Fair Isaac Corporation (NYSE:FICO) is one of the stocks to invest in before they split next. On September 8, UBS raised the firm’s price target on FICO to $1,590 from $1,540, while keeping a Neutral rating on the shares. In Q3 2025, the company a strong performance driven by its Scores segment. The total revenue for the quarter was $536 million, which was a 20% increase year-over-year.
The company’s performance was largely fueled by its Scores segment, which generated $324 million in revenue and marked a 34% increase year-over-year. The growth was attributed to both B2B and B2C scores, with a 42% increase in B2B revenue due to a higher unit price and increased mortgage origination volume. The Software segment, however, saw more modest growth, with revenues reaching $212 million, a 3% increase.
The company’s platform ARR grew to $254 million, representing 34% of total ARR, and its platform net retention rate was 115%. However, Fair Isaac Corporation anticipates a sequential decline in revenues for Q4 due to lower point-in-time revenues from insurance scores and software licenses. The mortgage market also continues to be affected by elevated interest rates, impacting loan originations.
Fair Isaac Corporation (NYSE:FICO) develops software with analytics and digital decisioning technologies for businesses to automate, enhance, and connect decisions. The company operates in two segments: Scores and Software.
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Disclosure: None. This article is originally published at Insider Monkey.