Revenues for the Scores segment increased to $297.0 million, a 25% increase from the quarter ended March 31, 2024. This indicates strong performance in FICO's core scoring business.

Annual Recurring Revenue (ARR) for the Software segment was $714.6 million as of March 31, 2025, a 3% increase from March 31, 2024. The increase in ARR shows the company's ability to maintain and grow its recurring revenue base.

ACV Bookings increased to $21.8 million from $16.8 million. The increase in ACV Bookings suggest the company is successfully growing its software business.

Cash flows from operating activities increased to $268.9 million for the six months ended March 31, 2025, compared with $193.2 million for the six months ended March 31, 2024. The $75.8 million increase was attributable to a $64.3 million increase in net income and a $24.5 million increase in non-cash items, partially offset by a $13.0 million decrease due to the timing of receipts and payments in our ordinary course of business.

The company expended $207.0 million on share repurchases during the quarter ended March 31, 2025. As of March 31, 2025, $394.1 million remained under the July 2024 program.

The fair value of the Senior Notes is less than the face value. The 2018 Senior Notes have a face value of $400,000 and a fair value of $398,500. The 2019 Senior Notes and the 2021 Senior Notes have a face value of $900,000 and a fair value of $856,125.

Revenues collectively generated by agreements with these customers accounted for 52% of our total revenues in the quarters ended March 31, 2025. This indicates a high reliance on a few key customers.

Cost of revenues as a percentage of revenues decreased to 18% during the quarter ended March 31, 2025 from 20% during the quarter ended March 31, 2024, primarily due to increased sales of our higher-margin Scores products.

Research and development expenses as a percentage of revenues remained consistent at 9% during the quarters ended March 31, 2025 and 2024. This indicates continued investment in innovation.

The company expended $207.0 million on share repurchases during the quarter ended March 31, 2025. As of March 31, 2025, $394.1 million remained under the July 2024 program.

The Organization for Economic Co-operation and Development published Pillar Two Model Rules (“Pillar Two”) for a global 15% minimum tax rate that are in the process of being adopted by a number of jurisdictions in which we operate.