分组1 - Mitek Systems reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and up from $0.24 per share a year ago, representing an earnings surprise of 38.46% [1] - The company achieved revenues of $51.93 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 8.52%, and an increase from $46.97 million year-over-year [2] - Mitek Systems has outperformed consensus EPS estimates three times over the last four quarters [2] 分组2 - The stock has declined approximately 24% since the beginning of the year, compared to a decline of 4.3% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $45.82 million, and for the current fiscal year, it is $0.87 on revenues of $175.77 million [7] - The Computer - Optical Imaging industry, to which Mitek Systems belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Total revenue reached a record $51.9 million, up 11% year over year in Q2 [27] - Non-GAAP gross profit for the quarter was $45.6 million, representing an 88% non-GAAP gross margin [28] - Adjusted EBITDA came in at $20.2 million, representing a 39% margin, reflecting a 52% increase year over year [35] Business Line Data and Key Metrics Changes - Deposit products revenue increased by 14% year over year to $33.7 million, driven by strong mobile deposit renewal activity [28][29] - Identity products revenue grew by 4% year over year to $18.2 million, highlighted by a 9% increase in Identity SaaS revenue [30] - Check Fraud Defender's SaaS revenue rose 64% year over year, indicating growing traction [30] Market Data and Key Metrics Changes - The company now has data sets covering approximately 23% of U.S. checking accounts, up from 18% [18] - SaaS revenue grew 15% year over year and now accounts for 40% of total last twelve months revenue, up from 39% [21][32] Company Strategy and Development Direction - The company aims to drive organic growth, increase the percentage of SaaS revenue, expand margins, and improve free cash flow conversion [9] - The focus is on enhancing automation, product development, and data analytics to support durable profitable growth [13] - The strategy includes a shift towards a layered signal-rich approach for identity verification, combining biometrics and behavioral data [23][24] Management's Comments on Operating Environment and Future Outlook - Management noted resilience in the business despite macroeconomic uncertainties, with no cancellations observed [37] - The full-year revenue guidance remains at $170 million to $180 million, with an expectation for Q3 revenue to modestly exceed Q4 [38] - Adjusted EBITDA margin guidance has been raised to 26% to 29%, reflecting strong first-half performance [38] Other Important Information - The company generated $47 million in free cash flow over the last twelve months, with an 86% conversion rate [22] - A $100 million senior credit facility was closed to support capital allocation strategies [36] Q&A Session Summary Question: What has gone well and what has been difficult for the company? - Management highlighted strong execution and traction in the past quarter, with positive feedback from customers regarding the focus on fraud and identity [42][46] Question: Can you discuss the guidance and any pull-forwards that helped drive the strength in the quarter? - A large mobile deposit customer order came in earlier than expected, contributing to the overachievement in Q2 [47][48] Question: How is the company progressing towards its target of reaching $20 million ACV? - The company is seeing substantial ramp-up in volumes and partnerships, indicating positive leading indicators for future growth [49][51] Question: Can you quantify the improvements from the modernized document onboarding system? - While specific data was not provided, management indicated meaningful acceleration in cycle times and improved customer experience [56][58] Question: What is the expected trend for SaaS revenue mix in the coming years? - The goal is for SaaS revenue to represent more than half of total revenue by 2026, driven by growth in fraud and identity verification products [60][62] Question: How does the company plan to achieve organic growth? - The focus is on adding new customers while expanding existing relationships through new products and solutions [71]

Financial Data and Key Metrics Changes - Total revenue reached a record $51.9 million, up 11% year over year in Q2 2025 [25] - Non-GAAP gross profit for the quarter was $45.6 million, representing an 88% non-GAAP gross margin [26] - Adjusted EBITDA came in at $20.2 million, reflecting a 39% margin, which slightly exceeded expectations [26][34] Business Line Data and Key Metrics Changes - Deposit products revenue increased by 14% year over year to $33.7 million, driven by strong mobile deposit renewal activity [26][28] - Identity products revenue grew by 4% year over year to $18.2 million, highlighted by a 9% increase in Identity SaaS revenue [29] - Check Fraud Defender's SaaS revenue rose 64% year over year, indicating growing traction [28] Market Data and Key Metrics Changes - The company now has data set coverage on approximately 23% of all U.S. checking accounts, up from 18% [16] - SaaS revenue grew 15% year over year and now accounts for 40% of total last twelve months revenue, up from 39% [19][31] Company Strategy and Development Direction - The company aims to drive organic growth, increase the percentage of SaaS revenue, expand margins, and improve free cash flow conversion [8] - Mitek is focusing on a layered signal-rich approach to identity verification, combining biometrics and behavioral data to enhance security [21][22] - The leadership team has been strengthened with the appointment of a new COO to focus on scaling automation and product development [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment remains uncertain, but the business has shown resilience and has not seen cancellations related to macroeconomic factors [36] - The company is maintaining its full-year revenue guidance range of $170 million to $180 million, reflecting a cautious approach to the current environment [37] - Adjusted EBITDA margin guidance has been raised to 26% to 29%, up from the previous range of 25% to 28% [37] Other Important Information - The company generated $47 million in free cash flow over the last twelve months, with an 86% conversion rate [20] - A $100 million senior credit facility was closed to support capital allocation strategies [35] Q&A Session Summary Question: What has gone well and what has been difficult for the company? - Management highlighted strong execution and traction in the past quarter, with no cancellations observed from the macro environment [44][45] Question: Can you discuss the guidance and any pull-forwards that helped drive the strength in the quarter? - A large mobile deposit customer order was received earlier than expected, contributing to the overachievement in Q2 [46] Question: How is the company progressing towards its target of reaching $20 million ACV? - The company is seeing substantial ramp-up in volumes and partnerships, indicating positive leading indicators for future growth [48][49] Question: Can you quantify the improvements from the modernized document onboarding system? - While specific data was not provided, management indicated that the automation significantly accelerates cycle times and improves customer experience [54][56] Question: What is the expected trend for SaaS revenue in the coming years? - The company aims for SaaS revenue to represent more than half of total revenue by 2026, driven by growth in fraud and identity verification products [58][59] Question: How does the company plan to balance new business growth with expansion in existing clients? - The focus is on both acquiring new clients and expanding relationships with existing ones through new product offerings [67][69]

Financial Performance - Revenue for Q2 2025 was $51.9 million, an increase of 11% from $47.0 million in Q2 2024[132] - Net income for Q2 2025 was $9.2 million, or $0.20 per diluted share, compared to $0.3 million, or $0.01 per diluted share, in Q2 2024[132] - Total revenue increased by $5.3 million, or 6%, to $89.2 million for the six months ended March 31, 2025, compared to $83.9 million for the same period in 2024[151] - Net income for the six months ended March 31, 2025, was $4.5 million, a significant improvement of $10.1 million compared to a net loss of $5.5 million in the same period in 2024[150] Revenue Breakdown - Software and hardware revenue increased by $1.8 million, or 7%, to $26.7 million in Q2 2025, driven by higher sales of Mobile Deposit® software[140] - Services and other revenue rose by $3.2 million, or 14%, to $25.2 million in Q2 2025, primarily due to increased revenue from MiVIP, Mobile Deposit®, and Check Fraud Defender products[140] - Software and hardware revenue decreased by $2.2 million, or 5%, to $38.7 million, primarily due to lower sales of Mobile Deposit® and ID R&D biometrics software products[151] - Services and other revenue increased by $7.5 million, or 17%, to $50.5 million, driven by strong growth in MiVIP, Mobile Deposit®, Check Fraud Defender, and CheckReader™ products[151] Cash Flow and Liquidity - Cash provided by operating activities was $14.3 million for the six months ended March 31, 2025, compared to cash used of $2.4 million in the same period of 2024[132] - Cash and cash equivalents increased by $10.6 million, or 7%, to $152.4 million as of March 31, 2025, compared to $141.8 million on September 30, 2024[161] - The company believes current cash and cash equivalents, along with expected operational cash generation, will be sufficient to meet working capital needs for at least the next twelve months[187] Expenses - General and administrative expenses decreased by $4.8 million, or 32%, to $10.1 million in Q2 2025, mainly due to lower audit and professional fees[144] - Selling and marketing expenses decreased by $0.5 million, or 4%, to $10.5 million in Q2 2025, due to lower personnel-related costs[142] - General and administrative expenses decreased by $8.5 million, or 28%, to $22.0 million, mainly due to lower audit, accounting, and tax fees[155] Debt and Financing - The Company issued $155.3 million in 0.75% Convertible Senior Notes due February 1, 2026, with an additional $20.25 million purchased by initial purchasers[165] - The net proceeds from the offering of the 2026 Notes were approximately $149.7 million after deducting discounts and commissions[167] - The Company entered into a Credit Agreement providing a revolving line of credit of up to $35.0 million, with an additional $15.0 million at the Bank's discretion[171] - The Amended Credit Agreement includes a delayed draw term loan of up to $75.0 million to pay amounts outstanding under the 2026 Notes[178] Investments and Assets - As of March 31, 2025, the company had investments of $47.7 million in available-for-sale debt securities, representing 11% of total assets[191] - As of March 31, 2025, $31.5 million of available-for-sale securities were classified as current, while $16.2 million were classified as long-term[186] - The remaining maturities of marketable securities range from approximately one to 22 months as of March 31, 2025[191] Compliance and Governance - As of March 31, 2025, the Company was in compliance with the covenants in the Indenture after filing its 2023 Annual Report on March 19, 2024[166] - The net leverage ratio was 1.42 to 1.00 as of March 31, 2025, complying with the covenant of no more than 2.25 to 1.00[176] Shareholder Actions - The Company authorized a share repurchase program for up to $50.0 million effective May 16, 2024, expiring on May 16, 2026[184] - During the six months ended March 31, 2025, the Company repurchased 363,378 shares for $3.3 million at an average price of $8.99 per share[185] Market and Economic Conditions - Inflation has not materially affected the company's financial condition or results of operations during the six months ended March 31, 2025, or 2024[194] - The company has operations in the UK, France, the Netherlands, and Spain, which are exposed to foreign currency exchange rate fluctuations[193] - The fair value of cash equivalents and debt securities is subject to changes in market interest rates, but a hypothetical 100 basis point change would not materially impact their fair value[192] Other Information - Total number of issued patents reached 105 as of March 31, 2025, with 20 patent applications outstanding[132] - There have been no material changes to critical accounting estimates since the 2024 Annual Report[189]

Financial Performance - Mitek reported record revenue of $51.9 million for Q2 2025, an 11% increase year-over-year from $46.97 million[6]. - GAAP net income for Q2 2025 was $9.2 million, compared to $0.3 million in Q2 2024, resulting in a net income per diluted share of $0.20[6]. - Adjusted EBITDA for Q2 2025 was $20.2 million, up from $13.3 million a year ago, with an adjusted EBITDA margin of 38.8%[6]. - Non-GAAP net income for Q2 2025 was $16.7 million, compared to $11.5 million in Q2 2024, with a non-GAAP net income per diluted share of $0.36[6]. - Total revenue for the three months ended March 31, 2025, was $51.929 million, an increase of 10.4% compared to $46.968 million for the same period in 2024[22]. - The company reported a GAAP net income for the three months ended March 31, 2025, of $42.141 million, compared to $37.499 million for the same period in 2024, an increase of 12.0%[24]. - Total revenue for the three months ended March 31, 2025, reached $51,929 thousand, compared to $46,968 thousand for the same period in 2024, reflecting a growth of 6.3%[29]. - Adjusted EBITDA for the three months ended March 31, 2025, was $20,167 thousand, up from $13,263 thousand in the prior year, resulting in an adjusted EBITDA margin of 38.8% compared to 28.2%[29]. - Non-GAAP net income for the three months ended March 31, 2025, was $16,746 thousand, compared to $11,536 thousand in the same period of 2024, indicating a year-over-year increase of 45.1%[33]. Revenue Growth - SaaS revenue grew by 15% year-over-year, reflecting increased reliance on Mitek's Identity Verification and Fraud solutions[2]. - Total deposits revenue for the three months ended March 31, 2025, was $33.689 million, up from $29.504 million in the prior year, reflecting a growth of 7.4%[22]. - Total identity revenue for the three months ended March 31, 2025, was $18.240 million, compared to $17.464 million in the same period of 2024, showing an increase of 4.4%[22]. Cash Flow and Liquidity - Total cash and investments increased to $152.4 million as of March 31, 2025, up from $141.8 million at the end of FY 2024[6]. - Free cash flow for the six months ended March 31, 2025, was $13.7 million, a significant improvement from negative $3.1 million for the same period last year[6]. - Free cash flow for the three months ended March 31, 2025, was $13,511 thousand, compared to $6,581 thousand for the same period in 2024, showing a substantial increase[35]. Guidance and Forecast - Mitek maintained its fiscal 2025 full-year revenue guidance of $170 million to $180 million[5]. - The company raised its fiscal 2025 adjusted EBITDA margin guidance range by 100 basis points to 26%-29%[7]. Expenses and Liabilities - Non-GAAP operating expenses for the three months ended March 31, 2025, were $25.737 million, down from $28.063 million in the prior year, a decrease of 8.5%[26]. - Total liabilities rose to $205.126 million as of March 31, 2025, compared to $198.952 million as of September 30, 2024, indicating an increase of 3.4%[20]. - Restructuring costs for the six months ended March 31, 2025, amounted to $837 thousand, compared to $578 thousand in the same period of 2024[31]. Equity and Assets - Total current assets increased to $203.909 million as of March 31, 2025, from $185.051 million as of September 30, 2024, marking a growth of 10.3%[20]. - Stockholders' equity increased to $220.214 million as of March 31, 2025, from $214.801 million as of September 30, 2024, reflecting a growth of 2.1%[20]. Other Financial Metrics - GAAP gross margin for the three months ended March 31, 2025, was 81.2%, up from 79.8% in the previous year[24]. - Interest expense for the three months ended March 31, 2025, was $2,407 thousand, slightly higher than $2,303 thousand in the same period of 2024[29]. - The effective tax rate for GAAP net income for the three months ended March 31, 2025, was 9%, a significant decrease from 168% in the same period of 2024[33]. - Stock-based compensation expense for the three months ended March 31, 2025, totaled $4,352 thousand, an increase from $3,888 thousand in the same period of 2024[37]. Financing Activities - Mitek secured a new $75 million term loan facility to retire outstanding Convertible Notes due February 1, 2026[7]. Risk Management - The company utilized third-party experts for enterprise risk and portfolio positioning analysis during the six months ended March 31, 2024[30].

Core Viewpoint - The article discusses potential investment opportunities in MITK, indicating a possible long position within the next 72 hours [1]. Group 1 - The analyst has no current stock, option, or similar derivative position in any of the companies mentioned [1]. - There is an intention to initiate a beneficial long position through stock purchase or call options in MITK [1].

Financial Data and Key Metrics Changes - Total revenue for fiscal Q1 was $37.3 million, slightly ahead of last year's results, with a 9% year-over-year decline in deposit products revenue and a 13% increase in identity products revenue [33][34] - Non-GAAP gross profit was $31.5 million, representing an 84% non-GAAP gross margin, with adjusted EBITDA reaching $7.8 million, a 21% margin, both exceeding expectations due to cost efficiencies [34][41] - Total SaaS revenue grew 29% year-over-year, with deposit SaaS revenue up 64% and identity SaaS revenue up 26% [29][34] Business Line Data and Key Metrics Changes - Deposit products revenue declined 9% year-over-year to $19.3 million, primarily due to a 21% decline in deposit software license revenue [35] - Identity products revenue increased by 13% year-over-year to $18 million, driven by a 26% year-over-year increase in identity SaaS revenue [40] - Services revenue streams grew by 21% year-over-year, offsetting a 25% decline in software and hardware sales [40] Market Data and Key Metrics Changes - The company processed approximately 1.2 billion transactions annually, maintaining stable transactional volumes [39] - The Check Fraud Defender's annual contract value (ACV) approached $12 million, with data sets on approximately 18% of all checking accounts in the country [25][26] Company Strategy and Development Direction - The company aims to enhance solutions, achieve operational excellence, and strengthen its foundation for durable, profitable revenue growth in fiscal '26 and beyond [11][30] - A four-pronged framework guides the company's transformation, focusing on strengthening the foundation, scaling the identity platform, expanding fraud solutions, and maintaining operational excellence [12] - The company is focused on integrating its identity verification engines into a unified platform, MiVIP, to enhance customer experience and competitive position [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to double-digit growth CAGR, driven by ongoing improvements and customer engagement [52][55] - The company anticipates continued growth in identity and fraud solutions, with a focus on addressing increasing threats from fraud and cyberattacks [8][11] - Management highlighted the importance of customer relationships and the strategic value provided to high-assurance businesses [22][24] Other Important Information - The company generated $40.2 million in free cash flow over the last 12 months and repurchased $27.2 million worth of shares [45] - Fiscal 2025 revenue guidance remains at $170 million to $180 million, with adjusted EBITDA margin guidance raised to 25% to 28% [48] Q&A Session Summary Question: Near-term opportunities and growth confidence - Management remains confident in the business's ability to return to double-digit growth, citing encouraging customer interactions and market conditions [52][55] Question: Check Fraud Defender partner channel trends - Partnerships are growing, and the value of the solution is compelling for financial institutions facing increasing fraud [58][60] Question: Update on ID R&D deals and sales cycle - Sales cycles for larger deals are long, but management expects benefits to materialize in the second half of fiscal '25 and into '26 [64][65] Question: Competitive environment and pricing pressures - The focus is on growing MiVIP, which is expected to reduce pricing pressures over time as more business shifts to the platform [90][92] Question: Revenue opportunity comparison between Check Fraud Defender and mobile deposits - Management refrained from providing specific revenue comparisons but emphasized the growth potential of Check Fraud Defender in addressing fraud challenges [112][113]

Group 1 - Mitek Systems reported quarterly earnings of $0.15 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, and showing a slight increase from $0.14 per share a year ago, resulting in an earnings surprise of 15.38% [1] - The company achieved revenues of $37.25 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.93%, and compared to $36.92 million in the same quarter last year [2] - Mitek Systems has outperformed consensus revenue estimates three times over the last four quarters [2] Group 2 - The stock has underperformed the market, losing about 5.8% since the beginning of the year, while the S&P 500 has gained 2.5% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.24 on revenues of $47.02 million, and for the current fiscal year, it is $0.87 on revenues of $175.36 million [7] Group 3 - The Computer - Optical Imaging industry, to which Mitek Systems belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Mitek Systems is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

Revenue Performance - Total revenue for the three months ended December 31, 2024, was $37.3 million, a 1% increase from $36.9 million in the same period of 2023[130] - Software and hardware revenue decreased by $4.0 million, or 25%, to $12.0 million, primarily due to lower sales of Mobile Deposit® software products[138] - Services and other revenue increased by $4.3 million, or 21%, to $25.3 million, driven by higher transactional SaaS revenue from identity verification products[138] Net Loss and Cash Flow - Net loss for the three months ended December 31, 2024, was $4.6 million, or negative $0.10 per diluted share, an improvement from a net loss of $5.8 million, or negative $0.13 per diluted share, in the same period of 2023[130] - Cash provided by operating activities was $0.6 million for the three months ended December 31, 2024, compared to cash used in operating activities of $9.5 million in the same period of 2023[130] - Net cash provided by operating activities for the three months ended December 31, 2024 was $0.6 million, an increase of $10.0 million compared to a net cash used of $9.5 million in the same period of 2023[149] Expenses - General and administrative expenses decreased by $3.6 million, or 23%, to $11.9 million, primarily due to lower legal and professional fees[142] - Research and development expenses decreased by $0.6 million, or 6%, to $8.3 million, mainly due to lower personnel-related costs[141] - Selling and marketing expenses decreased by $0.2 million, or 2%, to $9.7 million, attributed to lower personnel-related costs[140] Other Income and Tax - Other income decreased by $1.1 million, or 66%, to $0.6 million, primarily due to higher foreign currency exchange transactional losses[146] - For the three months ended December 31, 2024, the company recorded an income tax benefit of $0.3 million, resulting in an effective tax rate of 6%, compared to a benefit of $1.7 million and a 23% effective tax rate for the same period in 2023[147] Cash and Securities - As of December 31, 2024, the company had $137.9 million in cash and cash equivalents, a decrease of $3.9 million or 3% from $141.8 million on September 30, 2024[148] - Net cash provided by investing activities was $0.8 million for the three months ended December 31, 2024, a decrease of $17.0 million from $17.9 million in the same period of 2023[150] - As of December 31, 2024, the Company had $47.3 million in available-for-sale debt securities, representing 12% of total assets[174] Financing Activities - The company used $3.1 million in financing activities during the three months ended December 31, 2024, primarily due to repurchases of Common Stock[151] - The company issued $155.3 million in 0.75% Convertible Senior Notes due 2026, with a conversion price of approximately $20.85 per share, representing a 37.5% premium to the last reported sale price on February 2, 2021[152] - The company entered into a revolving line of credit agreement allowing borrowing up to $35.0 million, with an additional $15.0 million at the bank's discretion[158] Share Repurchase and Leverage - The company has a share repurchase program authorized for up to $50.0 million, effective from May 16, 2024, to May 16, 2026[165] - As of December 31, 2024, the company's net leverage ratio was 1.79 to 1.00, in compliance with the covenant of the Credit Agreement[163] - The Company purchased 363,378 shares for $3.3 million at an average price of $8.99 per share during the three months ended December 31, 2024[166] Working Capital and Securities Classification - Working capital decreased to $138.3 million at December 31, 2024, down from $142.9 million at September 30, 2024[168] - The Company classified $30.6 million of available-for-sale securities as current and $16.7 million as long-term as of December 31, 2024[167] Market Conditions and Accounting Estimates - A hypothetical 100 basis point change in market interest rates would not materially impact the fair value of the Company's cash equivalents and debt securities[175] - The Company operates in the UK, France, the Netherlands, and Spain, exposing it to foreign currency exchange rate fluctuations[176] - Inflation did not have a material effect on the Company's financial condition or results of operations during the three months ended December 31, 2024[177] - The Company has not made any material changes to its critical accounting estimates from those disclosed in the 2024 Annual Report[170] - The fair value of cash equivalents and debt securities is subject to changes in market interest rates and issuer creditworthiness[175] - The Company believes its current cash and cash equivalents will be adequate to satisfy working capital needs for at least the next twelve months[168]

Financial Performance - Mitek reported fiscal 2025 first quarter revenue of $37.3 million, relatively flat year-over-year compared to $36.9 million[5]. - GAAP net loss for the quarter was $4.6 million, an improvement from a net loss of $5.8 million a year ago[5]. - Adjusted EBITDA increased to $7.8 million, up from $5.9 million a year ago, with an adjusted EBITDA margin of 21%, compared to 16% a year ago[5]. - Non-GAAP net income was $6.6 million, slightly up from $6.3 million a year ago, with non-GAAP net income per diluted share at $0.15[5]. - Total revenue for the three months ended December 31, 2024, was $37,254,000, representing an increase of 0.9% compared to $36,917,000 in the same period of 2023[19]. - GAAP net loss for Q4 2024 was $4,612,000, an improvement from a loss of $5,793,000 in Q4 2023[25]. - Adjusted EBITDA for Q4 2024 was $7,845,000, with an adjusted EBITDA margin of 21%, compared to $5,949,000 and 16% in Q4 2023[25]. - Non-GAAP net income for the same period was $6,633 thousand, compared to $6,325 thousand in 2023, reflecting a year-over-year increase of 4.9%[28]. - Non-GAAP income per share—basic and diluted for Q4 2024 was $0.15, up from $0.14 in Q4 2023[28]. Revenue Segmentation - SaaS products grew 29% year-over-year, contributing positively to the overall performance[2]. - Total deposits revenue decreased to $19,285,000 in Q4 2024, down 8.5% from $21,077,000 in Q4 2023[19]. - Total identity revenue increased to $17,969,000 in Q4 2024, up 13.4% from $15,840,000 in Q4 2023[19]. Cash and Investments - Total cash and investments decreased to $137.9 million from $141.8 million at the end of the previous fiscal year[5]. - Total current assets decreased to $176,837,000 as of December 31, 2024, down from $185,051,000 as of September 30, 2024[18]. - Free cash flow for the twelve months ended December 31, 2024, was $40,184 thousand, compared to $15,742 thousand for the twelve months ended December 31, 2023, indicating a significant increase[30]. - Operating cash flow for the three months ended December 31, 2024, was $7,064 thousand, compared to $6,301 thousand in the same period of 2023[30]. Guidance and Future Outlook - Mitek is maintaining its fiscal 2025 full-year revenue guidance of between $170 million and $180 million[5]. - The company raised the lower end of its fiscal 2025 adjusted EBITDA margin guidance by 100 basis points to a range of 25%-28%[5]. - The company is focused on strengthening its foundation for durable, profitable revenue growth in fiscal 2026 and beyond[2]. Expenses and Liabilities - Non-GAAP operating expenses for Q4 2024 were $24,021,000, a decrease from $25,955,000 in Q4 2023[23]. - Total liabilities decreased to $195,042,000 as of December 31, 2024, compared to $198,952,000 as of September 30, 2024[18]. - Stockholders' equity decreased to $200,917,000 as of December 31, 2024, down from $214,801,000 as of September 30, 2024[18]. - Total stock-based compensation expense for Q4 2024 was $4,465 thousand, an increase from $3,430 thousand in Q4 2023[32]. Taxation - The estimated cash tax rate for fiscal 2025 is 15%, compared to 9% for fiscal 2024, reflecting a change in tax strategy[28]. - The effective tax rate for GAAP net income was 6% for fiscal 2025, down from 23% for fiscal 2024, indicating improved tax efficiency[28]. Strategic Initiatives - The company utilized third-party experts for product portfolio evaluation and competitive landscape analysis during Q4 2023, indicating a focus on strategic positioning[28]. - Mitek repurchased 0.4 million shares at an average price of $8.99, totaling approximately $3.3 million[5]. - Restructuring costs for the three months ended December 31, 2024, were $808 thousand, significantly higher than $48 thousand in the same period of 2023[28].