Shares of Fair Isaac Corporation (FICO) have fallen 45% since the beginning of 2026, due to investor concerns about mortgage rating regulations and the significant shift in Vantage Score policy .
In addition, recent news headlines indicating that FICO is expanding its reach to federal housing loan (FHA) lenders have caused increased concerns, as while this will support reliance on it, it limits its pricing power.
I've received a lot of comments about FICO , so what's going on there? The stock has fallen by 60% while profits are still growing by 40%. So, let's see if there is value or if the risks still exist .
Just one day before I prepared this, the stock had dropped 16-17% due to Fannie Mae and Freddie Mac using another points provider. Let's take a quick look at the numbers from the last presentation.
Everything looks amazingly good. Revenue increased by 26%. Points revenue by 41%. The software is stable, but the platform is still growing by 66%. Net income rose by 40%, and earnings per share were astonishing.
Free cash flow is high, and share buybacks are taking advantage of the low share price.
