Mitek Reports Record Fiscal 2025 Revenue

About this update from Mitek Systems, Inc.

Fiscal 2025 revenue of $179.7 million ; returned to full-year growth Fiscal 2025 SaaS revenue growth accelerated to 21% SAN DIEGO --(BUSINESS WIRE)-- 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 acceleration in SaaS growth and the continued scaling of our Fraud and Identity portfolio which now represents more than half of the business,” said Ed West , Mitek’s Chief Executive Officer. “This progress reflects disciplined execution and sharper operational rigor across the company. As we enter fiscal 2026, our focus is clear: ‘Unify and Grow’ - bringing identity, authentication, and fraud solutions together to deepen SaaS adoption, expand customer value, and position the business for continued durable, profitable growth.” Fiscal 2025 Full Year Financial Highlights GAAP Total revenue of $179.7 million was a 4% increase year-over-year, compared to $172.1 million a year ago. SaaS revenue of $77.0 million was a 21% increase year-over-year, compared to $63.6 million a year ago. Gross profit of $140.2 million , compared to $134.6 million a year ago. GAAP gross profit margin of 78.0%, compared to 78.2% a year ago. GAAP net income of $8.8 million , compared to $3.3 million a year ago. GAAP net income per diluted share of $0.19 , compared to $0.07 a year ago. Total cash and investments of $196.5 million at September 30, 2025 , was an increase of $54.7 million from $141.8 million at September 30, 2024 . Non-GAAP Non-GAAP gross profit of $153.6 million , compared to $148.3 million a year ago. Non-GAAP gross profit margin was 85.5%, compared to 86.2% a year ago. Adjusted EBITDA of $53.9 million , compared to $46.7 million a year ago. Adjusted EBITDA margin was 30.0%, compared to 27.2% a year ago. Non-GAAP net income was $44.7 million , compared to $45.4 million a year ago. Non-GAAP net income per diluted share was $0.95 , compared to $0.96 a year ago. Free cash flow was $54.2 million , compared to $30.3 million a year ago. Fiscal 2025 Fourth Quarter Financial Highlights GAAP Total revenue of $44.8 million was a 4% increase year-over-year, compared to $43.2 million a year ago. SaaS revenue of $21.3 million was a 19% increase year-over-year, compared to $18.0 million a year ago. Gross profit of $34.6 million , compared to $33.7 million a year ago. GAAP gross profit margin was 77.2%, compared to 78.0% a year ago. GAAP net income was $1.9 million , compared to GAAP net income of $8.6 million a year ago. GAAP net income per diluted share was $0.04 , compared to $0.18 a year ago. Non-GAAP Non-GAAP gross profit of $37.6 million , compared to $37.2 million a year ago. Non-GAAP gross profit margin was 84.0%, compared to 86.0% a year ago. Adjusted EBITDA was $12.9 million , compared to $15.4 million a year ago. Adjusted EBITDA margin was 28.7%, compared to 35.7% a year ago. Non-GAAP net income was $11.1 million , compared to $15.5 million a year ago. Non-GAAP net income per diluted share was $0.24 , compared to $0.33 a year ago. Free cash flow was $19.2 million for the three months ended September 30, 2025 , compared to $20.8 million for the corresponding period a year ago. Guidance Guidance includes non-GAAP financial measures. Full Year FY26 Q1 FY26 Guidance Guidance Total revenue $185 - $195 million $41 - $44 million Y/Y growth (midpoint) Approximately 5.5% Fraud & Identity solutions revenue(1) $101 - $105 million Y/Y growth (midpoint) Approximately 15% Adjusted EBITDA margin %(2) 27% - 30% (1) See revised revenue categorizations as presented in the Disaggregation of Revenue by Product and Type below. (2) See ‘GAAP Net Income to Adjusted EBITDA Reconciliation’ below. 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 fourth quarter and full year of fiscal 2025. 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 1110347. 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 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 with its forward-looking GAAP net income 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 adjusted EBITDA 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. 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. CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands except per share data) Three Months Ended September 30 , Twelve Months Ended September 30 , 2025 2024 2025 2024 Revenue Software license and hardware $ 15,894 $ 18,341 $ 74,086 $ 81,872 SaaS, maintenance, and other 28,885 24,881 105,605 90,211 Total revenue 44,779 43,222 179,691 172,083 Operating costs and expenses Cost of revenue—software license and hardware (exclusive of depreciation & amortization) 82 186 218 309 Cost of revenue—SaaS, maintenance, and other (exclusive of depreciation & amortization) 7,208 5,978 26,569 24,086 Selling and marketing 10,154 9,538 41,516 40,769 Research and development 8,235 6,073 35,284 34,642 General and administrative 11,082 9,908 44,332 52,993 Amortization and acquisition-related costs 3,325 3,710 14,142 15,291 Restructuring costs 3 114 840 1,762 Total operating costs and expenses 40,089 35,507 162,901 169,852 Operating income (loss) 4,690 7,715 16,790 2,231 Interest expense 2,505 2,364 9,779 9,259 Other income (expense), net 1,120 1,851 4,598 6,119 Income (loss) before income taxes 3,305 7,202 11,609 (909 ) Income tax benefit (provision) (1,445 ) 1,371 (2,813 ) 4,187 Net income (loss) $ 1,860 $ 8,573 $ 8,796 $ 3,278 Net income (loss) per share—basic $ 0.04 $ 0.19 $ 0.19 $ 0.07 Net income (loss) per share—diluted $ 0.04 $ 0.18 $ 0.19 $ 0.07 Shares used in calculating net income per share—basic 45,960 45,952 45,716 46,560 Shares used in calculating net income per share—diluted 47,323 46,573 46,926 47,468 MITEK SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS (amounts in thousands except share data) September 30, 2025 September 30, 2024 ASSETS Current assets: Cash and cash equivalents $ 154,153 $ 93,456 Short-term investments 38,858 36,884 Accounts receivable, net 36,811 31,682 Contract assets, current portion 12,687 15,818 Prepaid expenses 3,050 4,514 Other current assets 2,935 2,697 Total current assets 248,494 185,051 Long-term investments 3,464 11,410 Property and equipment, net 2,314 2,564 Right-of-use assets 2,624 4,662 Goodwill and intangible assets 173,256 185,711 Deferred income tax assets 25,334 19,145 Contract assets, non-current portion 1,405 3,620 Other non-current assets 2,218 1,590 Total assets $ 459,109 $ 413,753 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 3,874 $ 7,236 Accrued payroll and related taxes 16,837 10,324 Accrued liabilities 343 424 Deferred revenue, current portion 29,061 21,231 Lease liabilities, current portion 890 805 Convertible senior notes 152,216 — Other current liabilities 5,813 2,127 Total current liabilities 209,034 42,147 Convertible senior notes — 143,601 Deferred revenue, non-current portion 1,085 753 Lease liabilities, non-current portion 2,080 4,230 Deferred income tax liabilities 295 3,889 Other non-current liabilities 6,357 4,332 Total liabilities 218,851 198,952 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, 45,636,531 and 44,998,939 issued and outstanding, as of September 30, 2025 and September 30, 2024 , respectively 46 45 Additional paid-in capital 265,835 247,326 Accumulated other comprehensive income (loss) 586 (2,302 ) Accumulated deficit (26,209 ) (30,268 ) Total stockholders’ equity 240,258 214,801 Total liabilities and stockholders’ equity $ 459,109 $ 413,753 MITEK SYSTEMS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) Three Months Ended September 30 , Twelve Months Ended September 30 , 2025 2024 2025 2024 Operating activities: Net income (loss) $ 1,860 $ 8,573 $ 8,796 $ 3,278 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Stock-based compensation expense 3,571 1,723 16,810 12,624 Loss on extinguishment of revolving credit line — — 309 — Amortization of intangible assets 3,326 3,711 14,143 15,156 Amortization of costs capitalized to obtain revenue contracts 502 415 1,896 1,662 Depreciation expense 144 375 1,315 1,755 Bad debt expense 283 (443 ) 803 647 Amortization of investment premiums & other (343 ) (868 ) (1,107 ) (2,624 ) Accretion and amortization on debt securities 2,211 2,070 8,614 8,085 Net changes in estimated fair value of acquisition-related contingent consideration — — — 136 Deferred taxes (1,634 ) (8,247 ) (9,576 ) (10,434 ) Changes in assets and liabilities, net of acquisitions: Accounts receivable 3,155 10,852 (5,697 ) 489 Contract assets (508 ) (927 ) 5,489 4,600 Other assets (538 ) 7,306 (1,293 ) (1,534 ) Accounts payable 320 908 (3,371 ) (450 ) Accrued payroll and related taxes 2,415 (9 ) 6,362 240 Income taxes payable 540 (435 ) 2,530 (4,560 ) Deferred revenue 3,365 (3,347 ) 7,949 3,221 Restructuring accrual — (42 ) — — Other liabilities 792 (513 ) 1,368 (603 ) Net cash provided by (used in) operating activities 19,461 21,102 55,340 31,688 Investing activities: Purchases of investments (6,418 ) (17,248 ) (40,610 ) (62,433 ) Maturities of investments 11,350 18,445 46,250 92,617 Sales of investments 1,350 — 1,350 — Purchases of property and equipment, net (259 ) (283 ) (1,155 ) (1,438 ) Net cash provided by (used in) investing activities 6,023 914 5,835 28,746 Financing activities: Payment of debt issuance costs — — (224 ) (290 ) Proceeds from the issuance of equity plan common stock 1,171 841 1,701 1,889 Repurchases and retirements of common stock (1,479 ) (14,140 ) (4,738 ) (24,180 ) Payment of acquisition-related contingent consideration — — — (4,641 ) Proceeds from other borrowings 1,691 321 1,691 1,496 Principal payments on other borrowings (134 ) (33 ) (276 ) (156 ) Net cash provided by (used in) financing activities 1,249 (13,011 ) (1,846 ) (25,882 ) Foreign currency effect on cash and cash equivalents 296 100 1,368 (9 ) Net Unrealized holding gain (loss) on available-for-sale investments 27,029 9,105 60,697 34,543 Cash and cash equivalents at beginning of period 127,124 84,351 93,456 58,913 Cash and cash equivalents at end of period $ 154,153 $ 93,456 $ 154,153 $ 93,456 Supplemental disclosures of cash flow information: Cash paid for interest $ 582 $ 589 $ 1,164 $ 1,274 Cash paid for income taxes $ 2,022 $ 47 $ 9,087 $ 11,989 Supplemental disclosures of non-cash investing and financing activities: Acquisition-related shares issued $ — $ — $ — $ 3,471 Unrealized holding gain (loss) on available-for-sale investments $ — $ 208 $ (68 ) $ 301 MITEK SYSTEMS, INC. DISAGGREGATION OF REVENUE BY PRODUCT AND TYPE (revised presentation) (amounts in thousands) Three Months Ended September 30 , Twelve Months Ended September 30 , 2025 2024 2025 2024 Fraud and identity solutions SaaS $ 20,232 $ 17,083 $ 72,415 $ 59,713 Software license and support 3,949 4,758 15,458 16,529 Professional services and other 529 382 2,060 1,762 Total fraud and identity solutions revenue $ 24,710 $ 22,223 $ 89,933 $ 78,004 Check verification solutions SaaS $ 1,095 $ 905 $ 4,595 $ 3,876 Software license and support 18,627 19,892 84,081 89,559 Professional services and other 347 202 1,082 644 Total check verification solutions revenue $ 20,069 $ 20,999 $ 89,758 $ 94,079 Total by revenue type SaaS $ 21,327 $ 17,988 $ 77,010 $ 63,589 Software license and support 22,576 24,650 99,539 106,088 Professional services and other 876 584 3,142 2,406 Total revenue $ 44,779 $ 43,222 $ 179,691 $ 172,083 MITEK SYSTEMS, INC. DISAGGREGATION OF REVENUE BY PRODUCT AND TYPE (historical presentation) (amounts in thousands) Three Months Ended September 30 , Twelve Months Ended September 30 , 2025 2024 2025 2024 Deposits Software license $ 14,335 $ 15,773 $ 67,661 $ 74,108 Deposits SaaS, maintenance, and other SaaS 2,880 1,799 10,264 6,406 Maintenance 6,089 5,846 23,439 22,275 Professional services and other 514 266 1,650 769 Total deposits SaaS, maintenance, and other 9,483 7,911 35,353 29,450 Total deposits revenue $ 23,818 $ 23,684 $ 103,014 $ 103,558 Identity Identity software license and hardware Software license $ 1,559 $ 2,568 $ 6,425 $ 7,631 Hardware — — — 133 Total identity software license and hardware 1,559 2,568 6,425 7,764 Identity SaaS, maintenance, and other SaaS 18,447 16,188 66,746 57,182 Maintenance 594 463 2,014 2,074 Professional services and other 361 319 1,492 1,505 Total identity SaaS, maintenance, and other 19,402 16,970 70,252 60,761 Total identity revenue $ 20,961 $ 19,538 $ 76,677 $ 68,525 Consolidated results Total software license and hardware Software license $ 15,894 $ 18,341 $ 74,086 $ 81,739 Hardware — — — 133 Total software license and hardware 15,894 18,341 74,086 81,872 Total SaaS, maintenance, and other SaaS 21,327 17,987 77,010 63,588 Maintenance 6,683 6,309 25,453 24,349 Professional services and other 875 585 3,142 2,274 Total SaaS, maintenance, and other 28,885 24,881 105,605 90,211 Total revenue $ 44,779 $ 43,222 $ 179,691 $ 172,083 MITEK SYSTEMS, INC. GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION (Unaudited) (amounts in thousands) Three Months Ended September 30 , Twelve Months Ended September 30 , 2025 2024 2025 2024 GAAP net income (loss) $ 1,860 $ 8,573 $ 8,796 $ 3,278 Add: Income tax (benefit) provision 1,445 (1,371 ) 2,813 (4,187 ) Other (income) expense, net (1,120 ) (1,851 ) (4,598 ) (6,119 ) Interest Expense 2,505 2,364 9,779 9,259 GAAP operating income (loss) $ 4,690 $ 7,715 $ 16,790 $ 2,231 Non-GAAP Adjustments Depreciation and amortization $ 144 $ 375 $ 1,315 $ 1,755 Amortization of intangibles 3,326 3,711 14,143 15,156 Net changes in estimated fair value of acquisition-related contingent consideration — — — 136 Litigation and other legal costs(1) 28 251 485 3,496 Executive transition costs 285 599 806 2,632 Stock-based compensation expense 3,571 1,723 16,810 12,624 Non-recurring audit fees 806 931 2,743 5,956 Enterprise risk, portfolio positioning and other related costs(2) — — — 996 Restructuring costs(3) 3 114 840 1,762 Adjusted EBITDA $ 12,853 $ 15,419 $ 53,932 $ 46,744 Total revenue $ 44,779 $ 43,222 $ 179,691 $ 172,083 Adjusted EBITDA margin 28.7 % 35.7 % 30.0 % 27.2 % (1) During the three and twelve months ended 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 $0.8 million in the twelve months ended September 30, 2025 and were related to a restructuring that occurred in the first quarter of fiscal 2025. Restructuring costs were $1.8 million in the twelve months ended September 30, 2024 and were related to expenses incurred to relocate employees and to a restructuring that occurred in the third quarter of fiscal 2024. 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 , 2025 2024 2025 2024 Net income (loss) $ 1,860 $ 8,573 $ 8,796 $ 3,278 Non-GAAP adjustments: Amortization of acquisition-related intangibles 3,326 3,711 14,143 15,156 Net changes in estimated fair value of acquisition-related contingent consideration — — — 136 Litigation and other legal costs(1) 28 251 485 3,496 Executive transition costs 285 599 806 2,632 Stock-based compensation expense 3,571 1,723 16,810 12,624 Non-recurring audit fees 806 931 2,743 5,956 Enterprise risk, portfolio positioning and other related costs(2) — — — 996 Restructuring costs(3) 3 114 840 1,762 Amortization of debt discount and issuance costs 2,212 2,112 9,008 8,169 Income tax effect of pre-tax adjustments (3,201 ) (2,696 ) (10,864 ) (11,970 ) Cash tax difference(4) 2,250 211 1,929 3,151 Non-GAAP net income $ 11,140 $ 15,529 $ 44,696 $ 45,386 Non-GAAP net income per share—basic $ 0.24 $ 0.34 $ 0.98 $ 0.97 Non-GAAP net income per share—diluted $ 0.24 $ 0.33 $ 0.95 $ 0.96 Shares used in calculating non-GAAP net income per share—basic 45,960 45,952 45,716 46,560 Shares used in calculating non-GAAP net income per share—diluted 47,323 46,573 46,926 47,468 (1) During the three and twelve months ended 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 $0.8 million in the twelve months ended September 30, 2025 and were related to a restructuring that occurred in the first quarter of fiscal 2025. Restructuring costs were $1.8 million in the twelve months ended September 30, 2024 and were related to expenses incurred to relocate employees and to a restructuring that occurred in the third quarter of fiscal 2024. (4) The Company’s non-GAAP net income is calculated using a cash tax rate of 21% in fiscal 2025 and 9% in fiscal 2024. 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 September 30, 2025 and 2024 was 44% and negative 19%, respectively. The Company’s effective tax rate used for the purposes of calculating GAAP net income for the twelve months ended September 30, 2025 and 2024 was 24% and 461%, respectively. MITEK SYSTEMS, INC. NON-GAAP FREE CASH FLOW RECONCILIATION (Unaudited) (amounts in thousands) Three months ended Twelve months ended September 30, 2025 December 31, 2024 March 30, 2025 June 30, 2025 September 30, 2025 Net cash provided by (used in) operating activities $ 565 $ 13,743 $ 21,571 $ 19,461 $ 55,340 Less: Purchases of property and equipment, net (335 ) (232 ) (329 ) (259 ) (1,155 ) Free Cash Flow $ 230 $ 13,511 $ 21,242 $ 19,202 $ 54,185 Three months ended Twelve months ended September 30, 2024 December 31, 2023 March 30, 2024 June 30, 2024 September 30, 2024 Net cash provided by (used in) operating activities $ (9,463 ) $ 7,064 $ 12,985 $ 21,102 $ 31,688 Less: Purchases of property and equipment, net (241 ) (483 ) (431 ) (283 ) (1,438 ) Free Cash Flow $ (9,704 ) $ 6,581 $ 12,554 $ 20,819 $ 30,250 MITEK SYSTEMS, INC. NON-GAAP GROSS PROFIT RECONCILIATION (Unaudited) (amounts in thousands) Three Months Ended September 30 , Twelve Months Ended September 30 , 2025 2024 2025 2024 Software license and hardware Software license and hardware revenue $ 15,894 $ 18,341 $ 74,086 $ 81,872 Cost of revenue (exclusive of depreciation and amortization) (82 ) (186 ) (218 ) (309 ) Depreciation and amortization (691 ) (1,189 ) (3,993 ) (4,634 ) GAAP gross profit for software license and hardware 15,121 16,966 69,875 76,929 Depreciation and amortization 691 1,189 3,993 4,634 Non-GAAP gross profit for software license and hardware $ 15,812 $ 18,155 $ 73,868 $ 81,563 GAAP gross margin for software license and hardware 95.1 % 92.5 % 94.3 % 94.0 % Non-GAAP gross margin for software license and hardware 99.5 % 99.0 % 99.7 % 99.6 % SaaS, maintenance, and other SaaS, maintenance and other revenue $ 28,885 $ 24,881 $ 105,605 $ 90,211 Cost of revenue (exclusive of depreciation and amortization) (7,208 ) (5,978 ) (26,569 ) (24,086 ) Depreciation and amortization (2,242 ) (2,162 ) (8,687 ) (8,473 ) GAAP gross profit for SaaS, maintenance, and other 19,435 16,741 70,349 57,652 Depreciation and amortization 2,242 2,162 8,687 8,473 Stock-based compensation expense 143 127 647 574 Non-GAAP gross profit for SaaS, maintenance, and other $ 21,820 $ 19,030 $ 79,683 $ 66,699 GAAP gross margin for SaaS, maintenance, and other 67.3 % 67.3 % 66.6 % 63.9 % Non-GAAP gross margin for SaaS, maintenance, and other 75.5 % 76.5 % 75.5 % 73.9 % Consolidated results Total revenue $ 44,779 $ 43,222 $ 179,691 $ 172,083 Cost of revenue (exclusive of depreciation and amortization) (7,290 ) (6,164 ) (26,787 ) (24,395 ) Depreciation and amortization (2,933 ) (3,351 ) (12,680 ) (13,107 ) GAAP gross profit 34,556 33,707 140,224 134,581 Depreciation and amortization 2,933 3,351 12,680 13,107 Stock-based compensation expense 143 127 647 574 Non-GAAP gross profit $ 37,632 $ 37,185 $ 153,551 $ 148,262 GAAP gross profit margin 77.2 % 78.0 % 78.0 % 78.2 % Non-GAAP gross profit margin 84.0 % 86.0 % 85.5 % 86.2 % MITEK SYSTEMS, INC. NON-GAAP OPERATING EXPENSE RECONCILIATION (Unaudited) (amounts in thousands) Three Months Ended September 30 , Twelve Months Ended September 30 , 2025 2024 2025 2024 Selling and marketing $ 10,154 $ 9,538 $ 41,516 $ 40,769 Non-GAAP adjustments: Stock-based compensation expense 939 462 3,898 3,041 Non-GAAP selling and marketing $ 9,215 $ 9,076 $ 37,618 $ 37,728 Research and development $ 8,235 $ 6,073 $ 35,284 $ 34,642 Non-GAAP adjustments: Stock-based compensation expense 457 (383 ) 4,206 3,368 Non-GAAP research and development $ 7,778 $ 6,456 $ 31,078 $ 31,274 General and administrative $ 11,082 $ 9,908 $ 44,332 $ 52,993 Non-GAAP adjustments: Stock-based compensation expense 2,032 1,517 8,059 5,641 Litigation and other legal costs(1) 28 251 485 3,496 Executive transition costs 285 599 806 2,632 Non-recurring audit fees 806 931 2,743 5,956 Enterprise risk, portfolio positioning and other related costs(2) — — — 996 Non-GAAP general and administrative $ 7,931 $ 6,610 $ 32,239 $ 34,272 Total Non-GAAP operating expense $ 24,924 $ 22,142 $ 100,935 $ 103,274 (1) During the three and twelve months ended 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. STOCK-BASED COMPENSATION EXPENSE (amounts in thousands) Three Months Ended September 30 , Twelve Months Ended September 30 , 2025 2024 2025 2024 Cost of revenue $ 143 $ 127 $ 647 $ 574 Selling and marketing 939 462 3,898 3,041 Research and development 457 (383 ) 4,206 3,368 General and administrative 2,032 1,517 8,059 5,641 Total stock-based compensation expense $ 3,571 $ 1,723 $ 16,810 $ 12,624 View source version on businesswire.com : https://www.businesswire.com/news/home/20251211740185/en/ Investor Contacts: Ryan Flanagan ICR for Mitek Systems [email protected] Michael Holder VP, Finance and Investor Relations [email protected] Source: Mitek Systems, Inc.

View stock analysis, news, and events for Mitek Systems, Inc.