10-K 0000814547-26-000042 (2026-11-06) vs 10-K 0000814547-25-000030 (2025-11-07)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 10,992 |
15.2% |
| MD&A | Item 7 | 7,598 |
18.8% |
| Legal Proceedings | Item 3, via Note 18 – Contingencies | 337 |
not compared |
| Accounting Policies | Item 8, Note 1 – Nature of Business and Summary of Significant Accounting Policies | 2,850 |
4.1% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Risk Factors 309 words changed in this paragraph; it is 40% similar to last year's version.
A significant portion of our revenues in our Scores segment is attributable to the U.S. mortgage market, which includes, market. Historically, for mortgages eligible for purchase by The Federal National Mortgage Association (“Fannie Mae”) and The Federal Home Loan Mortgage Corporation (“Freddie Mac”), a requirement by those enterprises (“Enterprises”) required that U.S. lenders provide FICO® Scores for each mortgage delivered to them. However, their the continued use of the FICO Score for those mortgages is subject to ongoing validation and approval by those enterprises the Enterprises and the Federal Housing Finance Agency (“FHFA”). If other (“FHFA”), and is subject to competing credit score models are approved for use with mortgages delivered to Fannie Mae and Freddie Mac, or the FICO Score is not approved for continued use with those mortgages, it could have a material adverse effect on our revenues, results of operations and stock price. Other changes implemented by FHFA, Fannie Mae or Freddie Mac could also affect the demand for FICO Scores and thus could have similar adverse effects on our business, including, for models. For example, the change announced following an announcement by the FHFA Director in July 2025 permitting mortgage originators that the Enterprises would be adopting a so-called “lender choice” regime allowing lenders to choose the between a FICO Score or VantageScore, a competing credit score they submit with mortgages delivered model, the FHFA announced in April 2026 that the Enterprises would accept VantageScore from approved lenders and further announced in September 2026 that the Enterprises would accept VantageScore from all lenders. Also, in April 2026, the U.S. Department of Housing and Urban Development (“HUD”) announced that, beginning January 1, 2027, the Federal Housing Administration (“FHA”) would, in addition to Fannie Mae the Classic FICO® Score, permit the use of VantageScore and Freddie Mac or a potential future change permitting mortgage originators to underwrite loans using credit scores from fewer than three national consumer reporting agencies. The ability the latest version of our FICO Score, FICO® Score 10T, for FHA-insured mortgages. In the months following these announcements by the FHFA and HUD, our stock price has declined significantly, and it could continue to compete effectively decline due to these or other announcements, or due to any increased use, or perceived increased use, of VantageScore over FICO Scores in the U.S. mortgage market may be constrained by the pricing and other business practices of the consumer reporting agencies, which could have a material adverse effect on our revenues, results of operations and stock price. market.
Source: Item 1A, 10-K 0000814547-26-000042 vs Item 1A, 10-K 0000814547-25-000030
MD&A 278 words changed in this paragraph; it is 66% similar to last year's version.
On May 13, 2025, we amended our We have a credit agreement with a syndicate of banks, increasing our borrowing capacity under the banks that provides for a $1.0 billion unsecured revolving line of credit from $600 million to $1.0 billion and extending its maturity to that matures on May 13, 2030. Also on May 13, 2025, On June 5, 2026, we repaid in full and terminated amended our credit agreement to provide for the $300 million issuance of a $1.5 billion unsecured term loan (the “$300 Million Term Loan”) that was borrowed in full on June 5, 2026 and the $450 million unsecured matures on May 15, 2028. The credit agreement also provides for an option for us to request additional incremental term loan (the “$450 Million Term Loan”) outstanding under our credit agreement, utilizing proceeds from the issuance of the 2025 Senior Notes (as defined below). Borrowings under loans and/or incremental increases to the revolving line of credit from time to time, in each case subject to the terms and conditions of the credit agreement. Borrowings under the credit agreement can be used for working capital and general corporate purposes and may also be used for the refinancing of existing debt, acquisitions, and the repurchase of our common stock. Principal on the term loan is to be repaid in consecutive quarterly installments on the last business day of March, June, September, and December equal to (i) $75.0 million from September 30, 2026 through and including June 30, 2027 and (ii) $112.5 million thereafter. Interest rates on amounts borrowed under the revolving line of credit and term loan are based on (i) an adjusted base rate, which is the greatest of (a) the prime rate, (b) the Federal Funds rate plus 0.5%, and (c) the Daily Simple Secured Overnight Financing Rate (“SOFR”) plus 1%, plus, in each case, an applicable margin, (ii) the Daily Simple SOFR plus an applicable margin (or, if such rate is no longer available, a successor benchmark rate determined in accordance with the terms of the credit agreement), or (iii) term SOFR (without a credit spread adjustment) plus an applicable margin (or, if such rate is no longer available, a successor benchmark rate determined in accordance with the terms of the credit agreement). The applicable margin for base rate borrowings and for SOFR borrowings for the loans under the credit agreement is determined based on our consolidated leverage ratio. The applicable margin for loans under the revolving line of credit for base rate borrowings ranges from 0% to 0.75% 1% per annum and for SOFR borrowings ranges from 1% to 1.75% 2% per annum. The applicable margin for the term loan for base rate borrowings ranges from 0.5% to 1.25% per annum and for SOFR borrowings ranges from 1.5% to 2.25% per annum. In addition, we must pay certain credit facility agreement fees. The credit agreement contains certain restrictive covenants including a maximum consolidated leverage ratio of 4.5 to 1.0 through December 30, 2026, 4.0 to 1.0 during December 31, 2026 through December 30, 2027, and 3.5 to 1.0, 1.0 during December 31, 2027 and thereafter, subject to a step up to 4.0 to 1.0 following certain permitted acquisitions and subject to certain conditions, and contains other covenants typical of an unsecured credit facility.
Source: Item 7, 10-K 0000814547-26-000042 vs Item 7, 10-K 0000814547-25-000030
Accounting Policies 81 words changed in this paragraph; it is 51% similar to last year's version.
In December 2023, the FASB Financial Accounting Standards Board (“FASB”) issued ASU Accounting Standards Update (“ASU”) No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as disaggregated information on income tax paid. The standard is effective for We adopted ASU 2023-09 in fiscal years beginning after December 15, 2024, which means that it will be effective for our fiscal years beginning October 1, 2025. Early 2026 on a prospective basis and the adoption is permitted. We are currently evaluating the impact that the updated standard will have on our resulted in expanded disclosures within our consolidated financial statements. as presented in Note 12.
Source: Item 8, Note 1 – Nature of Business and Summary of Significant Accounting Policies, 10-K 0000814547-26-000042 vs Item 8, Note 1 – Nature of Business and Summary of Significant Accounting Policies, 10-K 0000814547-25-000030
Every change, by type
Sentences and paragraphs of FICO's Risk Factors and MD&A, 10-K 2026-11-06 against 10-K 2025-11-07.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
Our ability to increase our revenue depends, in part, on our ability to successfully develop and introduce new products and services, enhance and improve our existing offerings, and expand into new markets. If we are unable to successfully develop and commercialize new, enhanced, or improved products and services, or if the marketplace does not adopt or accept these offerings, our business, financial condition, and results of operations could be adversely affected. In addition, any defects, failures, disruptions, or delays associated with the development, launch, or performance of new, enhanced, or improved products and services could harm our reputation, customer relationships, and business.
Read it in 10-K 2026-11-06 at sec.gov ↗
AddedRisk Factors
•developers and providers of large language models, machine learning, and AI systems;
Read it in 10-K 2026-11-06 at sec.gov ↗
AddedRisk Factors
We expect competition from both established and emerging companies to continue to increase. This competition may include our customers developing their own scoring models or other products, including through the use of AI-based offerings, which could eliminate or reduce their purchases of our products and services. For example, our Scores segment faces competition from other credit score models, including VantageScore, which has experienced increased regulatory acceptance in the U.S. mortgage market. VantageScore is a product of a joint venture of TransUnion, Equifax, and Experian, the three major consumer reporting agencies from which we have historically derived a substantial portion of our revenues. We also face competition from other technologies, particularly with respect to AI-based offerings. For example, certain of our fraud solutions products compete against other methods of preventing payment card fraud, and our analytics and decisioning products increasingly compete against products from large language model developers.
Read it in 10-K 2026-11-06 at sec.gov ↗
AddedRisk Factors
•the availability, acceptance and increased use of competing credit score models;
Read it in 10-K 2026-11-06 at sec.gov ↗
AddedRisk Factors
•failure to establish additional or expanded distribution channels, including through third-party partners and distributors, for our products and services; and
Read it in 10-K 2026-11-06 at sec.gov ↗
AddedRisk Factors
Our business relies on third-party technologies and service providers throughout the product lifecycle, from development to deployment to customers. In addition, we rely on distributors, resellers, or partners to market and distribute our products and we expect to continue expanding these relationships. We have recently expanded certain third-party relationships, including those related to product distribution activities and strategic product collaborations, and we intend to continue to invest in additional marketing, distribution, and other relationships, which may not be successful or may lead to operational, transitional, or other disruptions.
Read it in 10-K 2026-11-06 at sec.gov ↗
AddedRisk Factors
In addition, due to our increasing reliance on third-party technology associated with our product development lifecycle, the failure of these relationships to have the results we expect or desire could have a material adverse effect on our business, operating results, and financial condition. Our strategic partnerships and other collaborations may not be successful, negatively impacting our sales and margins.
Read it in 10-K 2026-11-06 at sec.gov ↗
AddedRisk Factors
•Laws and regulations relating to the development, provision, and use of AI and automated decision-making technologies (e.g., the EU AI Act and U.S. state AI laws);
Read it in 10-K 2026-11-06 at sec.gov ↗
AddedRisk Factors
•Laws and regulations that apply to technology services and cloud-hosted services, and related digital and cyber resiliency, operational continuity, and data processing requirements, including contract termination rights (e.g., the EU Digital Operational Resilience Act, the EU Cyber Resilience Act, and the EU Data Act);
Read it in 10-K 2026-11-06 at sec.gov ↗
AddedRisk Factors
•regulatory and market developments potentially affecting the use of FICO Scores relative to competing credit score models, including VantageScore;
Read it in 10-K 2026-11-06 at sec.gov ↗
RemovedRisk Factors
Our ability to increase our revenues depends to some extent upon introducing new products and services, upon introducing enhancements and improvements to existing products and services and upon entering new markets for products and services. If we are unable to successfully develop, or if the marketplace does not accept, new, enhanced or improved products and services, or if we experience defects, failures or delays associated with the introduction of new, enhanced or improved products or services, our business could suffer serious harm.
Read it in 10-K 2025-11-07 at sec.gov ↗
RemovedRisk Factors
We expect to experience additional competition from other established and emerging companies. This could include customers of ours that develop their own scoring models or other products, and as a result no longer purchase or reduce their purchases from us. We also expect to experience competition from other technologies. For example, certain of our fraud solutions products compete against other methods of preventing payment card fraud, such as cardholder verification and authentication solutions; mobile device payments and associated biometric measures on devices including fingerprint and face matching; and other card authorization and user verification techniques.
Read it in 10-K 2025-11-07 at sec.gov ↗
RewordedRisk Factors
If The ability to use a competing credit score model in the U.S. mortgage market, including by Fannie Mae and Freddie Mac, has, and could continue to have, a material adverse effect on our stock price, and if use of the FICO® Score by Fannie Mae and Freddie Mac in the U.S. mortgage market were to cease or decline, it could have a material adverse effect on our revenues, results of operations operations, and stock price.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedRisk Factors
Cybersecurity breaches experienced by affecting our vendors, by our distributors, by our customers, by companies that we acquire, acquired companies, or by us may trigger governmental notice requirements and public disclosures, which may lead to widespread resulting in negative publicity, regulatory investigations or enforcement actions, statutory damages, and lawsuits filed litigation by individuals impacted by cybersecurity breaches under privacy or other parties, and cybersecurity statutes that create rights of action. other liabilities.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedRisk Factors
The ability of our FICO Score to compete effectively in the U.S. mortgage market may also be constrained by delays by any of the pricing foregoing entities in adopting the latest versions of our FICO Score or in supporting our newer distribution models, including the FICO® Mortgage Direct License Program we announced in October 2025, or by the pricing, distribution, and other business practices of the consumer reporting agencies, all of which could have a material adverse effect on our revenues, results of operations operations, and stock price.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedRisk Factors
We have experienced past difficulty in recruiting and retaining qualified personnel, especially in these intensely competitive and technical skill areas, and we These challenges may experience future difficulty in recruiting and retaining such personnel, be heightened at a time times when we may need additional staff to support expanded research and development efforts, new customers customers, and/or increased customer needs.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedRisk Factors
Because In addition, a successful breach of our computer systems, software, networks networks, or other technology asset assets could occur and persist remain undetected for an extended period of time before being detected, we may not be able time, delaying our ability to immediately contain the incident, mitigate its effects, and address the consequences of a cybersecurity incident. consequences.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedRisk Factors
We have experienced difficulty in the past difficulty in recruiting and retaining qualified personnel, especially particularly in these intensely competitive and technical skill areas, and we may experience future difficulty similar challenges in recruiting and retaining such personnel, at a time when we may need additional staff to support expanded research and development efforts, new customers and/or increased customer needs. the future.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedRisk Factors
The loss of of, or a significant change in a in, our relationship with one of the three these consumer reporting agencies agencies, including with respect to their distribution of our products or with respect to our myFICO® offerings, the loss of or a significant change in a relationship with a major customer, the loss of customer or a significant change in a relationship with a significant third-party distributor (including payment card processors), or the loss of or delay of significant revenues from these sources, could have a material adverse effect on our revenues and results of operations.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedRisk Factors
An operational failure or outage in any of these systems, or damage to or destruction of these systems, which causes disruptions in that disrupts our services, services could result in loss of customers, damage to customer relationships, reduced revenues and profits, refunds of customer charges charges, and damage to our brand and reputation and may require us to incur substantial additional expense to repair or replace damaged equipment and recover data loss caused by the interruption. reputation.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedRisk Factors
If new laws, regulations regulations, or other governmental action limit the fees that can be charged for credit scores by us, consumer reporting agencies, or end users of our FICO® Scores, or that place impose other restrictions on the sale or distribution of credit scores, our ability in the future to increase pricing for FICO Scores used in mortgage originations may be impacted and thus the revenues and profitability of the FICO Score may be adversely affected and the growth of our Scores business may be constrained. limited.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedRisk Factors
If Further, if other credit score models are approved and adopted for use with mortgages delivered to Fannie Mae and Freddie Mac, the Enterprises, or for use with mortgages subject to other government programs, or if the FICO Score is not approved for continued use with those mortgages, it could have a material adverse effect on our revenues, results of operations and stock price. revenues.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedRisk Factors
In addition, the volume of our Scores sales depends heavily on macroeconomic conditions, including, for example, the volume of transactions conditions in the U.S. mortgage and credit card markets, markets in which account for a significant portion of the revenues in our Scores segment. customers operate.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedRisk Factors
Our competitors may be able to sell offer existing or new products competitive to ours that compete with our products at lower prices individually prices, either on a standalone basis or as part of integrated suites of several related products. product suites.
Read it in 10-K 2026-11-06 at sec.gov ↗
Quiet changesRisk Factors
We also believe that much of the future growth of our business and the success of our business strategy may depend depends on our ability to continue to expand into newer markets for our products and services.
Read it in 10-K 2026-11-06 at sec.gov ↗
Quiet changesRisk Factors
If we are unable to respond as quickly or effectively to changes in customer requirements as our competition, our ability to expand our business and sell our products will could be negatively adversely affected.
Read it in 10-K 2026-11-06 at sec.gov ↗
Quiet changesRisk Factors
We derive a substantial portion of our revenues from a small number of products and services, and if the market does not continue to accept these products and services, our revenues will may decline.
Read it in 10-K 2026-11-06 at sec.gov ↗
Quiet changesRisk Factors
Our revenues will may decline if the market does not continue to accept these products and services.
Read it in 10-K 2026-11-06 at sec.gov ↗
Quiet changesRisk Factors
We will continue to rely upon proprietary technology rights, and if we are unable to protect them, our business could be harmed.
Read it in 10-K 2026-11-06 at sec.gov ↗
Quiet changesRisk Factors
If we are unable to access new markets or develop new sales and distribution channels, our business and growth prospects could suffer. be adversely affected.
Read it in 10-K 2026-11-06 at sec.gov ↗
Quiet changesRisk Factors
Any disruption of or interference with our use of data centers, information technology technology, or communication systems of our external service providers would could adversely affect our operations and our business.
Read it in 10-K 2026-11-06 at sec.gov ↗
Quiet changesRisk Factors
The costs and other burdens of compliance with such laws and regulations, and with new or revised laws and regulations that may be implemented addressing these topics, could negatively adversely impact the use and adoption of our solutions, reduce overall demand for them, and harm our business, financial condition condition, or results of operations.
Read it in 10-K 2026-11-06 at sec.gov ↗
Quiet changesRisk Factors
Additionally, some of our business is and will be conducted in currencies other than the U.S. dollar.
Read it in 10-K 2026-11-06 at sec.gov ↗
Quiet changesRisk Factors
Material adverse developments in global economic conditions, or the occurrence of certain significant geopolitical or other world events, could affect demand for our products and services and harm our business.
Read it in 10-K 2026-11-06 at sec.gov ↗
AddedMD&A
In fiscal 2026, the FICO® Score continued to be the standard measure of consumer credit risk in the U.S., used by U.S. lenders for credit decisioning that connects lenders, investors, and consumers throughout the lending lifecycle. Through the FICO® Score 10T Free Access Program, more than 70 mortgage lenders are able to access FICO Score 10T, which also incorporates trended credit data, at no additional fee if they have paid for the Classic FICO® Score. In April 2026, the Federal Housing Finance Agency confirmed that FICO Score 10T was approved for future use in the conforming mortgage market served by Fannie Mae and Freddie Mac. On July 1, 2026, Fannie Mae and Freddie Mac took a further step toward implementation of FICO Score 10T by publishing historical data to support independent analytic evaluations. Independent analyses conducted during fiscal 2026 continued to demonstrate strong predictive performance for FICO Score 10T relative to competitor models. FICO Score 10T was also integrated into certain entities’ mortgage capital markets and pricing infrastructure, including Optimal Blue’s capital markets platform and LoanPASS’s pricing engine.
Read it in 10-K 2026-11-06 at sec.gov ↗
AddedMD&A
In fiscal 2026, the FICO® Mortgage Direct License Program was also announced, which will give tri-merge resellers, platform providers, and other third-party distributors a new option to calculate and distribute FICO Scores directly to their customers without relying on the three nationwide consumer reporting agencies as intermediaries. We also partnered with Plaid, a leading financial data network, to introduce a next-generation UltraFICO® Score, combining the trusted FICO Score with consumer-permissioned cash flow data.
Read it in 10-K 2026-11-06 at sec.gov ↗
AddedMD&A
The FICO® Score Mortgage Simulator was enhanced with new automated credit-planning features to help lenders, mortgage loan officers, and brokers better serve potential homebuyers. Industry-specific scores, such as FICO® Auto Score 10, continued to gain adoption during the year. FICO’s Score A Better Future® scaled the impact of free financial education workshops through expanded strategic partnerships and distribution channels, helping consumers better understand credit and the FICO Score. Our Lenders Leading Financial Inclusion program saw continued growth, working with financial institutions serving historically underserved communities to strengthen their capacity to serve a broader range of consumers. Internationally, we continued building on the successful blueprint established in prior years, such as our FICO Score launches in Kenya and Mongolia, as we pursue further expansion and development.
Read it in 10-K 2026-11-06 at sec.gov ↗
AddedMD&A
•In March 2026, we issued $1.0 billion of senior notes, the proceeds of which were used to make a payment against our revolving line of credit and to repay the $400 million of our senior notes due in May 2026. In June 2026, we amended our credit agreement to provide for a $1.5 billion term loan, the proceeds of which were used to fund an accelerated share repurchase agreement (“ASR Agreement”).
Read it in 10-K 2026-11-06 at sec.gov ↗
AddedMD&A
(*) References to “platform” in this table and the table below refer to FICO platform software, which is a set of interoperable capabilities which use software assets owned and/or governed by FICO for building solutions and services which conform to FICO architectural standards based on key elements of Cloud Native Computing design principles. These standards encompass shared security context and access using FICO standard application programming interfaces.
Read it in 10-K 2026-11-06 at sec.gov ↗
AddedMD&A
During the fourth quarter of fiscal 2026, as a result of the term sheet we entered into on September 29, 2026 to settle the antitrust lawsuits described in Part I, Item 3 “Legal Proceedings,” and Note 18, “Contingencies,” we revised our assessment of those lawsuits. We had previously not considered a loss probable and had concluded that any reasonably possible loss was not material. We have now concluded, based on the proposed settlement terms, that a loss is probable and reasonably estimable, and therefore we have recorded an accrual of $65.0 million included in selling, general and administrative expenses for the fourth quarter. The settlement remains subject to court approval.
Read it in 10-K 2026-11-06 at sec.gov ↗
RemovedMD&A
In fiscal 2025, our B2B scoring solutions, including the flagship FICO® Score, continued to be the standard measure of consumer credit risk in the U.S. The adoption of our most predictive scores, FICO® Score 10 and FICO® Score 10 T, gained increased traction for non-conforming mortgages and was approved for conforming mortgages by the Federal Housing Finance Agency for enterprise credit scoring requirements. In addition, we launched FICO® Score 10 BNPL and FICO® Score 10 T BNPL, the first credit scores from a leading credit scoring provider to incorporate Buy Now, Pay Later (“BNPL”) data. These innovative scores represent a significant advancement in credit scoring, accounting for the growing importance of BNPL loans in the U.S. credit ecosystem. Internationally, we launched a FICO Score in Kenya, which leverages TransUnion data and CreditVision variables to redefine risk management and help expand access to financial services across Kenya. In fiscal 2025, in support of our B2C business and financial inclusion, we launched the FICO® Score Mortgage Simulator, which is the only simulator in the market built by FICO data scientists and powered by the FICO Score algorithm. We also introduced our Lenders Leading Financial Inclusion program that aims to expand credit access for underserved communities and we hosted free Score A Better Future® financial education workshops for students and adults from traditionally underserved communities.
Read it in 10-K 2025-11-07 at sec.gov ↗
RemovedMD&A
•We issued $1.5 billion of senior notes and used the net proceeds to repay all the outstanding balances on our term loans. We also amended our credit agreement to increase our borrowing capacity under the unsecured revolving line of credit to $1.0 billion and extended its maturity. Total debt balance was $3.1 billion as of September 30, 2025, compared with $2.2 billion as of September 30, 2024.
Read it in 10-K 2025-11-07 at sec.gov ↗
RemovedMD&A
Our other long-lived assets are assessed for potential impairment when there is evidence that events and circumstances related to our financial performance and economic environment indicate the carrying amount of the assets may not be recoverable. When impairment indicators are identified, we test for impairment using undiscounted projected cash flows. If such tests indicate impairment, then we measure and record the impairment as the difference between the carrying value of the asset and the fair value of the asset. Significant management judgment is required in forecasting future operating results used in the preparation of the projected cash flows. Should different conditions prevail, material write downs of our other long-lived assets could occur.
Read it in 10-K 2025-11-07 at sec.gov ↗
RewordedMD&A
The fiscal 2026 over 2025 over 2024 decrease increase in other income, net of $2.6 $46.3 million was primarily attributable to a decrease non-operating gain related to the sale of an equity investment in net unrealized gains on investments classified as trading securities in our supplemental retirement and savings plan, which we had a minority interest, partially offset by an increase in net foreign exchange rate losses incurred during fiscal 2026, compared to foreign exchange gains incurred during fiscal 2025, resulting from remeasurement of foreign-currency-denominated receivable receivables and cash balances held by our various reporting entities into their respective functional currencies at period-end market rates, net of the impact of offsetting foreign currency forward contracts.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedMD&A
The fiscal 2026 over 2025 over 2024 increase in operating income of $191.2 $340.8 million was primarily attributable to a $273.3 $544.0 million increase in segment revenues and a $5.4 million decrease in corporate expenses, revenues, partially offset by a $70.2 $79.5 million increase in corporate expenses, a $78.5 million increase in segment operating expenses, a $10.9 million increase in restructuring charges, and a $7.2 $28.8 million increase in share-based compensation cost. cost, and a $16.4 million increase in restructuring charges.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedMD&A
The fiscal 2026 over 2025 over 2024 increase in interest expense, net interest expense of $28.0 $89.7 million was primarily attributable to the $1.5 billion of 2025 Senior Notes (as defined below), partially offset by a lower higher average outstanding debt balance and a lower average interest rate on borrowings under our credit agreement during fiscal 2025. 2026.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedMD&A
The $15.7 $1.7 million increase was attributable to a $13.8 $12.8 million increase in purchases of other investments and a $5.1 million increase in capitalized internal-use software costs and costs, partially offset by a $1.9 $9.4 million decrease increase in proceeds from sales, net of purchases, of marketable securities. securities and a $6.8 million decrease in purchases of property and equipment.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedMD&A
The fiscal 2026 over 2025 over 2024 increase in research and development expenses of $16.4 $21.0 million was primarily attributable to a $6.9 $21.9 million increase in infrastructure and facilities costs, a $5.7 million increase in outside services costs, costs and a $3.8 $4.8 million increase in personnel and labor costs, partially offset by a $5.7 million decrease in outside services and other costs.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedMD&A
Cost of revenues 14% 18% 20% 21% Research and development 8% 9% 10% 11% Selling, general and administrative 27% 26% 27% 26% Amortization of intangible assets —% —% —% Restructuring charges 1% —% —% Gain on product line asset sale —% —% 1% —% Total operating expenses 50% 54% 57% 58% Operating income 50% 46% 43% 42% Interest expense, net (9)% (7)% (6)% (6)% Other income, net 2% 1% 1% —% Income before income taxes 43% 40% 38% 36% Provision for income taxes 10% 7% 8% 8% Net income 33% 33% 30% 28%
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedMD&A
The $9.8 $1.9 million decrease increase in our Software segment operating income was attributable to a $34.2 $60.4 million increase in segment revenue, partially offset by a $58.5 million increase in segment operating expenses, partially offset by a $24.4 million increase in segment revenue. expenses.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedMD&A
The increase in personnel and labor costs was primarily attributable to increased headcount, market base-pay adjustments, commission expense, and increased share-based compensation expense, partially offset by decreased fringe benefit costs related to our supplemental retirement costs, and savings plan. increased incentive compensation costs.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedMD&A
The credit agreement contains certain restrictive covenants including a maximum consolidated leverage ratio of 4.5 to 1.0 through December 30, 2026, 4.0 to 1.0 during December 31, 2026 through December 30, 2027, and 3.5 to 1.0, 1.0 during December 31, 2027 and thereafter, subject to a step up to 4.0 to 1.0 following certain permitted acquisitions and subject to certain conditions, and contains other covenants typical of an unsecured credit facility.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedMD&A
Cost of revenues consists primarily of employee salaries, incentives, incentive compensation, and benefits for personnel directly involved in delivering software products, operating SaaS infrastructure, and providing support, implementation and consulting services; third-party hosting fees related to our SaaS services; overhead, facilities and data center costs; software royalty fees; consumer reporting agency data and processing services; third-party hosting fees related to our SaaS outside services; and travel costs; and outside services. costs.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedMD&A
The increase in business-to-business scores revenue was primarily attributable to both a higher unit price, price and an increase in volume of mortgage originations and a multi-year license renewal in the U.S. recognized on our insurance score product during fiscal 2025. origination scores.
Read it in 10-K 2026-11-06 at sec.gov ↗
RewordedMD&A
The $145.8 $293.3 million increase was attributable to a $139.1 $183.0 million increase in net income, a $4.8 million increase in non-cash items, and a $1.9 $69.8 million increase that resulted from timing of receipts and payments in our ordinary course of business. business, and a $40.5 million increase in non-cash items.
Read it in 10-K 2026-11-06 at sec.gov ↗
