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.

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).

Net Income and Profitability: Net income demonstrated a generally strong upward trend over the six-year period, increasing from $192.1 million in 2019 to $512.8 million in 2024. This indicates robust profitability with a notable acceleration after 2020, peaking in 2024.
Depreciation and Amortization: Depreciation and amortization expenses steadily decreased from $31.6 million in 2019 to $13.8 million in 2024, reflecting either reduced capital asset base or changes in asset composition or accounting policies.
Share-based Compensation: Share-based compensation costs rose consistently from $83.0 million in 2019 to $149.4 million in 2024, indicating increased equity incentives and possibly reflecting company efforts to attract or retain talent.
Tax and Non-cash Items: Deferred income taxes fluctuated with an overall negative movement after 2020, showing volatility in tax assets or liabilities. Net gains or losses on marketable securities also exhibited volatility, with shifting positive and negative impacts across years.
Operating Lease and Impairment Costs: Non-cash operating lease costs were introduced in 2020 and showed a slight decreasing trend thereafter. A significant impairment loss on operating lease assets appeared in 2020 but was not repeated in subsequent years.
Provision for Doubtful Accounts and Other Gains/Losses: The provision for doubtful accounts was volatile but generally modest relative to net income. A large gain on product line asset sale occurred in 2021, with smaller gains or losses in other years, influencing non-operating income.
Working Capital Components: Accounts receivable changes were inconsistent, with significant negative swings in 2019, 2020, 2022, and 2023, suggesting variability in collection or sales patterns. Prepaid expenses and other assets and accounts payable showed fluctuations but had less pronounced trends. Accrued compensation and employee benefits reversed from positive to negative and back, reflecting possible timing differences or changes in compensation policies. Other liabilities saw a substantial drop in 2021 and 2022 but partially recovered by 2024.
Deferred Revenue and Operating Cash Flow: Deferred revenue decreased between 2019 and 2021, then sharply increased in 2022 before declining again. Changes in operating assets and liabilities mostly reduced cash flow except in 2024, which saw a smaller negative impact. Adjustments to reconcile net income to cash from operations increased significantly in 2020 and 2024. Net cash provided by operating activities rose consistently, reaching $633 million in 2024, reflecting strong operational cash generation.
Investing Activities: Purchases of property and equipment declined markedly over the period but saw a modest uptick in 2024. Capitalized internal-use software costs appeared only in 2024 at $16.7 million, indicating new investments. Sales and purchases of marketable securities fluctuated, with purchases consistently exceeding sales, reflecting net investment in securities. Proceeds from asset sales were significant in 2021 but negligible or negative in other years. Net cash from investing activities was positive only in 2021 due to asset sales, otherwise negative, indicating ongoing investment expenditures.
Financing Activities: Financing cash flows were predominantly negative. Proceeds from credit facilities increased substantially over the years, with a peak in 2022, paralleled by large repayments that also peaked the same year. Issuance of senior notes took place in 2020 and 2022, augmenting financing inflows. Outflows included consistent payments on senior notes and debt issuance costs. Treasury stock issuance under employee stock plans increased, supporting share-based compensation liabilities. Taxes paid on equity awards showed a rising trend, indicating growth in equity compensation. Stock repurchases were substantial and peaked in 2021 and again in 2024, reflecting shareholder return initiatives. Overall, net cash used in financing activities remained significantly negative throughout, reflecting debt repayments and share repurchases.
Cash Position and Exchange Effects: Effects of exchange rate changes on cash were minor relative to other cash flows, fluctuating between small positive and negative amounts. The year-end cash and cash equivalents balance grew from $106.4 million in 2019 to $150.7 million in 2024, with some variability. The largest increase in cash on hand occurred in 2021 and 2024, supported by operating cash flows and financing activities.

Download chart

Fair Isaac Corp. (NYSE:FICO)

Cash Flow Statement