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FICO Withholds 2027 Guidance as Mortgage Pricing Model Shifts

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FICO Withholds 2027 Guidance as Mortgage Pricing Model Shifts

FICO is withholding financial guidance for fiscal year 2027 as the credit score provider transitions to a new mortgage pricing structure and contends with sluggish housing demand and increased competition, The Wall Street Journal (WSJ) reported Nov. 4.

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FICO is moving away from a single flat fee for mortgage origination credit scores toward pricing tailored to individual customer needs, the report said. The shift comes as FICO faces greater competition from VantageScore, which received approval for use by government-backed mortgage lenders. The company said the transition makes it difficult to provide a financial outlook for the coming fiscal year.

FICO saw fiscal fourth-quarter net income of $175 million, or $8.12 per share, compared with $155 million, or $6.42 per share, in the year-ago period, according to a Nov. 4 press release.

Results included a $65 million accrual for a proposed settlement of an antitrust lawsuit involving FICO’s credit score business, a $48 million nonoperating gain from the sale of an equity investment and a $27 million restructuring charge related to layoffs, the release said.

FICO said in October that it planned to reduce its workforce by approximately 15%, according to the WSJ report.

Excluding those items, adjusted earnings were $11.10 per share, exceeding the $10.69 analysts expected, the report said, citing FactSet.

7 million consensus estimate, according to the report. Sales from FICO’s credit score business rose 33%, while its business-facing scores segment recorded a 39% increase.


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