Financial Data and Key Metrics Changes - Total revenue for Q4 was $44.8 million, up 4% year over year, with SaaS revenue growth of 19% [23] - For the full year, total revenue was approximately $180 million, split evenly between fraud and identity and check verification, with a consolidated revenue growth of 4% [26] - Non-GAAP gross margin for Q4 was 84%, down approximately 200 basis points year over year, while full-year non-GAAP gross margin was about 85% [23][28] - Adjusted EBITDA for fiscal 2025 grew by 15% to $54 million, representing a margin of 30%, up from 27% a year ago [30] Business Line Data and Key Metrics Changes - Fraud and identity revenue for fiscal 2025 was $90 million, up 15% year over year, driven by SaaS offerings and volume expansion [25] - Check verification revenue for fiscal 2025 was $90 million, compared to $94 million in fiscal 2024, reflecting deal timing rather than a decline in demand [26] - SaaS revenue growth accelerated to 21% in fiscal 2025, contributing roughly eight points of growth to total revenue [27] Market Data and Key Metrics Changes - The fraud landscape is evolving rapidly, with AI-enabled fraud in the U.S. projected to reach $40 billion by 2027, making synthetic identity fraud a top concern for financial institutions [5] - In North America, large financial institutions are integrating identity verification with fraud checks earlier in the onboarding process [10] - In EMEA, banks are adopting new use cases and authentication products, driving higher verification and authentication volumes [10] Company Strategy and Development Direction - The company aims to unify its identity, authentication, and fraud capabilities into a cohesive platform, focusing on deeper, signal-rich identity journeys [14][16] - Fiscal 2026 is organized around four key pillars: fortifying check verification, unifying fraud and identity capabilities, investing in areas of advantage, and maximizing value through disciplined capital allocation [18] - The company is transitioning to a heavier SaaS and services mix, which is expected to compress margins slightly but increase gross profit dollars [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to capitalize on the growing demand for fraud and identity solutions, driven by the rise in synthetic fraud [41][49] - The company has fully remediated all previously reported material weaknesses in internal controls, marking a significant milestone [36] - Fiscal 2026 revenue is expected to be between $185 million and $195 million, reflecting stable check verification and accelerating fraud and identity demand [33] Other Important Information - The company ended fiscal 2025 with approximately $196 million in cash and investments and $157 million in total debt, resulting in a $40 million net cash position [32] - Free cash flow for the full year was $54 million, equating to 100% conversion of adjusted EBITDA [30] Q&A Session Summary Question: What are the key drivers behind the growth in the SaaS business? - Management highlighted underlying demand driven by the rise in synthetic fraud and the credibility of partnerships with large financial institutions [40][41] Question: Can you provide updates on Check Fraud Defender? - Management reported a 50% growth in overall ACV and noted that data sets now cover over 25% of all U.S. checking accounts, approaching 50% when including pilot institutions [42][43] Question: What is the current investment pace and future plans? - Management indicated a balanced approach to investment, focusing on R&D, particularly in AI decisioning and fraud intelligence, while maintaining margin discipline [58][63] Question: How is the pilot process for large banks progressing? - Management explained that large banks are seeing incremental value from being part of the consortium, which enhances their data access and insights [74][75] Question: What is the outlook for the Mobile Deposit business? - Management noted that while overall check volumes are declining, the transactional volume for Mobile Deposit has remained stable around 1.2 billion transactions annually [84][86]

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

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

Financial Performance - Fiscal 2025 revenue reached $179.7 million, a 4% increase year-over-year from $172.1 million[6] - SaaS revenue grew to $77.0 million, marking a 21% increase year-over-year compared to $63.6 million[6] - Gross profit for fiscal 2025 was $140.2 million, up from $134.6 million a year ago[6] - GAAP net income was $8.8 million, compared to $3.3 million in the previous year, with net income per diluted share of $0.19[6] - Adjusted EBITDA for fiscal 2025 was $53.9 million, an increase from $46.7 million a year ago, with an adjusted EBITDA margin of 30.0%[6] - Free cash flow for fiscal 2025 was $54.2 million, compared to $30.3 million in the previous year[6] - Total revenue for the three months ended September 30, 2025, was $44,779 million, a 3.6% increase from $43,222 million in the same period of 2024[23] - SaaS, maintenance, and other revenue increased to $28,885 million in Q3 2025, up 15.0% from $24,881 million in Q3 2024[23] - Operating income for the twelve months ended September 30, 2025, was $16,790 million, significantly higher than $2,231 million in the previous year[23] - Net income for the three months ended September 30, 2025, was $1,860 million, down 78.3% from $8,573 million in Q3 2024[23] Cash and Investments - Total cash and investments increased to $196.5 million, up $54.7 million from $141.8 million at the end of fiscal 2024[6] - Cash and cash equivalents increased to $154,153 million as of September 30, 2025, compared to $93,456 million a year earlier[25] - Net cash provided by operating activities for the twelve months ended September 30, 2025, was $55,340 million, an increase from $31,688 million in 2024[27] - Net cash provided by operating activities for the twelve months ended September 30, 2025, was $55,340, compared to $31,688 for the twelve months ended September 30, 2024, representing a 74.6% increase[37] Revenue Guidance - Guidance for fiscal 2026 projects total revenue between $185 million and $195 million, representing approximately 5.5% year-over-year growth[10] - Fraud & Identity solutions revenue is expected to be between $101 million and $105 million, with a midpoint growth of approximately 15%[10] Assets and Liabilities - Total assets rose to $459,109 million as of September 30, 2025, up from $413,753 million in 2024[25] - Total liabilities increased to $218,851 million in 2025, compared to $198,952 million in 2024[25] - Stockholders' equity grew to $240,258 million as of September 30, 2025, from $214,801 million in the previous year[25] Revenue Breakdown - Revenue from fraud and identity solutions for the three months ended September 30, 2025, was $24,710,000, up from $22,223,000 in 2024, reflecting an increase of 11.2%[28] - SaaS revenue for the three months ended September 30, 2025, was $21,327,000, compared to $17,988,000 in 2024, indicating a growth of 18.5%[29] - Total identity revenue for the twelve months ended September 30, 2025, was $76,677,000, an increase from $68,525,000 in 2024, representing a growth of 12.3%[29] - Total deposits revenue for the three months ended September 30, 2025, was $23,818,000, slightly up from $23,684,000 in 2024[29] Expenses - Selling and marketing expenses for the three months ended September 30, 2025, were $10,154, up from $9,538 in the same period of 2024, reflecting a 6.5% increase[41] - Research and development expenses for the three months ended September 30, 2025, were $8,235, compared to $6,073 for the same period in 2024, representing a 35.7% increase[41] - Total stock-based compensation expense for the twelve months ended September 30, 2025, was $16,810, compared to $12,624 for the same period in 2024, indicating a 33.2% increase[44] - Non-GAAP operating expenses for the twelve months ended September 30, 2025, totaled $100,935, down from $103,274 for the same period in 2024, showing a decrease of 2.3%[41] Company Strategy - The company aims to unify and grow its identity, authentication, and fraud solutions to enhance SaaS adoption and customer value[3]

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

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

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

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

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

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