Fair Isaac Corporation stock research
FY2025 Q4
Fair Isaac (FICO) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin weakened sequentially but improved year over year, as cost of revenue declined relative to revenue on an annual basis.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q4
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin weakened sequentially but improved year over year, as cost of revenue declined relative to revenue on an annual basis.
- The strongest observable margin driver is the year-over-year improvement in gross margin, supported by a higher gross profit relative to revenue growth. This reflects a favorable relationship between revenue and cost of revenue over the longer-term comparison.
- Compared to the prior quarter, gross margin weakened as revenue declined more than cost of revenue. Compared to the same quarter last year, gross margin improved as revenue grew while cost of revenue remained relatively stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.3%
Gross profit
$424.6M
Revenue
$515.8M
Cost of revenue
$91.2M
Quarter-over-quarter change
-1.4 pts
Year-over-year change
+2.1 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $515.8M | $424.6M | $91.2M | 82.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-1.4 pts
Year-over-year change
Sep 30, 2024
+2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year improvement in gross margin, supported by a higher gross profit relative to revenue growth. This reflects a favorable relationship between revenue and cost of revenue over the longer-term comparison.
Compared to the prior quarter, gross margin weakened as revenue declined more than cost of revenue. Compared to the same quarter last year, gross margin improved as revenue grew while cost of revenue remained relatively stable.
Monitor the sequential decline in revenue and gross profit to assess whether the trend continues into the next quarter.