Fair Isaac Takeaways from FICO World 26 — FICO Defends Its Home Turf with Score 10T and DLP On the Way

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Fair Isaac Takeaways from FICO World 26 — FICO Defends Its Home Turf with Score 10T and DLP On the Way

erwriting. UltraFICO combines traditional bureau data with

indicators such as deposit consistency, balance stability, and spending behavior.

FICO’s own analysis suggests that supplementing the FICO Score with next-gen

UltraFICO produces a 7% relative increase in approvals without any incremental

per-unit risk (see here).

• B2C Scores is humming along quietly: FICO’s B2B Scores division is the firm’s

biggest and best business, which often leaves less room for attention on FICO’s B2C

Scores unit and its Software segment. Still, we note that consumer engagement

with the FICO Score is an important reason why it has become a de facto

industry standard. After growing at a ~25% CAGR from F2018-F2022, the B2C

Scores unit saw single digit % revenue declines in each F2023 and F2024 as the end

of the mortgage boom and fading consumer stimulus payments decreased

engagement. Over the last 1.5 years, however, B2C Scores revenue has stabilized

and returned to MSD % growth. FICO expects LSD % revenue growth

prospectively from both myFICO.com paid subscribers and its successful

partnership with Experian (where FICO is paid per member, per month). To bolster

growth, FICO is leaning into its free (lead generation-driven) offering for

myFICO.com, which has nearly 3mm users, and is monetizing deeper B2C

partnerships with leading banks.

• A more-focused vision for FICO Software: In contrast to past years, we observed

a subtle but important shift in how FICO speaks about its Software segment.

Historically, management used FICO World to talk about the FICO Platform in

florid prose and would frequently discuss its broad potential as a horizontal software