Fair Isaac vs Pegasystems
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KIRA’s take AI analyst
I put Fair Isaac and Pegasystems side by side, using each one’s latest annual report. Here is what stands out:
- Fair Isaac is the larger business, with $2.0B of revenue in fiscal 2025 against $1.7B for Pegasystems.
- Pegasystems grew revenue faster (16.6%, against 15.9%).
- Fair Isaac kept more of each dollar of sales as operating profit (46.5% operating margin, against 15.1%).
- Fair Isaac turned more of its sales into free cash flow (38.7% FCF margin, against 28.1%).
- Investors pay more for each dollar of Fair Isaac’s earnings: a P/E of 23.6x against 22.6x for Pegasystems.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Fair Isaac
FICO
6/9
Gross marginOperating marginNet marginFCF marginPiotroski F-scoreShare count change
Pegasystems
PEGA
3/9
Revenue growth5-year growthNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | FICO FY25 | PEGA FY25 |
|---|---|---|
| Size | ||
| Market cap | $18.5B | $6.1B |
| Revenue | $2.0B | $1.7B |
| Free cash flow | $770M | $491M |
| Net income | $652M | $393M |
| Growth | ||
| Revenue growth | 15.9% | 16.6% |
| 5-year growth | 9.0% | 11.4% |
| Share count change | −2.1% | 3.1% |
| Profitability | ||
| Gross margin | 82.2% | 75.9% |
| Operating margin | 46.5% | 15.1% |
| Net margin | 32.8% | 22.5% |
| FCF margin | 38.7% | 28.1% |
| Return on capital | 65.6% | — |
| Return on equity | — | 57.3% |
| Balance sheet | ||
| Net debt | $2.9B | −$426M |
| Net debt / EBITDA | 3.1x | −1.5x |
| Dividends and buybacks | $1.4B | $515M |
| Valuation & quality | ||
| P/E | 23.6x | 22.6x |
| Piotroski F-score | 7 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.