Fair Isaac Corp. (NYSE:FICO)

The financial ratios exhibit varying trends over the observed quarters, reflecting changes in asset utilization and equity efficiency.

Net Fixed Asset Turnover

This ratio demonstrates a consistent upward trend from the end of 2019 through the third quarter of 2023, increasing from 21.3 to a peak of 149.02 in September 2023. This suggests a significant improvement in the company’s ability to generate sales from its net fixed assets during this period. However, starting from the end of 2023, there is a marked decline, falling to 31.96 by the second quarter of 2025. The substantial rise followed by a sharp decrease may indicate changes in asset base, sales fluctuations, or shifts in asset management strategies.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

This adjusted ratio also follows an upward trend initially, moving from 8.27 at the end of 2019 to a high of 52.89 by September 2023. Similar to the standard net fixed asset turnover, a notable decline is observed afterwards, decreasing to 21.84 by mid-2025. The pattern closely parallels the unadjusted ratio but at a consistently lower level, reflecting the inclusion of operating lease assets which expands the asset base considered in the calculation.

Total Asset Turnover

The total asset turnover exhibits a generally stable but slowly increasing trend throughout the entire period. The ratio starts at 0.77 in late 2019 and rises gradually to surpass 1.0 in multiple quarters by 2024 and 2025, indicating enhanced overall efficiency in utilizing total assets to generate revenues. There are minor fluctuations but no extreme variations, signifying a stable asset management performance at the aggregate level.

Equity Turnover

Data for equity turnover is limited, showing values primarily during 2019 to early 2021. During this interval, the ratio fluctuates between approximately 3.91 and 10.86, peaking in mid-2021. The absence of data in the later periods prevents identification of long-term trends, but the initial variations suggest changes in sales relative to shareholder equity, potentially driven by fluctuating sales volumes or equity base adjustments.

In summary, the company experienced a notable increase in fixed asset turnover ratios until late 2023, implying improved asset efficiency, followed by a sharp reversal. Total asset turnover indicates steady improvement over the entire period, while equity turnover data is inconclusive for recent quarters. These observations point to evolving asset utilization dynamics possibly influenced by operational adjustments, investment activity, or market conditions.

Revenue Trends

Revenues demonstrate a generally upward trajectory over the observed periods, rising from approximately 298.5 million to over 536 million US dollars. Despite some fluctuations, the overall pattern indicates consistent growth. Notably, revenues experienced a steep increase starting around early 2023, continuing through to mid-2025, reflecting a period of accelerated expansion.

Property and Equipment, Net

The net value of property and equipment shows a significant downward trend from the end of 2019 through to late 2023, declining from about 56.2 million to roughly 10.4 million US dollars. This suggests substantial asset disposals or depreciation outpacing capital expenditure during this time. However, from early 2024 onwards, there is a marked reversal with a strong increase in net property and equipment values, reaching over 60.3 million by mid-2025, indicating renewed asset investment or capital additions.

Net Fixed Asset Turnover Ratio

This ratio, measuring revenue generated per unit of net fixed assets, initially rises sharply from 21.3 to a peak exceeding 149 in mid-2023, implying enhanced efficiency in utilizing fixed assets to generate sales. This surge corresponds to the period when property and equipment net values were declining, indicating that revenues were increasing while fixed assets were being reduced, thus boosting turnover. After mid-2023, the ratio declines steadily to around 32 by mid-2025, coinciding with the increase in property and equipment net values and continued revenue growth, suggesting that asset addition outpaced revenue growth and thus asset utilization efficiency normalized to lower levels.

Overall Analysis

The data reflects an initial phase where revenue growth is accompanied by decreasing asset bases, leading to a sharp increase in asset turnover efficiency. This phase likely involved rationalization of assets or improved operational leverage. Subsequently, a strategic shift towards reinvestment in fixed assets is observed from early 2024, likely supporting sustained revenue expansion, albeit with a correspondingly lower turnover ratio. The interplay of increasing revenues and fluctuating asset bases highlights a dynamic approach to asset management and revenue generation over the reported quarters.

Revenue Trends

Revenues exhibited a generally increasing pattern over the observed periods from December 2019 through June 2025. Starting at approximately 298.5 million USD in December 2019, revenues experienced fluctuations but maintained an upward trajectory, reaching a peak of 536.4 million USD by June 2025. Notable increases occurred between the end of 2023 and the first half of 2025. This steady growth indicates expanding business operations or successful market performance.

Property and Equipment, Net

The net value of property and equipment, including operating lease right-of-use assets, showed a declining trend initially, descending from approximately 144.6 million USD in December 2019 to a low point of roughly 29.3 million USD in September 2023. After this trough, the asset base began to recover, increasing steadily to reach about 88.3 million USD by June 2025. This recovery might reflect new investments or acquisitions in fixed assets after a period of asset disposals or depreciation.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, which measures revenue generated per unit of fixed assets, demonstrated significant growth initially, rising from 8.27 in December 2019 to a peak of 52.89 in September 2023. This indicates improving efficiency in the utilization of fixed assets to generate revenue. However, subsequent periods saw a decline in the ratio, dropping to 21.84 by June 2025. The decrease in turnover ratio coincides with the increase in net fixed assets, suggesting that asset growth outpaced revenue growth during this latter period, causing a reduction in efficiency metrics. The initial rise followed by a decline highlights periods of shifting asset management and investment strategies.

Overall Insights

The company displayed robust revenue growth throughout the period, paired with an initial decline and subsequent rise in fixed assets. The net fixed asset turnover ratio trends suggest that earlier periods involved optimizing existing assets for higher revenue generation, while later periods reflected increased capital expenditure or asset accumulation leading to a dilution in turnover efficiency. This pattern signals a strategic shift from asset-light operations toward reinvestment in property and equipment.

The analysis of the quarterly financial data reveals evolving trends in revenues, total assets, and total asset turnover ratios over the examined periods.

Revenues

Revenues displayed a generally positive growth trajectory from the end of 2019 through the first quarter of 2025. Initial quarters show fluctuations with a noticeable increase in revenue in the third quarter of 2020, followed by a slight decline towards the end of 2020. Starting in early 2021, revenues resumed an upward trend with some variability. The most recent periods, particularly from early 2023 onward, exhibit a significant rise, peaking near the end of 2024 and sustaining elevated levels into the first half of 2025. This suggests improved sales performance or increased market demand during this timeframe.

Total Assets

Total assets remained relatively stable with minor fluctuations between late 2019 and late 2022, experiencing occasional small declines and recoveries. From early 2023, there is a noticeable increase in total assets, with a gradual upward trend continuing through the first half of 2025. While asset growth is moderate compared to revenue increases, the rising asset base indicates ongoing investment or asset accumulation supporting business operations.

Total Asset Turnover

This ratio shows a steady improvement over the entire period analyzed. Starting from a ratio below 0.8 at the end of 2019, there is a gradual increase, reaching and surpassing 1.0 in late 2024 and maintaining around that level thereafter. This indicates enhanced efficiency in utilizing total assets to generate revenues, reflecting operational improvements or better asset management practices within the company.

Overall, the data suggest that the company has experienced sustained revenue growth alongside a parallel increase in asset base, with improving efficiency in asset use to drive sales. The rising total asset turnover ratio highlights effective management of resources relative to sales growth, which could signal operational strengths or favorable market conditions during these periods.

Revenues

The revenue figures demonstrate an overall upward trajectory over the presented periods. Starting from approximately $298.5 million at the end of 2019, revenues generally increase with some fluctuations. Notably, there is a significant rise from September 2023 ($382.1 million) to the last reported quarter, December 2025 ($536.4 million). This upward trend suggests growth momentum, with periodic variability that may reflect seasonal effects or market dynamics. The data indicates consistent expansion in the company's sales volume or pricing power over time.

Stockholders’ equity (deficit)

The stockholders’ equity shows a markedly negative and worsening trend across the time frame. Initially, equity is positive and sizable ($240.9 million at the end of 2019), but it undergoes a persistent decline, crosses into negative territory starting in September 2021 (-$110.9 million), and progressively deepens its deficit. By December 2025, the deficit reaches approximately -$1.4 billion, highlighting significant erosion of net assets or accumulated losses. This deterioration could indicate continued financial challenges, such as sustained losses, large write-downs, or increasing liabilities exceeding assets. The persistence and acceleration of the negative equity are areas of concern and warrant further investigation into the underlying causes.

Equity turnover

This ratio is reported only up to June 2021, with values ranging from about 3.9 to 10.9. The equity turnover ratio initially fluctuates but shows a peak at 10.86 in June 2021, implying a high level of revenue generated per unit of shareholders’ equity. However, the absence of data beyond mid-2021 limits the ability to assess recent efficiency or capital usage trends. Given the subsequent sharp decline and eventual negative equity, the relevance of this ratio may have diminished, or the ratio may not be computable in contexts of negative equity.