FAIR ISAAC CORPFICO

FAIR ISAAC CORP Fair Value Disclosure

10-KFiled Nov 7, 20253 min read
Fair Value Measurements
Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities.
•Level 1 — uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. Our Level 1 assets were comprised of money market funds and certain marketable securities and our Level 1 liabilities included senior notes as of September 30, 2025 and 2024.
•Level 2 — uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data. We did not have any assets or liabilities that are valued using inputs identified under a Level 2 hierarchy as of September 30, 2025 and 2024.
•Level 3 — uses one or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, and significant management judgment or estimation. We did not value any assets or liabilities using inputs identified under a Level 3 hierarchy as of September 30, 2025 and 2024. 
The following tables represent financial assets that we measured at fair value on a recurring basis at September 30, 2025 and 2024: 
September 30, 2025Active Markets for
Identical Instruments
(Level 1)		Fair Value as of September 30, 2025
 (In thousands)
Assets:
Cash equivalents (1)
$6 $6 
Marketable securities (2)
54,625 54,625 
Total$54,631 $54,631 
 
September 30, 2024Active Markets for
Identical Instruments
(Level 1)		Fair Value as of September 30, 2024
 (In thousands)
Assets:
Cash equivalents (1)
$7,899 $7,899 
Marketable securities (2)
45,289 45,289 
Total$53,188 $53,188 
 
(1)Included in cash and cash equivalents on our consolidated balance sheets at September 30, 2025 and 2024. Not included in these tables are cash deposits of $134.1 million and $142.8 million at September 30, 2025 and 2024, respectively.
(2)Represents securities held under a supplemental retirement and savings plan for certain officers and senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our consolidated balance sheets at September 30, 2025 and 2024.
See Note 8 for the fair value of our senior notes.
There were no transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the years ended September 30, 2025, 2024 or 2023.

Historical Timeline

Fiscal YearFiled
2025Nov 7, 2025Showing above
2024Nov 6, 2024
2023Nov 8, 2023
2022Nov 9, 2022
2021Nov 10, 2021
2020Nov 12, 2020
2019Nov 8, 2019
2018Nov 9, 2018
2017Nov 9, 2017
2016Nov 10, 2016
2015Nov 10, 2015

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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