Fair Isaac Corporation stock research
FY2025 Q1
Fair Isaac (FICO) Gross Margin — Quarter Ended Dec 31, 2024
Revenue decreased sequentially but increased year-over-year, with gross profit moving similarly. The gross margin was slightly lower than the prior quarter but improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q1
Revenue decreased sequentially but increased year-over-year, with gross profit moving similarly. The gross margin was slightly lower than the prior quarter but improved compared to the same quarter last year.
- The most observable margin driver is the year-over-year improvement in gross margin, as gross profit grew faster than cost of revenue.
- Compared to the prior quarter, revenue and gross profit were lower while cost of revenue also decreased, leading to a stable gross margin. Compared to the same quarter last year, all metrics were higher, with gross margin strengthening.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.1%
Gross profit
$352.6M
Revenue
$440.0M
Cost of revenue
$87.3M
Quarter-over-quarter change
-0.1 pts
Year-over-year change
+2.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $433.8M | $346.9M | $86.9M | 80.0% |
| Jun 30, 2024 | $447.8M | $359.6M | $88.2M | 80.3% |
| Sep 30, 2024 | $453.8M | $364.2M | $89.6M | 80.3% |
| Dec 31, 2024 | $440.0M | $352.6M | $87.3M | 80.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.1 pts
Year-over-year change
Dec 31, 2023
+2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the year-over-year improvement in gross margin, as gross profit grew faster than cost of revenue.
Compared to the prior quarter, revenue and gross profit were lower while cost of revenue also decreased, leading to a stable gross margin. Compared to the same quarter last year, all metrics were higher, with gross margin strengthening.
Monitor whether the sequential decline in revenue and gross profit continues in the coming quarters.