San Diego, California, January 1, 2024 — Mitek Systems, Inc. (NASDAQ: MITK, www.miteksystems.com, “Mitek” or the “Company”), a global leader in digital identity verification, mobile capture and fraud management, today reported financial results for its second quarter ended March 31, 2025 and raised its adjusted EBITDA margin guidance range for its fiscal 2025 full year ending September 30, 2025 (“fiscal 2025”).
“Mitek delivered a strong second quarter, achieving all-time record revenue and record profitability, underscoring our continued momentum,” said Ed West, Mitek’s CEO. “SaaS revenue growth was particularly strong, increasing 15% year over year, as customers increasingly rely on our Identity Verification and Fraud solutions to address real-world challenges with speed and precision. At the same time, we are building a more agile Mitek, strengthening our foundation, and deepening engagement with banks, fintechs, telecoms and enterprises. These results reflect meaningful progress and position our core technologies as catalysts for durable, long-term growth. As we enter the second half of the year, our focus remains on disciplined execution.”
Fiscal 2025 Second Quarter Financial Highlights
GAAP
- Revenue of $51.9 million was an 11% increase year-over-year, compared to $47.0 million a year ago.
- Gross profit of $42.1 million was a 12% increase year-over-year, compared to $37.5 million a year ago.
- GAAP gross profit margin was 81.2%, up from 79.8% a year ago.
- GAAP net income was $9.2 million, compared to a GAAP net income of $0.3 million a year ago.
- GAAP net income per diluted share was $0.20, compared to $0.01 a year ago.
- Total cash and investments was $152.4 million at March 31, 2025, an increase of $10.6 million from $141.8 million at September 30, 2024.
Non-GAAP
- Non-GAAP gross profit of $45.6 million was an 11% increase year-over-year, compared to $40.9 million a year ago.
- Non-GAAP gross profit margin was 87.7%, compared to 87.0% a year ago.
- Adjusted EBITDA was $20.2 million, compared to $13.3 million a year ago.
- Adjusted EBITDA margin was 38.8%, compared to 28.2% a year ago.
- Non-GAAP net income was $16.7 million, compared to $11.5 million a year ago.
- Non-GAAP net income per diluted share was $0.36, compared to $0.24 a year ago.
- Free cash flow was $13.7 million for the six months ended March 31, 2025, compared to negative $3.1 million for the corresponding period a year ago, and was $47.1 million for the twelve months ended March 31, 2025, compared to $16.2 million for the corresponding period a year ago.
Fiscal 2025 Full Year Guidance
Mitek is updating its guidance for its fiscal 2025 year ending September 30, 2025, as follows:
- Mitek is maintaining its fiscal 2025 full-year revenue guidance of $170 million to $180 million.
- Mitek is raising its fiscal 2025 full-year adjusted EBITDA margin guidance range by 100 basis points, resulting in a new guidance range of 26%-29%.
Mitek also announced an amendment to its existing credit facility with Silicon Valley Bank, a division of First Citizens Bank & Trust Company, to provide for a new $75 million term loan and a revised $25 million revolving line of credit. Mitek intends to utilize up to $75M of the term loan, along with Company cash, to retire the Company’s outstanding Convertible Notes on or before their maturity date of February 1, 2026. Dave Lyle, Mitek’s CFO stated, “This transaction coupled with our strong balance sheet and cash flows, secures our financial flexibility with respect to the timing and structure of repaying our Convertible Notes.”
Conference Call Information
Mitek management will host a conference call and live webcast for analysts and investors today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss the Company’s financial results for its fiscal 2025 second quarter. To access the live call, dial 844-481-3005 (US and Canada) or +1 412-317-1889 (International) and ask to be joined to the Mitek call. A live and archived conference call webcast will also be accessible on the Investor Relations section of the Company’s website at www.miteksystems.com. A phone replay will be available approximately two hours after the end of the call and will remain available for one week. The phone call replay can be accessed by dialing 877-344-7529 (US or Canada) or +1 412-317-0088 (International) and entering the passcode: 9085084.
About Mitek Systems, Inc.
Mitek (NASDAQ: MITK) is a global leader in digital access, founded to bridge the physical and digital worlds. Mitek’s advanced identity verification technologies and global platform make digital access faster and more secure, providing companies new levels of control, deployment ease and operation, while protecting the entire customer journey. With solutions trusted by 7,900 organizations around the world, including the majority of North American financial institutions which rely on our mobile check deposit solutions, Mitek helps companies reduce risk and meet regulatory requirements. Learn more at www.miteksystems.com. [(MITK-F)]
Follow Mitek on LinkedIn and YouTube, and read Mitek’s latest blog posts here.
Notice Regarding Forward-Looking Statements
Statements contained in this news release relating to the Company or its management’s intentions, hopes, beliefs, expectations or predictions of the future, including, but not limited to, statements relating to the Company’s fiscal 2025 guidance, are forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks related to the Company’s ability to withstand negative conditions in the global economy, a lack of demand for or market acceptance of the Company’s products, the Company’s ability to continue to develop, produce and introduce innovative new products in a timely manner, the Company’s ability to capitalize on a growing market, quarterly variations in revenue, the profitability of certain sectors of the Company, the performance of the Company’s growth initiatives, the outcome of any pending or threatened litigation or investigation, and the timing of the implementation and launch of the Company’s products by the Company’s signed customers.
Additional risks and uncertainties faced by the Company are contained from time to time in the Company’s filings with the U.S. Securities and Exchange Commission (SEC), including, but not limited to, the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024, as filed with the SEC on December 16, 2024 and its quarterly reports on Form 10-Q and current reports on Form 8-K, which you may obtain for free on the SEC’s website at www.sec.gov. Collectively, these risks and uncertainties could cause the Company’s actual results to differ materially from those projected in its forward-looking statements and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company disclaims any intention or obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Investor Contact:
Todd Kehrli or Jim Byers
ir@miteksystems.com
Note Regarding Use of Non-GAAP Financial Measures
This news release contains non-U.S. generally accepted accounting principles (“GAAP”) financial measures for non-GAAP gross profit, non-GAAP cost of revenue, non-GAAP gross margin, non-GAAP net income, non-GAAP net income per share, non-GAAP operating income, non-GAAP operating margin, adjusted EBITDA, and adjusted EBITDA margin and non-GAAP operating expense that exclude amortization of acquisition-related intangibles, net changes in estimated fair value of acquisition-related contingent consideration, litigation and other legal costs, executive transition costs, stock-based compensation expense, non-recurring audit fees, enterprise risk, portfolio positioning and other related costs, restructuring costs, and amortization of debt discount and issuance costs. These financial measures are not calculated in accordance with GAAP and are not based on any comprehensive set of accounting rules or principles. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement financial statements prepared under GAAP. Management believes these non-GAAP financial measures provide a useful measure of the Company’s operating results, a meaningful comparison with historical results and with the results of other companies, and insight into the Company’s ongoing operating performance. Further, management and the Board of Directors of the Company utilize these non-GAAP financial measures to gain a better understanding of the Company’s comparative operating performance from period-to-period and as a basis for planning and forecasting future periods. Management believes these non-GAAP financial measures, when read in conjunction with the Company’s GAAP financial statements, are useful to investors because they provide a basis for meaningful period-to-period comparisons of the Company’s ongoing operating results, including results of operations against investor and analyst financial models, which helps identify trends in the Company’s underlying business and provides a better understanding of how management plans and measures the Company’s underlying business.
The Company has not provided a reconciliation of its forward outlook for non-GAAP 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.
