Fair Isaac Corporation stock research
FY2025 Q3
Fair Isaac (FICO) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue remained flat sequentially and edged lower year-over-year. Gross margin improved versus both comparison periods, reflecting that revenue growth outpaced cost changes.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q3
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue remained flat sequentially and edged lower year-over-year. Gross margin improved versus both comparison periods, reflecting that revenue growth outpaced cost changes.
- The strongest observable margin driver is the sustained expansion in gross margin over sequential and year-ago periods, driven by revenue growth with relatively stable cost of revenue.
- Revenue and gross profit were higher than the immediately preceding quarter and the same quarter one year earlier. Gross margin improved compared to both periods, while cost of revenue was stable sequentially and slightly lower year-over-year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
83.7%
Gross profit
$448.8M
Revenue
$536.4M
Cost of revenue
$87.6M
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+3.4 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 |
|---|---|---|---|---|
| Sep 30, 2024 | $453.8M | $364.2M | $89.6M | 80.3% |
| Dec 31, 2024 | $440.0M | $352.6M | $87.3M | 80.1% |
| Mar 31, 2025 | $498.7M | $411.1M | $87.6M | 82.4% |
| Jun 30, 2025 | $536.4M | $448.8M | $87.6M | 83.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+1.2 pts
Year-over-year change
Jun 30, 2024
+3.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sustained expansion in gross margin over sequential and year-ago periods, driven by revenue growth with relatively stable cost of revenue.
Revenue and gross profit were higher than the immediately preceding quarter and the same quarter one year earlier. Gross margin improved compared to both periods, while cost of revenue was stable sequentially and slightly lower year-over-year.
Monitor whether cost of revenue remains stable in future periods, as its current flatness supports margin expansion.