Fair Isaac Corporation

After the speaker's presentation, there will be a question and answer session. To ask a question during a session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, David Singleton. Please go ahead.

Thanks, Victor. Good afternoon. Thank you for attending FICO's first quarter earnings call. I'm Dave Singleton, Vice President of Investor Relations, and I'm joined today by our CEO, Will Lansing, and our CFO, Steve Weber. Today, we issued a press release that describes financial results compared to the prior year. On this call, management will also discuss results in comparison with the prior quarter to facilitate an understanding of the run rate of the business. Certain statements made in this presentation are forward-looking under the Private Securities Litigation Reform Act of 1995. Those statements involve many risks and uncertainties that could cause actual results to differ materially. Information concerning these risks and uncertainties is contained in the company's filings with the SEC, particularly in the risk factors and forelooking statements portion of such filings. Companies are, copies are available from the SEC, from the FICO website, or from our investor relations team. This call will also include statements regarding certain non-GAAP financial measures. Please refer to the company's earnings release and Reg G schedule issued today for reconciliation of each of these non-GAAP financial measures to the most comparable GAAP measure. The earnings release and Regulation G schedule are available on the investor relations page of the company website at FICO.com or on the SEC's website at SEC.gov. A replay of this webcast will be available through February 4th, 2008 at SEC.gov. A replay of this webcast will be available through February 4th, 2026. I will now turn the call over to our CEO, Will Anthony.

Thanks, Dave, and thank you, everyone, for joining us for our first quarter earnings call. In the investor relations section of our website, we've posted some financial highlight slides that we will be referring to during this earnings announcement. We had another strong quarter and are reiterating our fiscal 25 guidance. As shown on page two of the first quarter financial highlights, we reported quarter one revenues of $440 million, up 15% over last year. We reported $153 million in gap net income in the quarter, up 26%, and gap earnings of $6.14 per share, up 28% from the prior year. We reported $144 million in non-gap net income in the quarter, up 19%, and non-GAAP earnings of $5.79 per share, up 20% from the prior year. As shown on page 10, we delivered free cash flow of $187 million in our first quarter and $673 million over the last four quarters, an increase of 36% over the prior period. We continue to return capital to our shareholders through buybacks. We repurchased 79,000 shares in quarter one and an additional 47,000 shares in January. In our scores segment, on page six of the presentation, our first quarter revenues were $236 million, up 23% versus the prior year. On the B2B side, quarter one revenues were up 30% versus the prior year, primarily driven by mortgage originations revenues from both pricing and volume increases. On the B2C side, quarter one revenues were up 3% versus the prior year, primarily driven by revenue from indirect channel partners. First quarter mortgage originations revenues were up 110% versus the prior year. Mortgage origination revenue accounted for 44% of B2B revenue and 34% of total scores revenue. Auto origination revenues were up 5%. while credit card, personal loan, and other originations revenues were down 3% versus the prior year. This week, we issued a press release on the study we conducted with our partner, Affirm. That study concluded that the inclusion of buy now, pay later loan data can drive a FICO score increase for some consumers, while improving model risk performance for lenders when applying FICO's innovative treatment of that data. The study also helped inform responsible furnishing of buy now, pay later loans to the credit bureaus, We're currently working with stakeholders to identify the best way to introduce our proprietary treatment of this data to the credit scoring marketplace. We'll be sharing more details soon. We continue to drive strong adoption of FICO Score 10-T for non-GSE mortgages. This quarter, loans utilizing FICO Score 10-T began trading on MCT Marketplace, the largest mortgage asset exchange for the U.S. secondary market. In addition, Cardinal Financial formed and traded the first government-issued mortgage-backed security featuring loans powered by FICO Score 10T. I'm proud of these strong achievements and look forward to continued progress in the quarters ahead. We now have clients with over $261 billion in annualized mortgage originations and approximately $1.43 trillion in eligible mortgage portfolio servicing that have signed up for FICO Score 10T. with some firms already adopting FICO 10-T to make credit decisions for securitization and for delivery to investors. FICO 10-T for conforming mortgages sold to the GFCs will be rolled out based on the timeline of the FHFA's implementation of enterprise credit score requirements. In January, the FHFA announced it no longer has a specific timeline for the implementation. In our software segment, we delivered $204 million in Q1 revenue, up 8% from last year. Revenue increase was driven mainly by growth in SaaS software and license revenue, partially offset by the foreign exchange rate impact. We continue to drive growth in ARR and NRR through our land and expand strategy, with expand driven by increased customer usage. As shown on page seven, the total ARR was up 6%, with platform ARR growing 20% and non-platform ARR of 1%. Total NRR for the quarter shown on page eight was 105%, with platform NRR at 112% and non-platform at 100%. Foreign exchange had a negative impact of 2% on total ARR and 3% on platform ARR. ACV bookings for the quarter were 21.2 million compared to 18.3 million in the prior year. We continue to drive our software business forward. Our investments are helping progress development of new FICO platform capabilities. partner channel adoption, FICO marketplace realization, and building scalability to improve our cost structure. We continue to be recognized for our innovation. This quarter, FICO was awarded Best Anti-Fraud Solution at the Credit and Collections Technology Awards. The award was given to the FICO Customer Communication Service Scam Signal Solution, which uniquely uses telephony signals to detect potential scams. Our innovative work using blockchain technology for responsible AI model governance yielded the Tech of the Future Blockchain and Tokenization Award at the Banking Tech Awards and won a Software Category Transformative Product Award at the BIG Innovation Awards. Our software business will be on display this year at FICO World Event, which will take place in Hollywood, Florida in May. At this four-day event, we'll bring together industry professionals from around the world to connect, share best practices, and learn how FICO enables organizations to power customer connections at scale. We'll highlight successful clients and demonstrate the power of FICO platform, enabling companies to operationalize analytics, become more composable, and make better decisions at scale. I'll now pass it over to Steve to provide further financial details.