Fair Isaac (FICO) risk factors, FY2025 10-K

Business, Market and Strategy Risks

1. 01We may not be successful in executing the business strategy for our Software segment, which could cause our growth prospects and results of operations to suffer
2. 02We 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 decline86% rewritten
3. 03Our revenues depend, to a great extent, upon conditions in the banking (including consumer credit) industry. If our clients’ industry experiences uncertainty, it will likely harm our business, financial condition or results of operations
4. 04If use of the FICO® Score by Fannie Mae and Freddie Mac were to cease or decline, it could have a material adverse effect on our revenues, results of operations and stock price37% rewritten
5. 05We are subject to significant competition in the markets in which we operate, and our products and pricing strategies, and those of our competitors, could decrease our product sales and market share
6. 06We rely on relationships with third parties for marketing, distribution and certain services. If we experience difficulties in these relationships, including competition from these third parties, our future revenues may be adversely affected
7. 07We will continue to rely upon proprietary technology rights, and if we are unable to protect them, our business could be harmed
8. 08If we fail to keep up with rapidly changing technologies, our products could become less competitive or obsolete
9. 09Our reengineering efforts may cause our growth prospects and profitability to suffer
10. 10If we are unable to access new markets or develop new sales and distribution channels, our business and growth prospects could suffer
11. 11Our acquisition activities may disrupt our ongoing business and may involve increased expenses, and we may not realize the financial and strategic goals contemplated at the time of a transaction
12. 12There can be no assurance that strategic divestitures will provide business benefits
13. 13Our revenues, results of operations and overall financial performance may be negatively impacted by health epidemics or other disease outbreaks

Operational Risks

1. 14If we experience business interruptions or failure of our information technology and communication systems, the availability of our products and services could be interrupted which could adversely affect our reputation, business and financial condition
2. 15The failure to obtain certain forms of data from our customers or others for our use in product development could harm our business
3. 16The failure to recruit and retain qualified personnel could hinder our ability to successfully manage our business25% rewritten

Legal, Regulatory and Compliance Risks

1. 17Numerous other countries have introduced and, in some cases, enacted, similar data privacy and cyber and data security laws
2. 18If we are subject to infringement claims, it could harm our business
3. 19In operations outside the U.S., we are subject to additional risks that may harm our business, financial condition or results of operations
4. 20Material adverse developments in global economic conditions, or the occurrence of certain other world events, could affect demand for our products and services and harm our business

Financial Risks

1. 21Our products have long and variable sales cycles. If we do not accurately predict these cycles, we may not forecast our financial results accurately, and our stock price could be adversely affected
2. 22Our financial results and key metrics fluctuate within each quarter and from quarter to quarter, making our future revenue, annual recurring revenue (“ARR”), and financial results difficult to predict, which may cause us to miss analyst expectations and may cause the price of our common stock to decline
3. 23Our stock price has been subject to fluctuations, and will likely continue to be subject to fluctuations, or may decline, regardless of our operating performance
4. 24If we experience changes in tax laws or adverse outcomes resulting from examination of our income tax returns, it could adversely affect our results of operations
5. 25Our anti-takeover defenses could make it difficult for another company to acquire control of FICO, thereby limiting the demand for our securities by certain types of purchasers or the price investors are willing to pay for our stock