TacticScaleWhat Fair Isaac Does & How It Makes Money (FICO)
Updated October 2026 · reflects Fair Isaac's latest reported financials
Analytics software company behind the FICO credit score. It earns money when businesses access its predictive credit scores and when consumers subscribe to myFICO.com.
How Fair Isaac makes money
It earns money when businesses access its predictive credit scores and when consumers subscribe to myFICO.com. It also sells analytics and decisioning software to businesses, along with implementation and analytic professional services.
What Fair Isaac does
Fair Isaac Corporation, founded in 1956 and headquartered in Bozeman, Montana, provides analytics software across the Americas, Europe, the Middle East, Africa, and Asia Pacific. It has two segments. Scores sells predictive credit and other scores to businesses, which build them into their transaction and decision processes, and offers consumer subscriptions through myFICO.com. The Software segment offers pre-configured solutions for account origination, customer management, customer engagement, fraud detection, and marketing. It also sells the modular FICO Platform and stand-alone tools such as Blaze Advisor, Xpress Optimization, and Decision Modeler, plus implementation and analytic services. FICO sells mainly through its direct sales organization, as well as through indirect channels and online.
Products & services
- FICO Score
- myFICO.com
- FICO Platform
- FICO Fraud Solutions
- FICO Blaze Advisor
- FICO Xpress Optimization
What is Fair Isaac worth?
On an owner-earnings DCF, Fair Isaac's most-likely value is about $1,193 versus a recent price near $668 (79% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$453) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 5.5× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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