Fair Isaac maintains competitive edge despite regulatory pressure. The credit-scoring giant reported fiscal Q2 revenue of $691.7 million, up 39% year over year, with full-year guidance raised. Its Scores segment surged 60% to $475 million, driven by higher mortgage origination scores and pricing power. B2B Scores revenue jumped 72% as mortgage origination volume increased. Software revenue rose 7%, with platform software annual recurring revenue climbing 49% and dollar-based net retention reaching 136%. Even as regulators approved alternative credit scores like VantageScore 4.0 alongside FICO's offerings, the company's latest quarter demonstrates strong pricing power in its core business, suggesting its competitive moat remains intact despite intensifying market competition.
