Fair Isaac Corporation Thesis

FICO is the creator of the FICO Score, the dominant credit scoring standard in the United States. Its moat is its entrenched position in the lending ecosystem; over 90% of top lenders use FICO scores for consumer lending decisions. The growth driver is the expansion of its software business, which provides AI-powered decision management tools, and price increases for its scores. The investment thesis is based on the mission-critical nature of its scores and its ability to monetize this position through both scores and software.