Fair Isaac Q2 Net Income Up 63%, Mortgage Revenue Jumps 127%
Fair Isaac Corp's Q2 2026 net income rose 63% to $264 million with GAAP EPS up 69%, while free cash flow reached $214 million, driving a 28% increase over four quarters. Mortgage revenue surged 127% and FICO 10T pricing shifted to $0.99 upfront plus $65 fee pending FHFA approval.
1. Q2 Financial Performance
Fair Isaac posted GAAP net income of $264 million for Q2 2026, up 63% year-over-year, with GAAP earnings per share climbing 69%. Free cash flow reached $214 million this quarter, contributing to $867 million over the past four quarters, a 28% increase.
2. Mortgage Business Growth
Mortgage revenue surged 127% this quarter, driven by higher lending volumes during a period of lower interest rates, exceeding FICO’s conservative revenue guidance for the segment.
3. FICO Score 10T Pricing Strategy
FICO introduced a new pricing model for FICO Score 10T at $0.99 upfront plus a $65 fee to promote broader adoption, distributing monetization across the mortgage value chain.
4. Licensing Program and Competitive Landscape
The direct licensing program for FICO Score 10T is pending FHFA approval, with three of the top five resellers signed and significant lender interest; FICO expects to maintain market share despite VantageScore’s entry into conforming mortgages due to its predictive performance and competitive price point.