Fair Isaac: Market Fears Are Overblown, The Moat Remains

Fair Isaac remains the backbone of U.S. consumer credit scoring with a 90% share in lending decisions and a near-exclusive status in mortgage securitizations despite recent FHFA changes. Investor fears over VantageScore adoption are overstated; while cheaper upfront, its lack of history leads to higher spreads and total funding costs. Q3 2025 results underline the strength of the Scores business, with revenues up +34% y/y driven by mortgage and auto loan originations.