Mitek Reports Record Fiscal 2025 Revenue

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 [phone] (US and Canada) or [phone] (International) to access the call. A dial-in replay will be available for one week by dialing [phone] (U.S. and Canada) or [phone] (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