Name: Fair Isaac Corp. (NYSE:FICO) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Fair Isaac Corp., consolidated cash flow statement

US$ in thousands

12 months ended:	Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Net income	512,811)	429,375)	373,541)	392,084)	236,411)	192,124)
Depreciation and amortization	13,827)	14,638)	20,465)	25,592)	30,367)	31,612)
Share-based compensation	149,439)	123,847)	115,355)	112,457)	93,681)	82,973)
Deferred income taxes	(27,330)	(47,378)	7,816)	(5,955)	(8,639)	7,701)
Net (gain) loss on marketable securities	(9,834)	(2,908)	9,269)	(4,569)	(2,071)	761)
Non-cash operating lease costs	12,423)	14,708)	15,922)	16,102)	20,011)	—)
Impairment loss on operating lease assets	—)	—)	—)	—)	28,016)	—)
Provision of doubtful accounts	1,675)	1,475)	2,800)	652)	3,199)	518)
Gain on product line asset sale	—)	(1,941)	—)	(100,139)	—)	—)
Net loss on sales and abandonment of property and equipment	438)	547)	193)	333)	5,249)	127)
Accounts receivable	(34,144)	(70,117)	(31,557)	24,496)	(59,889)	(36,176)
Prepaid expenses and other assets	(14,034)	(11,904)	7,368)	(5,722)	(960)	(55,507)
Accounts payable	3,316)	2,236)	(2,802)	(2,354)	1,059)	1,885)
Accrued compensation and employee benefits	3,195)	4,631)	(3,637)	(13,144)	12,065)	22,380)
Other liabilities	7,216)	(7,057)	(28,830)	(20,502)	693)	1,463)
Deferred revenue	13,966)	18,763)	23,547)	4,486)	5,724)	10,489)
Changes in operating assets and liabilities	(20,485)	(63,448)	(35,911)	(12,740)	(41,308)	(55,466)
Adjustments to reconcile net income to net cash provided by operating activities	120,153)	39,540)	135,909)	31,733)	128,505)	68,226)
Net cash provided by operating activities	632,964)	468,915)	509,450)	423,817)	364,916)	260,350)
Purchases of property and equipment	(8,884)	(4,237)	(6,029)	(7,569)	(21,989)	(23,981)
Capitalized internal-use software costs	(16,667)	—)	—)	—)	—)	—)
Proceeds from sales of marketable securities	15,930)	5,032)	8,063)	7,237)	3,470)	3,480)
Purchases of marketable securities	(18,372)	(10,623)	(9,963)	(9,039)	(6,119)	(6,404)
Proceeds from product line asset sale and business divestiture, net of cash transferred	—)	(6,126)	2,258)	147,431)	—)	—)
(Purchase of) distribution from equity investment	—)	—)	—)	(210)	55)	—)
Cash paid for acquisitions, net of cash acquired	—)	—)	—)	—)	—)	(15,855)
Net cash used in investing activities	(27,993)	(15,954)	(5,671)	137,850)	(24,583)	(42,760)
Proceeds from revolving line of credit and term loans	947,000)	407,000)	1,039,000)	682,000)	263,000)	229,000)
Payments on revolving line of credit and term loans	(602,000)	(402,000)	(988,250)	(259,000)	(513,000)	(141,000)
Proceeds from issuance of senior notes	—)	—)	550,000)	—)	350,000)	—)
Payments on senior notes	—)	—)	—)	—)	(85,000)	(28,000)
Payments on debt issuance costs	(706)	—)	(8,819)	(1,488)	(6,840)	—)
Payments on finance leases	(1,333)	—)	—)	(176)	(1,716)	(945)
Proceeds from issuance of treasury stock under employee stock plans	25,006)	22,198)	16,026)	20,881)	42,258)	22,788)
Taxes paid related to net share settlement of equity awards	(139,188)	(76,673)	(50,942)	(91,609)	(102,903)	(52,996)
Repurchases of common stock	(821,702)	(405,526)	(1,104,180)	(874,179)	(235,223)	(228,894)
Net cash used in financing activities	(592,923)	(455,001)	(547,165)	(523,571)	(289,424)	(200,047)
Effect of exchange rate changes on cash	1,841)	5,616)	(18,766)	(136)	59)	(1,140)
Increase (decrease) in cash and cash equivalents	13,889)	3,576)	(62,152)	37,960)	50,968)	16,403)
Cash and cash equivalents, beginning of year	136,778)	133,202)	195,354)	157,394)	106,426)	90,023)
Cash and cash equivalents, end of year	150,667)	136,778)	133,202)	195,354)	157,394)	106,426)

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).

The operational cash flow demonstrates a consistent upward trajectory, growing from 260.35 million USD in 2019 to 632.96 million USD in 2024. This growth is underpinned by a steady increase in net income, which climbed from 192.12 million USD to 512.81 million USD over the same period. The ability to generate cash from operations consistently exceeds net income, indicating a high quality of earnings, although certain non-cash adjustments play a significant role in this reconciliation.

Operating Cash Flow Drivers: A primary contributor to the reconciliation of net income to operating cash flow is share-based compensation, which has seen a continuous increase from 82.97 million USD in 2019 to 149.43 million USD in 2024. Conversely, depreciation and amortization have trended downward, falling from 31.61 million USD in 2019 to 13.83 million USD in 2024. Changes in operating assets and liabilities have remained consistently negative throughout the period, with the most significant drag occurring in 2023 at 63.45 million USD.
Investment Activity and Capital Expenditure: Investing activities are characterized by low capital intensity. Purchases of property and equipment decreased from 23.98 million USD in 2019 to 8.88 million USD in 2024. A notable shift occurred in 2024 with the introduction of 16.67 million USD in capitalized internal-use software costs. The most significant outlier in investing activities occurred in 2021, where net cash provided by investing activities reached 137.85 million USD, primarily driven by a 147.43 million USD proceed from a product line asset sale and business divestiture.
Financing and Capital Allocation Strategy: The financing strategy is defined by aggressive shareholder returns funded through debt. Repurchases of common stock have been substantial, peaking at 1.10 billion USD in 2022 and remaining high at 821.70 million USD in 2024. To fund these buybacks and other obligations, there is a heavy reliance on the revolving line of credit and term loans, with proceeds totaling 947 million USD in 2024. Senior notes were also utilized as funding sources in 2020 and 2022.
Liquidity Position: Despite the massive outflows for share repurchases, the cash and cash equivalents balance has remained relatively stable, ending 2024 at 150.67 million USD compared to 106.43 million USD at the end of 2019. This stability is maintained by the strong growth in operating cash flows and the strategic timing of debt issuance.

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