Fair Isaac Corp. (NYSE:FICO)

The financial performance over the analyzed years shows several distinct trends across revenues, operating income, and net income.

Revenues

Revenues exhibited an overall upward trajectory from 2005 to 2024. Starting at approximately $799 million in 2005, there was a modest increase in the following years, reaching a peak of $1.72 billion in 2024. However, this growth was not entirely steady; a noticeable decline occurred during the 2008 and 2009 periods, with revenues dropping from around $823 million in 2007 to about $606 million in 2010. After this dip, revenues recovered steadily and consistently, accelerating in the later years, especially from 2018 onward.

Operating Income

Operating income showed a more volatile pattern compared to revenues. From $193 million in 2005, it decreased significantly over the next few years to reach a low near $113 million in 2010. Subsequently, it displayed a recovery trend, surging to approximately $168 million by 2012. Post-2014, operating income generally increased, and from 2018 onwards, a strong upward momentum emerged, culminating in a substantial rise to $734 million by 2024. This growth in operating income outpaced the relative revenue growth, indicating improving operational efficiency or margin expansion.

Net Income

Net income followed a trajectory somewhat similar to operating income but with more pronounced fluctuations. It started at $135 million in 2005, falling to roughly $65 million in 2009 and 2010, marking the lowest point in the observed period. After the low point, net income showed gradual improvement until 2017, followed by a marked acceleration from 2018 onward, reaching over $512 million by 2024. Despite some fluctuations, net income growth in the latter years aligns with the gains in operating income, suggesting effective expense and tax management contributing to profitability.

In summary, the company experienced a challenging period around 2008-2010 across revenues and profitability metrics, consistent with broader economic conditions of that period. Post-2010, all major financial indicators showed recovery and growth, with particularly strong performance in operating and net incomes after 2017, implying improved operational effectiveness and profitability leverage on revenue growth. The sustained increases into 2024 suggest a solid financial position with expanding margins and enhanced profitability.

The analysis of the financial data reveals several trends in key asset metrics over the evaluated periods.

Current Assets

Current assets demonstrate significant fluctuations across the years. Initially, the value showed a growth trend from approximately 412,680 thousand USD in 2005 to a peak around 442,558 thousand USD in 2009, followed by a sharp decline through 2012 reaching a low near 249,188 thousand USD. After this period of decrease, a sustained recovery phase is observed from 2013 onwards, culminating in an increase to 617,413 thousand USD by 2024. The pronounced ups and downs suggest variability in the company's short-term asset management or liquidity position, with a strong improvement in the most recent years.

Total Assets

Total assets present a relatively stable but slightly fluctuating pattern. Starting at about 1,351,061 thousand USD in 2005, total assets experienced a gradual decline until 2010, reaching around 1,123,716 thousand USD. From 2011 to 2014, total assets stabilized with minor changes, followed by a marked increase from 2015 onwards. This growth culminates in a value of 1,717,884 thousand USD by 2024. The steady build in total assets post-2014 suggests expanded asset base and possible growth initiatives during the latter years.

In summary, current assets exhibited volatility with a recovery phase in recent years, whereas total assets showed a general downward trend until 2010 followed by a stable period and a subsequent increase. The data indicate consolidation and strengthening of the asset structure in the most recent periods, potentially reflecting improved operational capacity or strategic investments.

Current liabilities

The current liabilities exhibit considerable volatility over the analyzed period. Starting at $138,157 thousand in 2005, there is a sharp rise to a peak above $537,000 thousand in 2006, followed by fluctuations with lower points near $114,588 thousand in 2009 and elevated levels exceeding $490,000 thousand in 2019. After 2019, current liabilities generally decline, reaching approximately $380,285 thousand by 2024. This suggests periods of significant short-term obligations followed by partial reductions.

Total liabilities

Total liabilities display an overall increasing trend. Beginning at $545,967 thousand in 2005, the figure gradually rises with some intermittent plateaus until 2014. From 2015 onwards, a distinct acceleration is noticeable, with liabilities escalating sharply, reaching over $2,680,000 thousand by 2024. This steady and substantial growth reflects expanding financial obligations and possibly increased borrowing or accrued long-term commitments.

Total debt

Total debt follows a trajectory similar to total liabilities but with some differences in magnitude and timing. Initially stable at $400,000 thousand through 2005-2006, debt increases significantly in 2007 to over $560,000 thousand. After minor decreases between 2009 and 2012, debt again rises markedly from 2013 onwards, surging past $2,200,000 thousand by 2024. This pattern indicates increased leverage, especially in the latter half of the period.

Stockholders’ equity (deficit)

The equity position shows a declining trend throughout the period with notable fluctuations. Equity starts high at about $805,094 thousand in 2005, then decreases sharply by 2007 to $566,314 thousand, and continues a downward path with occasional minor recoveries. From 2017 onward, equity turns negative, dropping to a deficit exceeding $962,000 thousand by 2024. This transition to significant negative equity denotes financial distress or accumulated losses, reflecting weakening capital base and deteriorating net worth.

Operating Activities

The net cash provided by operating activities exhibits a general upward trend from 2005 through 2024. Starting at approximately 214 million USD in 2005, it declines gradually until 2010, reaching a low around 106 million USD. From 2011 onwards, cash flows from operations recover steadily, surpassing previous levels to reach a peak of around 633 million USD by 2024. Notable increases are visible particularly between 2015 and 2017, as well as from 2019 forward, indicating strengthening operational cash generation capacity.

Investing Activities

Cash flows from investing activities are more volatile and fluctuate between negative and positive figures, reflecting variability in investment decisions or asset acquisitions and disposals. The data shows significant outflows, especially in 2010 (-82 million USD) and then again in multiple years such as 2009 and the early 2010s. Positive cash inflows appear sporadically, for example in 2007 (37 million USD) and 2017 (138 million USD), suggesting intermittent divestitures or reduced capital expenditures. Overall, the investing activities do not display a clear directional trend but rather periodic swings between investing outflows and inflows.

Financing Activities

The net cash used in financing activities predominantly represents cash outflows throughout the observed period. The amounts fluctuate but mostly reflect substantial repayments, dividend payments, stock repurchases, or other uses of financing cash. The highest outflows occur in the second half of the period, notably between 2019 and 2024, with values exceeding 450 million USD annually and peaking around 593 million USD in 2024. Early years (2005-2008) also indicate large outflows, but there are some periods with relatively smaller absolute values, signifying changes in financing strategy or capital structure adjustments.

Summary

The company's cash flow pattern over the years reveals strengthening operational performance coupled with significant and variable investment activities. Financing cash flows predominantly show the use of cash, potentially reflecting strategic capital management such as debt reductions or shareholder returns. The overall trend indicates a focus on generating strong operating cash flow while managing investing and financing activities to support business growth and financial stability.

Earnings per Share Trends

Both basic and diluted earnings per share show an overall upward trend from 2005 through 2024. Basic earnings per share increased from 2.02 USD in 2005 to 20.78 USD in 2024, while diluted earnings per share rose from 1.86 USD to 20.45 USD over the same period. There is some volatility in the earlier years, with a dip around 2009 where basic EPS reached a low of 1.34 USD and diluted EPS 1.33 USD. Following this trough, a consistent and strong recovery and growth phase can be observed, particularly from 2014 onward, marked by more prominent increases in earnings.

Specific Period Observations

From 2005 to 2010, earnings per share experienced moderate fluctuations, showing a downward trend leading into 2009 but regained momentum by 2010. Between 2010 and 2014, there was steady growth in EPS, increasing basic EPS from 1.44 USD to 2.8 USD and diluted EPS from 1.42 USD to 2.72 USD. The period from 2014 to 2024 marks a phase of accelerated growth in earnings per share, with basic EPS nearly tripling from 2.75 USD in 2015 to 20.78 USD in 2024, and diluted EPS following a similar trajectory. This sharp rise reflects improved profitability and possibly operational efficiency or market positioning during this later period.

Dividend Per Share Trends

Dividend per share remained stable at 0.08 USD from 2005 through 2016, demonstrating a consistent return policy during this period. However, a reduction to 0.04 USD was recorded in 2017, after which no dividend payment data is available from 2018 onward. This decline and subsequent absence of dividend data could indicate a shift in dividend policy or reinvestment strategy in recent years, possibly aligning with the company’s focus on growth and strengthening earnings as noted in the EPS trends.

Overall Financial Insights

The company has shown resilience and strong growth capability as reflected in the sustained increase of earnings per share over nearly two decades. The initial variability up to 2010 suggests external factors or internal challenges affected earnings, but the subsequent consistent upwards trend points to effective management and business strategy adjustments. The cutback and eventual absence of dividends toward the end of the observed timeframe may reflect a strategic emphasis on business expansion or capital allocation toward growth initiatives rather than shareholder distributions.