XML 39 R17.htm IDEA: XBRL DOCUMENT
v3.25.3

Revenue from Contracts with Customers | 12 Months Ended
--- | ---
Sep. 30, 2025
Revenue from Contract with Customer [Abstract] |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Contracts with Customers Our revenue is primarily derived from on-premises software and SaaS subscriptions, professional services and scoring services. For contracts with customers that contain various combinations of products and services, we evaluate whether the products or services are distinct — distinct products or services will be accounted for as separate performance obligations, while non-distinct products or services are combined with others to form a single performance obligation. For contracts with multiple performance obligations, the transaction price is allocated to each performance obligation on a relative standalone selling price (“SSP”) basis. Revenue is recognized when control of the promised goods or services is transferred to our customers. Our on-premises software is primarily sold on a subscription basis, which includes a term-based license and post-contract support or maintenance, both of which generally represent distinct performance obligations and are accounted for separately. The transaction price is either a fixed fee, or a usage-based fee — sometimes subject to a guaranteed minimum. When the amount is fixed, including the guaranteed minimum in a usage-based fee, license revenue is recognized at the point in time when the software is made available to the customer. Maintenance revenue is recognized ratably over the contract period as customers simultaneously consume and receive benefits. Any usage-based fees not subject to a guaranteed minimum or earned in excess of the minimum amount are recognized when the subsequent usage occurs. We occasionally sell software arrangements consisting of on-premises perpetual licenses and maintenance. License revenue is recognized at a point in time when the software is made available to the customer and maintenance revenue is recognized ratably over the contract term. Our SaaS products provide customers with access to and standard support for our software on a subscription basis, delivered through our own infrastructure or third-party cloud services. The SaaS transaction contracts typically include a guaranteed minimum fee per period that allows up to a certain level of usage and a consumption-based variable fee in excess of the minimum threshold; or a consumption-based variable fee not subject to a minimum threshold. The nature of our SaaS arrangements is to provide continuous access to our hosted solutions in the cloud, i.e., a stand-ready obligation that comprises a series of distinct service periods (e.g., a series of distinct daily, monthly or annual periods of service). We estimate the total variable consideration at contract inception — subject to any constraints that may apply — and update the estimates as new information becomes available and recognize the amount ratably over the SaaS service period, unless we determine it is appropriate to allocate the variable amount to each distinct service period and recognize revenue as each distinct service period is performed. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue recognized under the contract will not occur. Variable consideration is estimated based on either the expected value or the most likely amount method depending on which method we expect to better predict the amount of consideration to which we will be entitled. Our estimates of variable consideration are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us at contract inception and require judgment. Our professional services include software implementation, consulting, model development and training. Professional services are sold either standalone, or together with other products or services and generally represent distinct performance obligations. The transaction price can be a fixed amount or a variable amount based upon the time and materials expended. Revenue on fixed-price services is recognized using an input method based on labor hours expended, which we believe provides a faithful depiction of the transfer of services. Revenue on services provided on a time and materials basis is recognized by applying the “right-to-invoice” practical expedient as the amount to which we have a right to invoice the customer corresponds directly with the value of our performance to the customer. Our scoring services include both business-to-business and business-to-consumer offerings. Our business-to-business scoring services typically include a license that grants consumer reporting agencies the right to use our scoring solutions in exchange for a usage-based royalty. Revenue is generally recognized when the usage occurs. Business-to-consumer offerings provide consumers with access to their FICO® Scores and credit reports, as well as other value-add services. These are provided as either a one-time or ongoing subscription service renewed monthly or annually, all with a fixed consideration. The nature of the subscription service is a stand-ready obligation to generate credit reports, provide credit monitoring, and other services for our customers, which comprises a series of distinct service periods (e.g., a series of distinct daily, monthly or annual periods of service). Revenue from one-time or monthly subscription services is recognized during the period when service is performed. Revenue from annual subscription services is recognized ratably over the subscription period. Disaggregation of Revenue During fiscal 2023, we sold certain assets related to our Siron compliance business. The comparability of the data below is impacted as a result of this sale. The following tables provide information about disaggregated revenue by primary geographical market:
| Year Ended September 30, 2025
| Scores |  | Software |  | Total |  | Percentage
| (Dollars in thousands)
Americas | $ | 1,154,470 |  |  | $ | 577,915 |  |  | $ | 1,732,385 |  |  | 87 | %
Europe, Middle East and Africa | 6,984 |  |  | 152,819 |  |  | 159,803 |  |  | 8 | %
Asia Pacific | 7,121 |  |  | 91,560 |  |  | 98,681 |  |  | 5 | %
Total | $ | 1,168,575 |  |  | $ | 822,294 |  |  | $ | 1,990,869 |  |  | 100 | %
| Year Ended September 30, 2024
| Scores |  | Software |  | Total |  | Percentage
| (Dollars in thousands)
Americas | $ | 905,266 |  |  | $ | 544,622 |  |  | $ | 1,449,888 |  |  | 84 | %
Europe, Middle East and Africa | 5,908 |  |  | 163,618 |  |  | 169,526 |  |  | 10 | %
Asia Pacific | 8,476 |  |  | 89,636 |  |  | 98,112 |  |  | 6 | %
Total | $ | 919,650 |  |  | $ | 797,876 |  |  | $ | 1,717,526 |  |  | 100 | %
| Year Ended September 30, 2023
| Scores |  | Software |  | Total |  | Percentage
| (Dollars in thousands)
Americas | $ | 763,874 |  |  | $ | 523,076 |  |  | $ | 1,286,950 |  |  | 85 | %
Europe, Middle East and Africa | 5,802 |  |  | 135,562 |  |  | 141,364 |  |  | 9 | %
Asia Pacific | 4,152 |  |  | 81,091 |  |  | 85,243 |  |  | 6 | %
Total | $ | 773,828 |  |  | $ | 739,729 |  |  | $ | 1,513,557 |  |  | 100 | %
The following table provides information about disaggregated revenue for on-premises and SaaS software within our Software segment by deployment method:
| Year Ended September 30, |  | Percentage of revenues
| 2025 |  | 2024 |  | 2023 |  | 2025 |  | 2024 |  | 2023
| (Dollars in thousands)
On-premises software | $ | 320,425 |  |  | $ | 313,632 |  |  | $ | 292,763 |  |  | 43 | % |  | 44 | % |  | 46 | %
SaaS software | 419,720 |  |  | 397,708 |  |  | 347,419 |  |  | 57 | % |  | 56 | % |  | 54 | %
Total | $ | 740,145 |  |  | $ | 711,340 |  |  | $ | 640,182 |  |  | 100 | % |  | 100 | % |  | 100 | %
The following table provides information about disaggregated revenue for on-premises and SaaS software within our Software segment by product features:
| Year Ended September 30, |  | Percentage of revenues
| 2025 |  | 2024 |  | 2023 |  | 2025 |  | 2024 |  | 2023
| (Dollars in thousands)
Platform software | $ | 237,056 |  |  | $ | 200,004 |  |  | $ | 154,750 |  |  | 32 | % |  | 28 | % |  | 24 | %
Non-platform software | 503,089 |  |  | 511,336 |  |  | 485,432 |  |  | 68 | % |  | 72 | % |  | 76 | %
Total | $ | 740,145 |  |  | $ | 711,340 |  |  | $ | 640,182 |  |  | 100 | % |  | 100 | % |  | 100 | %
The following table provides information about disaggregated revenue for on-premises and SaaS software within our Software segment by timing of revenue recognition:
| Year Ended September 30, |  | Percentage of revenues
| 2025 |  | 2024 |  | 2023 |  | 2025 |  | 2024 |  | 2023
| (Dollars in thousands)
Software recognized at a point in time (1) | $ | 90,238 |  |  | $ | 76,284 |  |  | $ | 72,843 |  |  | 12 | % |  | 11 | % |  | 11 | %
Software recognized over contract term (2) | 649,907 |  |  | 635,056 |  |  | 567,339 |  |  | 88 | % |  | 89 | % |  | 89 | %
Total | $ | 740,145 |  |  | $ | 711,340 |  |  | $ | 640,182 |  |  | 100 | % |  | 100 | % |  | 100 | %
(1)Includes license portion of our on-premises subscription software and perpetual license, both of which are recognized when the software is made available to the customer, or at the start of the subscription. (2)Includes maintenance portion and usage-based fees of our on-premises subscription software, maintenance revenue on perpetual licenses, as well as SaaS revenue. The following table provides information about disaggregated revenue for our Scores segment by distribution method:
| Year Ended September 30, |  | Percentage of revenues
| 2025 |  | 2024 |  | 2023 |  | 2025 |  | 2024 |  | 2023
| (Dollars in thousands)
Business-to-business Scores | $ | 948,595 |  |  | $ | 711,843 |  |  | $ | 560,995 |  |  | 81 | % |  | 77 | % |  | 72 | %
Business-to-consumer Scores | 219,980 |  |  | 207,807 |  |  | 212,833 |  |  | 19 | % |  | 23 | % |  | 28 | %
Total | $ | 1,168,575 |  |  | $ | 919,650 |  |  | $ | 773,828 |  |  | 100 | % |  | 100 | % |  | 100 | %
We derive a substantial portion of revenues from our contracts with the three major consumer reporting agencies, TransUnion, Equifax and Experian. Revenues collectively generated by agreements with these customers accounted for 51%, 45% and 41% of our total revenues in fiscal 2025, 2024 and 2023, respectively, with all three consumer reporting agencies each contributing more than 10% of our total revenues in each of fiscal 2025, 2024 and 2023. At September 30, 2025 and September 30, 2024, two customers and one individual customer, respectively, accounted for 10% or more of total consolidated receivables. Contract Balances We record a receivable when we satisfy a performance obligation prior to invoicing if only the passage of time is required before payment is due or if we have an unconditional right to consideration before we satisfy a performance obligation. We record a contract asset when we satisfy a performance obligation prior to invoicing but our right to consideration is conditional. We record deferred revenue when the payment is made or due before we satisfy a performance obligation. Receivables at September 30, 2025 and 2024 consisted of the following:
| September 30,
| 2025 |  | 2024
| (In thousands)
Billed | $ | 327,721 |  |  | $ | 264,942 |
Unbilled | 246,600 |  |  | 210,795 |
| 574,321 |  |  | 475,737 |
Less: allowance for doubtful accounts | (7,964) |  |  | (6,454) |
Net receivables | 566,357 |  |  | 469,283 |
Less: long-term receivables (*) | (37,209) |  |  | (42,641) |
Short-term receivables (*) | $ | 529,148 |  |  | $ | 426,642 |
(*) Short-term receivables and long-term receivables were recorded in accounts receivable, net and other assets, respectively, within the accompanying consolidated balance sheets. Activity in the allowance for doubtful accounts was as follows:
| Year Ended September 30,
| 2025 |  | 2024
| (In thousands)
Allowance for doubtful accounts, beginning balance | $ | 6,454 |  |  | $ | 4,978 |
Add: expense | 1,485 |  |  | 1,675 |
Less: write-offs (net of recoveries) | 25 |  |  | (199) |
Allowance for doubtful accounts, ending balance | $ | 7,964 |  |  | $ | 6,454 |
Deferred revenue primarily relates to our maintenance and SaaS contracts billed annually in advance and generally recognized ratably over the term of the service period. Significant changes in the deferred revenues balances are as follows:
| Year Ended September 30,
| 2025 |  | 2024
| (In thousands)
Deferred revenues, beginning balance | $ | 160,209 |  |  | $ | 143,235 |
Revenue recognized that was included in the deferred revenues balance at the beginning of the period | (151,859) |  |  | (133,554) |
Increases due to billings, excluding amounts recognized as revenue during the period | 180,888 |  |  | 150,528 |
Deferred revenues, ending balance (*) | $ | 189,238 |  |  | $ | 160,209 |
(*) Deferred revenues at September 30, 2025 included current portion of $187.4 million and long-term portion of $1.8 million that were recorded in deferred revenue and other liabilities, respectively, within the consolidated balance sheets. Deferred revenues at September 30, 2024 included current portion of $156.9 million and long-term portion of $3.3 million that were recorded in deferred revenue and other liabilities, respectively, within the consolidated balance sheets. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to provide customers with financing or to receive financing from our customers. Examples include multi-year on-premises licenses that are invoiced annually with revenue recognized upfront and invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period. Performance Obligations Revenue allocated to remaining performance obligations represents contracted revenue that will be recognized in future periods, which is comprised of deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This does not include: •Usage-based revenue that will be recognized in future periods from on-premises software subscriptions; •Consumption-based variable fees from SaaS software that will be recognized in the distinct service period during which it is earned; and •Revenue from variable considerations that will be recognized in accordance with the “right-to-invoice” practical expedient, such as fees from our professional services billed based on a time and materials basis. Revenue allocated to remaining performance obligations was $655.7 million as of September 30, 2025, approximately 50% of which we expect to recognize over the next 15 months and the remainder thereafter. Revenue allocated to remaining performance obligations was $507.3 million as of September 30, 2024. Significant Judgments Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct and should be accounted for separately may require significant judgment. Specifically, when implementation service is included in the original software or SaaS offerings, judgment is required to determine if the implementation service significantly modifies or customizes the software or SaaS service in such a way that the risks of providing it and the customization service are inseparable. We determine the SSPs using data from our historical standalone sales, or, in instances where such information is not available (such as when we do not sell the product or service separately), we consider factors such as the stated contract prices, our overall pricing practices and objectives, go-to-market strategy, size and type of the transactions, and effects of the geographic area on pricing, among others. When the selling price of a product or service is highly variable, we may use the residual approach to determine the SSP of that product or service. Significant judgment may be required to determine the SSP for each distinct performance obligation when it involves the consideration of many market conditions and entity-specific factors discussed above. Significant judgment may be required to determine the timing of satisfaction of a performance obligation in certain professional services contracts with a fixed consideration, in which we measure progress using an input method based on labor hours expended. In order to estimate the total hours of the project, we make assumptions about labor utilization, efficiency of processes, the customer’s specification and IT environment, among others. For certain complex projects, due to the risks and uncertainties inherent with the estimation process and factors relating to the assumptions, actual progress may differ due to the change in estimated total hours. Adjustments to estimates are made in the period in which the facts requiring such revisions become known and, accordingly, recognized revenues are subject to revisions as the contract progresses to completion. Capitalized Commission Costs We capitalize incremental commission fees paid as a result of obtaining customer contracts. Capitalized commission costs, which are recorded in other assets within the accompanying consolidated balance sheets, were $63.2 million and $60.5 million at September 30, 2025 and 2024, respectively. Capitalized commission costs are amortized on a straight-line basis over ten years — determined using a portfolio approach — based on the transfer of goods or services to which the assets relate, taking into consideration both the initial and future contracts as we do not typically pay a commission on a contract renewal. The amortization costs are included in selling, general, and administrative expenses of our consolidated statements of income and comprehensive income. The amount of amortization was $9.9 million, $9.2 million, and $8.2 million during the years ended September 30, 2025, 2024 and 2023, respectively. There was no impairment loss in relation to the costs capitalized. We apply a practical expedient to recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less. These costs are recorded within selling, general, and administrative expenses.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration