Fair Isaac vs Tyler Technologies
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KIRA’s take AI analyst
I put Fair Isaac and Tyler Technologies side by side, using each one’s latest annual report. Here is what stands out:
- Tyler Technologies is the larger business, with $2.3B of revenue in fiscal 2025 against $2.0B for Fair Isaac.
- Fair Isaac grew revenue faster (15.9%, against 9.1%).
- Fair Isaac kept more of each dollar of sales as operating profit (46.5% operating margin, against 15.3%).
- Fair Isaac turned more of its sales into free cash flow (38.7% FCF margin, against 27.3%).
- Fair Isaac earned a higher return on the capital invested in it (65.6%, against 9.0%).
- Investors pay more for each dollar of Tyler Technologies’s earnings: a P/E of 51.2x against 20.5x for Fair Isaac.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Fair Isaac
FICO
8/10
Revenue growthGross marginOperating marginNet marginFCF marginReturn on capitalPiotroski F-scoreShare count change
Tyler Technologies
TYL
2/10
5-year growthNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | FICO FY25 | TYL FY25 |
|---|---|---|
| Size | ||
| Market cap | $16.1B | $16.2B |
| Revenue | $2.0B | $2.3B |
| Free cash flow | $770M | $638M |
| Net income | $652M | $316M |
| Growth | ||
| Revenue growth | 15.9% | 9.1% |
| 5-year growth | 9.0% | 15.9% |
| Share count change | −2.1% | 0.7% |
| Profitability | ||
| Gross margin | 82.2% | 46.5% |
| Operating margin | 46.5% | 15.3% |
| Net margin | 32.8% | 13.5% |
| FCF margin | 38.7% | 27.3% |
| Return on capital | 65.6% | 9.0% |
| Return on equity | — | 8.9% |
| Balance sheet | ||
| Net debt | $2.9B | −$498M |
| Net debt / EBITDA | 3.1x | −1.0x |
| Dividends and buybacks | $1.4B | $175M |
| Valuation & quality | ||
| P/E | 20.5x | 51.2x |
| 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.