Mitek Reports Fiscal 2024 Fourth Quarter and Full Year Financial Results and Provides Guidance for Fiscal 2025

About this update from Mitek Systems, Inc.

SAN DIEGO --(BUSINESS WIRE)-- Mitek Systems, Inc. (NASDAQ: MITK, www.miteksystems.com , “Mitek” or the “Company”), a global leader in digital identity verification, mobile capture and fraud management, today reported financial results for its fourth quarter ended September 30, 2024 and provided guidance for its 2025 fiscal year ending September 30, 2025 . “We reported a solid quarter of year over year revenue growth, profitability and cash generation driven by our team’s hard work and operational focus,” stated Mitek CFO, Dave Lyle . “The Mitek team has done a tremendous job in delivering value to our customers while we are focusing on driving efficient revenue growth over the long-term.” "Mitek has a rich and deep history with financial institutions and other highly regulated businesses that require comprehensive, enterprise level solutions. This experience, combined with our market leading technologies, innovation and domain expertise, position us well following a year of significant change,” commented Ed West , Mitek’s recently appointed CEO. “By advancing our AI-driven solutions and expanding our fraud and identity detection capabilities, we are well positioned to address the growing fraud threats of the digital economy. In the near term, we are focused on refining strategies and optimizing resources to ensure organic growth and operational excellence, while building a foundation for long-term success and driving shareholder value,” added West. Fiscal 2024 Fourth Quarter Financial Highlights GAAP Revenue of $43.2 million grew 15% year-over-year, compared to $37.7 million a year ago. GAAP operating income was $7.7 million , compared to negative $3.3 million a year ago. GAAP operating margin was 18%, compared to negative 9% a year ago. GAAP net income was $8.6 million , compared to a GAAP net loss of $1.4 million a year ago. GAAP net income per diluted share was $0.18 , compared to negative $0.03 a year ago. Total cash and investments was $141.8 million at September 30, 2024 , an increase of $8.6 million from $133.2 million at June 30, 2024 . Mitek repurchased 1.4 million shares at an average per share price of $9.94 , totaling approximately $14.2 million . Non-GAAP Adjusted EBITDA was $15.4 million , compared to $5.9 million a year ago. Adjusted EBITDA margin was 36%, compared to 16% a year ago. Non-GAAP operating income was $15.0 million , compared to $5.4 million a year ago. Non-GAAP operating margin was 35%, compared to 14% a year ago. Non-GAAP net income was $15.5 million , compared to $6.9 million a year ago. Non-GAAP net income per diluted share was $0.33 , compared to $0.15 a year ago. Fiscal 2024 Full Year Financial Highlights GAAP Revenue was $172.1 million , compared to $172.6 million a year ago. GAAP operating income was $2.2 million , compared to $15.6 million a year ago. GAAP operating margin was 1%, compared to 9% a year ago. GAAP net income was $3.3 million , compared to $8.0 million a year ago. GAAP net income per diluted share was $0.07 , compared to $0.17 per diluted share a year ago. Mitek repurchased 2.2 million shares at an average per share price of $10.78 , totaling approximately $24.2 million with a plan that was authorized in May of this year. Non-GAAP Adjusted EBITDA was $46.7 million , compared to $55.0 million a year ago. Adjusted EBITDA margin was 27%, compared to 32% a year ago. Non-GAAP operating income was $44.9 million , compared to $51.2 million a year ago. Non-GAAP operating margin was 26%, compared to 30% a year ago. Non-GAAP net income was $45.4 million , compared to $44.4 million a year ago. Non-GAAP net income per diluted share was $0.96 , compared to $0.95 a year ago. Free Cash Flow was $30.3 million , compared to $30.6 million a year ago. Fiscal 2025 Full Year Guidance Mitek is providing guidance for its fiscal year ending September 30, 2025 , as follows: Mitek expects fiscal 2025 full-year revenue to be between $170 million and $180 million . Mitek expects its fiscal 2025 full-year adjusted EBITDA margin to be between 24% and 28%. Conference Call Information Mitek management will host a conference call and live webcast for analysts and investors today at 2:00 p.m. Pacific Time ( 5:00 p.m. Eastern Time ) to discuss the Company’s financial results for its fiscal 2024 fourth quarter and full year ended September 30, 2024 . To access the live call, dial 844-481-3005 (US and Canada ) or +1 412-317-1889 (International) and ask to be joined to the Mitek call. A live and archived conference call webcast will also be accessible on the Investor Relations section of the Company’s website at www.miteksystems.com . A phone replay will be available approximately two hours after the end of the call and will remain available for one week. The phone call replay can be accessed by dialing 877-344-7529 (US or Canada ) or +1 412-317-0088 (International) and entering the passcode: 2834298. About Mitek Systems, Inc. Mitek (NASDAQ: MITK) is a global leader in digital access, founded to bridge the physical and digital worlds. Mitek’s advanced identity verification technologies and global platform make digital access faster and more secure than ever, providing companies new levels of control, deployment ease and operation, while protecting the entire customer journey. With solutions trusted by 7,900 organizations around the world, including the majority of North American financial institutions which rely on our mobile check deposit solutions, Mitek helps companies reduce risk and meet regulatory requirements. Learn more at www.miteksystems.com . [(MITK-F)] Follow Mitek on LinkedIn and YouTube , and read Mitek’s latest blog posts here . Notice Regarding Forward-Looking Statements Statements contained in this news release relating to the Company or its management’s intentions, hopes, beliefs, expectations or predictions of the future, including, but not limited to, statements relating to the Company’s fiscal 2025 guidance, are forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks related to the Company’s ability to withstand negative conditions in the global economy, a lack of demand for or market acceptance of the Company’s products, the impact of the Company’s acquisition of HooYu Ltd. including any operational or cultural difficulties associated with the integration of the businesses of Mitek and HooYu Ltd. , the Company’s ability to continue to develop, produce and introduce innovative new products in a timely manner, the Company’s ability to capitalize on a growing market, quarterly variations in revenue, the profitability of certain sectors of the Company, the performance of the Company’s growth initiatives, the outcome of any pending or threatened litigation or investigation, and the timing of the implementation and launch of the Company’s products by the Company’s signed customers. Additional risks and uncertainties faced by the Company are contained from time to time in the Company’s filings with the U.S. Securities and Exchange Commission (SEC), including, but not limited to, the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024 , as filed with the SEC on December 16, 2024 and its quarterly reports on Form 10-Q and current reports on Form 8-K, which you may obtain for free on the SEC’s website at www.sec.gov . Collectively, these risks and uncertainties could cause the Company’s actual results to differ materially from those projected in its forward-looking statements and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company disclaims any intention or obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Note Regarding Use of Non-GAAP Financial Measures This news release contains non- U.S. generally accepted accounting principles (“GAAP”) financial measures for non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP net income, non-GAAP net income per share, non-GAAP operating income, non-GAAP operating margin, adjusted EBITDA, adjusted EBITDA margin and non-GAAP operating expense that exclude acquisition-related costs and expenses, litigation and other legal costs, executive transition costs, stock compensation expense, non-recurring audit fees, enterprise risk, portfolio positioning and other related costs, restructuring costs and amortization of debt discount and issuance costs. These financial measures are not calculated in accordance with GAAP and are not based on any comprehensive set of accounting rules or principles. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement financial statements prepared under GAAP. Management believes these non-GAAP financial measures provide a useful measure of the Company’s operating results, a meaningful comparison with historical results and with the results of other companies, and insight into the Company’s ongoing operating performance. Further, management and the Board of Directors of the Company utilize these non-GAAP financial measures to gain a better understanding of the Company’s comparative operating performance from period-to-period and as a basis for planning and forecasting future periods. Management believes these non-GAAP financial measures, when read in conjunction with the Company’s GAAP financial statements, are useful to investors because they provide a basis for meaningful period-to-period comparisons of the Company’s ongoing operating results, including results of operations against investor and analyst financial models, which helps identify trends in the Company’s underlying business and provides a better understanding of how management plans and measures the Company’s underlying business. The Company has not provided a reconciliation of its forward outlook for non-GAAP operating margin with its forward-looking GAAP operating margin in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to quantify share-based compensation expense, which is excluded from our non-GAAP operating margin, as it requires additional inputs such as the number of shares granted and market prices that are not ascertainable due to the volatility of the Company’s share price. Additionally, a significant portion of the Company’s operations are in foreign countries and the transactional currencies are primarily Euros and British pound sterling and the Company is not able to predict fluctuations in those currencies without unreasonable efforts. The Company expects these items may have a potentially significant impact on future GAAP financial results. We define free cash flow as net cash provided by operating activities, less cash used for purchases of property and equipment. We define free cash flow margin as free cash flow as a percentage of revenue. In addition to the reasons stated above, we believe that free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment in order to enhance the strength of our balance sheet and further invest in our business and potential strategic initiatives. A limitation of the utility of free cash flow as a measure of our liquidity is that it does not represent the total increase or decrease in our cash balance for the period. We use free cash flow in conjunction with traditional U.S. GAAP measures as part of our overall assessment of our liquidity, including the preparation of our annual operating budget and quarterly forecasts and to evaluate the effectiveness of our business strategies. There are a number of limitations related to the use of free cash flow as compared to net cash provided by operating activities, including that free cash flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made. Mitek encourages investors to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate Mitek’s business. MITEK SYSTEMS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (amounts in thousands except per share data) Three Months Ended September 30 , Twelve Months Ended September 30 , 2024 2023 2024 2023 Revenue Software and hardware $ 18,341 $ 15,291 $ 81,872 $ 88,374 Services and other 24,881 22,365 90,211 84,178 Total revenue 43,222 37,656 172,083 172,552 Operating costs and expenses Cost of revenue—software and hardware (exclusive of depreciation & amortization) 186 597 309 1,413 Cost of revenue—services and other (exclusive of depreciation & amortization) 5,978 5,675 24,086 21,538 Selling and marketing 9,538 11,117 40,769 40,551 Research and development 6,073 6,484 34,642 28,988 General and administrative 9,908 13,212 52,993 43,338 Amortization and acquisition-related costs 3,710 3,744 15,291 19,046 Restructuring costs 114 114 1,762 2,114 Total operating costs and expenses 35,507 40,943 169,852 156,988 Operating income (loss) 7,715 (3,287 ) 2,231 15,564 Interest expense 2,364 2,401 9,259 9,063 Other income (expense), net 1,851 2,121 6,119 3,840 Income (loss) before income taxes 7,202 (3,567 ) (909 ) 10,341 Income tax benefit (provision) 1,371 2,123 4,187 (2,314 ) Net income (loss) $ 8,573 $ (1,444 ) $ 3,278 $ 8,027 Net income (loss) per share—basic $ 0.19 $ (0.03 ) $ 0.07 $ 0.18 Net income (loss) per share—diluted $ 0.18 $ (0.03 ) $ 0.07 $ 0.17 Shares used in calculating net income (loss) per share—basic 45,952 45,997 46,560 45,533 Shares used in calculating net income (loss) per share—diluted 46,573 47,050 47,468 46,461 MITEK SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (amounts in thousands except share data) September 30, 2024 September 30, 2023 ASSETS Current assets: Cash and cash equivalents $ 93,456 $ 58,913 Short-term investments 36,884 74,700 Accounts receivable, net 31,682 32,132 Contract assets, current portion 15,818 18,355 Prepaid expenses 4,514 3,513 Other current assets 2,697 2,396 Total current assets 185,051 190,009 Long-term investments 11,410 1,304 Property and equipment, net 2,564 2,829 Right-of-use assets 4,662 4,140 Goodwill and intangible assets 185,711 188,222 Deferred income tax assets 19,145 11,645 Contract assets, non-current portion 3,620 5,579 Other non-current assets 1,590 1,647 Total assets $ 413,753 $ 405,375 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 7,236 $ 7,589 Accrued payroll and related taxes 10,324 10,554 Accrued liabilities 424 26 Accrued interest payable 205 305 Income tax payables 162 4,329 Deferred revenue, current portion 21,231 17,360 Lease liabilities, current portion 805 1,902 Acquisition-related contingent consideration — 7,976 Other current liabilities 1,760 1,456 Total current liabilities 42,147 51,497 Convertible senior notes 143,601 135,516 Deferred revenue, non-current portion 753 957 Lease liabilities, non-current portion 4,230 2,867 Deferred income tax liabilities 3,889 6,476 Other non-current liabilities 4,332 2,874 Total liabilities 198,952 200,187 Stockholders’ equity: Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding — — Common stock, $0.001 par value, 120,000,000 shares authorized, 44,998,939 and 45,591,199 issued and outstanding, as of September 30, 2024 and September 30, 2023 , respectively 45 46 Additional paid-in capital 247,326 228,691 Accumulated other comprehensive loss (2,302 ) (14,237 ) Accumulated deficit (30,268 ) (9,312 ) Total stockholders’ equity 214,801 205,188 Total liabilities and stockholders’ equity $ 413,753 $ 405,375 MITEK SYSTEMS, INC. DISAGGREGATION OF REVENUE BY PRODUCT AND TYPE (Unaudited) (amounts in thousands except share data) Three Months Ended September 30 , Twelve Months Ended September 30 , 2024 2023 2024 2023 Deposits Deposits software and hardware Software $ 15,773 $ 13,243 $ 74,108 $ 78,212 Hardware — — — — Total deposits software and hardware 15,773 13,243 74,108 78,212 Deposits services SaaS 1,799 1,281 6,406 4,299 Maintenance 5,846 5,511 22,275 20,710 Professional services / other 266 264 769 913 Total deposits services 7,911 7,056 29,450 25,922 Total deposits revenue 23,684 20,299 103,558 104,134 Identity Identity software and hardware Software 2,568 1,801 7,631 8,796 Hardware — 247 133 1,366 Total identity software and hardware 2,568 2,048 7,764 10,162 Identity services SaaS 16,188 14,178 57,182 55,149 Maintenance 463 723 2,074 1,910 Professional services / other 319 408 1,505 1,197 Total identity services 16,970 15,309 60,761 58,256 Total identity revenue 19,538 17,357 68,525 68,418 Total Revenue $ 43,222 $ 37,656 $ 172,083 $ 172,552 MITEK SYSTEMS, INC. NON-GAAP GROSS PROFIT RECONCILIATION (Unaudited) (amounts in thousands) Three Months Ended September 30 , Twelve Months Ended September 30 , 2024 2023 2024 2023 Software and Hardware Revenue $ 18,341 $ 15,291 $ 81,872 $ 88,374 Cost of revenue (exclusive of depreciation and amortization) 186 597 309 1,413 Depreciation and amortization 1,189 1,113 4,634 4,436 GAAP gross profit for software and hardware 16,966 13,581 76,929 82,525 Depreciation and amortization 1,189 1,113 4,634 4,436 Non-GAAP gross profit for software and hardware $ 18,155 $ 14,694 $ 81,563 $ 86,961 GAAP gross margin for software and hardware 92.5 % 88.8 % 94.0 % 93.4 % Non-GAAP gross margin for software and hardware 99.0 % 96.1 % 99.6 % 98.4 % Services & Other Services and other revenue $ 24,881 $ 22,365 $ 90,211 $ 84,178 Cost of revenue (exclusive of depreciation and amortization) 5,978 5,675 24,086 21,538 Depreciation and amortization 2,162 2,062 8,473 8,201 GAAP gross profit for services and other 16,741 14,628 57,652 54,439 Depreciation and amortization 2,162 2,062 8,473 8,201 Stock-based compensation expense 127 152 574 468 Non-GAAP gross profit for services and other $ 19,030 $ 16,842 $ 66,699 $ 63,108 GAAP gross margin for services and other 67.3 % 65.4 % 63.9 % 64.7 % Non-GAAP gross margin for services and other 76.5 % 75.3 % 73.9 % 75.0 % Consolidated Results Total revenue $ 43,222 $ 37,656 $ 172,083 $ 172,552 Cost of revenue (exclusive of depreciation and amortization) 6,164 6,272 24,395 22,951 Depreciation and amortization 3,351 3,175 13,107 12,637 GAAP gross profit 33,707 28,209 134,581 136,964 Depreciation and amortization 3,351 3,175 13,107 12,637 Stock-based compensation expense 127 152 574 468 Non-GAAP gross profit $ 37,185 $ 31,536 $ 148,262 $ 150,069 GAAP gross margin 78.0 % 74.9 % 78.2 % 79.4 % Non-GAAP gross margin 86.0 % 83.7 % 86.2 % 87.0 % MITEK SYSTEMS, INC. NON-GAAP OPERATING EXPENSE RECONCILIATION (Unaudited) (amounts in thousands) Three Months Ended September 30 , Twelve Months Ended September 30 , 2024 2023 2024 2023 Selling and marketing $ 9,538 $ 11,117 $ 40,769 $ 40,551 Non-GAAP adjustments: Stock-based compensation expense 462 600 3,041 3,023 Non-GAAP Selling and marketing $ 9,076 $ 10,517 $ 37,728 $ 37,528 Research and development $ 6,073 $ 6,484 $ 34,642 $ 28,988 Non-GAAP adjustments: Stock-based compensation expense (383 ) 660 3,368 2,757 Non-GAAP Research and development $ 6,456 $ 5,824 $ 31,274 $ 26,231 General and administrative $ 9,908 $ 13,212 $ 52,993 $ 43,338 Non-GAAP adjustments: Stock-based compensation expense 1,517 1,261 5,641 4,215 Litigation and other legal costs 251 250 3,496 1,369 Executive transition costs 599 7 2,632 679 Non-recurring audit fees 931 1,816 5,956 4,001 Enterprise risk, portfolio positioning and other related costs — — 996 — Non-GAAP General and administrative $ 6,610 $ 9,878 $ 34,272 $ 33,074 Total Non-GAAP Operating Expense $ 22,142 $ 26,219 $ 103,274 $ 96,833 MITEK SYSTEMS, INC. STOCK-BASED COMPENSATION EXPENSE (Unaudited) (amounts in thousands) Three Months Ended September 30 , Twelve Months Ended September 30 , 2024 2023 2024 2023 Cost of revenue $ 127 $ 152 $ 574 $ 468 Selling and marketing 462 600 3,041 3,023 Research and development (383 ) 660 3,368 2,757 General and administrative 1,517 1,261 5,641 4,215 Total stock-based compensation expense $ 1,723 $ 2,673 $ 12,624 $ 10,463 MITEK SYSTEMS, INC. NON-GAAP OPERATING INCOME RECONCILIATION (Unaudited) (amounts in thousands) Three Months Ended September 30 , Twelve Months Ended September 30 , 2024 2023 2024 2023 GAAP operating income (loss) $ 7,715 $ (3,287 ) $ 2,231 $ 15,564 Non-GAAP adjustments: Amortization of acquisition-related intangibles 3,711 3,784 15,156 16,992 Net changes in estimated fair value of acquisition-related contingent consideration — (38 ) 136 2,056 Intellectual property litigation and other legal costs 251 250 3,496 1,369 Executive transition costs 599 7 2,632 679 Stock-based compensation expense 1,723 2,673 12,624 10,463 Non-recurring audit fees 931 1,816 5,956 4,001 Enterprise risk, portfolio positioning and other related costs — — 996 — Restructuring costs 114 114 1,762 2,114 Non-GAAP operating income (loss) $ 15,044 $ 5,319 $ 44,989 $ 53,238 Revenue $ 43,222 $ 37,656 $ 172,083 $ 172,552 Non-GAAP Operating Margin 35 % 14 % 26 % 31 % MITEK SYSTEMS, INC. GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION (Unaudited) (amounts in thousands except per share data) Three Months Ended September 30 , Twelve Months Ended September 30 , 2024 2023 2024 2023 GAAP net income (loss) $ 8,573 $ (1,444 ) $ 3,278 $ 8,027 Add: Income tax (benefit) provision (1,371 ) (2,123 ) (4,187 ) 2,314 Other (income) expense, net (1,851 ) (2,121 ) (6,119 ) (3,840 ) Interest Expense 2,364 2,401 9,259 9,063 GAAP operating income (loss) $ 7,715 $ (3,287 ) $ 2,231 $ 15,564 Non-GAAP Adjustments Depreciation and amortization $ 375 $ 540 $ 1,755 $ 1,727 Amortization of intangibles 3,711 3,784 15,156 16,992 Net changes in estimated fair value of acquisition-related contingent consideration — (38 ) 136 2,056 Litigation and other legal costs 251 250 3,496 1,369 Executive transition costs 599 7 2,632 679 Stock-based compensation expense 1,723 2,673 12,624 10,463 Non-recurring audit fees 931 1,816 5,956 4,001 Enterprise risk, portfolio positioning and other related costs — — 996 — Restructuring costs 114 114 1,762 2,114 Adjusted EBITDA $ 15,419 $ 5,859 $ 46,744 $ 54,965 Total revenue $ 43,222 $ 37,656 $ 172,083 $ 172,552 Adjusted EBITDA margin 36 % 16 % 27 % 32 % MITEK SYSTEMS, INC. NON-GAAP NET INCOME RECONCILIATION (Unaudited) (amounts in thousands except per share data) Three Months Ended September 30 , Twelve Months Ended September 30 , 2024 2023 2024 2023 Net income (loss) $ 8,573 $ (1,444 ) $ 3,278 $ 8,027 Non-GAAP adjustments: Amortization of acquisition-related intangibles 3,711 3,784 15,156 16,992 Net changes in estimated fair value of acquisition-related contingent consideration — (38 ) 136 2,056 Litigation and other legal costs(1) 251 250 3,496 1,369 Executive transition costs 599 7 2,632 679 Stock-based compensation expense 1,723 2,673 12,624 10,463 Non-recurring audit fees 931 1,816 5,956 4,001 Enterprise risk, portfolio positioning and other related costs(2) — — 996 — Restructuring costs(3) 114 114 1,762 2,114 Amortization of debt discount and issuance costs 2,112 1,937 8,169 7,546 Income tax effect of pre-tax adjustments (2,696 ) (1,002 ) (11,970 ) (10,115 ) Cash tax difference(4) 211 (1,175 ) 3,151 1,235 Non-GAAP net income $ 15,529 $ 6,922 $ 45,386 $ 44,367 Non-GAAP income per share—basic $ 0.34 $ 0.15 $ 0.97 $ 0.97 Non-GAAP income per share—diluted $ 0.33 $ 0.15 $ 0.96 $ 0.95 Shares used in calculating non-GAAP net income per share—basic 45,952 45,997 46,560 45,533 Shares used in calculating non-GAAP net income per share—diluted 46,573 47,050 47,468 46,461 (1) During the twelve months ended month periods ended September 30, 2023 and September 30, 2024 , our legal team used third party legal experts to perform and provide advice regarding a variety of activities including intellectual property litigation matters and risk analysis and in providing support for customers in their litigation, matters and options related to getting our SEC filings current, the process for a potential delisting from the Nasdaq Capital Market, ongoing litigation support, and various other projects. (2) During the twelve months ended September 30, 2024 , we used three third party experts to evaluate our product portfolio positioning, competitive landscape, enterprise risk and other related analyses. (3) Restructuring costs consist of employee severance obligations and other related costs. Restructuring costs were $1.8 million in the twelve months ended September 30, 2024 and were related to expenses incurred to relocate employees and a restructuring that occurred in the third quarter of fiscal 2024. Restructuring costs were $2.1 million in the twelve months ended September 30, 2023 and were related to a restructuring plan that was initially implemented in June and November 2022 . (4) The Company’s non-GAAP net income is calculated using a cash tax rate of 9% in fiscal 2024 and 23% in fiscal 2023. The estimated cash tax rate is the estimated annual tax payable on the Company’s tax returns as a percentage of estimated annual non-GAAP pre-tax net income. The Company uses an estimated cash tax rate to adjust for the historical variation in the effective book tax rate associated with the reversal of valuation allowances, and the utilization of research and development tax credits which currently have an overall effect of reducing taxes payable. The Company believes that the cash tax rate provides a more transparent view of the Company’s operating results. The Company’s effective tax rate used for the purposes of calculating GAAP net income for fiscal 2024 and 2023 was 461% and 22%, respectively. MITEK SYSTEMS, INC. NON-GAAP FREE CASH FLOW RECONCILIATION (Unaudited) (amounts in thousands) Twelve Months Ended September 30 , 2024 2023 2022 Net cash provided by (used in) operating activities $ 31,688 $ 31,586 $ 21,119 Less: Purchases of property and equipment, net (1,438 ) (1,034 ) (1,126 ) Free Cash Flow $ 30,250 $ 30,552 $ 19,993 View source version on businesswire.com : https://www.businesswire.com/news/home/20241216914766/en/ Investor Contact: Todd Kehrli or Jim Byers MKR Investor Relations, Inc. [email protected] Source: Mitek Systems, Inc.

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