from non-platform to platform, and so we should begin to see a sustained discrepancy in the ARR numbers?
Surinder Thind: Got it. Okay, that's helpful. And then, as a kind of follow-up here, if we back out kind of the international multi-year deal here, still solid growth in the ARR, but there's also a divergence. You guys did list the reasons why between platform ARR growth and non-platform. But is the idea that we're beginning to also see customers that ultimately wanna move from non-platform to platform, and so we should begin to see a sustained discrepancy in the ARR numbers?
We don't got it. Okay. Sorry, but I mean, it's an arbitrary number. We can name any. We want any, you know, what number would you like it to be true? It was just an attempt to kind of better understand the the new customers you haven't approached yet, it was just ballpark but that's understood. Understood look, I think there's I think the the the general answer to that is there's several hundred to go
Got it. Okay, that's helpful. And then, as a follow-up here—um,
If we back out, um, kind of the international, um, multi-year deal here, we still see solid growth in the ARR.
But there's also a Divergence you guys did list the reasons. Why between platform our growth and non-platform. But is the idea that
Yeah, I mean, gradually over time we're looking to migrate everyone, right? It's a lot more efficient to be on the platform and we set up for a long time. So there'll be a lot of efficiencies efficiencies to be gained from that. We haven't done a lot of that in the past but we're getting to the point now where we can. So you're going to see more and more of that, but you're also seeing just a lot more sales. I mean, you know, the even the the the big deal we had this core had very little impact this quarter, but it'll have a much bigger impact next quarter. So if you look at the, the rolling trend of ACV, bookings, it's grown dramatically and we think there's still a lot more of that to come this year. And that's kind of drive more Arrow growth. So we've got a lot of land activity happening, and we've got a lot more expand. So the if you look at the platform, the, you know, the net retention rate goes up. They find new use cases. They expand into other areas, so there's just a lot of different areas we can grow in that in that business. You you know there's a classic software business problem. We as a provider, would love to have everybody on a single codebase, it'd be a really nice and and easy to run it that way. And yet we have
Steve Weber: Yeah, I mean, gradually, over time, we're looking to migrate everyone, right? It's a lot more efficient to be on the platform, and we've said that for a long time. So there'll be a lot of efficiency, efficiency to be gained from that. We haven't done a lot of that in the past, but we're getting to the point now where we can. So you're gonna see more and more of that, but you're also seeing just a lot more sales. I mean, you know, even the big deal we had this quarter had very little ARR impact this quarter, but it'll have a much bigger impact next quarter. So if you look at the rolling trend of ACV bookings, it's grown dramatically, and we think there's still a lot more of that to come this year, and that's gonna drive more ARR growth.
Steve Weber: Yeah, I mean, gradually, over time, we're looking to migrate everyone, right? It's a lot more efficient to be on the platform, and we've said that for a long time. So there'll be a lot of efficiency, efficiency to be gained from that. We haven't done a lot of that in the past, but we're getting to the point now where we can. So you're gonna see more and more of that, but you're also seeing just a lot more sales. I mean, you know, even the big deal we had this quarter had very little ARR impact this quarter, but it'll have a much bigger impact next quarter. So if you look at the rolling trend of ACV bookings, it's grown dramatically, and we think there's still a lot more of that to come this year, and that's gonna drive more ARR growth.
We're beginning to also see customers that ultimately want to move from non-platform to platform, and so we should begin to see a sustained discrepancy in our numbers.
Yeah, I mean, gradually over time we're looking to migrate everyone, right? It's a lot more efficient to be on the platform and we set up for a long time. So there'll be a lot of efficiency efficiencies to be gained from that. We haven't done a lot of that in the past but we're getting to the point now where we can so you're going to see more and more of that but you're also seeing just a lot more sales. I mean, you know, the even the the the big deal we had this score had very little our impact this quarter, but it'll have a much bigger impact next
Steve Weber: So we've got a lot of land-and-expand activity happening, and we've got a lot more expand. So, if you look at the platform, the, you know, the net retention rate goes up, they find new use cases, they expand into other areas. So there's just a lot of different areas we can grow in that, in that business.
Steve Weber: So we've got a lot of land-and-expand activity happening, and we've got a lot more expand. So, if you look at the platform, the, you know, the net retention rate goes up, they find new use cases, they expand into other areas. So there's just a lot of different areas we can grow in that, in that business.
Will Lansing: You know, this is a classic software business problem. We, as a provider, would love to have everybody on a single code base. It'd be really nice and easy to run it that way. And yet, we have more legacy code that's still highly profitable. We have customers who are really committed to using it and want to continue to use it. And so we wind up in this position where we have to make proactive decisions about what legacy solutions we're gonna continue to support and which ones we're gonna force migration on. And the biggest factor in thinking that through is, can we provide a full features and functionality of the legacy solution on the new platform before we force a change through an end-of-life initiative? And so far, we've been pretty successful with that.
Will Lansing: You know, this is a classic software business problem. We, as a provider, would love to have everybody on a single code base. It'd be really nice and easy to run it that way. And yet, we have more legacy code that's still highly profitable. We have customers who are really committed to using it and want to continue to use it. And so we wind up in this position where we have to make proactive decisions about what legacy solutions we're gonna continue to support and which ones we're gonna force migration on. And the biggest factor in thinking that through is, can we provide a full features and functionality of the legacy solution on the new platform before we force a change through an end-of-life initiative? And so far, we've been pretty successful with that.
Have more Legacy code that's still highly profitable. We have customers who are really committed to using it and want to continue to use it. And so, we wind up in this position where we have to make, um, proactive decisions about what Legacy Solutions, we're going to continue to support and which ones we're going to force migration on and the biggest factor in in thinking that through is, can we provide, uh, full features and functionality of the Legacy Solution on the new platform before we force a change, through an end of life, uh, initiative and so far, we've been pretty successful with that. I mean, we, you know, our our classic business, our, you know, historical Legacy business runs, just fine and is profitable. And as the as the new platform, the next gen platform has a features and functionality that, that frankly is superior to what you find in the Legacy Solutions. We're we're going to see uh voluntary migration, we'll see some Force migration and then we'll see some end of life.
Thank you.
You 1 moment for our next question.
Our next question will come offline of Jeff Mueller from beard. Your line is open.
Yeah, thanks, good afternoon. So everyone's obviously waiting the llpa is the market and investors. I just any
Education process or caveats, you'll you'd volunteer to kind of like help investors.
Will Lansing: I mean, you know, our classic business, our historical legacy business, runs just fine and is profitable. And as the new platform, the next gen platform, has the features and functionality that frankly is superior to what you find in the legacy solutions, we're gonna see voluntary migration, we'll see some forced migration, and then we'll see some end of life.
Will Lansing: I mean, you know, our classic business, our historical legacy business, runs just fine and is profitable. And as the new platform, the next gen platform, has the features and functionality that frankly is superior to what you find in the legacy solutions, we're gonna see voluntary migration, we'll see some forced migration, and then we'll see some end of life.
Interpret, how to compare the llpa under Vantage to Psycho. I'm thinking things like you know, for the same consumer. What's the Delta between FICO and Vantage on average or anything like that? And then just I know it's a finger in the air assumption to say that the grids may be at parity but just remind us. If the grids do appear to be at parity, what do you view as the key barriers to potential switching?
Faiza Alwy: Thank you.
Faiza Alwy: Thank you.
Want to continue to use it. And so we wind up in this position where we have to make, um, proactive decisions about what Legacy Solutions, we're going to continue to support and which ones we're going to force migration on and the biggest factor in in thinking that through is, can we provide, uh, full features and functionality of the Legacy Solution on the new platform before we force a change, through an end of life, uh, initiative and so far, we've been pretty successful with that. I mean, we, you know, our our classic business, our, you know, historical Legacy business runs, just fine and is profitable. And as the as the new platform, the next gen platform has a features and functionality that that frankly is superior to what you find in the Legacy Solutions. We're we're going to see uh voluntary migration. We'll see some Force migration and then we'll see some end of life. Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Jeff Mueller from Baird. Your line is open.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Jeff Mueller from Baird. Your line is open.
You 1 moment for our next question.
Jeff Mueller: Yeah, thanks. Good afternoon. So everyone's obviously awaiting the LLPAs, the market, and investors. I just-- any education process or caveats you'll, you'd volunteer to kind of, like, help investors interpret how to compare the LLPAs under Vantage to FICO? I'm thinking things like, you know, for the same consumer, what's the delta between FICO and Vantage on average, or anything like that? And then just, I know it's a finger in the air assumption to say that the grids may be at parity, but just remind us, if the grids do appear to be at parity, what do you view as the key barriers to potential switching?
Jeff Mueller: Yeah, thanks. Good afternoon. So everyone's obviously awaiting the LLPAs, the market, and investors. I just-- any education process or caveats you'll, you'd volunteer to kind of, like, help investors interpret how to compare the LLPAs under Vantage to FICO? I'm thinking things like, you know, for the same consumer, what's the delta between FICO and Vantage on average, or anything like that? And then just, I know it's a finger in the air assumption to say that the grids may be at parity, but just remind us, if the grids do appear to be at parity, what do you view as the key barriers to potential switching?
Our next question will come offline know. Jeff Mueller, from beard. Your line is open.
Yeah, thanks. Good afternoon. So everyone's obviously waiting; the LLPA is the market and investors. I just—any...
Education process or caveats—you'd volunteer to kind of, like, help investors.
It's not consistently in 1 Direction, which means that it's very, very hard to just substitute 1 score for another of anti score for FICO score. You really have to have a completely independent separate system to run a score that just has different odds to score ratio uh for every 3 digit number
And so um, so I I think and I think that's 1 of the big challenges with developing the llpa grids. How are you going to reconcile all that?
Will Lansing: I think it's unlikely the grids will be at parity, but let's hold that one and just talk a little bit about your first, the first part of your question, which is differences in the score. Our research suggests that the FICO Score and the VantageScore are more than 20 points different, 30% of the time, in both directions. It's not consistently one directional. Which means that it's very, very hard to just substitute one score for another, a VantageScore for a FICO Score. You really have to have a completely independent, separate system to run a score that just has different odds to score ratio for every three-digit number. And so I think that's one of the big challenges with developing the LLPA grids. How are you gonna reconcile all that?
Um, and then, you know, you kind of go beyond that to assuming you had separate llpa grids and you somehow, uh, figured out how to do that. Um, you know, you still have all the gaming problems that go with that, you know, and the adverse selection problems that go with that. Those have to be resolved.
Will Lansing: I think it's unlikely the grids will be at parity, but let's hold that one and just talk a little bit about your first, the first part of your question, which is differences in the score. Our research suggests that the FICO Score and the VantageScore are more than 20 points different, 30% of the time, in both directions. It's not consistently one directional. Which means that it's very, very hard to just substitute one score for another, a VantageScore for a FICO Score. You really have to have a completely independent, separate system to run a score that just has different odds to score ratio for every three-digit number. And so I think that's one of the big challenges with developing the LLPA grids. How are you gonna reconcile all that?
Interpret, how to compare the llpa under Vantage to Psycho. I'm thinking things like you know, for the same consumer. What's the Delta between FICO and Vantage on average or anything like that? And then just I know it's a a finger in the air assumption to say that the grids may be at parity but just remind us. If the grids do appear to be at parity, what do you view as the key barriers to potential switching?
Um, and then you, you finally, you have whatever objections. The um the securitization Market might have to uh, you know, whatever penalties. They might impose on managed scored paper versus FICO score paper. So there's I
To be overcome.
I I I think it's unlikely that grids will be a parody, but let's hold that 1 and just talk a little bit about uh about your first. The first part of your question which is differences in the score. Our research suggests that the FICO score and the Vantage score are more than 20 points different 30% of the time. In both directions, it's not consistently in 1 Direction which means that it's very very hard to just substitute 1 score for another of anticorps 4 or FICO score. You really have to have a completely independent separate system to run a score that just has different odds to score ratio uh for every 3 digit number
I thought that you said in your prepared remarks, that PT was going to be available, um, for both the conforming and non-conforming Market in the first half of calendar, 26 and then in answering 1 of the earlier questions, I think Steve said, you're not sure when 10t is going to be available, but
Will Lansing: And then, you know, you kind of go beyond that to assuming you had separate LLPA grids and you somehow figured out how to do that, you know, you still have all the gaming problems that go with that, you know, and the adverse selection problems that go with that. Those have to be resolved. And then you finally have whatever objections the securitization market might have to whatever penalties they might impose on Vantage scored paper versus FICO scored paper. So there's, I think there's significant problems to be overcome.
Will Lansing: And then, you know, you kind of go beyond that to assuming you had separate LLPA grids and you somehow figured out how to do that, you know, you still have all the gaming problems that go with that, you know, and the adverse selection problems that go with that. Those have to be resolved. And then you finally have whatever objections the securitization market might have to whatever penalties they might impose on Vantage scored paper versus FICO scored paper. So there's, I think there's significant problems to be overcome.
And so, um, so I, I think—and I think that's one of the big challenges with developing the LLPA grids. How are you going to reconcile all that?
So 1's a guest and 1. It is true that, we're not sure. So it um,
Um, and then, you know, you kind of go beyond that to assuming you had separate LLPA grids and you somehow, uh, figured out how to do that. Um, you know, you still have all the gaming problems that go with that, you know, and the adverse selection problems that go with that. Those have to be resolved.
You know, that the FICO entity data is with the gsc's is with the fhfa and, um, you know, we can't give you a timeline but, you know, we're confident it'll eventually be released well, and if those are, those are 2 different comments. Just to clarify, the, the non-conforming conforming is around having FICO 10t available on the direct licensing program. And the comment Steve talked about was having FICO 10t available for the data for the market.
Okay, thank you. Does that make sense what I said?
Yep.
Okay.
Jeff Mueller: Got it. And then just to reconcile something, I thought that you said in your prepared remarks that 10T was gonna be available for both the conforming and non-conforming market in the first half of calendar 2026. And then in answering one of the earlier questions, I think Steve said, you're not sure when 10T is gonna be available?
Jeff Mueller: Got it. And then just to reconcile something, I thought that you said in your prepared remarks that 10T was gonna be available for both the conforming and non-conforming market in the first half of calendar 2026. And then in answering one of the earlier questions, I think Steve said, you're not sure when 10T is gonna be available?
Um, and then you finally have whatever objections the, um, the security market might have to, you know, whatever penalties they might impose on managed scored paper versus FICO score paper. So there's, I think, there's significant problems to be overcome.
Thank you. 1 moment for our next question.
Our next question will come from the line of fisa Ali from Deutsche Bank is open.
Will Lansing: Well, so one's a guess, and one, it is true that we're not sure. So it, you know, the FICO 10T data is with the GSEs, is with the FHFA, and, you know, we can't give you a timeline, but, you know, we're confident it'll eventually be released.
Will Lansing: Well, so one's a guess, and one, it is true that we're not sure. So it, you know, the FICO 10T data is with the GSEs, is with the FHFA, and, you know, we can't give you a timeline, but, you know, we're confident it'll eventually be released.
Yes. Hi, thank you so much. So, sorry to be a dead horse here, but I guess just to clarify. Um, do do we need like a, an llpa grid for 10 p?
Got it and I just to reconcile something I thought that you said in your prepared remarks, that PT was going to be available um, for both the conforming and non-conforming Market in the first half of calendar. 26 and then in answering 1 of the earlier questions, I think Steve said you're not sure when 10t is going to be available so 1 to guess and 1, it is true that we're not sure so it um,
Or do you think the conforming Market could accept the 10t? You know, without without that, that grid being out?
Jeff Mueller: Well, and-
Jeff Mueller: Well, and-
Dave Singleton: Hey, Jeff, those are two different comments. Just to clarify, the non-conforming/conforming is around having FICO 10T available on the direct licensing program. And the comment Steve talked about was having FICO 10T available for the data for the market.
Dave Singleton: Hey, Jeff, those are two different comments. Just to clarify, the non-conforming/conforming is around having FICO 10T available on the direct licensing program. And the comment Steve talked about was having FICO 10T available for the data for the market.
Yeah, I that's a great question. Whether there'd be adjustments to to the grid 10t is obviously much much closer to FICO classic than Vantage is but um my guess is you know when 10t is made available that they'll be adjustment to the grid for that.
Jeff Mueller: Okay. Thank you.
Jeff Mueller: Okay. Thank you.
You know that the FICO 10t data is with the gsc's is with the fhfa and um you know we can't give you a timeline but you know we're confident it'll eventually be released. Well. Yeah those are those are 2 different comments. Just to clarify, the the non-conforming conforming is around having FICO 10t available on the direct licensing program. And the comment Steve talked about was having FICO 10t available for the data for the market.
Dave Singleton: Does that make sense, what I said?
Dave Singleton: Does that make sense, what I said?
Jeff Mueller: Yep.
Jeff Mueller: Yep.
Okay, thank you. Does that make sense what I said?
Dave Singleton: Okay.
Dave Singleton: Okay.
Yep.
Okay.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Faiza Alwi from Deutsche Bank. Your line is open.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Faiza Alwi from Deutsche Bank. Your line is open.
Thank you. One moment for our next question.
Okay. And and just just a quick fault. Like do you think the timing? I I understand all of the issues that you've talked about, but are you expecting that the 10t invented? Grids would come out of the same time and like the acceptability is going to be fermentation is going to be around the same time. Or do you think it could happen in stages?
Faiza Alwy: Yes, hi, thank you so much. So sorry to beat a dead horse here, but I guess just to clarify, do we need, like, an LLPA grid for 10T, or do you think the conforming market could accept the 10T, you know, without that grid being out?
Faiza Alwy: Yes, hi, thank you so much. So sorry to beat a dead horse here, but I guess just to clarify, do we need, like, an LLPA grid for 10T, or do you think the conforming market could accept the 10T, you know, without that grid being out?
Our next question comes from the line of Fisa Ali from Deutsche Bank. Your line is open.
Will Lansing: That's a great question, whether there'd be adjustment to the grid. 10T is obviously much, much closer to FICO Classic than VantageScore is, but my guess is, you know, when 10T is made available, that there'll be adjustment to the grid for that.
Will Lansing: That's a great question, whether there'd be adjustment to the grid. 10T is obviously much, much closer to FICO Classic than VantageScore is, but my guess is, you know, when 10T is made available, that there'll be adjustment to the grid for that.
Yes. Hi, thank you so much. So, sorry to be a dead horse here, but I guess just to clarify. Um, do, do we need like a an llpa grid for 10t, or do you think the conforming Market could accept the 10t? You know, without without that, that grid being out?
Certainly the the industry would like them to come out of the same time. There's a lot of efficiency in that and you, you probably saw the letter sent to the director at the fhfa this past week from 35, uh, economists and think, tanks and Industry groups who all believe that. It's, it's critical that, uh, if and when any changes made away from FICO classic, that it be done simultaneously to, to both FICO entity and Vantage, so the industry has reference for that what the fhfa will ultimately do know, 1 know, um,
Closer to FICO Classic than Vantage is. But, um, my guess is, you know, when that's made available, that there'll be adjustment to the grid for that.
Faiza Alwy: Okay, and just a quick follow. Like, do you think the timing... I understand all of the issues that you've talked about, but are you expecting that the 10T and VantageScore would come out at the same time, and, like, the acceptability is good, or the implementation is going to be around the same time, or do you think it could happen in stages?
Faiza Alwy: Okay, and just a quick follow. Like, do you think the timing... I understand all of the issues that you've talked about, but are you expecting that the 10T and VantageScore would come out at the same time, and, like, the acceptability is good, or the implementation is going to be around the same time, or do you think it could happen in stages?
So you know we'll have to see do you know to the earlier point about uh FICO 10t and llpa grids for. If I go 10t I would point out that FICO 10t is architecturally very similar to FICO classic. It's built on the same kinds of attributes, weighted in a similar way. That's very different from
Will Lansing: Certainly, the industry would like them to come out at the same time. There's a lot of efficiency in that, and you probably saw the letter sent to the director at the FHFA this past week from 35 economists, think tanks, and industry groups, who all believe that it's critical that if and when any change is made away from FICO Classic, that it be done simultaneously to both FICO 10T and Vantage. So the industry has a preference for that. What the FHFA will ultimately do, no one knows. You know, we'll have to see. You know, to the earlier point about FICO 10T and LLPA grids for FICO 10T, I would point out that FICO 10T is architecturally very similar to FICO Classic.
Will Lansing: Certainly, the industry would like them to come out at the same time. There's a lot of efficiency in that, and you probably saw the letter sent to the director at the FHFA this past week from 35 economists, think tanks, and industry groups, who all believe that it's critical that if and when any change is made away from FICO Classic, that it be done simultaneously to both FICO 10T and Vantage. So the industry has a preference for that. What the FHFA will ultimately do, no one knows. You know, we'll have to see. You know, to the earlier point about FICO 10T and LLPA grids for FICO 10T, I would point out that FICO 10T is architecturally very similar to FICO Classic.
Okay. And and just just a quick fault. Like do you think the timing? I, I understand all of the issues that you've talked about, but are you expecting that the 10t invented? Grids would come out of the same time and like the acceptability is going to be limitation is going to be around the same time. Or do you think it could happen in stages?
Vantage Vantage has a different architecture and waits the uh the the factors differently. And so in terms of compatibility and closeness FICO tenti is much much closer to FICO classic.
And don't confuse that with predictability where FICO 10. T is significantly more predictive than FICO classic.
Certainly the the industry would like them to come out of the same time. There's a lot of efficiency in that and you, you probably saw the letter sent to the director at the fhfa this past week from 35, uh, economists and think, tanks and Industry groups who all believe that. It's, it's critical that, uh, if and when any changes made away from FICO classic, that it be done simultaneously to, to have both FICO 10t and Vantage. So the industry has reference for that what the fhfa will ultimately do know, 1 know, um,
It, it is. It's all the above. So, there's some price there, there's some value there, there's some refi volume there. So, all those are factors.
Thank you very much.
Will Lansing: It's built on the same kinds of attributes, weighted in a similar way. That's very different from Vantage. Vantage has a different architecture and weights the factors differently. And so in terms of compatibility and closeness, FICO 10T is much, much closer to FICO Classic.
Will Lansing: It's built on the same kinds of attributes, weighted in a similar way. That's very different from Vantage. Vantage has a different architecture and weights the factors differently. And so in terms of compatibility and closeness, FICO 10T is much, much closer to FICO Classic.
Thank you. 1 moment for our next question.
Our next question will come flying of Kyle Peterson from nem. Your line is open.
So you know we'll have to see do you know to the earlier point about uh FICO 10t and llpa grids for. If I go 10t I would point out that FICO 10t is architecturally very similar to FICO classic. It's built on the same kinds of attributes, weighted in a similar way. That's very different from Vantage. Vantage has a different architecture and weights the uh the the factors differently.
Dave Singleton: Don't confuse that with predictability, where FICO 10T is significantly more predictive than FICO Classic.
Dave Singleton: Don't confuse that with predictability, where FICO 10T is significantly more predictive than FICO Classic.
And so, in terms of compatibility and closeness, FICO 10T is much, much closer to FICO Classic.
Great. Uh, good afternoon. Thanks for taking the questions, guys. Um, you know, wanted to start out on, you know, the platform business. Um,
And don't confuse that with predictability. Where FICO 10T is significant.
Faiza Alwy: ... Understood. That's, that's very helpful. And then I wanted to ask about, you know, your mortgage and revenue growth. We saw a nice acceleration this quarter relative to what we've been seeing. And I'm just curious, is that—are you just benefiting from maybe higher refi activity? I know you don't disclose volumes, but just directionally, like, was volume, were—was it volume growth that was higher, or are you benefiting from, you know, some of the other things?
Faiza Alwy: ... Understood. That's, that's very helpful. And then I wanted to ask about, you know, your mortgage and revenue growth. We saw a nice acceleration this quarter relative to what we've been seeing. And I'm just curious, is that—are you just benefiting from maybe higher refi activity? I know you don't disclose volumes, but just directionally, like, was volume, were—was it volume growth that was higher, or are you benefiting from, you know, some of the other things?
Continually more predictive than FICO Classic.
Obviously nice quarter there. I know some of that was was the migration. I'm guessing some of that was the uh, the large deal. But just wanted to see. Are we at a point where, you know, 30% plus ARR growth on? You know, the platform side should be
Will Lansing: It's all of the above. It's all of the above. So there's some price there, there's some volume there, there's some refi volume there, so all of those are factors.
Will Lansing: It's all of the above. It's all of the above. So there's some price there, there's some volume there, there's some refi volume there, so all of those are factors.
sustainable again, or or I guess, like how should we think about that in light of the the really nice bounce back, uh, this quarter,
Understood. That's that's very helpful. And then I wanted to ask about, you know, your mortgage Revenue growth. We saw a nice acceleration uh, this quarter relative to what we've been seeing. And I'm just curious is that are you just benefiting from maybe higher refi activity? I know you don't disclose volumes but just directionally like was volume. Was it volume growth? That was higher? Or are you? It's all of the above its price.
Faiza Alwy: Got it. Thank you very much.
Faiza Alwy: Got it. Thank you very much.
It, it is. It's all of the above. So, there's some price there, there's some value there, there's some refi volume there. So, all those are factors.
Thank you very much.
Operator: Thank you. One moment for our next question. Our next question will come from the line of Kyle Peterson from Needham. Your line is open.
Operator: Thank you. One moment for our next question. Our next question will come from the line of Kyle Peterson from Needham. Your line is open.
Well, so Kyle, you know, we don't we don't make promises but you know we had 40% growth in platform for 16 quarters. Then we were down a few a couple quarters in the just under 20% range. Now here we are at 30% it, you know, it it does move around. Um,
Thank you. 1 moment for our next question.
Kyle Peterson: Great. Good afternoon. Thanks for taking the questions, guys. You know, wanted to start out on, you know, the platform business. Obviously, nice quarter there. I know some of that was, was the migration, and I'm guessing some of that was the, the large deal. But just wanted to see, are we at a point where, you know, 30%+ ARR growth on, you know, the platform side should be sustainable again? Or, or I guess, like, how should we think about that in light of the, the really nice bounce back, this quarter?
Kyle Peterson: Great. Good afternoon. Thanks for taking the questions, guys. You know, wanted to start out on, you know, the platform business. Obviously, nice quarter there. I know some of that was, was the migration, and I'm guessing some of that was the, the large deal. But just wanted to see, are we at a point where, you know, 30%+ ARR growth on, you know, the platform side should be sustainable again? Or, or I guess, like, how should we think about that in light of the, the really nice bounce back, this quarter?
Our next question will come from Kyle Peterson with NEM. Your line is open.
Great. Uh, good afternoon. Thanks for taking the questions, guys. Um, you know, wanted to start out on, you know, the platform business. Um,
Obviously, nice quarter there. I know some of that was the migration. I'm guessing some of that was the, uh, the large deal. But just wanted to see, are we at a point where
You know, 30% plus our growth on, you know, the platform side should be.
You know, the total ARR is definitely going to go up, um, you know, and so but but but, uh, so and you know, that's a short answer to. Your question is are will go up, um, the I think current levels are sustainable and, you know, that's not a crazy thing to think. Um, we've got a lot of, uh, appetite for our, for our new platform and the and the total R is going to be different by the platform because more and more. We're seeing acceleration in platform growth. And the, and frankly, the the platform are is a bigger portion of the overall number now, so as that grows faster and helps build overall number as well. So we see continued sustained, you know, significant growth in ARR for the rest of the year, which is kind of what we've been talking about for a few quarters and now you're starting to see it.
Will Lansing: Well, so Kyle, you know, we don't, we don't make promises, but, you know, we had 40% growth in platform for 16 quarters, then we were down a couple quarters in the just under 20% range. Now, here we are at 30%. It, you know, it does move around. You know, the total ARR is definitely gonna go up. You know, that's a short answer to your question is, the ARR will go up. I think current levels are sustainable. And, you know, that's not a crazy thing to think. We've got a lot of appetite for our, for our new platform.
Will Lansing: Well, so Kyle, you know, we don't, we don't make promises, but, you know, we had 40% growth in platform for 16 quarters, then we were down a couple quarters in the just under 20% range. Now, here we are at 30%. It, you know, it does move around. You know, the total ARR is definitely gonna go up. You know, that's a short answer to your question is, the ARR will go up. I think current levels are sustainable. And, you know, that's not a crazy thing to think. We've got a lot of appetite for our, for our new platform.
sustainable again, or—or I guess, like, how should we think about that in light of the really nice bounce back, uh, this quarter,
Well, so Kyle, you know, we don't we don't make promises but you know we had 40% growth in platform for 16 quarters. Then we were down a few a couple quarters in the just under 20% range. Now here we are at 30% it, you know, it it does move around. Um,
Okay, okay, okay, that is is helpful and good to hear. Um and then switching over uh you know, to the car business uh the origination revenue and the credit cards seems to be climbing and the right direction. Here, the last few quarters which is is good to see you. Just um I know it's still early but have have you guys seen any disruption or
Uh, changes in activity. I know there's been some some chatter around a potential 10% cap on on card APR. So I guess
Steve Weber: And the total ARR is gonna be different by the platform, 'cause more and more, we're seeing acceleration in platform growth, and frankly, the platform ARR is a bigger portion of the overall number now. So as that grows faster, it helps the overall number as well. So we see continued, sustained, you know, significant growth in ARR for the rest of the year, which is kind of what we've been talking about for a few quarters, and now you're starting to see it.
Steve Weber: And the total ARR is gonna be different by the platform, 'cause more and more, we're seeing acceleration in platform growth, and frankly, the platform ARR is a bigger portion of the overall number now. So as that grows faster, it helps the overall number as well. So we see continued, sustained, you know, significant growth in ARR for the rest of the year, which is kind of what we've been talking about for a few quarters, and now you're starting to see it.
Anything you guys are are seeing there or or is it still you know, too early to tell in terms of when you guys are delivered the the usage reports.
We haven't seen anything, we haven't seen any changes in activity. There's been a lot of, you know, prequel activity in the card space and you know, decent originations, we haven't seen any changes
Okay.
Um, okay.
Great to hear. Thank you guys. And nice quarter.
Kyle Peterson: Okay. Okay, that is helpful and good to hear. And then switching over, you know, to the card business, the origination revenue and the credit cards seems to be climbing in the right direction here the last few quarters, which is good to see. Just, I know it's still early, but have you guys seen any disruption or changes in activity? I know there's been some chatter around a potential 10% cap on card APR, so I guess anything you guys are seeing there, or is it still, you know, too early to tell in terms of when you guys are delivered the usage reports?
Kyle Peterson: Okay. Okay, that is helpful and good to hear. And then switching over, you know, to the card business, the origination revenue and the credit cards seems to be climbing in the right direction here the last few quarters, which is good to see. Just, I know it's still early, but have you guys seen any disruption or changes in activity? I know there's been some chatter around a potential 10% cap on card APR, so I guess anything you guys are seeing there, or is it still, you know, too early to tell in terms of when you guys are delivered the usage reports?
Thanks.
You know, the total ARR is definitely going to go up, um, you know, and so, but but but, but, uh, so and you know, that's a short answer to your question is are will go up, um, the I think current levels are sustainable and, you know, that's not a crazy thing to think. Um, we've got a lot of, uh, appetite for our, for our new platform and the, and the total are is going to be different by the platform because more and more. We're, we're seeing acceleration in platform growth and the, and frankly, the the platform are is a bigger portion of the overall number now. So as that grows faster, it helps the overall number as well. So we see continued sustained, you know, significant growth in ARR for the rest of the year, which is kind of what we've been talking about for a few quarters and now you're starting to see it.
Thank you. 1 moment for our next question.
Next question will come from line of George Tong from Goldman Sachs. Your line is open.
Okay. Okay, that is is helpful and good to hear. Um and then switching over uh you know, to the car business uh the origination revenue and the credit cards seems to be climbing and the right direction. Here, the last few quarters which is is good to see just um I know it's still early but have have you guys seen any disruption or
Hi. This is Sami on for George in your discussions with the fhfa and gsc's. Do you get the sense that a move from primers to buy? Merge is gaining traction. Uh, what we saw at the NBA came out, uh, over the single score proposition and then also the The Regulators Focus as you shift into the bureaus. Um, so just wanted to get your views on it.
Uh, changes in activity. I know there’s been some chatter around a potential 10% cap on card APR. So, I guess—
Steve Weber: We haven't seen anything. We haven't seen any changes in activity. There's been a lot of, you know, pre-qual activity in the card space and, you know, decent originations. We haven't seen any changes.
Steve Weber: We haven't seen anything. We haven't seen any changes in activity. There's been a lot of, you know, pre-qual activity in the card space and, you know, decent originations. We haven't seen any changes.
Delivered the the usage reports.
Kyle Peterson: Okay. Okay, that's great to hear. Thank you, guys, and nice quarter.
Kyle Peterson: Okay. Okay, that's great to hear. Thank you, guys, and nice quarter.
We haven't seen anything, we haven't seen any changes in activity. There's been a lot of, you know, prequal activity in the card space and, you know, decent originations. We haven't seen any changes.
Steve Weber: Thanks.
Steve Weber: Thanks.
Yeah, there's certain a lot of talk about it these days. Um you know the bureau position. I I don't generally give the Bureau of physician but I think it's fair to say that the bureau's believe that primary urge makes a lot more sense because the Bureau of files are not identical to 1 another. And if you chose 2 out of 3 files, some consumers on the margin are are going to be um underserved and I think that's a fair point that's that's just a fair point um set against that.
Okay, um, okay, that's great to hear. Thank you, guys, and nice quarter.
Operator: Thank you. One moment for our next question. Our next question will come from the line of George Tong from Goldman Sachs. Your line is open.
Operator: Thank you. One moment for our next question. Our next question will come from the line of George Tong from Goldman Sachs. Your line is open.
Thanks.
Thank you. One moment for our next question.
George Tong: Hi, this is Sammy on for George. In your discussions with the FHFA and GSEs, do you get the sense that a move from tri-merge to bi-merge is gaining traction? We saw the MBA came out with a single score proposition, and then also the regulators' focus has recently shifted to the bureaus. So just wanted to get your views on it.
George Tong: Hi, this is Sammy on for George. In your discussions with the FHFA and GSEs, do you get the sense that a move from tri-merge to bi-merge is gaining traction? We saw the MBA came out with a single score proposition, and then also the regulators' focus has recently shifted to the bureaus. So just wanted to get your views on it.
Next question will come from the line of George Tong from Goldman Sachs. Your line is open.
Will Lansing: Yeah, there's certainly a lot of talk about it these days. You know, the bureau position, I don't generally give the bureau position, but I think it's fair to say that the bureaus believe that tri-merge makes a lot more sense because the bureau files are not identical to one another, and if you chose two out of three files, some consumers on the margin are gonna be underserved. And I think that's a fair point. That's just a fair point. Set against that, you know, tri-merge does give the bureaus a monopoly, and that's not a great thing. So that, you know, that would be an offset. I think the real challenge, here's the real challenge with moving to bi-merge: It's the same problem that we have with lender choice.
Will Lansing: Yeah, there's certainly a lot of talk about it these days. You know, the bureau position, I don't generally give the bureau position, but I think it's fair to say that the bureaus believe that tri-merge makes a lot more sense because the bureau files are not identical to one another, and if you chose two out of three files, some consumers on the margin are gonna be underserved. And I think that's a fair point. That's just a fair point. Set against that, you know, tri-merge does give the bureaus a monopoly, and that's not a great thing. So that, you know, that would be an offset. I think the real challenge, here's the real challenge with moving to bi-merge: It's the same problem that we have with lender choice.
Bye. This is Sammy on for George in your discussions with the FHFA and GSEs. Do you get the sense that a move from primers to Bi-Merge is gaining traction? Uh, what we saw at the NBA came out, uh, over the single score proposition, and then also the regulators' focus has shifted to the bureaus. Um, so just wanted to get your views on it.
You know, try to merge does give the bureau's a monopoly and that's not a great thing so that you know that would be an offset. I think the real challenge. Here's the real challenge with moving to buy merch. It's the same problem that we have with lender Choice. When you get to choose between 2 credit scores or when you get to choose your favorite 2 out of 3, credit bureaus, you're going to have gaming, you're going to have adverse selection. You're going to have all of these Downstream all these problems occur. And you know, there's a cost to be paid for that that cost ultimately gets paid by F**** and Freddy and uh, and potentially as a US taxpayer. And so the, you know, that is the biggest, the biggest problem that has to be overcome and and frankly, I don't know what kind of a a solution there is to that. It's it, you know, it's structural
Um, and on software, can you talk about where you are in the investment cycle? How far along are you in the platform build out? And, uh, when should we expect the Investments normalized?
Yeah, there's certainly a lot of talk about it these days um you know the bureau position. I I don't generally give the bureau physician but I think it's fair to say that the bureau's believe that primary merge makes a lot more sense because the bureau files are not identical to 1 another and if you chose 2 out of 3 files, some consumers on the margin or are going to be um underserved and I think that's a fair point that's that's just a fair point. Um set against that you know try and merge does give the bureau's uh a monopoly and that's not a great thing so that you know that would be an offset. I think the real challenge. Here's the real.
Will Lansing: When you get to choose between two credit scores or when you get to choose your favorite two out of three credit bureaus, you're gonna have gaming, you're gonna have adverse selection, you're gonna have all of these all these problems occur. And, you know, there's a cost to be paid for that. That cost ultimately gets paid by Fannie and Freddie, and potentially the US taxpayer. And so the, you know, that is the biggest, the biggest problem that has to be overcome, and, and frankly, I don't know what kind of a, a solution there is to that. It's, it's, you know, it's structural.
Will Lansing: When you get to choose between two credit scores or when you get to choose your favorite two out of three credit bureaus, you're gonna have gaming, you're gonna have adverse selection, you're gonna have all of these all these problems occur. And, you know, there's a cost to be paid for that. That cost ultimately gets paid by Fannie and Freddie, and potentially the US taxpayer. And so the, you know, that is the biggest, the biggest problem that has to be overcome, and, and frankly, I don't know what kind of a, a solution there is to that. It's, it's, you know, it's structural.
You know, we continue to invest in our software business, we're really bullish on. It is growing really nicely. We do anticipate margin expansion because our our new platform is built for scaling profitably. And so it, you know, the improvements to profitability of our software business will come more from, um, additional volume and additional customers on the new platform versus reduced R&D spending which, of course, is a lever and someday it will go down.
All right, great. Thank you.
Thank you. 1 moment for our next question.
Our next question, offline of Alexander hes from JP Morgan. Your line is open.
Challenged with moving to buy merch. It's the same problem that we have with lender Choice. When you get to choose between 2 credit scores or when you get to choose your favorite 2 out of 3, credit bureaus, you're going to have gaming, you're going to have adverse selection. You're going to have all of these Downstream all these problems occur. And you know, there's a cost to be paid for that that cost ultimately gets paid by F**** and Freddy and uh and potentially the US taxpayer. And so the, you know, that is the biggest, the biggest problem that has to be overcome and and frankly, I don't know what kind of a a solution there is to that. It's it, you know, it's structural
George Tong: Okay, and on software, can you talk about where you are in the investment cycle? How far along are you in the platform build-out, and when should we expect the investments to normalize?
George Tong: Okay, and on software, can you talk about where you are in the investment cycle? How far along are you in the platform build-out, and when should we expect the investments to normalize?
Will Lansing: You know, we continue to invest in our software business. We're really bullish on it. It's growing really nicely. We do anticipate margin expansion because our new platform is built for scaling profitably. And so it... You know, the improvements to profitability of our software business will come more from additional volume and additional customers on the new platform versus reduced R&D spending, which, of course, is a lever, and someday it will go down.
Will Lansing: You know, we continue to invest in our software business. We're really bullish on it. It's growing really nicely. We do anticipate margin expansion because our new platform is built for scaling profitably. And so it... You know, the improvements to profitability of our software business will come more from additional volume and additional customers on the new platform versus reduced R&D spending, which, of course, is a lever, and someday it will go down.
Okay. Um, and on software, can you talk about where you are in the investment cycle? How far along are you in the platform build-out? And, uh, when should we expect the investments to normalize?
Just maybe to start with the scores business uh and volumes there. Uh, I saw a call out in the news slide deck which is, by the way. Excellent. Uh that the you guys saw positive volumes in all 3 of your underwriting uh lines. Can you maybe speak to to sort of volume Trends in the industry overall or are they improving? Um and then when you sort of turn the lens inward how much of the Improvement that you've seen in the degrees of there is any is really, uh, industry-wide versus
Psycho Innovation LED.
You know, we continue to invest in our software business, which we're really bullish on. It is growing really nicely. We do anticipate margin expansion because our new platform is built for scaling profitably. And so, the improvements to profitability of our software business will come more from additional volume and additional customers on the new platform, versus reduced R&D spending— which, of course, is a lever, and someday it will go down.
George Tong: All right, great. Thank you.
George Tong: All right, great. Thank you.
All right, great. Thank you.
Operator: ... Thank you. One moment for our next question. Our next question comes from the line of Alexander Hess from JP Morgan. Your line is open.
Operator: ... Thank you. One moment for our next question. Our next question comes from the line of Alexander Hess from JP Morgan. Your line is open.
Thank you. One moment for our next question.
Our next question, offline, is from Alexander Hess from JP Morgan. Your line is open.
[Analyst] (JP Morgan): Just maybe to start with the Scores business, and volumes there. I saw a call out in the new slide deck, which is, by the way, excellent, that you guys saw positive volumes in all three of your underwriting lines. Can you maybe speak to sort of volume trends in the industry overall? Are they improving? And then when you sort of turn the lens inward, how much of the improvement that you've seen, to the degree that there is any, is really industry-wide versus FICO innovation-led?
Alexander Hess: Just maybe to start with the Scores business, and volumes there. I saw a call out in the new slide deck, which is, by the way, excellent, that you guys saw positive volumes in all three of your underwriting lines. Can you maybe speak to sort of volume trends in the industry overall? Are they improving? And then when you sort of turn the lens inward, how much of the improvement that you've seen, to the degree that there is any, is really industry-wide versus FICO innovation-led?
Yeah, that's a good question. I mean, I think it's hard to call in any a trend at this point. There's just a lot of uncertainty in the marketplace again, which is 1 of the reasons why we've chosen not to update our guidance today. Um, you know, I don't think anybody really knows what's going to happen in mortgage just, you know, I think if rates continue to Trend downward, we'll probably see more volumes there. Um, you know, a card we already talked about this, some potential noise in that market. We'll see how real that is. Um, but but we've seen, you know, decent volumes decent volumes throughout, I mean, not like crazy growth but, you know, not not to decline either. So at least some, you know, some margin or some volume increases across the board, so that's encouraging and we'll see if that continues. Um, in terms of you know, the how much of that is driven by our Innovation, maybe a little bit. Um in some cases you know there are some different things that we're providing that provide some additional volumes. But most of this is the the macro environment and what the you know what's happening in the you know Auto lending industry or the mortgage or the or the card industry.
To Software.
Steve Weber: Yeah, that's a good question. I mean, I think it's hard to call anything a trend at this point. There's just a lot of uncertainty in the marketplace, again, which is one of the reasons why we've chosen not to update our guidance today. You know, I don't think anybody really knows what's gonna happen in mortgage. Just, you know, I think if rates continue to trend downward, we'll probably see more volumes there. You know, at Card, we already talked about there's some potential noise in that market. We'll see how real that is. But we've seen decent volumes, decent volumes throughout. I mean, not like crazy growth, but, you know, not declines either. So at least some, you know, some margin or some volume increases across the board. So that's encouraging, and we'll see if that continues.
Steve Weber: Yeah, that's a good question. I mean, I think it's hard to call anything a trend at this point. There's just a lot of uncertainty in the marketplace, again, which is one of the reasons why we've chosen not to update our guidance today. You know, I don't think anybody really knows what's gonna happen in mortgage. Just, you know, I think if rates continue to trend downward, we'll probably see more volumes there. You know, at Card, we already talked about there's some potential noise in that market. We'll see how real that is. But we've seen decent volumes, decent volumes throughout. I mean, not like crazy growth, but, you know, not declines either. So at least some, you know, some margin or some volume increases across the board. So that's encouraging, and we'll see if that continues.
Just maybe to start with the scores business uh and volumes there. Uh, I saw a call out in the news slide deck, which is, by the way, excellent uh that that you guys saw positive volumes in all 3 of your underwriting uh lines, you maybe speak to a sort of volume Trends in the industry overall or are they improving? Um, and then when you sort of turn the lens inward how much of the Improvement that you've seen in the degrees of there is any is really uh, industry-wide versus FICO Innovation lead.
You know, you did see a nice pickup in ACV bookings. Uh, obviously platform nrr growth is strong and you may be provided comment on on what platform features functions use cases um are really driving that that recent momentum
Yeah, that's a good question. I mean, I think it's hard to call anything a trend at this point. There's just a lot of uncertainty in the marketplace again, which is one of the reasons why we've chosen not to update our guidance today. Um, you know, I don't think anybody really knows what's going to happen in mortgage. Just, you know, I think if rates continue to trend downward, we'll probably see more volumes there. Um, you know, on card we already talked about this, some potential noise in that market. We'll see how real that is. Um, but we've seen, you know, decent volumes—decent volumes throughout. I mean, not like crazy growth but, you know, not declines either. So at least some, you know, some margin or some volume increases across the board. So,
Steve Weber: In terms of, you know, how much of that is driven by our innovation, maybe a little bit. In some cases, you know, there are some different things that we're providing that provide some additional volumes, but most of this is the macro environment and what the... and what's happening in the, you know, auto lending industry or the mortgage or the card industry.
Steve Weber: In terms of, you know, how much of that is driven by our innovation, maybe a little bit. In some cases, you know, there are some different things that we're providing that provide some additional volumes, but most of this is the macro environment and what the... and what's happening in the, you know, auto lending industry or the mortgage or the card industry.
That's encouraging and we'll see if that continues. Um in terms of you know the how much of that is driven by our Innovation, maybe a little bit. Um in some cases you know there's some different things that we're providing that provide some additional volumes but most of this is the the macro environment and what the you know what's happening in the you know Auto lending industry or the mortgage or the or the card industry.
[Analyst] (JP Morgan): Pivoting to software, you know, you did see a nice pickup in ACV bookings. Obviously, platform NRR growth is strong. Can you maybe provide a comment on, on what platform features, functions, use cases, are really driving that, that recent momentum, potentially?
Alexander Hess: Pivoting to software, you know, you did see a nice pickup in ACV bookings. Obviously, platform NRR growth is strong. Can you maybe provide a comment on, on what platform features, functions, use cases, are really driving that, that recent momentum, potentially?
The software.
Yeah. And and you know I'm not sure there's any particular use cases to be frank so just a little bit of History here. We you know, for many many years for 10, for decades FICO is an application software company, focused on solutions, to half a dozen critical Bank problems having to do with the life cycle, right? Risk, risk oriented Solutions. When we move to the platform, we opened up a a pretty vast, uh, set of solutions potential solutions for banks that adopt the platform. It it's no longer just, you know, decisioning around originations and, um, and customer management and, and Broad. Um, so that, you know, just a much, much wider set that said, um, you know, customers are coming to the platform for the, for the, for the basics. They do they come for originations, they come for customer management. We're seeing those use cases as as primary use cases. But what's interesting is
Will Lansing: Yeah, and you know, I'm not sure that's any particular use cases, to be frank. So just a little bit of history here. We, you know, for many, many years, for tens, for decades, FICO was an application software company focused on solutions to half a dozen critical bank problems having to do with the life cycle, right? Risk, risk-oriented solutions. When we moved to the platform, we opened up a pretty vast set of solutions, potential solutions for banks that adopt the platform. It's no longer just, you know, decisioning around originations and customer management and fraud. So there, you know, just a much, much wider set. That said, you know, customers are coming to the platform for the basics. They come for originations, they come for customer management.
Will Lansing: Yeah, and you know, I'm not sure that's any particular use cases, to be frank. So just a little bit of history here. We, you know, for many, many years, for tens, for decades, FICO was an application software company focused on solutions to half a dozen critical bank problems having to do with the life cycle, right? Risk, risk-oriented solutions. When we moved to the platform, we opened up a pretty vast set of solutions, potential solutions for banks that adopt the platform. It's no longer just, you know, decisioning around originations and customer management and fraud. So there, you know, just a much, much wider set. That said, you know, customers are coming to the platform for the basics. They come for originations, they come for customer management.
Form features, functions, use cases—um, are really driving that recent momentum.
Particularly on the expand side, you know, if you think about land and expand they put in the platform and then they come up with all kinds of Innovations on things. They should be decisioning around that, they have never done before. And so there's there's a lot of that. But I, you know, I think it's fair to say that they come to the platform for the same kinds of Risk Management Solutions, they've bought in the past
Maybe I can squeeze a third in just on the predictive power of Vico 10t. Obviously, you guys have the white paper out. That should, uh, pretty pretty compelling, uh, predictive lift in those key cohorts.
Um, can you make? But that was on, sort of the basis of, of the defaults delinquencies, and you maybe pivot that conversation to prepayments and, and do you have a view on will penty be more predictive on prepayments than than rival? Uh, scores
Will Lansing: We're seeing those use cases as primary use cases. But what's interesting is, particularly on the expand side, you know, if you think about land and expand, they put in the platform, and then they come up with all kinds of innovations on things they should be decisioning around that they have never done before. And so there's a lot of that. But I, you know, I think it's fair to say that they come to the platform for the same kinds of risk management solutions they've bought in the past.
Will Lansing: We're seeing those use cases as primary use cases. But what's interesting is, particularly on the expand side, you know, if you think about land and expand, they put in the platform, and then they come up with all kinds of innovations on things they should be decisioning around that they have never done before. And so there's a lot of that. But I, you know, I think it's fair to say that they come to the platform for the same kinds of risk management solutions they've bought in the past.
Yeah. And and you know I'm not sure there's any particular use cases to be frank so just a little bit of History here. We you know, for many many years for 10, for decades FICO is an application software company, focused on solutions, to half a dozen critical Bank problems having to do with the life cycle, right? Risk, risk oriented Solutions. When we move to the platform, we opened up a a pretty vast, uh, set of solutions potential solutions for banks that adopt the platform. It it's no longer just, you know, decisioning around originations and, um, and customer management and, and fraud. Um, so that, you know, just a much, much wider set that said, um, you know, customers are coming to the platform for the, for the, for the basics. They do they come for originations, they come for customer management. We're seeing those use cases as as primary use cases. But what's interesting is
Particularly on the expand side, you know, if you think about land and expand they put in the platform and then they come up with all kinds of Innovations on things. They should be decisioning around that, they have never done before. And so there's there's a lot of that. But I, you know, I think it's fair to say that they come to the platform for the same kinds of Risk Management Solutions, they've bought in the past
[Analyst] (JP Morgan): Maybe I can squeeze a third in. Just on the predictive power of FICO 10T, obviously, you guys had the white paper out that showed a pretty compelling predictive lift in those key cohorts. But that was on sort of the basis of defaults, delinquencies. Can you maybe pivot that conversation to prepayments? And do you have a view on will 10T be more predictive on prepayments than rival scores?
Alexander Hess: Maybe I can squeeze a third in. Just on the predictive power of FICO 10T, obviously, you guys had the white paper out that showed a pretty compelling predictive lift in those key cohorts. But that was on sort of the basis of defaults, delinquencies. Can you maybe pivot that conversation to prepayments? And do you have a view on will 10T be more predictive on prepayments than rival scores?
Uh, their, you know, their, their sides of the same coin in some way. So, um, you know, for example, I I've heard people say, well, you know, credit, improving credit, default rates, doesn't really matter and the conforming Market, because Sandy and Freddy stand behind it. And so, who cares about the credit? Default rates. Well, you know, when you have a credit default it it it is functionally the same as a prepayment uh risk for those who hold the paper. So um you know I think 10t is going to help on both sides.
Maybe I can squeeze a third in just on the predictive power of VAN Psycho 10T. Obviously, you guys have the white paper out that showed a pretty, pretty compelling—uh—predictive lift in those key cohorts.
1 moment for our next question.
Our next question will come from line of Ryan Griffin from BMO Capital markets. Your line is open.
Will Lansing: You know, I think so. I think it's important to note that credit default rates and prepayments are related. They're, you know, sides of the same coin in some way. So, you know, for example, I've heard people say, "Well, you know, improving credit default rates doesn't really matter in the conforming market because Fannie and Freddie stand behind it, and so who cares about the credit default rates?" Well, you know, when you have a credit default, it is functionally the same as a prepayment risk for those who hold the paper. So, you know, I think 10T is gonna help on both those sides.
Will Lansing: You know, I think so. I think it's important to note that credit default rates and prepayments are related. They're, you know, sides of the same coin in some way. So, you know, for example, I've heard people say, "Well, you know, improving credit default rates doesn't really matter in the conforming market because Fannie and Freddie stand behind it, and so who cares about the credit default rates?" Well, you know, when you have a credit default, it is functionally the same as a prepayment risk for those who hold the paper. So, you know, I think 10T is gonna help on both those sides.
Um, can you make— but that was on, sort of, the basis of the defaults, delinquencies, and you maybe pivot that conversation to prepayments? And, and do you have a view on will Penty be more predictive on prepayments than rival, uh, scores?
Hey, thanks so much. Just had a software question. I think you said 75 of your largest customers are using multiple use cases. Now I was just wondering how that is trended over the past year or so and what's driving the land and expand momentum. Thank you.
I'm not sure, I followed the question. It's the land expand. So essentially, yeah, I mean, what's driving, it is that, you know, a lot of people bought in just to see how it would work, right? They needed. They need to prove to be shown that it would work and once they get it installed. Um, the next use case is a lot easier than the first use case. So they find more ways to use it and you know, they're pleased with the way it's working. So it's the, the expand pieces. I shouldn't say easy but it's it's a lot easier than the land because once it's in
Work. And they they look for more ways to use it.
You know, I think so. And I think it's important to note that that credit default rates and um, prepayments are related there, you know, they're, they're sides of the same coin in some way. So, um, you know, for example, I, I've heard people say, well, you know, credit, improving credit, default rates, doesn't really matter and the conforming Market, because Sandy and Freddy stand behind it. And so, who cares about the credit, default rates? Well, you know, when, when you have a credit default it it it is functionally the same as a prepayment uh, risk for those who hold the paper. So um you know, I think tent is going to help on both sides.
Operator: One moment for our next question. Our next question comes from the line of Ryan Griffin from BMO Capital Markets. Your line is open.
Operator: One moment for our next question. Our next question comes from the line of Ryan Griffin from BMO Capital Markets. Your line is open.
One moment for our next question.
[Analyst] (BMO Capital Markets): Hey, thanks so much. Just had a software question. I think you said 75 of your largest customers are using multiple use cases now. I was just wondering how that has trended over the past year or so, and what's driving the land and expand momentum? Thank you.
Ryan Griffin: Hey, thanks so much. Just had a software question. I think you said 75 of your largest customers are using multiple use cases now. I was just wondering how that has trended over the past year or so, and what's driving the land and expand momentum? Thank you.
Our next question will come from the line of Ryan Griffin from BMO Capital Markets. Your line is open.
The expand expand is running at roughly the same rate as as land, they're kind of neck and neck on growth rate. Um, the expand piece really has 2 kinds. There's 2 Styles. Write 1 is expansion of the use cases that they started with and the second is bringing on new use cases and our Revenue goes up in both situations.
Hey, thanks so much. I just had a software question. I think you said 75 of your largest customers are using multiple use cases. Now, I was just wondering how that has trended over the past year or so, and what's driving the land-and-expand momentum. Thank you.
Will Lansing: I'm not sure I follow the question.
Will Lansing: I'm not sure I follow the question.
Steve Weber: It's the land expand. So essentially, yeah, I mean, what's driving it is that, you know, a lot of people bought in just to see how it would work, right? They needed to be able to to be shown that it would work. And once they get it installed, the next use case is a lot easier than the first use case. So they find more ways to use it, and, you know, they're pleased with the way it's working. So it's... The expand piece is, I shouldn't say easy, but it's a lot easier than the land, because once it's in and it's working, they look for more ways to use it.
Steve Weber: It's the land expand. So essentially, yeah, I mean, what's driving it is that, you know, a lot of people bought in just to see how it would work, right? They needed to be able to to be shown that it would work. And once they get it installed, the next use case is a lot easier than the first use case. So they find more ways to use it, and, you know, they're pleased with the way it's working. So it's... The expand piece is, I shouldn't say easy, but it's a lot easier than the land, because once it's in and it's working, they look for more ways to use it.
Great, thank you and then just 1 more question. On the volume side, I think we've all read some headlines about lenders struggling with their cost basis. Here was just wondering, if you're seeing any of this from your perspective, in any changes in the lender behavior that you can call out, um, relating to your business. Thank you.
You know, we really have haven't. I mean you you know how critical psycho scores are and and you know, in the system and we really have not seen any changes
Thank you. 1 moment for our next question.
Will Lansing: The expansion is running at roughly the same rate as Lamb. They're kind of neck and neck on growth rate. The expansion piece really has two kinds. There's two styles, right? One is expansion of the use cases that they started with, and the second is bringing on new use cases. And our revenue goes up in both situations.
Will Lansing: The expansion is running at roughly the same rate as Lamb. They're kind of neck and neck on growth rate. The expansion piece really has two kinds. There's two styles, right? One is expansion of the use cases that they started with, and the second is bringing on new use cases. And our revenue goes up in both situations.
I'm not sure, I followed the question. It's the land expand. So essentially, yeah, I mean, what's driving, it is that, you know, a lot of people bought in just to see how it would work, right? They needed, they needed to prove to be shown that it would work and once they get it installed, um, the next use case is a lot easier than the first use case. So they find more ways to use it and, you know, the police with the way it's working. So it's the, the expand pieces. I shouldn't say easy, but it's, it's a lot easier than the land, because once it's in, it's working, they they look for more ways to use it.
Our next question comes from the line of Scott works. So from Wolfe research, your line is open.
The expand piece is running at roughly the same rate as land—they're kind of neck and neck on growth rate. The expand piece really has two kinds. There are two styles. One is expansion of the use cases that they started with, and the second is bringing on new use cases. Our revenue goes up in both situations.
Steve Weber: ... Great. Thank you. And then just one more question on the volume side. I think we've all read some headlines about lenders struggling with their cost base this year. I was just wondering if you're seeing any of this from your perspective and any changes in the lender behavior that you can call out, relating to your business. Thank you.
Steve Weber: ... Great. Thank you. And then just one more question on the volume side. I think we've all read some headlines about lenders struggling with their cost base this year. I was just wondering if you're seeing any of this from your perspective and any changes in the lender behavior that you can call out, relating to your business. Thank you.
Hey, good evening guys. Uh, just wanted to ask, uh, 1 question on, uh, on the software business, I mean, you know, the Trends on the booking side have been pretty positive, but you also had mentioned that, um, you know, the next-gen platform and I think the Enterprise fraud solution, or, you know, I guess not yet generally available, but are they helping to drive some of the bookings growth? Um, right now, um, you know, pending the general availability?
Availability at all. Thanks, yeah. Not not yet, not yet. All the growth you're seeing um is you know 3 dates, the Enterprise solution.
Will Lansing: You know, we really haven't. I mean, you know how critical FICO scores are in, you know, in the system, and we really have not seen any changes.
Will Lansing: You know, we really haven't. I mean, you know how critical FICO scores are in, you know, in the system, and we really have not seen any changes.
Thank you. And then just one more question. On the volume side, I think we've all read some headlines about lenders struggling with their cost basis. Here, I was just wondering if you're seeing any of this from your perspective—any changes in lender behavior that you can call out relating to your business? Thank you.
Thank you. 1 moment for our next question.
You know, we really have. I mean you you know how critical FICO scores are and and you know in the system and we really have not seen any changes
Our next question will come from the line of from Clear Street. Your line is open.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Scott Wurtzel from Wolfe Research. Your line is open.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Scott Wurtzel from Wolfe Research. Your line is open.
Thank you. One moment for our next question.
Our next question, I believe, will come from the line of Scott Wasil from Wolfe Research. Your line is open.
Scott Wurtzel: Hey, good evening, guys. Just wanted to ask on the software business. I mean, you know, the trends on the booking side have been pretty positive, but you also had mentioned that, you know, the next-gen platform, and I think the enterprise fraud solution are, you know, I guess not yet generally available, but are they helping to drive some of the bookings growth, right now, you know, pending the general availability at all? Thanks.
Scott Wurtzel: Hey, good evening, guys. Just wanted to ask on the software business. I mean, you know, the trends on the booking side have been pretty positive, but you also had mentioned that, you know, the next-gen platform, and I think the enterprise fraud solution are, you know, I guess not yet generally available, but are they helping to drive some of the bookings growth, right now, you know, pending the general availability at all? Thanks.
Will Lansing: Not, not yet, not yet. All the growth you're seeing, you know, predates the enterprise solution.
Will Lansing: Not, not yet, not yet. All the growth you're seeing, you know, predates the enterprise solution.
Scott Wurtzel: Cool. Thanks, guys.
Scott Wurtzel: Cool. Thanks, guys.
Side have been pretty positive, but he also had mentioned that, um, you know, the next-gen platform and I think the Enterprise fraud solution or, you know, I guess not yet generally available but are they helping to drive some of the bookings growth? Um, right now um you know pending the general availability at all? Thanks not not yet, not yet. All the growth you're seeing um is you know predates the Enterprise solution.
Thanks guys.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Owen Lau from Clear Street. Your line is open.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Owen Lau from Clear Street. Your line is open.
Thank you. One moment for our next question.
Uh, good afternoon, thank you for taking my question. Um, I do want to go back to Preston Trump's 10% credit card, interest rate cap policy question. Um, if if it is implemented, how would it potentially impact? Uh, FICO do you think consumers will go to other form of loans which will still need to use FICO score for under writing? And also could you please kind of like help us size? The credit card exposure. Thank you. What? What um in terms of will consumers look for alternate, credit. If if the card providers provide fewer cards to you know, deeply subprime, you know, your guess is as good as mine but I assume so, um, and and, uh, I, I'm not sure, I the second question was the size of our our, um, credit card originations Revenue, but we don't provide that we, we don't break that out. Now, I, you know, who knows? Whether this actually ever happens, but, um, if it does, I think it puts that much more pressure on lenders to understand those subprime credits, really
[Analyst] (Clear Street): Good afternoon, thank you for taking my question. I do want to go back to President Trump's 10% credit card interest rate cap policy question. If it is implemented, how would it potentially impact FICO? Do you think consumers will go to other form of loans, which will still need to use FICO score for underwriting? And also, could you please kind of, like, help us size the credit card exposure? Thank you.
Owen Lau: Good afternoon, thank you for taking my question. I do want to go back to President Trump's 10% credit card interest rate cap policy question. If it is implemented, how would it potentially impact FICO? Do you think consumers will go to other form of loans, which will still need to use FICO score for underwriting? And also, could you please kind of, like, help us size the credit card exposure? Thank you.
Our next question comes from the line of Owl from Clear Street. Your line is open.
Really really well. And my guess is that they would be doing extra work involving FICO scores and and Credit Data to you know, to understand what happens on the margin.
If it went to some other type of personal lending or something else that would not apply, then, you know, obviously, use FICO scores in that in that area.
You know does it involve a shift to bnpl or something? I mean, obviously we'd be beneficiaries in all those scenarios.
Will Lansing: Well, what, In terms of will consumers look for alternate credit if the card providers provide pure cards to, you know, deeply subprime? You know, your guess is as good as mine, but I would assume so. And I'm not sure I-
Will Lansing: Well, what, In terms of will consumers look for alternate credit if the card providers provide pure cards to, you know, deeply subprime? You know, your guess is as good as mine, but I would assume so. And I'm not sure I-
Uh, good afternoon, thank you for taking my question. Um, I do want to go back to Preston Trump's 10% credit card, interest rate cap policy question. Um, if it is implemented, how would it potentially impact? Uh FICO do you think consumers will go to other form of loans which will still need to use FICO score for under writing? And also could you please kind of like help us size? The credit card exposure. Thank you.
Dave Singleton: The second question was the size of our credit card originations revenue, but we don't provide that. We-
Dave Singleton: The second question was the size of our credit card originations revenue, but we don't provide that. We-
Will Lansing: We don't break that out. Now, you know, who knows whether this actually ever happens. But if it does, I think it puts that much more pressure on lenders to understand those subprime credits really, really well. And my guess is that they would be doing extra work involving FICO scores and credit data to, you know, to understand what happens on the margin.
Will Lansing: We don't break that out. Now, you know, who knows whether this actually ever happens. But if it does, I think it puts that much more pressure on lenders to understand those subprime credits really, really well. And my guess is that they would be doing extra work involving FICO scores and credit data to, you know, to understand what happens on the margin.
what um in terms of what consumers look for, alternate credit if if the card providers provide pure cards to you know, deeply subprime, you know, your guess is good as mine but I assume so, um, and and uh, I I'm not sure I the second question was the size of our our, um, credit card originations Revenue but we don't provide
Steve Weber: If it went to some other type of personal lending or something else, that would not apply. Then, you know, obviously, use FICO scores in that, in that area.
Steve Weber: If it went to some other type of personal lending or something else, that would not apply. Then, you know, obviously, use FICO scores in that, in that area.
That we we don't break that out. No, I you know, who knows whether this actually ever happens. But um if it does I think it puts that much more pressure on lenders to understand those upfront credits really really well. And my guess is that they would be doing extra work involving FICO scores and and Credit Data to, you know, to understand what happens on the margin.
And then going back uh, to a software. Um, I noticed that, I mean, you mentioned that there was an above average size in um, multi-use case platform deal. Um, in the first quarter, is it really a 1-off deal that we shouldn't expect this to recur or FICO platform begins to gain recognition and traction, and more similar deals could come more frequently in the future. It it is the ladder. There's no question that the deal size is going up and the frequency of it and the, and the amounts. So. Yeah, and yeah, and I would just add to that. We think the FY 26 AC Brokers are going to be significantly higher than that for a 2525. So we've got we've got a lot of deals that we've already signed. We got a lot of deals in the pipeline. There's a lot of momentum here, um, and we're seeing it even more in bigger deals.
All right, thanks a lot.
Will Lansing: You know, does it involve a shift at BNPL or so? I mean, obviously, we'd be beneficiaries in all those scenarios.
Will Lansing: You know, does it involve a shift at BNPL or so? I mean, obviously, we'd be beneficiaries in all those scenarios.
And if it went to some other type of personal lending or something else, that would not apply, then, you know, obviously, use FICO scores in that area.
Thank you. 1 moment for our next question.
You know, does it involve a shift to BNPL or something? I mean, obviously we'd be beneficiaries in all those scenarios.
[Analyst] (Clear Street): Got it. That's helpful. And then going back to software, I noticed that, I mean, you mentioned that there was an above-average size in multi-use case platform deal in Q1. Is it really a one-off deal that we shouldn't expect this to recur, or FICO Platform begins to gain recognition and traction, and more similar deals could come more frequently in the future?
Owen Lau: Got it. That's helpful. And then going back to software, I noticed that, I mean, you mentioned that there was an above-average size in multi-use case platform deal in Q1. Is it really a one-off deal that we shouldn't expect this to recur, or FICO Platform begins to gain recognition and traction, and more similar deals could come more frequently in the future?
Our next question will come tonight of Craig. Huber, from Huber research Partners shine is open.
Will Lansing: It is the latter. There's no question that the deal size is going up, the frequency of it and the amounts.
Will Lansing: It is the latter. There's no question that the deal size is going up, the frequency of it and the amounts.
Uh, great, thank you. My my first question you made a comment earlier on that, you're well, positioned to well, exceed guidance for fiscal 2026. Can you just talk about that a little bit further? What, what, what in your mind were you overly, conservative on specifically if you're willing to talk about that and maybe also touch on how things are going, and the reseller Market mortgage Market ready for the this new 2.
Steve Weber: Yeah.
Steve Weber: Yeah.
Will Lansing: So, yeah, I-
Will Lansing: So, yeah, I-
Steve Weber: And yeah, and I would just add to that, we think the FY 2026 ACV bookings are gonna be significantly higher than the FY 2025. So we've got, we've got a lot of deals we've already signed. We've got a lot of deals in the pipeline. There's a lot of momentum here, and we're seeing it even more in bigger deals.
Steve Weber: And yeah, and I would just add to that, we think the FY 2026 ACV bookings are gonna be significantly higher than the FY 2025. So we've got, we've got a lot of deals we've already signed. We've got a lot of deals in the pipeline. There's a lot of momentum here, and we're seeing it even more in bigger deals.
Lie ahead or behind or on schedule of what you originally were thinking, when you first rolled this out, I think so to take those in reverse order, the direct license program with the resellers is on track roughly as expected. And frankly, whether it comes a little sooner or a little later, does not have a big Revenue impact on us. It's there, it's really pretty close.
[Analyst] (Clear Street): All right, thanks a lot.
Owen Lau: All right, thanks a lot.
Got it, that's helpful. And then going back uh to a software. Um I noticed that, I mean, you mentioned that there was an above average size in um, multi-use case platform deal. Um, in the first quarter, is it really a 1-off deal that we shouldn't expect this to recur or FICO platform begins to gain recognition and traction, and more similar deals could come more frequently in the future. It, it is the latter. There's no question that the deal sizes going up and the frequency of it and the and the amounts. So. Yeah and yeah, and I would just add to that. We think the FY 26 ACD, Brokers are going to be significantly higher than that for a 2525. So we've got we've got a lot of deals that we've already signed. We got a lot of deals in the pipeline. There's a lot of momentum here. Um, and we're seeing it, you even more in bigger deals.
Operator: Thank you. One moment for our next question. Our next question will come from the line of Craig Huber from Huber Research Partners. Your line is open.
Operator: Thank you. One moment for our next question. Our next question will come from the line of Craig Huber from Huber Research Partners. Your line is open.
All right, thanks a lot.
Thank you. One moment for our next question.
[Analyst] (Huber Research Partners): Great. Thank you. My first question, you made a comment earlier on that you're well-positioned to well exceed guidance for fiscal 2026. Can you just talk about that a little bit further? What, what in your mind, were you overly conservative on, specifically, if you're willing to talk about that, and maybe also touch on how things are going in the reseller market, mortgage market, these new two pricing plans, your reseller in particular, is that meaningfully ahead or behind or on schedule of what you originally were thinking when you first rolled this out?
Craig Huber: Great. Thank you. My first question, you made a comment earlier on that you're well-positioned to well exceed guidance for fiscal 2026. Can you just talk about that a little bit further? What, what in your mind, were you overly conservative on, specifically, if you're willing to talk about that, and maybe also touch on how things are going in the reseller market, mortgage market, these new two pricing plans, your reseller in particular, is that meaningfully ahead or behind or on schedule of what you originally were thinking when you first rolled this out?
Our next question will come from Craig Huber of Huber Research Partners. Craig, the line is open.
Great. Thank you. My my first question you made a comment earlier on that. You're well, positioned to well, exceed guidance for fiscal 2026. Can you just talk about that a little bit further? What, what, what in your mind were you overly, conservative on specifically if you're willing to talk about that and maybe also touch on
Hi, how are things going in the reseller market?
Will Lansing: So to take those in reverse order, the direct license program with the resellers is on track, roughly as expected, and frankly, whether it comes a little sooner or a little later does not have a big revenue impact on us. It's there, it's really pretty close. You know, as we said earlier, we're not completely agnostic, but, you know, it's pretty close. It's not enough to drive a change in guidance, for example. And then as to what might have us change our guidance, it presumably would be a volume. I mean, the price is extremely well understood, and, you know, we publish it, and it's that price is here for the year.
Will Lansing: So to take those in reverse order, the direct license program with the resellers is on track, roughly as expected, and frankly, whether it comes a little sooner or a little later does not have a big revenue impact on us. It's there, it's really pretty close. You know, as we said earlier, we're not completely agnostic, but, you know, it's pretty close. It's not enough to drive a change in guidance, for example. And then as to what might have us change our guidance, it presumably would be a volume. I mean, the price is extremely well understood, and, you know, we publish it, and it's that price is here for the year.
Um, you know, as we said earlier, we're not completely agnostic, but, you know, it's pretty close, it's not enough to to drive a change in guidance, for example. Um, and then as to what might might have us, uh, change our guidance. It's it presumably, it would be a volume. I mean, the price is extremely well understood and, you know, it's we publish it and it's that's that price is here for the year. And so it's really much more around volume and what happens with interest rates and that no 1 know. So we'll that's why we want another quarter to see how it plays out. Yeah, I think there's just like like I said, there's a lot of uncertainty in the marketplace and I think 3 months from now we're going to have a much better idea if we were to take a guess. Now we would probably you'd probably still think we were being too conservative. So at this point 3 months we're going to know a lot more. We'll have 1 more quarter under our belts and we'll have a much better idea of how to do this. We really don't want to get into the situation where we're continually updating our guidance. Every quarter, we have annual guidance, we try to stick to that until it's, you know, pretty clear. We can move to some more meaningful. Uh, estimations.
Looks like and that's what we're doing here.
Mortgage market ready for these new two pricing plans. It would be. So in particular, is that meaningfully ahead, or behind, or on schedule of what you originally were thinking? When you first rolled this out, I think—so to take those in reverse order—the direct license program with the resellers is on track, roughly as expected. And frankly, whether it comes a little sooner or a little later does not have a big revenue impact on us. It's there, it's really pretty close.
And then my last question if I could, um can you just talk about pricing for calendar 26 for auto and then uh a credit card and personal loans I mean is is auto going to be up north to 10% again this year for example,
Will Lansing: And so it's really much more around volume and what happens with interest rates, and that no one knows, and so we'll. That's why we want another quarter to see how it plays out.
Will Lansing: And so it's really much more around volume and what happens with interest rates, and that no one knows, and so we'll. That's why we want another quarter to see how it plays out.
Um, you know, as we said earlier, we're not completely agnostic, but, you know, it's pretty close, it's not enough to to drive a change in guidance, for example. Um, and then as to what might might have us, uh, change our guidance. It's it presumably, it would be a volume. I mean, the price is extremely well understood and, you know, it's we publish it and it's that's that price is here for the year. And so, it's really much more around volume and what happens
Oh we don't we don't disclose the specifics of it. There's a it's a lot more complicated in Auto and a card because there's different price points depending on, you know, different tiers or different types of markets. So it's a lot more complicated than that and we don't get into the details of that basically for competitive reasons.
Okay, thank you.
Steve Weber: Yeah, I think there's just, again, like I said, there's a lot of uncertainty in the marketplace, and I think three months from now, we're going to have a much better idea. If we were to take a guess now, we would probably... You'd probably still think we were being too conservative. So at this point, in three months, we're gonna know a lot more. We'll have one more quarter under our belts, and we'll have a much better idea of how it is. We really don't want to get into the situation where we're continually updating our guidance every quarter. We have annual guidance. We try to stick to that until it's, you know, pretty clear we can move to some more meaningful estimation of what it looks like, and that's what we're doing here.
Steve Weber: Yeah, I think there's just, again, like I said, there's a lot of uncertainty in the marketplace, and I think three months from now, we're going to have a much better idea. If we were to take a guess now, we would probably... You'd probably still think we were being too conservative. So at this point, in three months, we're gonna know a lot more. We'll have one more quarter under our belts, and we'll have a much better idea of how it is. We really don't want to get into the situation where we're continually updating our guidance every quarter. We have annual guidance. We try to stick to that until it's, you know, pretty clear we can move to some more meaningful estimation of what it looks like, and that's what we're doing here.
Thank you. 1 moment for our next question.
Our next question will come online of Kevin McVay from UBS. Your line is open.
Great. Thank you. Hey, I think you'd mentioned in the slide deck that there was some incremental, headcount investment in FICO and then increased marketing maybe help us understand was that related to to the reseller adoption or or which of those Investments.
[Analyst] (Huber Research Partners): And then my last question, if I could. Can you just talk about pricing for calendar 2026 for auto and then, credit card and personal loans? I mean, is auto gonna be up north of 10% again this year, for example?
Craig Huber: And then my last question, if I could. Can you just talk about pricing for calendar 2026 for auto and then, credit card and personal loans? I mean, is auto gonna be up north of 10% again this year, for example?
We try to stick to that until it's, you know, pretty clear we can move to some more meaningful, uh, estimation of what it looks like, and that's what we're doing here.
Will Lansing: ... Well, we don't, we don't disclose the specifics of it. But there's a. It's a lot more complicated in auto and in card because there's different price points depending on, you know, different tiers or different types of markets. So it's a lot more complicated than that, and we don't get into the detail of that, basically for competitive reasons.
Will Lansing: ... Well, we don't, we don't disclose the specifics of it. But there's a. It's a lot more complicated in auto and in card because there's different price points depending on, you know, different tiers or different types of markets. So it's a lot more complicated than that, and we don't get into the detail of that, basically for competitive reasons.
And then my last question, if I could: can you just talk about pricing for calendar '26 for auto, and then credit card and personal loans? I mean, is auto going to be up north of 10% again this year, for example?
You know, we are investing in, go to market across the board, both in the on the software side and on the score side and after I would say many years of conservatism and growing headcount and direct sales and uh, partner partner sales. Um, we you know, we've we've been fairly aggressive this year in expanding that headcount. So I would say that's it's both on both sides software as well as course.
Great. And then just in terms of goalposts for the resellers actually going live. Do you have any sense? You know, would you expect?
Dave Singleton: Okay, thank you.
Dave Singleton: Okay, thank you.
Well, we don't disclose the specifics of it. There's a—it's a lot more complicated in Auto and in Card, because there are different price points depending on, you know, different tiers or different types of markets. So it's a lot more complicated than that, and we don't get into the detail of that, basically for competitive reasons.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Kevin McVey from UBS. Your line is open.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Kevin McVey from UBS. Your line is open.
Okay, thank you.
The, the Big 5 to go live simultaneously or, or 1 sequence. Any sense is just timing on that.
Thank you. One moment for our next question.
Kevin McVeigh: Great, thank you. I think you mentioned in the slide deck that there was some incremental headcount investment in FICO and increased marketing. Maybe help us understand, was that related to the reseller adoption or what drove those investments?
Kevin McVeigh: Great, thank you. I think you mentioned in the slide deck that there was some incremental headcount investment in FICO and increased marketing. Maybe help us understand, was that related to the reseller adoption or what drove those investments?
Our next question comes from the line of Kevin McVay from UBS. Your line is open.
Will Lansing: You know, we are investing in go-to-market across the board, both in the, on the software side and on the score side. And after, I would say, many years of conservatism, growing headcount, direct sales, and partner sales, you know, we've been fairly aggressive this year in expanding that headcount. So I would say that's on both sides, software as well as scores.
Will Lansing: You know, we are investing in go-to-market across the board, both in the, on the software side and on the score side. And after, I would say, many years of conservatism, growing headcount, direct sales, and partner sales, you know, we've been fairly aggressive this year in expanding that headcount. So I would say that's on both sides, software as well as scores.
Great, thank you. Hey, I think you'd mentioned in the slide deck that there was some incremental headcount investment in Psycho, and then increased marketing. Maybe help us understand—was that related to the reseller adoption, or which of those investments?
Line there, but I couldn't say that it's all going to happen simultaneously.
Okay, thank you.
Thank you. 1 moment for our next question.
And our next question will come from line, uh, Raina Kumar from UPenn higher. Your line is open.
Kevin McVeigh: Great. And then just in terms of goalposts for the resellers actually going live, do you have any sense, you know, would you expect the Big Five to go live simultaneously or one sequential? Any sense of just timing on that?
Kevin McVeigh: Great. And then just in terms of goalposts for the resellers actually going live, do you have any sense, you know, would you expect the Big Five to go live simultaneously or one sequential? Any sense of just timing on that?
You know, we are investing in, go to market across the board, both in the on the software side and on the score side and after I would say many years of conservatism and growing headcount and direct sales and uh, partner partner sales. Um, we you know, we've we've been fairly aggressive this year in expanding that headcount. So I would say that's it's both on both sides software as well as course.
Great. And then, just in terms of goalposts for the resellers actually going live, do you have any sense? You know, would you expect—
Uh resellers. Um I just want some more color on that. Um, how much is the total resellers Market? Would you say the 5? Represent the like you know established from size on on on these winds
how much the market to those resellers represent?
The, the Big 5 to go live simultaneously or, or one sequence. Any sense, it’s just timing on that.
Will Lansing: You know, my guess is that it will not be a big bang with all of them going live at the same time. It'll probably be staggered, but but close in time. I mean, you know, all the resellers we've signed with are well underway, and and I think for their own benefit, they'll they'll want to be able to offer the direct license program as quickly as possible. So I would expect a convergence on timeline there, but I couldn't say that it's all gonna happen simultaneously.
Will Lansing: You know, my guess is that it will not be a big bang with all of them going live at the same time. It'll probably be staggered, but but close in time. I mean, you know, all the resellers we've signed with are well underway, and and I think for their own benefit, they'll they'll want to be able to offer the direct license program as quickly as possible. So I would expect a convergence on timeline there, but I couldn't say that it's all gonna happen simultaneously.
yes, I you know, somewhere in the 70 80% range,
Got it. Okay? And just as a a a follow up um on your last earnings call. Um you discussed some operational hurdles and um having um, resellers move to the direct model. Can you just talk about how you're addressing some of those hurdles?
Kevin McVeigh: Okay, thank you.
Kevin McVeigh: Okay, thank you.
You know, my guess is that it will not be a big bang with all of them going live at the same time. It'll probably be staggered. But, uh, but close in time. I mean, you know, all the resellers we've signed with are well underway. And, um, and I think for their own benefit, they'll want to be able to offer the direct license program as quickly as possible. So I would expect, uh, convergence on timeline there, but I couldn't say that it's all going to happen simultaneously.
Okay, thank you.
Operator: Thank you. One moment for our next question. Our next question comes from line, Rayna Kumar from Oppenheimer. Your line is open.
Operator: Thank you. One moment for our next question. Our next question comes from line, Rayna Kumar from Oppenheimer. Your line is open.
We we really don't have any operational hurdles. It's moving very smoothly. We're working our way through the details and you know we're highly confident that the program will be live and the relatively near future.
Got it. Thank you.
Thank you. One moment for our next question.
Rayna Kumar: Good evening, thanks for taking my question. Congrats on the 5 resellers. I just want some more color on that. How much of the total resellers market would you say the 5 represent? Just to, like, you know, establish some size on these wins.
Rayna Kumar: Good evening, thanks for taking my question. Congrats on the 5 resellers. I just want some more color on that. How much of the total resellers market would you say the 5 represent? Just to, like, you know, establish some size on these wins.
And our next question will come from the line of Raina Kumar from Oppenheimer. Your line is open.
Thank you. I'm not showing any further questions in the queue. I'd like to try to call back over to Dave, Renee, close your marks.
No, that's everything. We're, we're good great quarter. Thank you. Thanks all
Will Lansing: How much of the market do those resellers represent?
Will Lansing: How much of the market do those resellers represent?
On the five, uh, resellers. Um, I just want some more color on that. Um, how much is the total resellers' market, would you say? Do the five represent, like, you know, establish some size on these wins?
Thank you for participating. In today's conference, this does conclude the program. You may now disconnect everyone have a great day.
Rayna Kumar: Yes.
Rayna Kumar: Yes.
Will Lansing: You know, somewhere in the 70, 80% range.
How much of the market do those resellers represent?
Will Lansing: You know, somewhere in the 70, 80% range.
Rayna Kumar: Got it. Okay, and just as a follow-up, on your last earnings call, you discussed some operational hurdles in having resellers move to the direct model. Can you just talk about how you're addressing some of those hurdles?
Rayna Kumar: Got it. Okay, and just as a follow-up, on your last earnings call, you discussed some operational hurdles in having resellers move to the direct model. Can you just talk about how you're addressing some of those hurdles?
Yes, you know, somewhere in the 70–80% range.
Will Lansing: We really don't have any operational hurdles. It's moving very smoothly. We're working our way through the details, and, you know, we're highly confident that the program will be live in the relatively near future.
Will Lansing: We really don't have any operational hurdles. It's moving very smoothly. We're working our way through the details, and, you know, we're highly confident that the program will be live in the relatively near future.
Got it. Okay? And just as a a a follow-up um on your last earnings call. Um you discussed some operational hurdles and um having um resellers move to the direct model. Can you just talk about how you're addressing some of those hurdles?
Rayna Kumar: Got it. Thank you.
Rayna Kumar: Got it. Thank you.
We really don't have any operational hurdles. It's moving very smoothly. We're working our way through the details, and you know we're highly confident that the program will be live in the relatively near future.
Got it. Thank you.
Operator: Thank you. I'm not showing any further questions in the queue. I'd like to turn the call back over to Dave for any closing remarks.
Operator: Thank you. I'm not showing any further questions in the queue. I'd like to turn the call back over to Dave for any closing remarks.
Thank you. I'm not showing any further questions in the queue. I’d like to turn the call back over to Dave. Ren, please close your remarks.
Dave Singleton: No, that's everything. We're, we're good. Great quarter. Thank you.
Dave Singleton: No, that's everything. We're, we're good. Great quarter. Thank you.
Will Lansing: Thanks, all.
Will Lansing: Thanks, all.
Operator: Thank you for participating in today's conference. This does conclude the program. You may now disconnect everyone. Have a great day.
Operator: Thank you for participating in today's conference. This does conclude the program. You may now disconnect everyone. Have a great day.
No, that's everything. We're good. Great quarter. Thank you. Thanks, all.
Thank you for participating. This does conclude the program for today's conference. You may now disconnect. Everyone have a great day.
