Mitek Reports Fiscal Third Quarter Revenue of $54.0 Million, Up 18% Year-Over-Year; Raises Full-Year Outlook

About this update from Mitek Systems, Inc.

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 third quarter ended June 30, 2026 and raised its revenue and adjusted EBITDA margin guidance range for the fiscal year ending September 30, 2026 (“fiscal 2026”). "The team delivered a strong fiscal third quarter driven by Fraud and Identity SaaS revenue growth, as more of the world's highest-assurance institutions rely on Mitek to counter AI-driven fraud across the digital life cycle," said Ed West, Chief Executive Officer of Mitek. "Our consortium data network reached an important milestone this quarter, as a top five US bank completed pilot testing and joined the full consortium network on Check Fraud Defender. We also materially expanded our partner and reseller channel, which puts the consortium within reach of thousands of additional financial institutions. As each one joins, it both draws on and strengthens the network's shared intelligence, so every member benefits as the network grows. Both our consortium data network and our identity platform are driving growth, and executing across both is our Unify and Grow ethos showing up in the results." Fiscal 2026 Third Quarter Financial Highlights GAAP Total revenue of $54.0 million was an 18% increase year-over-year, compared to $45.7 million a year ago. SaaS revenue of $26.2 million was a 36% increase year-over-year, compared to $19.3 million a year ago. Gross profit of $42.7 million, compared to $35.5 million a year ago. GAAP gross profit margin was 79.1%, compared to 77.7% a year ago. GAAP net income was $8.4 million, compared to $2.4 million a year ago. GAAP net income per diluted share was $0.17, compared to $0.05 a year ago. Total cash and investments of $100.2 million at June 30, 2026, was a decrease of $96.3 million from $196.5 million at September 30, 2025; the retirement of the $155 million Convertible Senior Notes was the primary contributor to the decrease. This cash and investments balance was an increase of $22.6 million from $77.6 million at March 31, 2026. LTM net cash provided by operating activities was $53.7 million, compared to $57.0 million for the corresponding period a year ago. Non-GAAP Non-GAAP gross profit of $46.2 million, compared to $38.9 million a year ago. Non-GAAP gross profit margin was 85.5%, compared to 85.0% a year ago. Adjusted EBITDA was $20.8 million, compared to $13.1 million a year ago, an increase of 59%. Adjusted EBITDA margin was 38.5%, compared to 28.6% a year ago. Non-GAAP net income was $16.8 million, compared to $10.2 million a year ago, an increase of 65%. Non-GAAP net income per diluted share was $0.34, compared to $0.22 a year ago, an increase of 58%. LTM free cash flow was $48.6 million, compared to $55.8 million for the corresponding period a year ago. Guidance Guidance includes non-GAAP financial measures. Mitek is raising its revenue and adjusted EBITDA margin guidance for the fiscal year, and providing guidance for its fiscal fourth quarter, ending September 30, 2026, as follows:   Full Year FY26   Q4 FY26   Guidance   Guidance Total revenue $195 - $200 million   $42 - $47 million Y/Y growth (midpoint) Approximately 10%     Fraud & Identity solutions revenue (1) $105 - $109 million     Y/Y growth (midpoint) Approximately 19%     Adjusted EBITDA margin % (2) 32% - 34%     Total Non-GAAP operating expense (2)     $26 - $27 million (1) See revenue categorizations as presented in the “Disaggregation of Revenue by Product and Type”. (2) See 'Note Regarding Use of Non-GAAP Financial Measures'. Leadership Appointment: Chief Revenue Officer Mitek also announced the appointment of Aaron Seyler as Chief Revenue Officer, effective August 17, 2026. Seyler will lead Mitek's go-to-market organization bringing the Company's sales, channel partnerships, customer success and support, and sales engineering and professional services teams under a single leader signaling a natural next step in Mitek's Unify and Grow ethos and next phase of growth. Seyler joins Mitek from Vonage, an Ericsson company, where he led a global go-to-market organization across 17 countries. In his role as Chief Revenue Officer, he scaled an API-based enterprise software business through a global partner and channel ecosystem, a motion similar to Mitek’s delivery of its identity and fraud capabilities into customer onboarding, authentication, and transaction workflows. Prior to Vonage, he led the go-to-market function at Telesign, a digital fraud and identity protection company, where he helped scale revenue from approximately $200 million to more than $600 million and led its expansion into the international markets. "I have spent my career scaling enterprise revenue for software platform businesses, including in digital fraud and identity, and what stands out about Mitek is the trust it has earned with many of the world's largest institutions, the banks and enterprises where protecting identity and assets is mission critical. That trust and the technology, data, and services ecosystem beneath it, is difficult to build and difficult to replicate. I am excited to bring our go-to-market teams together and, alongside our partners, help more of these institutions put Mitek's capabilities to work against the growing threat of digital and AI-driven fraud," said Aaron Seyler, incoming Chief Revenue Officer of Mitek. Board Leadership Transition On August 5, 2026, Mark Rossi was elected to serve as non-executive Chairman of the Board, effective October 1, 2026. Mr. Rossi will succeed Scott Carter, who is stepping down as Chairman at the end of the current fiscal year, due to personal time constraints and will continue to serve as a director. "On behalf of the Board and the entire company, I would like to thank Scott for his commitment and steady leadership as Chairman through a period of significant change in Mitek's history," said Ed West, Chief Executive Officer of Mitek. "Mark brings a strong track record as an investor and decades of governance experience. Since joining our Board in March 2025, he has served on the Audit Committee and developed a deep understanding of our business, strategy, and financial profile, positioning him to lead with continuity as we look ahead into fiscal 2027 and beyond.” Conference Call Information Mitek management will host a conference call and live webcast for analysts and investors today at 2 p.m. PT (5 p.m. ET) to discuss the Company’s financial results for the third quarter of fiscal 2026. To join the webcast, visit our Investor Relations website at https://investors.miteksystems.com . Participants may also dial +1 800-717-1738 (US and Canada) or +1 646-307-1865 (International) to access the call. A dial-in replay will be available for one week by dialing +1 844-512-2921 (U.S. and Canada) or +1 412-317-6671 (International) and entering the passcode 1141184. An archived webcast replay will remain accessible for one year on Mitek’s Investor Relations website. About Mitek Systems, Inc. Mitek Systems protects what’s real across digital interactions in a world of evolving threats. Mitek helps businesses verify identities, prevent fraud before it happens, and deliver secure, seamless digital experiences in the face of rapidly advancing AI-generated threats. From account opening to authentication and deposit, Mitek’s technology safeguards critical digital interactions. More than 7,000 organizations rely on Mitek to protect their most important customer connections and stay ahead of emerging risks. 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 2026 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 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, 2025, as filed with the SEC on December 11, 2025 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 adjusted EBITDA, adjusted EBITDA margin, non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP net income per basic share, non-GAAP net income per diluted share, non-GAAP free cash flow, and non-GAAP operating expense that excludes stock-based compensation expense, litigation and other legal costs, executive and other transition costs, non-recurring audit fees, enterprise risk, portfolio positioning and other related costs, and non-GAAP net income which additionally excludes amortization of acquisition-related intangibles, net changes in estimated fair value of acquisition-related contingent consideration, restructuring costs, amortization of debt discount and issuance costs, income tax effect of pre-tax adjustments, and cash tax difference. 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 adjusted EBITDA margin or total non-GAAP operating expense with their most directly comparable forward-looking GAAP measures, GAAP net income margin and GAAP operating expense, respectively, 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 these non-GAAP measures, 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. These non-GAAP measures also exclude litigation and other legal costs, executive and other transition costs, non-recurring audit fees, restructuring costs, and acquisition and integration expenses. While certain of these additional items may be estimable for future periods, the Company is unable to provide a complete quantitative reconciliation of the forward-looking measures without unreasonable efforts, and expects the foregoing excluded 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. We may refer to certain financial metrics on a Last Twelve Months (“LTM”) basis. LTM figures represent the sum of the most recently reported four fiscal quarters and are used to provide a view of the company's financial performance over the past year. 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. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) (amounts in thousands except per share data)                   Three Months Ended June 30,   Nine Months Ended June 30,     2026       2025       2026       2025   Revenue               Software license $ 20,714     $ 19,507     $ 60,565     $ 58,192   SaaS, maintenance, and other   33,324       26,222       92,558       76,720   Total revenue   54,038       45,729       153,123       134,912   Operating costs and expenses               Cost of revenue—software license (exclusive of depreciation & amortization)   60       53       126       136   Cost of revenue—SaaS, maintenance, and other (exclusive of depreciation & amortization)   8,119       6,969       25,018       19,361   Selling and marketing   10,026       11,127       27,775       31,362   Research and development   8,059       8,960       22,999       27,049   General and administrative   12,926       11,251       36,244       33,250   Amortization of acquired intangibles and acquisition-related costs   3,304       3,560       9,913       10,817   Restructuring costs   —       —       515       837   Total operating costs and expenses   42,494       41,920       122,590       122,812   Operating income   11,544       3,809       30,533       12,100   Interest expense   721       2,469       4,713       7,274   Other income, net   347       1,805       2,484       3,478   Income before income taxes   11,170       3,145       28,304       8,304   Income tax provision   (2,803 )     (749 )     (7,629 )     (1,368 ) Net income $ 8,367     $ 2,396     $ 20,675     $ 6,936   Net income per share—basic $ 0.19     $ 0.05     $ 0.46     $ 0.15   Net income per share—diluted $ 0.17     $ 0.05     $ 0.43     $ 0.15   Shares used in calculating net income per share—basic   45,175       45,894       45,311       45,632   Shares used in calculating net income per share—diluted   48,709       46,848       48,576       46,790   Comprehensive income               Net income $ 8,367     $ 2,396     $ 20,675     $ 6,936   Other comprehensive income (loss), net of tax               Foreign currency translation adjustment   (215 )     10,300       (3,284 )     4,734   Unrealized loss on investments, net of tax benefit of $8, $3, $22, and $29   (2 )     (8 )     (50 )     (92 ) Other comprehensive income (loss), net of tax   (217 )     10,292       (3,334 )     4,642   Comprehensive income $ 8,150     $ 12,688     $ 17,341     $ 11,578   MITEK SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (amounts in thousands except share data)           June 30, 2026 (Unaudited)   September 30, 2025 ASSETS       Current assets:       Cash and cash equivalents $ 90,045     $ 154,153   Short-term investments   9,666       38,858   Accounts receivable, net   52,306       36,811   Contract assets, current portion   8,763       12,687   Prepaid expenses   3,395       3,050   Other current assets   3,690       2,935   Total current assets   167,865       248,494   Long-term investments   450       3,464   Property and equipment, net   5,816       2,314   Right-of-use assets   1,969       2,624   Intangible assets, net   29,453       39,799   Goodwill   131,349       133,457   Deferred income tax assets   25,292       25,334   Contract assets, non-current portion   2,062       1,405   Other non-current assets   3,799       2,218   Total assets $ 368,055     $ 459,109   LIABILITIES AND STOCKHOLDERS’ EQUITY       Current liabilities:       Accounts payable $ 3,968     $ 3,874   Accrued payroll and related taxes   14,630       16,837   Income tax payables   3,063       2,683   Deferred revenue, current portion   34,501       29,061   Lease liabilities, current portion   913       890   Convertible senior notes   —       152,216   Current portion of term loan   2,813       —   Other current liabilities   1,295       3,473   Total current liabilities   61,183       209,034   Deferred revenue, non-current portion   1,615       1,085   Long-term portion of term loan   46,562       —   Lease liabilities, non-current portion   1,387       2,080   Deferred income tax liabilities   291       295   Other non-current liabilities   6,494       6,357   Total liabilities   117,532       218,851           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, 45,234,573 issued and 45,110,617 outstanding as of June 30, 2026, and 45,636,531 issued and outstanding as of September 30, 2025   45       46   Additional paid-in capital   278,549       265,835   Accumulated other comprehensive income (loss)   (2,748 )     586   Accumulated deficit   (23,322 )     (26,209 ) Treasury stock, at cost, 123,956 shares and 0 shares as of June 30, 2026 and September 30, 2025, respectively   (2,001 )     —   Total stockholders’ equity   250,523       240,258   Total liabilities and stockholders’ equity $ 368,055     $ 459,109   MITEK SYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (amounts in thousands)           Nine Months Ended June 30,     2026       2025   Operating activities:       Net income $ 20,675     $ 6,936   Adjustments to reconcile net income to net cash provided by operating activities:       Stock-based compensation expense   12,582       13,239   Loss on extinguishment of revolving credit line   —       309   Amortization of acquired intangible assets   9,913       10,817   Amortization of costs capitalized to obtain revenue contracts   2,229       1,394   Depreciation and amortization expense   1,285       1,171   Bad debt expense   228       520   Amortization of investment premiums & other   (343 )     (764 ) Accretion and amortization on convertible senior notes   3,034       6,403   Deferred taxes   (28 )     (7,942 ) Changes in assets and liabilities, net of acquisitions:       Accounts receivable   (15,878 )     (8,852 ) Contract assets   3,190       5,997   Other assets   (5,015 )     (755 ) Accounts payable   108       (3,691 ) Accrued payroll and related taxes   (2,119 )     3,947   Income taxes payable   416       1,990   Deferred revenue   6,104       4,584   Other liabilities   (2,152 )     576   Net cash provided by operating activities   34,229       35,879   Investing activities:       Purchases of investments   (8,179 )     (34,192 ) Maturities of investments   34,621       34,900   Sales of investments   6,035       —   Purchases of property and equipment, net   (4,818 )     (896 ) Net cash provided by (used in) investing activities   27,659       (188 ) Financing activities:       Proceeds from term loan   50,000       —   Repayments of term loan   (625 )     —   Repayments of senior convertible notes   (155,250 )     —   Payment of debt issuance costs   —       (224 ) Proceeds from the issuance of equity plan common stock   2,263       530   Repurchases and retirements of common stock   (19,790 )     (3,259 ) Payment of tax withholding obligations related to net share settlements of equity awards   (2,131 )     —   Proceeds from other borrowings   442       —   Principal payments on other borrowings   (172 )     (142 ) Net cash used in financing activities   (125,263 )     (3,095 ) Foreign currency effect on cash and cash equivalents   (733 )     1,072   Net increase (decrease) in cash and cash equivalents   (64,108 )     33,668   Cash and cash equivalents at beginning of period   154,153       93,456   Cash and cash equivalents at end of period $ 90,045     $ 127,124   Supplemental disclosures of cash flow information:       Cash paid for interest $ 1,562     $ 582   Cash paid for income taxes $ 7,648     $ 7,065   Supplemental disclosures of non-cash investing and financing activities:       Unrealized holding loss on available-for-sale investments $ (50 )   $ (92 ) MITEK SYSTEMS, INC. DISAGGREGATION OF REVENUE BY PRODUCT AND TYPE (Unaudited) (amounts in thousands)                   Three Months Ended June 30,   Nine Months Ended June 30,   2026   2025   2026   2025 Fraud and Identity Solutions               SaaS $ 24,833   $ 18,100   $ 65,728   $ 52,183 Software license and support   3,612     6,944     12,609     11,509 Professional services and other   586     491     1,864     1,531 Total fraud and identity solutions revenue $ 29,031   $ 25,535   $ 80,201   $ 65,223                 Check Verification Solutions               SaaS $ 1,319   $ 1,161   $ 3,881   $ 3,500 Software license and support   23,408     18,846     67,927     65,454 Professional services and other   280     187     1,114     735 Total check verification solutions revenue $ 25,007   $ 20,194   $ 72,922   $ 69,689                 Consolidated Revenue               SaaS $ 26,152   $ 19,261   $ 69,609   $ 55,683 Software license and support   27,020     25,790     80,536     76,963 Professional services and other   866     678     2,978     2,266 Consolidated revenue $ 54,038   $ 45,729   $ 153,123   $ 134,912 MITEK SYSTEMS, INC. GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION (Unaudited) (amounts in thousands)                   Three Months Ended June 30,   Nine Months Ended June 30,     2026       2025       2026       2025   GAAP net income (loss) $ 8,367     $ 2,396     $ 20,675     $ 6,936   Add:               Income tax (benefit) provision   2,803       749       7,629       1,368   Other (income) expense, net   (347 )     (1,805 )     (2,484 )     (3,478 ) Interest expense   721       2,469       4,713       7,274   GAAP operating income (loss) $ 11,544     $ 3,809     $ 30,533     $ 12,100                   Non-GAAP Adjustments               Depreciation and amortization expense $ 504     $ 432     $ 1,285     $ 1,171   Amortization of acquired intangible assets   3,304       3,560       9,913       10,817   Litigation and other legal costs   380       37       408       457   Executive and other transition costs   158       —       420       521   Stock-based compensation expense   4,890       4,422       12,582       13,239   Non-recurring audit fees   —       807       719       1,937   Restructuring costs (1)   —       —       515       837   Adjusted EBITDA $ 20,780     $ 13,067     $ 56,375     $ 41,079   Total revenue $ 54,038     $ 45,729     $ 153,123     $ 134,912   Adjusted EBITDA margin   38.5 %     28.6 %     36.8 %     30.4 % (1) Restructuring costs consist of employee severance obligations and other related costs. Restructuring costs were $0.5 million in the nine months ended June 30, 2026 and were related to a restructuring that occurred in the first quarter of fiscal 2026. Restructuring costs were $0.8 million in the nine months ended June 30, 2025 and were related to a restructuring that occurred in the first quarter of fiscal 2025. MITEK SYSTEMS, INC. NON-GAAP NET INCOME RECONCILIATION (Unaudited) (amounts in thousands except per share data)                   Three Months Ended June 30,   Nine Months Ended June 30,     2026       2025       2026       2025   Net income (loss) $ 8,367     $ 2,396     $ 20,675     $ 6,936   Non-GAAP adjustments:               Amortization of acquired intangible assets   3,304       3,560       9,913       10,817   Litigation and other legal costs   380       37       408       457   Executive and other transition costs   158       —       420       521   Stock-based compensation expense   4,890       4,422       12,582       13,239   Non-recurring audit fees   —       807       719       1,937   Restructuring costs (1)   —       —       515       837   Amortization of debt discount and issuance costs   —       2,487       3,034       6,796   Income tax effect of pre-tax adjustments   (2,284 )     (2,304 )     (7,134 )     (7,663 ) Cash tax difference (2)   1,941       (1,228 )     6,535       (321 ) Non-GAAP net income $ 16,756     $ 10,177     $ 47,667     $ 33,556   Non-GAAP net income per share—basic $ 0.37     $ 0.22     $ 1.05     $ 0.74   Non-GAAP net income per share—diluted $ 0.34     $ 0.22     $ 0.98     $ 0.72   Shares used in calculating non-GAAP net income per share—basic   45,175       45,894       45,311       45,632   Shares used in calculating non-GAAP net income per share—diluted   48,709       46,848       48,576       46,790   (1) Restructuring costs consist of employee severance obligations and other related costs. Restructuring costs were $0.5 million in the nine months ended June 30, 2026 and were related to a restructuring that occurred in the first quarter of fiscal 2026. Restructuring costs were $0.8 million in the nine months ended June 30, 2025 and were related to a restructuring that occurred in the first quarter of fiscal 2025.   (2) The Company’s non-GAAP net income is calculated using a cash tax rate of 15% in fiscal 2026 and 22% in fiscal 2025. 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 the three months ended June 30, 2026 and 2025 was 25% and 24%, respectively. The Company’s effective tax rate used for the purposes of calculating GAAP net income for the nine months ended June 30, 2026 and 2025 was 27% and 16%, respectively. MITEK SYSTEMS, INC. NON-GAAP FREE CASH FLOW RECONCILIATION (Unaudited) (amounts in thousands)                       Three months ended   Twelve months ended June 30, 2026   September 30, 2025   December 31, 2025   March 31, 2026   June 30, 2026   Net cash provided by (used in) operating activities $ 19,461     $ 8,018     $ (945 )   $ 27,156     $ 53,690   Less:                   Purchases of property and equipment, net   (259 )     (1,426 )     (1,552 )     (1,840 )     (5,077 ) Free Cash Flow $ 19,202     $ 6,592     $ (2,497 )   $ 25,316     $ 48,613                         Three months ended   Twelve months ended June 30, 2025   September 30, 2024   December 31, 2024   March 31, 2025   June 30, 2025   Net cash provided by (used in) operating activities $ 21,102     $ 565     $ 13,743     $ 21,571     $ 56,981   Less:                   Purchases of property and equipment, net   (283 )     (335 )     (232 )     (329 )     (1,179 ) Free Cash Flow $ 20,819     $ 230     $ 13,511     $ 21,242     $ 55,802   MITEK SYSTEMS, INC. STOCK-BASED COMPENSATION EXPENSE (Unaudited) (amounts in thousands)                   Three Months Ended June 30,   Nine Months Ended June 30,   2026   2025   2026   2025 Cost of revenue $ 327   $ 181   $ 990   $ 504 Selling and marketing   976     950     2,167     2,959 Research and development   604     1,287     851     3,749 General and administrative   2,983     2,004     8,574     6,027 Total stock-based compensation expense $ 4,890   $ 4,422   $ 12,582   $ 13,239 MITEK SYSTEMS, INC. NON-GAAP GROSS PROFIT RECONCILIATION (Unaudited) (amounts in thousands)                   Three Months Ended June 30,   Nine Months Ended June 30,     2026       2025       2026       2025   Software license               Software license revenue $ 20,714     $ 19,507     $ 60,565     $ 58,192   Cost of revenue (exclusive of depreciation and amortization expense)   (60 )     (53 )     (126 )     (136 ) Depreciation and amortization expense   (162 )     (185 )     (529 )     (697 ) Amortization of acquired completed technology assets   (501 )     (763 )     (1,503 )     (2,605 ) GAAP gross profit for software license and hardware   19,991       18,506       58,407       54,754   Depreciation and amortization expense   162       185       529       697   Amortization of acquired completed technology assets   501       763       1,503       2,605   Non-GAAP gross profit for software license $ 20,654     $ 19,454     $ 60,439     $ 58,056                   GAAP gross margin for software license   96.5 %     94.9 %     96.4 %     94.1 % Non-GAAP gross margin for software license   99.7 %     99.7 %     99.8 %     99.8 %                 SaaS, maintenance, and other               SaaS, maintenance, and other revenue $ 33,324     $ 26,222     $ 92,558     $ 76,720   Cost of revenue (exclusive of depreciation and amortization expense)   (8,119 )     (6,969 )     (25,018 )     (19,361 ) Depreciation and amortization expense   (229 )     (3 )     (444 )     (9 ) Amortization of acquired completed technology assets   (2,228 )     (2,218 )     (6,674 )     (6,436 ) GAAP gross profit for SaaS, maintenance, and other   22,748       17,032       60,422       50,914   Depreciation and amortization expense   229       3       444       9   Amortization of acquired completed technology assets   2,228       2,218       6,674       6,436   Stock-based compensation expense   327       181       990       504   Non-GAAP gross profit for SaaS, maintenance, and other $ 25,532     $ 19,434     $ 68,530     $ 57,863                   GAAP gross margin for SaaS, maintenance, and other   68.3 %     65.0 %     65.3 %     66.4 % Non-GAAP gross margin for SaaS, maintenance, and other   76.6 %     74.1 %     74.0 %     75.4 %                 Consolidated results               Total revenue $ 54,038     $ 45,729     $ 153,123     $ 134,912   Cost of revenue (exclusive of depreciation and amortization expense)   (8,179 )     (7,022 )     (25,144 )     (19,497 ) Depreciation and amortization expense   (391 )     (188 )     (973 )     (706 ) Amortization of acquired completed technology assets   (2,729 )     (2,981 )     (8,177 )     (9,041 ) GAAP gross profit   42,739       35,538       118,829       105,668   Depreciation and amortization expense   391       188       973       706   Amortization of acquired completed technology assets   2,729       2,981       8,177       9,041   Stock-based compensation expense   327       181       990       504   Non-GAAP gross profit $ 46,186     $ 38,888     $ 128,969     $ 115,919                   GAAP gross profit margin   79.1 %     77.7 %     77.6 %     78.3 % Non-GAAP gross profit margin   85.5 %     85.0 %     84.2 %     85.9 % MITEK SYSTEMS, INC. NON-GAAP OPERATING EXPENSE RECONCILIATION (Unaudited) (amounts in thousands)                   Three Months Ended June 30,   Nine Months Ended June 30,   2026   2025   2026   2025 Selling and marketing $ 10,026   $ 11,127   $ 27,775   $ 31,362 Non-GAAP adjustments:               Stock-based compensation expense   976     950     2,167     2,959 Executive and other transition costs   —     —     170     — Non-GAAP selling and marketing $ 9,050   $ 10,177   $ 25,438   $ 28,403                 Research and development $ 8,059   $ 8,960   $ 22,999   $ 27,049 Non-GAAP adjustments:               Stock-based compensation expense   604     1,287     851     3,749 Non-GAAP research and development $ 7,455   $ 7,673   $ 22,148   $ 23,300                 General and administrative $ 12,926   $ 11,251   $ 36,244   $ 33,250 Non-GAAP adjustments:               Stock-based compensation expense   2,983     2,004     8,574     6,027 Litigation and other legal costs   380     37     408     457 Executive and other transition costs   158     —     250     521 Non-recurring audit fees   —     807     719     1,937 Non-GAAP general and administrative $ 9,405   $ 8,403   $ 26,293   $ 24,308                 Total Non-GAAP operating expense $ 25,910   $ 26,253   $ 73,879   $ 76,011   View source version on businesswire.com: https://www.businesswire.com/news/home/20260806087744/en/

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