Fair Isaac Corp. (NYSE:FICO)

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Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30).

Fair Isaac Corp., adjusted total assets

US$ in thousands

	Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
As Reported
Total assets	1,717,884)	1,575,281)	1,442,034)	1,567,776)	1,606,240)	1,433,448)
Adjustments
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)	97,296)
Add: Allowance for doubtful accounts	6,454)	4,978)	4,218)	4,154)	5,072)	2,568)
Less: Deferred tax assets²	86,513)	59,136)	11,803)	20,549)	14,629)	6,006)
After Adjustment
Adjusted total assets	1,637,825)	1,521,123)	1,434,449)	1,551,381)	1,596,683)	1,527,306)

¹ Operating lease right-of-use asset (before adoption of FASB Topic 842). See details »

² Deferred tax assets. See details »

The financial trajectory of the asset base between September 30, 2019, and September 30, 2024, is characterized by a period of volatility followed by a sustained recovery and expansion. Total assets experienced an initial increase, a subsequent two-year decline, and a strong upward trend in the final two years of the period.

Total Assets Trend: Total assets grew from US$ 1,433,448 thousand in 2019 to a peak of US$ 1,606,240 thousand in 2020. A contraction followed, with values decreasing to US$ 1,442,034 thousand by 2022. However, a significant reversal occurred thereafter, with assets climbing to US$ 1,575,281 thousand in 2023 and reaching a period high of US$ 1,717,884 thousand by September 30, 2024.
Adjusted Total Assets Trend: Adjusted total assets mirrored the general movement of total assets but exhibited less volatility in the early years. From a starting point of US$ 1,527,306 thousand in 2019, the figures declined to a low of US$ 1,434,449 thousand in 2022. Similar to the primary asset metric, a recovery trend emerged in 2023 and 2024, ending the period at US$ 1,637,825 thousand.
Analysis of Asset Adjustments: The relationship between total assets and adjusted total assets shifted notably over the six-year span. In 2019, adjusted assets were higher than total assets by approximately US$ 93,858 thousand. From 2020 through 2024, this relationship inverted, with total assets consistently exceeding adjusted total assets. This variance widened significantly in the most recent reporting periods; the gap increased from US$ 54,158 thousand in 2023 to US$ 80,059 thousand in 2024, indicating a growing divergence between the reported total asset value and the adjusted asset valuation.

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Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30).

Fair Isaac Corp., adjusted current liabilities

US$ in thousands

	Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
As Reported
Current liabilities	380,285)	367,688)	331,459)	559,207)	414,511)	490,828)
Adjustments
Less: Current deferred revenue	156,897)	136,730)	120,045)	105,417)	115,159)	111,016)
Less: Current restructuring accruals	—)	—)	—)	7,856)	8,191)	1,378)
After Adjustment
Adjusted current liabilities	223,388)	230,958)	211,414)	445,934)	291,161)	378,434)

An analysis of the liabilities from 2019 to 2024 reveals a period of significant fluctuation characterized by a peak in 2021 followed by a sharp contraction in 2022. While both reported and adjusted current liabilities followed similar directional movements in the early part of the period, a diverging trend emerged in the final three years.

Volatility and Peak Analysis: Reported current liabilities experienced a notable increase from 490,828 thousand USD in 2019 to a peak of 559,207 thousand USD in 2021. This peak was followed by a significant reduction in 2022 to 331,459 thousand USD, representing a decrease of approximately 40.7% within a single fiscal year. Adjusted current liabilities mirrored this volatility, peaking at 445,934 thousand USD in 2021 before falling to 211,414 thousand USD in 2022.
Divergence in Recent Trends: Between 2022 and 2024, a divergence is observed between the two metrics. Reported current liabilities showed a gradual upward trend, rising from 331,459 thousand USD in 2022 to 380,285 thousand USD in 2024. Conversely, adjusted current liabilities remained relatively stagnant, ending the period at 223,388 thousand USD, which is lower than the 2022 level of 211,414 thousand USD when considering the slight dip from 2023.
Expansion of the Adjustment Variance: The gap between reported current liabilities and adjusted current liabilities has widened consistently over the six-year period. The variance stood at 112,394 thousand USD in 2019 and expanded to 156,897 thousand USD by 2024. This indicates that a larger proportion of the current liabilities are being excluded or adjusted in the calculated adjusted figure over time, suggesting a shift in the composition of short-term obligations.

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Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30).

Fair Isaac Corp., adjusted total liabilities

US$ in thousands

	Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
As Reported
Total liabilities	2,680,563)	2,263,271)	2,243,981)	1,678,718)	1,275,158)	1,143,681)
Adjustments
Add: Operating lease liability (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)	97,296)
Less: Deferred revenue	160,209)	143,235)	126,560)	110,763)	122,141)	116,320)
Less: Restructuring accruals	—)	—)	—)	7,856)	8,191)	1,378)
After Adjustment
Adjusted total liabilities	2,520,354)	2,120,036)	2,117,421)	1,560,099)	1,144,826)	1,123,279)

¹ Operating lease liability (before adoption of FASB Topic 842). See details »

Total liabilities and adjusted total liabilities exhibit a consistent upward trajectory over the six-year period ending September 30, 2024. Total liabilities grew from 1.14 billion USD in 2019 to 2.68 billion USD in 2024, indicating a substantial expansion of the company's total obligations.

Growth Trends in Total Liabilities: A period of accelerated growth is observed between 2020 and 2022, where liabilities increased from 1.28 billion USD to 2.24 billion USD. This was followed by a phase of relative stability in 2023, with a marginal increase of approximately 0.8%, before rising again by 18.4% in 2024.
Growth Trends in Adjusted Total Liabilities: Adjusted total liabilities followed a nearly identical pattern to total liabilities, increasing from 1.12 billion USD in 2019 to 2.52 billion USD in 2024. The sharpest increases occurred in 2021 and 2022, mirroring the trend seen in the unadjusted figures.
Analysis of the Adjustment Variance: The variance between total liabilities and adjusted total liabilities expanded significantly between 2019 and 2020, growing from 20.4 million USD to 130.3 million USD. From 2020 through 2024, this adjustment remained relatively consistent in scale, ranging from approximately 5.6% to 10.2% of total liabilities, ending the period at 160.2 million USD in 2024.

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Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30).

Fair Isaac Corp., adjusted stockholders’ equity (deficit)

US$ in thousands

	Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
As Reported
Stockholders’ equity (deficit)	(962,679)	(687,990)	(801,947)	(110,942)	331,082)	289,767)
Adjustments
Less: Deferred tax assets (liabilities), net¹	86,513)	59,136)	11,803)	20,549)	14,629)	6,006)
Add: Allowance for doubtful accounts	6,454)	4,978)	4,218)	4,154)	5,072)	2,568)
Add: Deferred revenue	160,209)	143,235)	126,560)	110,763)	122,141)	116,320)
Add: Restructuring accruals	—)	—)	—)	7,856)	8,191)	1,378)
After Adjustment
Adjusted stockholders’ equity (deficit)	(882,529)	(598,913)	(682,972)	(8,718)	451,857)	404,027)

¹ Deferred tax assets (liabilities), net. See details »

A significant shift in the equity position is observed between 2019 and 2024, characterized by a transition from positive stockholders' equity to a substantial deficit. While equity grew slightly between 2019 and 2020, a sharp reversal occurred in 2021, leading to a sustained period of negative equity that peaked in 2024.

Equity Deficit Trajectory: Stockholders' equity transitioned from a positive balance of 289,767 thousand USD in 2019 to a deficit of 110,942 thousand USD by September 30, 2021. This downward trend accelerated in 2022, with the deficit widening to 801,947 thousand USD. Despite a moderate recovery in 2023, where the deficit narrowed to 687,990 thousand USD, the position deteriorated further in 2024, reaching a maximum deficit of 962,679 thousand USD.
Impact of Financial Adjustments: Adjusted stockholders' equity consistently tracks higher than the unadjusted figures across all reported periods. In 2021, the adjustment significantly mitigated the equity erosion, reducing the deficit to 8,718 thousand USD compared to the unadjusted deficit of 110,942 thousand USD. This pattern persisted through 2024, where the adjusted deficit of 882,529 thousand USD remained lower than the unadjusted deficit of 962,679 thousand USD, indicating that the adjustments provide a buffer against the total equity decline.
Comparative Analysis of Volatility: The most volatile period occurred between 2020 and 2022, during which unadjusted equity plummeted by over 1.1 billion USD. The fluctuations observed in 2023, where both unadjusted and adjusted equity showed slight improvements, were short-lived, as 2024 saw a renewed and sharp decline in both metrics, suggesting an ongoing challenge in maintaining a positive equity base.

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Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30).

Fair Isaac Corp., adjusted capitalization table

US$ in thousands

	Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
As Reported
Current finance lease liabilities	3,144)	—)	—)	—)	2,186)	1,935)
Current maturities on debt	15,000)	50,000)	30,000)	250,000)	95,000)	218,000)
Long-term debt, excluding current maturities	2,194,021)	1,811,658)	1,823,669)	1,009,018)	739,435)	606,790)
Non-current finance lease liabilities	7,263)	—)	—)	—)	3,076)	3,489)
Total reported debt	2,219,428)	1,861,658)	1,853,669)	1,259,018)	839,697)	830,214)
Stockholders’ equity (deficit)	(962,679)	(687,990)	(801,947)	(110,942)	331,082)	289,767)
Total reported capital	1,256,749)	1,173,668)	1,051,722)	1,148,076)	1,170,779)	1,119,981)
Adjustments to Debt
Add: Operating lease liability (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)	97,296)
Add: Current operating lease liabilities (included in Other accrued liabilities)²	11,555)	16,336)	19,369)	22,074)	22,787)	—)
Add: Non-current operating lease liabilities³	21,963)	23,903)	39,192)	53,670)	73,207)	—)
Adjusted total debt	2,252,946)	1,901,897)	1,912,230)	1,334,762)	935,691)	927,510)
Adjustments to Equity
Less: Deferred tax assets (liabilities), net⁴	86,513)	59,136)	11,803)	20,549)	14,629)	6,006)
Add: Allowance for doubtful accounts	6,454)	4,978)	4,218)	4,154)	5,072)	2,568)
Add: Deferred revenue	160,209)	143,235)	126,560)	110,763)	122,141)	116,320)
Add: Restructuring accruals	—)	—)	—)	7,856)	8,191)	1,378)
Adjusted stockholders’ equity (deficit)	(882,529)	(598,913)	(682,972)	(8,718)	451,857)	404,027)
After Adjustment
Adjusted total capital	1,370,417)	1,302,984)	1,229,258)	1,326,044)	1,387,548)	1,331,537)

¹ Operating lease liability (before adoption of FASB Topic 842). See details »

² Current operating lease liabilities (included in Other accrued liabilities). See details »

³ Non-current operating lease liabilities. See details »

⁴ Deferred tax assets (liabilities), net. See details »

The financial data reveals a systemic shift in the capital structure over the six-year period ending September 30, 2024. The primary characteristic of this period is a substantial increase in leverage coupled with a transition from positive stockholders' equity to a significant equity deficit.

Debt Obligations: A consistent upward trend is observed in total debt. Reported debt increased from 830,214 thousand US dollars in 2019 to 2,219,428 thousand US dollars in 2024. This growth was most pronounced between 2020 and 2022, where reported debt more than doubled. Adjusted total debt mirrors this trajectory, rising from 927,510 thousand US dollars to 2,252,946 thousand US dollars over the same duration, indicating that adjustments consistently add a premium to the reported debt figures.
Stockholders' Equity Dynamics: Equity experienced a complete reversal in polarity. Starting at a positive 289,767 thousand US dollars in 2019, stockholders' equity entered a deficit position by September 30, 2021. This deficit expanded rapidly, reaching 962,679 thousand US dollars by 2024. Adjusted stockholders' equity followed a similar pattern, transitioning to a deficit in 2021 and reaching 882,529 thousand US dollars by 2024, though the adjusted deficit remains slightly lower than the reported figure.
Total Capitalization Patterns: Despite the divergence between increasing debt and decreasing equity, total capital remained relatively stable. Total reported capital fluctuated within a narrow range, starting at 1,119,981 thousand US dollars in 2019 and ending at 1,256,749 thousand US dollars in 2024. Adjusted total capital showed a similar stability, increasing from 1,331,537 thousand US dollars to 1,370,417 thousand US dollars. This suggests a strategic replacement of equity with debt to maintain a consistent total capital base.
Impact of Adjustments: Adjustments consistently result in a higher valuation of both debt and equity compared to reported figures. The gap between reported and adjusted total capital remains relatively constant, typically ranging between 130 million and 150 million US dollars, which indicates a systematic adjustment approach regardless of the underlying equity deficit.

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Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30).

Fair Isaac Corp., adjusted revenues

US$ in thousands

12 months ended:	Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
As Reported
Revenues	1,717,526)	1,513,557)	1,377,270)	1,316,536)	1,294,562)	1,160,083)
Adjustment
Add: Increase (decrease) in deferred revenue	16,974)	16,675)	15,797)	(11,378)	5,821)	8,202)
After Adjustment
Adjusted revenues	1,734,500)	1,530,232)	1,393,067)	1,305,158)	1,300,383)	1,168,285)

A consistent upward trajectory is observed in both reported and adjusted revenues over the six-year period ending September 30, 2024. The growth is characterized by steady increases, with a notable acceleration in momentum during the final two fiscal years.

Revenue Growth Trends: Reported revenues increased from 1,160,083 thousand US$ in 2019 to 1,717,526 thousand US$ in 2024, representing a total expansion of approximately 48.1%. This growth was most pronounced between 2023 and 2024, where the annual increase reached its highest level for the observed period.
Analysis of Revenue Adjustments: Adjusted revenues generally align with reported revenues, though the variance between the two fluctuates. In the majority of the analyzed years, adjusted revenues remained higher than reported figures. A notable exception occurred in 2021, where reported revenues exceeded adjusted revenues, indicating a negative adjustment. Following this, the positive variance returned and expanded, reaching 16,974 thousand US$ by 2024.
Comparative Growth Momentum: Both metrics experienced a deceleration in growth during the 2021 fiscal year before entering a phase of renewed acceleration. The growth rate of reported revenues shifted from approximately 4.6% in 2022 to 9.9% in 2023, and further climbed to 13.5% in 2024, signaling an strengthening revenue trend.

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Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30).

Fair Isaac Corp., adjusted net income

US$ in thousands

12 months ended:	Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
As Reported
Net income	512,811)	429,375)	373,541)	392,084)	236,411)	192,124)
Adjustments
Add: Deferred income tax expense (benefit)¹	(27,330)	(47,378)	7,816)	(5,955)	(8,639)	7,701)
Add: Increase (decrease) in allowance for doubtful accounts	1,476)	760)	64)	(918)	2,504)	(871)
Add: Increase (decrease) in deferred revenue	16,974)	16,675)	15,797)	(11,378)	5,821)	8,202)
Add: Increase (decrease) in restructuring accruals	—)	—)	(7,856)	(335)	6,813)	(3,850)
Add: Other comprehensive income (loss)	10,516)	22,557)	(48,848)	7,141)	7,090)	(13,664)
After Adjustment
Adjusted net income	514,447)	421,989)	340,514)	380,639)	250,000)	189,642)

¹ Deferred income tax expense (benefit). See details »

A sustained upward trajectory in both net income and adjusted net income is observed over the six-year period ending September 30, 2024. Reported net income grew from 192,124 thousand USD in 2019 to 512,811 thousand USD in 2024, indicating a significant expansion in overall profitability.

Reported Net Income Trends: Consistent growth is evident from 2019 through 2021, followed by a marginal contraction in 2022, where income decreased to 373,541 thousand USD. Recovery occurred in 2023 and 2024, with the latter year marking the period's highest reported earnings.
Adjusted Net Income Performance: Adjusted net income followed a similar growth pattern, rising from 189,642 thousand USD in 2019 to 514,447 thousand USD by 2024. A more pronounced decline was noted in 2022, with adjusted figures falling to 340,514 thousand USD, though subsequent years showed strong rebounds.
Analysis of Adjustments and Variance: The variance between reported and adjusted net income remained relatively narrow for most of the period. The most significant divergence occurred in 2022, where reported net income exceeded adjusted net income by 33,027 thousand USD. By 2024, the metrics converged closely, with adjusted net income slightly exceeding reported figures by 1,636 thousand USD, suggesting a reduction in the impact of the items requiring adjustment.

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