Financial Data and Key Metrics Changes - Total Q4 revenue was $44.8 million, up 4% year over year, with SaaS revenue growth of 19% being a highlight [20][21] - For fiscal year 2025, total revenue was about $180 million, split evenly between fraud and identity and check verification, with a consolidated revenue growth of 4% [24][25] - Adjusted EBITDA for fiscal 2025 grew by 15% to $54 million, representing a margin of 30%, up from 27% a year ago [27] Business Line Data and Key Metrics Changes - Fraud and identity revenue was $90 million, up 15% year over year, with growth led by SaaS offerings [23] - Check verification revenue for fiscal 2025 was $90 million, compared to $94 million in fiscal 2024, reflecting deal timing year over year [24] - SaaS revenue growth accelerated to 21% in fiscal 2025, with SaaS now accounting for 43% of total revenue [7][30] Market Data and Key Metrics Changes - In North America, several large financial institutions expanded their partnerships, integrating identity verification with fraud checks [9] - In EMEA, banks in the UK and Europe are adopting new authentication products, driving higher verification volumes [9] - The Check Fraud Defender's annual contract value (ACV) grew 50% year over year, with data sets configured in the consortium expanding to over 25% of all U.S. checking accounts [10] Company Strategy and Development Direction - The company aims to unify its identity, authentication, and fraud capabilities into a cohesive platform, focusing on deeper, signal-rich identity journeys [12][15] - Fiscal 2026 is organized around four key pillars: fortifying check verification, unifying fraud and identity capabilities, investing in areas of advantage, and maximizing value through disciplined capital allocation [12][17] - The company is transitioning to a heavier SaaS and services mix, which is expected to compress gross margins slightly but increase absolute gross profit dollars [25][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increasing urgency of addressing synthetic identity fraud as a major threat, with AI-enabled fraud attempts rising sharply [5][6] - The company expects fiscal 2026 revenue of $185-$195 million, reflecting stable check verification and accelerating fraud and identity demand [30] - Management expressed confidence in achieving long-term growth objectives, driven by the rising demand for fraud and identity solutions [37][38] Other Important Information - The company has fully remediated all previously reported material weaknesses in its internal controls, marking a significant milestone [32] - Free cash flow for fiscal 2025 was $54 million, equating to 100% conversion of adjusted EBITDA [27][28] - The company ended the year with about $196 million of cash and investments, providing flexibility for future capital needs [29] Q&A Session Summary Question: What are the key drivers behind the growth of the SaaS business? - Management noted that underlying demand driven by the rise in synthetic fraud and partnerships with large financial institutions are key growth drivers [34][35] Question: Can you provide updates on Check Fraud Defender's progress? - Management reported a 50% growth in overall ACV and highlighted that data sets now cover over 25% of U.S. checking accounts, approaching 50% when including pilot institutions [35][36] Question: What is the outlook for organic growth? - Management expressed confidence in achieving double-digit organic growth, supported by the growing need for fraud and identity detection [37] Question: How is the company managing its investment pace? - Management indicated a balanced approach to investments, focusing on R&D and capitalizing on market opportunities while maintaining margin discipline [42][45] Question: What is the status of the mobile deposit business? - Management acknowledged potential secular decline in mobile deposit transaction volumes but noted stability in current volumes [51][54] Question: How will the company handle the upcoming convertible debt? - Management confirmed plans to pay off the convertible debt completely when due in February 2026, utilizing cash and available credit facilities [54]

Financial Performance & Growth - Mitek's LTM revenue reached $180 million, a 4% year-over-year increase[11] - Fraud & Identity Solutions revenue grew by 15% year-over-year, reaching $90 million and representing 50% of total revenue[11, 43] - SaaS revenue increased by 21% in FY25, reaching $77 million and accounting for 43% of total revenue[11, 37, 43] - Adjusted EBITDA reached $54 million, with a margin of approximately 30%[11, 39, 43] - Free cash flow was $54 million, representing a 100% conversion of Adjusted EBITDA[11, 40, 43] Strategic Positioning & Market - Check Fraud Defender ACV grew by approximately 50% year-over-year[38] - Mitek has a net cash position of $40 million[11, 40, 43] - The company estimates the FY26 total revenue to be between $185 million and $195 million, representing approximately 55% year-over-year growth[13, 78] - The company estimates the FY26 Fraud & Identity Solutions revenue to be between $101 million and $105 million, representing approximately 15% year-over-year growth[78]

Mitek Reports Record Fiscal 2025 Revenue SAN DIEGO, Calif. - December 11, 2025 - Mitek Systems, Inc. (NASDAQ: MITK, www.miteksystems.com, "Mitek" or the "Company"), a global leader in digital identity verification and fraud prevention, today reported financial results for its fourth quarter ended September 30, 2025 and provided guidance for its 2026 full year ending September 30, 2026 ("fiscal 2026"). "Mitek delivered a strong finish to fiscal 2025, returning to full-year organic growth, driven by an accele ...

Financial Performance - Total revenue for the twelve months ended September 30, 2025, was $179.7 million, an increase of 4% compared to $172.1 million for the same period in 2024[200] - Net income for the twelve months ended September 30, 2025, was $8.8 million, or $0.19 per diluted share, compared to $3.3 million, or $0.07 per diluted share, for the same period in 2024[200] - Cash provided by operating activities was $55.3 million for the twelve months ended September 30, 2025, compared to $31.7 million for the same period in 2024[200] - The company reported net income of $8.8 million for fiscal 2025, compared to $3.3 million in fiscal 2024[214] Revenue Breakdown - SaaS, maintenance, and other revenue increased by $15.4 million, or 17%, to $105.6 million in 2025, driven by strong growth in products like Mobile Verify® and HooYu[201] - Software license and hardware revenue decreased by $7.8 million, or 10%, to $74.1 million in 2025, primarily due to lower multi-year term license renewals[201] Cash and Investments - As of September 30, 2025, the company had $196.5 million in cash and cash equivalents, an increase of $54.7 million, or 39%, compared to $141.8 million on September 30, 2024[212] - Net cash provided by operating activities during fiscal 2025 was $55.3 million, up $23.7 million from $31.7 million in fiscal 2024, primarily due to an increase in net income[214] - Net cash provided by investing activities was $5.8 million in fiscal 2025, a decrease from $28.7 million in fiscal 2024, primarily due to a decrease in net maturities of investments[216][217] - The company's investment portfolio, as of September 30, 2025, had a fair market value of $42.3 million, representing 9% of total assets[253] Expenses and Cost Management - General and administrative expenses decreased by $8.7 million, or 16%, to $44.3 million in 2025, mainly due to lower audit and professional fees[205] Debt and Financing - The company issued $155.3 million in 0.75% Convertible Senior Notes due 2026, with net proceeds of approximately $149.7 million[220][221] - The Amended Credit Agreement allows the company to borrow up to $25.0 million, with an additional $15.0 million at the bank's discretion, secured by the company's assets[226][228] - As of September 30, 2025, the company's net leverage ratio was 1.06 to 1.00, in compliance with the covenant of the Amended Credit Agreement[233] - The company has outstanding loans with Spanish government agencies totaling $4.3 million as of September 30, 2025, with interest rates ranging from 0% to 3.72%[235] - The company incurred issuance costs of $0.2 million related to the Amended Credit Agreement, recorded as other income (expense), net[229] - The company authorized a share repurchase program for up to $50 million, effective from May 16, 2024, to May 16, 2026[236] - As of September 30, 2025, the company had repurchased approximately $29.0 million worth of shares, retiring a total of 2,774,676 shares[237] - During the period from October 1, 2025, to December 10, 2025, the company purchased an additional $7.8 million worth of shares, totaling 865,842 shares at an average price of $9.01 per share[238] Operational Highlights - Mitek serves over 7,000 organizations globally, including financial institutions and fintech companies, enhancing operational efficiency and user experience[186] - The company added new patents, bringing the total to 110 issued patents and 25 outstanding patent applications as of September 30, 2025[200] - Mitek continues to invest in R&D across fraud, data, AI, and identity science to adapt to emerging threats in the digital landscape[191] - The acquisition of HooYu Ltd. in 2022 expanded Mitek's offerings in fraud, risk management, and compliance[188] Working Capital and Assets - The company reported working capital of $39.5 million as of September 30, 2025, a decrease from $142.9 million as of September 30, 2024, primarily due to the reclassification of $152.2 million in 2026 Notes to current liabilities[242] - As of September 30, 2025, the company had $42.3 million in available-for-sale debt securities, with $38.9 million classified as current and $3.5 million as long-term[241] Economic Environment - The company does not believe inflation has materially affected its financial condition or results of operations in the last three fiscal years[256] - The company has operations in the UK, France, the Netherlands, and Spain, which are exposed to foreign currency exchange rate fluctuations[255] Lease and Rent - The average annual base rent for the company's principal executive office in San Diego is approximately $0.3 million[239] - The company received tenant improvement allowances totaling approximately $0.1 million related to its San Diego lease[239]

Core Insights - Mitek Systems, Inc. has been recognized with two prestigious awards at Juniper Research's Fintech and Payments Future Digital Awards 2025, highlighting its leadership in digital identity verification and fraud prevention [1] Group 1: Awards and Recognition - Mitek Systems won 'Fraud and Security Innovation of the Year' and 'Best Identity Verification Innovation' at the awards [1] - These awards underscore Mitek's innovation and leadership in addressing significant threats in identity verification [1] Group 2: Industry Context - The recognition reflects the growing importance of fraud prevention and identity verification in the fintech sector, as these areas are becoming increasingly critical due to rising concerns over security [1]

Core Insights - Mitek Systems reported revenue of $45.73 million for the quarter ended June 2025, reflecting a 1.7% increase year-over-year and a 3.7% surprise over the Zacks Consensus Estimate of $44.1 million [1] - The company's EPS was $0.22, down from $0.25 in the same quarter last year, with a notable EPS surprise of 22.22% compared to the consensus estimate of $0.18 [1] Revenue Breakdown - Software and hardware revenue was $19.51 million, which is a 13.9% decrease year-over-year and below the average estimate of $20.54 million from three analysts [4] - Service and other revenue reached $26.22 million, exceeding the estimated $22.95 million and representing a 17.5% increase compared to the previous year [4] - Non-GAAP gross profit for services and other was $19.43 million, surpassing the average estimate of $18.95 million [4] - Non-GAAP gross profit for software and hardware was $19.45 million, also exceeding the average estimate of $18.29 million [4] Stock Performance - Mitek Systems' shares have declined by 10.2% over the past month, contrasting with a 1.2% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Mitek Systems reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, but down from $0.25 per share a year ago, resulting in an earnings surprise of +22.22% [1] - The company achieved revenues of $45.73 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.70% and showing an increase from $44.98 million year-over-year [2] - Mitek Systems has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Mitek Systems' stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $42.75 million, and for the current fiscal year, it is $0.84 on revenues of $176.04 million [7] Industry Context - The Computer - Optical Imaging industry, to which Mitek Systems belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Mitek Systems' performance [5]

Financial Data and Key Metrics Changes - Total revenue for Q3 was $45.7 million, up 2% year over year, driven primarily by identity products which grew 24% year over year [24][27] - Non-GAAP gross margin for the quarter was 85%, about 100 basis points less than a year ago due to a slight mix shift away from higher margin deposit products [24] - Free cash flow for the last twelve months was $55.8 million, representing a 99% conversion rate [32] Business Line Data and Key Metrics Changes - Identity revenue reached $75 million, up 13% year over year, with SaaS revenue growing 19% [12][24] - Deposits product revenue was $26.2 million, with trailing twelve month license revenue totaling $69.1 million, reflecting resilience despite overall check volume declines [26][27] - Check Fraud Defender's annual contract value reached approximately $13.1 million, up 56% year over year [16] Market Data and Key Metrics Changes - SaaS revenue now represents over 41% of trailing twelve month revenue, up from the previous quarter [19][29] - The fraud prevention consortium now encompasses approximately a quarter of all U.S. checking accounts, around 100 million accounts [8][18] Company Strategy and Development Direction - The company is focused on four strategic pillars: strengthening the foundation, scaling identity, expanding fraud solutions, and driving operational excellence [9][19] - The goal is to unify the platform that integrates identity, authentication, and fraud detection, positioning the company for scalable, durable growth [35][73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in approaching a fulcrum point for durable profitability in the identity product portfolio [6][12] - The company anticipates continued execution in 2026, focusing on unifying the platform and strengthening the foundation [38][39] Other Important Information - The company has launched efficiency initiatives, including vendor audits and renegotiation of contracts, to improve operational efficiency [20] - The company ended Q3 with over $175 million in cash and investments, maintaining a healthy net cash position [32] Q&A Session Summary Question: How is the company thinking about returning to double-digit growth in 2026? - Management indicated that 2026 will focus on unifying the platform and strengthening the foundation, with anticipated revenue growth from SaaS solutions [38] Question: What is the outlook for deposit software revenue, which is down 20% year over year? - Management noted stability in transaction volumes and successful offsetting of revenue declines with increases in average selling prices [40][41] Question: How is the pipeline looking for Check Fraud Defender? - Management reported excellent ongoing dialogues with multiple partners and optimism about converting pilot phases into contracts [44][46] Question: What are the most exciting developments for the rest of fiscal year 2025 and heading into 2026? - Management expressed enthusiasm about executing on outlined goals, stability in mobile deposit business, and growth potential in fraud and identity solutions [49][50] Question: Can you provide an update on the larger IDR and D deals? - Management stated that some larger deals are still in progress, with ongoing focus on closing those deals [57] Question: How does the company plan to allocate cash and cash flow going forward? - Management emphasized a balanced approach between investing in the business and returning capital to shareholders, with a focus on organic growth [81][84] Question: Is there potential for further margin improvements from automation? - Management confirmed a 200 basis points year-over-year improvement in services gross margin and indicated room for further automation-driven improvements [86]

Financial Performance - Q3 FY25 - Total revenue reached $46 million, a 2% increase compared to Q3 FY24[31] - Identity revenue grew significantly by 24% to $20 million[31] - Deposits revenue experienced a decrease of 10%, totaling $26 million[31] - SaaS revenue showed strong growth, increasing by 23% to $19 million[31] - Adjusted EBITDA increased by 8% to $13 million, with an adjusted EBITDA margin of 28.4%, a 160 bps increase[31] - Free Cash Flow surged by 69% to $21 million[31] Key Metrics - LTM SaaS Revenue increased by 21% year-over-year, reaching $74 million, representing 41% of total LTM revenue, up 470 bps[33] - LTM Adjusted EBITDA increased significantly by 53% to $57 million[33] - LTM Free Cash Flow showed substantial growth, increasing by 345% to $56 million[33] - Free Cash Flow Conversion reached 99%, a significant increase of 6490 bps[33] Financial Outlook for FY25 - The company projects total revenue between $174 million and $177 million for FY25[56] - The company anticipates an adjusted EBITDA margin between 28% and 29% for FY25[60]

[Executive Summary & Business Overview](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Overview) [Company Overview](index=1&type=section&id=Company%20Overview) Mitek Systems, Inc. is a global leader in digital identity verification and fraud prevention, offering solutions that safeguard critical digital interactions from account opening to authentication and deposit - Mitek Systems, Inc. is a **global leader** in digital identity verification and fraud prevention[1](index=1&type=chunk) - The company's technology safeguards critical digital interactions, helping businesses verify identities, prevent fraud, and deliver secure digital experiences[7](index=7&type=chunk) - Over **7,000 organizations** rely on Mitek to protect customer connections and manage emerging risks[7](index=7&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) Mitek's CEO, Ed West, reported a solid third quarter with **accelerating SaaS revenue growth of 23% year-over-year**, indicating strong demand for identity and fraud solutions - **SaaS revenue growth accelerated to 23% year-over-year**, demonstrating growing demand for identity and fraud solutions[2](index=2&type=chunk) - **Core Deposits software products provide stability**, supported by resilient transaction volumes and strong free cash flow generation[2](index=2&type=chunk) - The company is executing a **strategic shift to SaaS**, streamlining operations, and aligning product investments and go-to-market strategy around a unified, integrated platform for durable, profitable growth[2](index=2&type=chunk) [Fiscal 2025 Third Quarter Financial Highlights](index=1&type=section&id=Fiscal%202025%20Third%20Quarter%20Financial%20Highlights) [GAAP Financial Highlights](index=1&type=section&id=GAAP%20Financial%20Highlights) Mitek reported a **2% year-over-year increase** in total revenue and a significant improvement in GAAP net income for Q3 Fiscal 2025, driven by strong SaaS revenue growth Fiscal 2025 Third Quarter GAAP Financial Highlights | Metric | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | YoY Change | Notes | | :--------------------------- | :------------------- | :------------------- | :--------- | :---- | | Total Revenue | $45.7 | $45.0 | +2% | | | SaaS Revenue | $19.3 | $15.7 | +23% | | | Gross Profit | $35.5 | $35.2 | +1% | | | GAAP Gross Profit Margin | 77.7% | 78.3% | -0.6 pp | | | GAAP Net Income | $2.4 | $0.2 | +$2.2 | | | GAAP Net Income per Diluted Share | $0.05 | $0.00 | +$0.05 | | | Total Cash and Investments (as of June 30, 2025) | $175.4 | $141.8 (Sept 30, 2024) | +$33.6 | | [Non-GAAP Financial Highlights](index=1&type=section&id=Non-GAAP%20Financial%20Highlights) In Q3 Fiscal 2025, Mitek's non-GAAP gross profit increased slightly, while the margin saw a minor decrease Fiscal 2025 Third Quarter Non-GAAP Financial Highlights | Metric | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | YoY Change | Notes | | :--------------------------- | :------------------- | :------------------- | :--------- | :---- | | Non-GAAP Gross Profit | $38.9 | $38.7 | +1% | | | Non-GAAP Gross Profit Margin | 85.0% | 86.0% | -1.0 pp | | | Adjusted EBITDA | $13.1 | $12.1 | +$1.0 | | | Adjusted EBITDA Margin | 28.6% | 26.9% | +1.7 pp | | | Non-GAAP Net Income | $10.2 | $12.0 | -$1.8 | | | Non-GAAP Net Income per Diluted Share | $0.22 | $0.25 | -$0.03 | | | Free Cash Flow (9 months ended June 30, 2025) | $35.0 | $9.4 | +$25.6 | | | Free Cash Flow (12 months ended June 30, 2025) | $55.8 | $12.5 | +$43.3 | | [Fiscal 2025 Full Year Guidance](index=1&type=section&id=Fiscal%202025%20Full%20Year%20Guidance) Mitek has updated its full-year fiscal 2025 guidance, tightening the revenue range and raising the midpoint of its adjusted EBITDA margin guidance, reflecting improved outlook Fiscal 2025 Full Year Guidance Update | Metric | Updated Guidance | Prior Guidance | Notes | | :-------------------- | :--------------- | :------------- | :---- | | Total Revenue | $174M - $177M | $170M - $180M | Tightened range, implies Q4 revenue of $39M - $42M | | Adjusted EBITDA Margin | 28% - 29% | 26% - 29% | Midpoint raised | [Non-GAAP Financial Measures Explanation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) [Non-GAAP Measures Definition and Rationale](index=3&type=section&id=Non-GAAP%20Measures%20Definition%20and%20Rationale) Mitek uses various non-GAAP financial measures, such as non-GAAP gross profit, net income, and adjusted EBITDA, to supplement GAAP statements - Non-GAAP measures exclude items such as amortization of acquisition-related intangibles, litigation costs, executive transition costs, stock-based compensation, non-recurring audit fees, enterprise risk costs, and restructuring costs[12](index=12&type=chunk) - Management believes these non-GAAP measures provide a **useful measure of operating results**, a **meaningful comparison with historical results and peers**, and **insight into ongoing operating performance**[12](index=12&type=chunk) - The company encourages investors to review related GAAP financial measures and reconciliations, not relying on any single financial measure[15](index=15&type=chunk) [Free Cash Flow Definition](index=3&type=section&id=Free%20Cash%20Flow%20Definition) Free cash flow is defined as net cash provided by operating activities less cash used for purchases of property and equipment - Free cash flow is defined as net cash provided by operating activities, less cash used for purchases of property and equipment[14](index=14&type=chunk) - It is considered a **useful liquidity measure**, reflecting the **ability to generate cash in excess of capital investments** for balance sheet strength and business investment[14](index=14&type=chunk) [Consolidated Financial Statements (GAAP)](index=4&type=section&id=Consolidated%20Financial%20Statements%20(GAAP)) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, Mitek reported a **2% increase in total revenue**, driven by growth in services Consolidated Statements of Operations (Three Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | Software and hardware revenue | $19,507 | $22,662 | -14.0% | | Services and other revenue | $26,222 | $22,314 | +17.5% | | **Total revenue** | **$45,729** | **$44,976** | **+1.7%** | | Total operating costs and expenses | $41,920 | $44,242 | -5.2% | | **Operating income (loss)** | **$3,809** | **$734** | **+419.0%** | | Income (loss) before income taxes | $3,145 | $(159) | N/A | | **Net income (loss)** | **$2,396** | **$216** | **+1009.3%** | | Net income (loss) per share—diluted | $0.05 | $0.00 | N/A | Consolidated Statements of Operations (Nine Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :-------------------- | :---------- | :---------- | :--------- | | Software and hardware revenue | $58,192 | $63,531 | -8.4% | | Services and other revenue | $76,720 | $65,330 | +17.4% | | **Total revenue** | **$134,912** | **$128,861** | **+4.7%** | | Total operating costs and expenses | $122,812 | $134,345 | -8.6% | | **Operating income (loss)** | **$12,100** | **$(5,484)** | N/A | | Income (loss) before income taxes | $8,304 | $(8,111)$ | N/A | | **Net income (loss)** | **$6,936** | **$(5,295)** | N/A | | Net income (loss) per share—diluted | $0.15 | $(0.11)$ | N/A | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Mitek's total assets increased, primarily driven by a significant rise in cash and cash equivalents Consolidated Balance Sheets (as of June 30, 2025 vs. September 30, 2024) | Metric (in thousands) | June 30, 2025 | Sept 30, 2024 | Change | | :-------------------- | :------------ | :------------ | :----- | | Cash and cash equivalents | $127,124 | $93,456 | +$33,668 | | Total current assets | $225,861 | $185,051 | +$40,810 | | Total assets | $446,715 | $413,753 | +$32,962 | | Convertible senior notes (current portion) | $150,004 | $0 | +$150,004 | | Total current liabilities | $198,804 | $42,147 | +$156,657 | | Total liabilities | $209,123 | $198,952 | +$10,171 | | Total stockholders' equity | $237,592 | $214,801 | +$22,791 | [Disaggregation of Revenue by Product and Type](index=6&type=section&id=Disaggregation%20of%20Revenue%20by%20Product%20and%20Type) Mitek's revenue is disaggregated into Deposits and Identity segments, further broken down by software, hardware, and services (SaaS, maintenance, professional services) [Deposits Revenue](index=6&type=section&id=Deposits%20Revenue) Deposits revenue experienced a decline in software but saw growth in services, particularly SaaS, for both the three and nine months ended June 30, 2025 Deposits Revenue (Three Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | Software | $17,529 | $21,793 | -19.6% | | Deposits services SaaS | $2,627 | $1,700 | +54.5% | | Total deposits services | $8,693 | $7,493 | +16.0% | | **Total deposits revenue** | **$26,222** | **$29,286** | **-10.5%** | Deposits Revenue (Nine Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | Software | $53,326 | $58,335 | -8.6% | | Deposits services SaaS | $7,384 | $4,607 | +60.3% | | Total deposits services | $25,870 | $21,539 | +20.1% | | **Total deposits revenue** | **$79,196** | **$79,874** | **-0.9%** | [Identity Revenue](index=6&type=section&id=Identity%20Revenue) The Identity segment demonstrated strong growth, particularly in SaaS services, for both the three and nine months ended June 30, 2025, offsetting a decline in hardware revenue Identity Revenue (Three Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | Identity software | $1,978 | $756 | +161.6% | | Identity hardware | $0 | $113 | -100.0% | | Identity services SaaS | $16,632 | $13,964 | +19.1% | | **Total identity revenue** | **$19,507** | **$15,690** | **+24.9%** | Identity Revenue (Nine Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | Identity software | $4,866 | $5,063 | -3.9% | | Identity hardware | $0 | $133 | -100.0% | | Identity services SaaS | $48,299 | $40,994 | +17.8% | | **Total identity revenue** | **$55,716** | **$48,987** | **+13.7%** | [Consolidated Revenue by Type](index=6&type=section&id=Consolidated%20Revenue%20by%20Type) Consolidated SaaS revenue showed robust growth, contributing significantly to the overall services revenue increase, while total software and hardware revenue declined Consolidated Revenue by Type (Three Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | Total software and hardware | $19,507 | $22,662 | -14.0% | | Total services SaaS | $19,259 | $15,664 | +22.9% | | Total services | $26,222 | $22,314 | +17.5% | | **Total revenue** | **$45,729** | **$44,976** | **+1.7%** | Consolidated Revenue by Type (Nine Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :-------------------- | :---------- | :---------- | :--------- | | Total software and hardware | $58,192 | $63,531 | -8.4% | | Total services SaaS | $55,683 | $45,601 | +22.1% | | Total services | $76,720 | $65,330 | +17.4% | | **Total revenue** | **$134,912** | **$128,861** | **+4.7%** | [Non-GAAP Reconciliations](index=7&type=section&id=Non-GAAP%20Reconciliations) [Non-GAAP Gross Profit Reconciliation](index=7&type=section&id=Non-GAAP%20Gross%20Profit%20Reconciliation) Mitek's non-GAAP gross profit for software and hardware remained high, while services and other non-GAAP gross profit and margin significantly improved, contributing to a stable consolidated non-GAAP gross profit Non-GAAP Gross Profit (Three Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | Non-GAAP gross profit for software and hardware | $19,454 | $22,608 | -13.9% | | Non-GAAP gross margin for software and hardware | 99.7% | 99.8% | -0.1 pp | | Non-GAAP gross profit for services and other | $19,434 | $16,080 | +20.9% | | Non-GAAP gross margin for services and other | 74.1% | 72.1% | +2.0 pp | | **Non-GAAP gross profit (Consolidated)** | **$38,888** | **$38,688** | **+0.5%** | | **Non-GAAP gross margin (Consolidated)** | **85.0%** | **86.0%** | **-1.0 pp** | Non-GAAP Gross Profit (Nine Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :-------------------- | :---------- | :---------- | :--------- | | Non-GAAP gross profit for software and hardware | $58,056 | $63,408 | -8.4% | | Non-GAAP gross margin for software and hardware | 99.8% | 99.8% | 0.0 pp | | Non-GAAP gross profit for services and other | $57,863 | $47,669 | +21.4% | | Non-GAAP gross margin for services and other | 75.4% | 73.0% | +2.4 pp | | **Non-GAAP gross profit (Consolidated)** | **$115,919** | **$111,077** | **+4.4%** | | **Non-GAAP gross margin (Consolidated)** | **85.9%** | **86.2%** | **-0.3 pp** | [Non-GAAP Operating Expense Reconciliation](index=8&type=section&id=Non-GAAP%20Operating%20Expense%20Reconciliation) Mitek's non-GAAP operating expenses decreased across selling and marketing, research and development, and general and administrative categories for the nine months ended June 30, 2025, reflecting efforts to streamline operations and reduce non-recurring costs Non-GAAP Operating Expense (Three Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | Non-GAAP selling and marketing | $10,177 | $9,536 | +6.7% | | Non-GAAP research and development | $7,673 | $8,638 | -11.2% | | Non-GAAP general and administrative | $8,403 | $8,939 | -6.0% | | **Total Non-GAAP operating expense** | **$26,253** | **$27,113** | **-3.1%** | Non-GAAP Operating Expense (Nine Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :-------------------- | :---------- | :---------- | :--------- | | Non-GAAP selling and marketing | $28,403 | $28,652 | -0.9% | | Non-GAAP research and development | $23,300 | $24,818 | -6.1% | | Non-GAAP general and administrative | $24,308 | $27,663 | -12.1% | | **Total Non-GAAP operating expense** | **$76,011** | **$81,133** | **-6.4%** | [GAAP Net Income to Adjusted EBITDA Reconciliation](index=9&type=section&id=GAAP%20Net%20Income%20to%20Adjusted%20EBITDA%20Reconciliation) Mitek's Adjusted EBITDA and Adjusted EBITDA margin significantly improved for both the three and nine months ended June 30, 2025, reflecting stronger operational performance after non-GAAP adjustments Adjusted EBITDA Reconciliation (Three Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | GAAP net income (loss) | $2,396 | $216 | +1009.3% | | GAAP operating income (loss) | $3,809 | $734 | +419.0% | | **Adjusted EBITDA** | **$13,067** | **$12,114** | **+7.9%** | | **Adjusted EBITDA margin** | **28.6%** | **26.9%** | **+1.7 pp** | Adjusted EBITDA Reconciliation (Nine Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :-------------------- | :---------- | :---------- | :--------- | | GAAP net income (loss) | $6,936 | $(5,295)$ | N/A | | GAAP operating income (loss) | $12,100 | $(5,484)$ | N/A | | **Adjusted EBITDA** | **$41,079** | **$31,324** | **+31.1%** | | **Adjusted EBITDA margin** | **30.4%** | **24.3%** | **+6.1 pp** | [Non-GAAP Net Income Reconciliation](index=10&type=section&id=Non-GAAP%20Net%20Income%20Reconciliation) Mitek's non-GAAP net income for the three months ended June 30, 2025, decreased slightly year-over-year, while for the nine months, it showed a healthy increase, reflecting the impact of various non-GAAP adjustments Non-GAAP Net Income (Three Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | Net income (loss) | $2,396 | $216 | +1009.3% | | **Non-GAAP net income** | **$10,178** | **$11,997** | **-15.2%** | | Non-GAAP net income per share—diluted | $0.22 | $0.25 | -12.0% | Non-GAAP Net Income (Nine Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :-------------------- | :---------- | :---------- | :--------- | | Net income (loss) | $6,936 | $(5,295)$ | N/A | | **Non-GAAP net income** | **$33,556** | **$29,855** | **+12.4%** | | Non-GAAP net income per share—diluted | $0.72 | $0.62 | +16.1% | [Non-GAAP Free Cash Flow Reconciliation](index=11&type=section&id=Non-GAAP%20Free%20Cash%20Flow%20Reconciliation) Mitek demonstrated strong free cash flow generation, with a significant increase for the twelve months ended June 30, 2025, compared to the prior year, indicating improved liquidity Non-GAAP Free Cash Flow (Twelve Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :-------------------- | :-------- | :-------- | :--------- | | Net cash provided by (used in) operating activities | $56,981 | $14,059 | +305.3% | | Purchases of property and equipment, net | $(1,179)$ | $(1,533)$ | -23.1% | | **Free Cash Flow** | **$55,802** | **$12,526** | **+345.5%** | [Stock-Based Compensation Expense](index=11&type=section&id=Stock-Based%20Compensation%20Expense) Total stock-based compensation expense increased for both the three and nine months ended June 30, 2025, with general and administrative expenses accounting for the largest portion Stock-Based Compensation Expense (Three Months Ended June 30) | Category (in thousands) | 2025 | 2024 | YoY Change | | :---------------------- | :------ | :------ | :--------- | | Cost of revenue | $181 | $194 | -6.8% | | Selling and marketing | $950 | $818 | +16.1% | | Research and development | $1,287 | $1,344 | -4.2% | | General and administrative | $2,004 | $1,229 | +63.1% | | **Total stock-based compensation expense** | **$4,422** | **$3,585** | **+23.3%** | Stock-Based Compensation Expense (Nine Months Ended June 30) | Category (in thousands) | 2025 | 2024 | YoY Change | | :---------------------- | :------- | :------- | :--------- | | Cost of revenue | $504 | $447 | +12.8% | | Selling and marketing | $2,959 | $2,579 | +14.7% | | Research and development | $3,749 | $3,751 | -0.1% | | General and administrative | $6,027 | $4,124 | +46.1% | | **Total stock-based compensation expense** | **$13,239** | **$10,901** | **+21.4%** | [Additional Information](index=2&type=section&id=Additional%20Information) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Mitek management hosted a conference call and live webcast on August 7, 2025, to discuss the fiscal 2025 third-quarter financial results, with replay and archived webcast options available - A conference call and live webcast were held on **August 7, 2025**, at **2 p.m. PT (5 p.m. ET)** to discuss financial results[6](index=6&type=chunk) - Replay and archived webcast options are available for investors[6](index=6&type=chunk) [Notice Regarding Forward-Looking Statements](index=2&type=section&id=Notice%20Regarding%20Forward-Looking%20Statements) This report contains forward-looking statements, including fiscal 2025 guidance, which are subject to various risks and uncertainties such as global economic conditions, market acceptance of products, ability to innovate, and litigation outcomes - Statements regarding **fiscal 2025 guidance** and future expectations are **forward-looking statements**[8](index=8&type=chunk) - These statements are **subject to risks** including global economic conditions, product demand, innovation, market growth, revenue variations, profitability, growth initiatives, and litigation[8](index=8&type=chunk) - Investors are cautioned **not to place undue reliance** on **forward-looking statements**, and the company **disclaims any obligation to update them**, except as required by law[9](index=9&type=chunk) [Investor Contacts](index=2&type=section&id=Investor%20Contacts) Investor relations inquiries can be directed to Ryan Flanagan of ICR Mitek or Michael Holder, VP of Finance and Investor Relations at Mitek Systems - Investor contacts are Ryan Flanagan (ICR Mitek) and Michael Holder (Mitek Systems VP, Finance and Investor Relations)[10](index=10&type=chunk)