Mitek Systems(MITK) - 2025 Q2 - Quarterly Results

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].