Fair Isaac raised its full-year outlook after reporting an increase in revenue, driven by growth in its credit-scoring business.

The company behind the FICO credit score model on Wednesday said it now expects revenue of $2.53 billion, up from its prior forecast of $2.45 billion, and adjusted earnings per share of $42.43, compared with its previous guidance of $40.45.

The company posted a fiscal third-quarter profit of $237.2 million, or $10.45 a share, compared with $181.8 million, or $7.40 a share, a year earlier. Stripping out certain one-time items, adjusted per-share earnings were $12.18.

Third-quarter revenue rose 26% to $674.2 million. Wall Street analysts expected revenue of $679.2 million. The company's Scores segment drove growth, with revenue rising 41% from a year earlier to $458.9 million, helped by higher mortgage origination scores pricing. Software revenue rose 2% to $215.3 million.

The results come as Fair Isaac faces growing competition in the mortgage credit-scoring market. The company has historically dominated mortgage lending, where FICO scores have long been the standard measure used by lenders.

The shift comes after the Federal Housing Administration said it would allow lenders to use an alternate credit score model, VantageScore 4.0, for FHA-insured mortgage underwriting. Fannie Mae and Freddie Mac have also said they would accept VantageScore 4.0 alongside FICO's scoring model.