FICO Announces New $1 Billion Stock Repurchase Program

BOZEMAN, Mont. – June 19, 2025 – Global analytics leader, FICO (NYSE:FICO), today announced a significant corporate action aimed at enhancing shareholder value. The company's Board of Directors has approved a new stock repurchase program authorizing the acquisition of up to $1 billion of FICO's outstanding common stock. This strategic move underscores FICO's confidence in its financial health and future growth prospects.

The approval of this new program follows the successful completion of FICO's previous stock repurchase initiative. The prior program, which commenced in July 2024, concluded just prior to the adoption of this new authorization in June 2025. The seamless transition between programs highlights FICO's ongoing commitment to returning capital to its shareholders.

The newly approved stock repurchase program is open-ended, meaning it does not have a fixed expiration date. This structure provides FICO with flexibility to execute repurchases opportunistically based on market conditions, stock price, and other factors. The repurchases may be made through various methods, including open market purchases, privately negotiated transactions, or other means, in accordance with applicable securities laws and regulations.

Stock repurchase programs are a common corporate finance strategy used by companies with strong cash flow and a belief that their stock is undervalued. By reducing the number of outstanding shares, a buyback can increase earnings per share (EPS), which is a key metric for investors and analysts. This can potentially lead to an increase in the stock price, benefiting remaining shareholders.

FICO's decision to authorize a substantial $1 billion buyback program signals management's positive outlook on the company's intrinsic value and its ability to generate significant free cash flow. As a leader in credit scoring and analytics, FICO operates in a market with high barriers to entry and recurring revenue streams, contributing to its strong financial position.

Market Context and Implications

The announcement of a significant stock repurchase program by a company like FICO is generally viewed positively by the market. It suggests that the company has ample liquidity and sees its own stock as an attractive investment. In the current market environment, where many companies are navigating economic uncertainties, FICO's ability to commit $1 billion to share repurchases demonstrates financial resilience.

This action could potentially provide support for FICO's stock price, especially during periods of market volatility. It also reinforces the company's capital allocation strategy, balancing investments in growth initiatives with returning capital to shareholders.

Investment Insights

For investors, FICO's new stock repurchase program offers several potential implications:

• Enhanced Shareholder Value: The reduction in outstanding shares can boost EPS, potentially making the stock more attractive from a valuation perspective.
• Management Confidence: A large buyback program indicates management's belief that the stock is undervalued, which can be a positive signal for investors.
• Financial Strength: The ability to fund a $1 billion buyback highlights FICO's strong cash flow generation and balance sheet.

Investors should consider this buyback program as one factor among many when evaluating FICO. While buybacks can be accretive to EPS, the long-term performance of the stock will ultimately depend on the company's fundamental business performance, market conditions, and competitive landscape. Investors should also consider FICO's debt levels, future growth prospects, and overall industry trends.

The execution of the buyback program will depend on various factors, and there is no guarantee as to the exact number of shares that will be repurchased or the timing of such repurchases. However, the authorization provides FICO with a powerful tool to manage its capital structure and potentially enhance shareholder returns over time.