Segment Information

12 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

Segment Information

Segment Information

We are organized into two reportable segments: Scores and Software. Although we sell solutions and services into a large number of end user product and industry markets, our reportable business segments reflect the primary method in which management organizes and evaluates internal financial information to make operating decisions and assess performance.

•Scores. This segment includes our business-to-business (“B2B”) scoring solutions and services which give our clients access to predictive credit and other scores that can be easily integrated into their transaction streams and decision-making processes. This segment also includes our business-to-consumer (“B2C”) scoring solutions, including our myFICO.com subscription offerings.

•Software. This segment includes pre-configured analytic and decision management solutions designed for a specific type of business need or process — such as account origination, customer management, customer engagement, fraud detection, and marketing — as well as associated professional services. This segment also includes FICO® Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by our customers to address a wide variety of business use cases. These offerings are available to our customers as SaaS or as on-premises software.

Our chief operating decision maker (“CODM”), who is our Chief Executive Officer, evaluates segment financial performance based on segment revenues, segment operating expenses in total and segment operating income. Segment operating expenses consist of direct and indirect costs principally related to personnel, facilities, IT infrastructure, depreciation and amortization, consulting and travel. Indirect costs are allocated to the segments generally based on relative segment revenues, fixed rates established by management based upon estimated expense contribution levels and other assumptions that management considers reasonable. We do not allocate broad-based incentive expense, share-based compensation expense, restructuring and acquisition-related expense, amortization expense, various corporate charges and certain other income and expense measures to our segments. These income and expense items are not allocated because they are not considered in evaluating the segment’s operating performance. Our CODM does not evaluate the financial performance of each segment based on its respective assets or capital expenditures; rather, depreciation and amortization amounts are allocated to the segments from their internal cost centers as described above.

The following tables summarize segment information for fiscal 2025, 2024 and 2023: 

	Year Ended September 30, 2025
	Scores		Software		Total
	(In thousands)
Segment revenues:
On-premises and SaaS software	$	—	$	740,145	$	740,145
Professional services	—		82,149		82,149
Scores	1,168,575		—		1,168,575
Total segment revenues	1,168,575		822,294		1,990,869
Segment operating expense	(142,332)		(574,600)		(716,932)
Segment operating income	$	1,026,243	$	247,694	$	1,273,937
Unallocated corporate expenses					(181,498)
Unallocated share-based compensation expense					(156,667)
Unallocated restructuring charges					(10,922)
Operating income					924,850
Unallocated interest expense, net					(133,647)
Unallocated other income, net					11,392
Income before income taxes					$	802,595

	Year Ended September 30, 2024
	Scores		Software		Total
	(In thousands)
Segment revenues:
On-premises and SaaS software	$	—	$	711,340	$	711,340
Professional services	—		86,536		86,536
Scores	919,650		—		919,650
Total segment revenues	919,650		797,876		1,717,526
Segment operating expense	(106,296)		(540,347)		(646,643)
Segment operating income	$	813,354	$	257,529	1,070,883
Unallocated corporate expenses					(186,898)
Unallocated share-based compensation expense					(149,439)
Unallocated amortization expense					(917)
Operating income					733,629
Unallocated interest expense, net					(105,638)
Unallocated other income, net					14,034
Income before income taxes					$	642,025

	Year Ended September 30, 2023
	Scores		Software		Total
	(In thousands)
Segment revenues:
On-premises and SaaS software	$	—	$	640,182	$	640,182
Professional services	—		99,547		99,547
Scores	773,828		—		773,828
Total segment revenues	773,828		739,729		1,513,557
Segment operating expense	(92,757)		(498,538)		(591,295)
Segment operating income	$	681,071	$	241,191	922,262
Unallocated corporate expenses					(156,426)
Unallocated share-based compensation expense					(123,847)
Unallocated amortization expense					(1,100)
Unallocated gain on product line asset sale					1,941
Operating income					642,830
Unallocated interest expense, net					(95,546)
Unallocated other income, net					6,340
Income before income taxes					$	553,624

The following table presents depreciation and amortization on property and equipment for fiscal 2025, 2024 and 2023:

	Year Ended September 30,
	2025		2024		2023
	(In thousands)
Depreciation and amortization:
Scores	$	512	$	451	$	485
Software	10,071		8,881		9,550
Total segment depreciation and amortization	10,583		9,332		10,035
Unallocated corporate	75		66		71
Total depreciation and amortization	$	10,658	$	9,398	$	10,106

Long-lived assets held outside of the U.S. were immaterial at September 30, 2025 and 2024.