Mitek Reports Fiscal 2026 First Quarter Results and Raises Full-Year Outlook

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 first quarter ended December 31, 2025 and raised its revenue and adjusted EBITDA Margin guidance range for the fiscal year ending September 30, 2026 (“fiscal 2026”).

“We delivered a strong start to the fiscal year, with growth across the entire product portfolio and early proof points that our fiscal 2026 Unify and Grow ethos is taking hold,” said Ed West, Chief Executive Officer of Mitek. “Execution this quarter was focused on building momentum through a steady drumbeat of progress, disciplined investment, and platform-led customer adoption. Fraud and Identity revenue grew 30% year over year, driven by 21% SaaS growth and broader workflow adoption, while Check Verification continued to serve as a durable, cash-generative foundation. Based on this early execution and improving visibility, we increased our outlook and remain focused on tangible progress and long-term value creation.”

Fiscal 2026 First Quarter Financial Highlights

GAAP

Non-GAAP

Key Subsequent Events

Guidance

Guidance includes non-GAAP financial measures. Mitek is raising its revenue and adjusted EBITDA margin guidance for the fiscal year, and providing guidance for its fiscal second quarter, ending March 31, 2026, as follows:

Full Year FY26

Q2 FY26

Guidance

Total revenue

$187 - $197 million

$50 - $55 million

Y/Y growth (midpoint)

Approximately 7%

Fraud & Identity solutions revenue (1)

$102 - $107 million

Y/Y growth (midpoint)

Approximately 16%

Adjusted EBITDA margin % (2)

29% - 32%

(1)

See 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 first quarter of fiscal 2026. To join the webcast, visit our Investor Relations website at https://investors.miteksystems.com.

Participants may also dial +1 800-717-1738 (US and Canada) or +1 646-307-1865 (International) to access the call. A dial-in replay will be available for one week by dialing +1 844-512-2921 (U.S. and Canada) or +1 412-317-6671 (International) and entering the passcode 1141184. An archived webcast replay will remain accessible for one year on Mitek’s Investor Relations website.

About Mitek Systems, Inc.

Mitek Systems protects what’s real across digital interactions in a world of evolving threats. Mitek helps businesses verify identities, prevent fraud before it happens, and deliver secure, seamless digital experiences in the face of rapidly advancing AI-generated threats. From account opening to authentication and deposit, Mitek’s technology safeguards critical digital interactions. More than 7,000 organizations rely on Mitek to protect their most important customer connections and stay ahead of emerging risks. Learn more at www.miteksystems.com. [(MITK-F)]

Follow Mitek on LinkedIn and YouTube, and read Mitek’s latest blog posts here.

Notice Regarding Forward-Looking Statements

Statements contained in this news release relating to the Company or its management’s intentions, hopes, beliefs, expectations or predictions of the future, including, but not limited to, statements relating to the Company’s fiscal 2026 guidance, are forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks related to the Company’s ability to withstand negative conditions in the global economy, a lack of demand for or market acceptance of the Company’s products, the Company’s ability to continue to develop, produce and introduce innovative new products in a timely manner, the Company’s ability to capitalize on a growing market, quarterly variations in revenue, the profitability of certain sectors of the Company, the performance of the Company’s growth initiatives, the outcome of any pending or threatened litigation or investigation, and the timing of the implementation and launch of the Company’s products by the Company’s signed customers.

Additional risks and uncertainties faced by the Company are contained from time to time in the Company’s filings with the U.S. Securities and Exchange Commission (SEC), including, but not limited to, the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025, as filed with the SEC on December 11, 2025 and its quarterly reports on Form 10-Q and current reports on Form 8-K, which you may obtain for free on the SEC’s website at www.sec.gov. Collectively, these risks and uncertainties could cause the Company’s actual results to differ materially from those projected in its forward-looking statements and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company disclaims any intention or obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Note Regarding Use of Non-GAAP Financial Measures

This news release contains non-U.S. generally accepted accounting principles (“GAAP”) financial measures for adjusted EBITDA, adjusted EBITDA margin, non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP net income per basic share, non-GAAP net income per diluted share, non-GAAP free cash flow, and non-GAAP operating expense that excludes stock-based compensation expense, litigation and other legal costs, executive and other transition costs, non-recurring audit fees, enterprise risk, portfolio positioning and other related costs, and non-GAAP net income which additionally excludes amortization of acquisition-related intangibles, net changes in estimated fair value of acquisition-related contingent consideration, restructuring costs, amortization of debt discount and issuance costs, income tax effect of pre-tax adjustments, and cash tax difference. These financial measures are not calculated in accordance with GAAP and are not based on any comprehensive set of accounting rules or principles. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement financial statements prepared under GAAP. Management believes these non-GAAP financial measures provide a useful measure of the Company’s operating results, a meaningful comparison with historical results and with the results of other companies, and insight into the Company’s ongoing operating performance. Further, management and the Board of Directors of the Company utilize these non-GAAP financial measures to gain a better understanding of the Company’s comparative operating performance from period-to-period and as a basis for planning and forecasting future periods. Management believes these non-GAAP financial measures, when read in conjunction with the Company’s GAAP financial statements, are useful to investors because they provide a basis for meaningful period-to-period comparisons of the Company’s ongoing operating results, including results of operations against investor and analyst financial models, which helps identify trends in the Company’s underlying business and provides a better understanding of how management plans and measures the Company’s underlying business.

The Company has not provided a reconciliation of its forward outlook for non-GAAP adjusted EBITDA margin 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

(Unaudited)

(amounts in thousands except per share data)

Three Months Ended December 31,

2025

2024

Revenue

Software license

13,901

11,985

SaaS, maintenance, and other

30,343

25,269

Total revenue

44,244

37,254

Operating costs and expenses

Cost of revenue—software license (exclusive of depreciation & amortization)

Cost of revenue—SaaS, maintenance, and other (exclusive of depreciation & amortization)

8,374

5,877

Selling and marketing

8,148

9,695

Research and development

7,374

8,323

General and administrative

11,074

11,901

Amortization of acquired intangibles and acquisition-related costs

3,286

3,657

Restructuring costs

515

808

Total operating costs and expenses

38,804

40,328

Operating income (loss)

5,440

(3,074

)

Interest expense

2,542

2,398

Other income (expense), net

1,500

563

Income (loss) before income taxes

4,398

(4,909

)

Income tax benefit (provision)

(1,626

)

297

Net income (loss)

2,772

(4,612

)

Net income (loss) per share—basic

0.06

(0.10

)

Net income (loss) per share—diluted

0.06

(0.10

)

Shares used in calculating net income (loss) per share—basic

45,702

45,195

Shares used in calculating net income (loss) per share—diluted

47,162

45,195

MITEK SYSTEMS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(amounts in thousands except share data)

December 31, 2025

September 30, 2025

ASSETS

Current assets:

Cash and cash equivalents

175,122

154,153

Short-term investments

14,953

38,858

Accounts receivable, net

31,936

36,811

Contract assets, current portion

11,697

12,687

Prepaid expenses

2,134

3,050

Other current assets

3,260

2,935

Total current assets

239,102

248,494

Long-term investments

1,713

3,464

Property and equipment, net

3,372

2,314

Right-of-use assets

2,429

2,624

Goodwill and intangible assets

169,868

173,256

Deferred income tax assets

24,973

25,334

Contract assets, non-current portion

1,936

1,405

Other non-current assets

3,060

2,218

Total assets

446,453

459,109

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

5,057

3,874

Accrued payroll and related taxes

10,645

16,837

Accrued liabilities

245

343

Deferred revenue, current portion

25,206

29,061

Lease liabilities, current portion

911

890

Convertible senior notes

154,464

152,216

Other current liabilities

6,581

5,813

Total current liabilities

203,109

209,034

Convertible senior notes

—

Deferred revenue, non-current portion

742

1,085

Lease liabilities, non-current portion

1,858

2,080

Deferred income tax liabilities

295

Other non-current liabilities

6,793

6,357

Total liabilities

212,797

218,851

Stockholders’ equity:

Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding

—

Common stock, $0.001 par value, 120,000,000 shares authorized, 45282535 and 44,998,939 issued and outstanding, as of December 31, 2025 and September 30, 2025, respectively

Additional paid-in capital

266,568

265,835

Accumulated other comprehensive income

474

586

Accumulated deficit

(33,431

)

(26,209

)

Total stockholders’ equity

233,656

240,258

Total liabilities and stockholders’ equity

446,453

459,109

MITEK SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(amounts in thousands)

Three Months Ended December 31,

2025

2024

Operating activities:

Net income (loss)

2,772

(4,612

)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

Stock-based compensation expense

2,691

4,465

Amortization of acquired intangible assets

3,286

3,657

Amortization of costs capitalized to obtain revenue contracts

606

472

Depreciation and amortization expense

353

395

Bad debt expense

(71

)

589

Amortization of investment premiums & other

(216

)

(797

)

Accretion and amortization on convertible senior notes

2,249

2,105

Deferred taxes

366

(343

)

Changes in assets and liabilities, net of acquisitions:

Accounts receivable

4,911

(1,868

)

Contract assets

444

(163

)

Other assets

(856

)

(738

)

Accounts payable

1,183

(2,161

)

Accrued payroll and related taxes

(6,211

)

(2,532

)

Income taxes payable

802

Deferred revenue

(4,181

)

849

Other liabilities

(110

)

1,219

Net cash provided by (used in) operating activities

8,018

565

Investing activities:

Purchases of investments

—

(12,375

)

Maturities of investments

25,842

12,300

Sales of investments

—

1,250

Purchases of property and equipment, net

(1,426

)

(335

)

Net cash provided by (used in) investing activities

24,416

840

Financing activities:

Proceeds from the issuance of equity plan common stock

177

Repurchases and retirements of common stock

(9,995

)

(3,257

)

Payment of tax withholding obligations related to net share settlement of equity awards

(1,983

)

—

Proceeds from other borrowings

442

—

Principal payments on other borrowings

—

(49

)

Net cash provided by (used in) financing activities

(11,511

)

(3,129

)

Foreign currency effect on cash and cash equivalents

(1,115

)

Net Unrealized holding gain (loss) on available-for-sale investments

20,969

(2,839

)

Cash and cash equivalents at beginning of period

154,153

93,456

Cash and cash equivalents at end of period

175,122

90,617

Supplemental disclosures of cash flow information:

Cash paid for income taxes

690

Supplemental disclosures of non-cash investing and financing activities:

Unrealized holding gain (loss) on available-for-sale investments

(23

)

(138

)

MITEK SYSTEMS, INC.

DISAGGREGATION OF REVENUE BY PRODUCT AND TYPE

(Unaudited)

(amounts in thousands)

Three Months Ended December 31,

2025

2024

Fraud and Identity Solutions

SaaS

20,916

17,293

Software license and support

3,908

1,722

Professional services and other

646

554

Total fraud and identity solutions revenue

25,470

19,570

Check Verification Solutions

SaaS

1,321

1,134

Software license and support

16,907

16,374

Professional services and other

546

177

Total check verification solutions revenue

18,773

17,685

Consolidated Revenue

SaaS

22,237

18,427

Software license and support

20,815

18,096

Professional services and other

1,192

731

Consolidated revenue

44,244

37,254

MITEK SYSTEMS, INC.

GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

(amounts in thousands)

Three Months Ended December 31,

2025

2024

GAAP net income (loss)

2,772

(4,612

)

Add:

Income tax (benefit) provision

1,626

(297

)

Other (income) expense, net

(1,500

)

(563

)

Interest expense

2,542

2,398

GAAP operating income (loss)

5,440

(3,074

)

Non-GAAP Adjustments

Depreciation and amortization expense

353

395

Amortization of acquired intangible assets

3,286

3,657

Litigation and other legal costs

233

Executive and other transition costs

262

494

Stock-based compensation expense

2,691

4,465

Non-recurring audit fees

719

867

Restructuring costs (1)

515

808

Adjusted EBITDA

13,289

7,845

Total revenue

44,244

37,254

Adjusted EBITDA margin

30.0

21.1

(1)

Restructuring costs consist of employee severance obligations and other related costs. Restructuring costs were $0.5 million in the three months ended December 31, 2025 and were related to a restructuring that occurred in the first quarter of fiscal 2026. Restructuring costs were $0.8 million in the three months ended December 31, 2024 and were related to a restructuring that occurred in the first quarter of fiscal 2025.

MITEK SYSTEMS, INC.

NON-GAAP NET INCOME RECONCILIATION

(Unaudited)

(amounts in thousands except per share data)

Three Months Ended December 31,

2025

2024

Net income (loss)

2,772

(4,612

)

Non-GAAP adjustments:

Amortization of acquired intangible assets

3,286

3,657

Litigation and other legal costs

233

Executive and other transition costs

262

494

Stock-based compensation expense

2,691

4,465

Non-recurring audit fees

719

867

Restructuring costs (1)

515

808

Amortization of debt discount and issuance costs

2,249

2,147

Income tax effect of pre-tax adjustments

(3,048

)

(1,919

)

Cash tax difference (2)

2,965

493

Non-GAAP net income

12,434

6,633

Non-GAAP net income per share—basic

0.27

0.15

Non-GAAP net income per share—diluted

0.26

0.15

Shares used in calculating non-GAAP net income per share—basic

45,702

45,195

Shares used in calculating non-GAAP net income per share—diluted

47,162

45,195

(1)

(2)

The Company’s non-GAAP net income is calculated using a cash tax rate of 12% in fiscal 2026 and 15% in fiscal 2025. The estimated cash tax rate is the estimated annual tax payable on the Company’s tax returns as a percentage of estimated annual non-GAAP pre-tax net income. The Company uses an estimated cash tax rate to adjust for the historical variation in the effective book tax rate associated with the reversal of valuation allowances, and the utilization of research and development tax credits which currently have an overall effect of reducing taxes payable. The Company believes that the cash tax rate provides a more transparent view of the Company’s operating results. The Company’s effective tax rate used for the purposes of calculating GAAP net income for the three months ended December 31, 2025 and 2024 was 37% and 6%, respectively.

MITEK SYSTEMS, INC.

NON-GAAP FREE CASH FLOW RECONCILIATION

(Unaudited)

(amounts in thousands)

Three months ended

Twelve months ended December 31, 2025

March 30,

2025

June 30,

2025

September 30,

2025

December 31,

2025

Net cash provided by (used in) operating activities

13,743

21,571

19,461

8,018

62,793

Less:

Purchases of property and equipment, net

(232

)

(329

)

(259

)

(1,426

)

(2,246

)

Free Cash Flow

13,511

21,242

19,202

6,592

60,547

Three months ended

Twelve months ended December 31, 2024

March 30,

2024

June 30,

2024

September 30,

2024

December 31,

2024

Net cash provided by (used in) operating activities

7,064

12,985

21,102

565

41,716

Less:

Purchases of property and equipment, net

(483

)

(431

)

(283

)

(335

)

(1,532

)

Free Cash Flow

6,581

12,554

20,819

230

40,184

MITEK SYSTEMS, INC.

STOCK-BASED COMPENSATION EXPENSE

(Unaudited)

(amounts in thousands)

Three Months Ended December 31,

2025

2024

Cost of revenue

308

161

Selling and marketing

974

Research and development

(219

)

1,124

General and administrative

2,546

2,206

Total stock-based compensation expense

2,691

4,465

MITEK SYSTEMS, INC.

NON-GAAP GROSS PROFIT RECONCILIATION

(Unaudited)

(amounts in thousands)

Three Months Ended December 31,

2025

2024

Software license

Software license revenue

13,901

11,985

Cost of revenue (exclusive of depreciation and amortization expense)

(33

)

(67

)

Depreciation and amortization expense

(190

)

(266

)

Amortization of acquired completed technology assets

(501

)

(924

)

GAAP gross profit for software license and hardware

13,177

10,728

Depreciation and amortization expense

190

266

Amortization of acquired completed technology assets

501

924

Non-GAAP gross profit for software license

13,868

11,918

GAAP gross margin for software license

94.8

89.5

Non-GAAP gross margin for software license

99.8

99.4

SaaS, maintenance, and other

SaaS, maintenance and other revenue

30,343

25,269

Cost of revenue (exclusive of depreciation and amortization expense)

(8,374

)

(5,877

)

Depreciation and amortization expense

(65

)

Amortization of acquired completed technology assets

(2,208

)

(2,128

)

GAAP gross profit for SaaS, maintenance, and other

19,696

17,261

Depreciation and amortization expense

Amortization of acquired completed technology assets

2,208

2,128

Stock-based compensation expense

308

161

Non-GAAP gross profit for SaaS, maintenance, and other

22,277

19,553

GAAP gross margin for SaaS, maintenance, and other

64.9

68.3

Non-GAAP gross margin for SaaS, maintenance, and other

73.4

77.4

Consolidated results

Total revenue

44,244

37,254

Cost of revenue (exclusive of depreciation and amortization expense)

(8,407

)

(5,944

)

Depreciation and amortization expense

(255

)

(269

)

Amortization of acquired completed technology assets

(2,709

)

(3,052

)

GAAP gross profit

32,873

27,989

Depreciation and amortization expense

255

269

Amortization of acquired completed technology assets

2,709

3,052

Stock-based compensation expense

308

161

Non-GAAP gross profit

36,145

31,471

GAAP gross profit margin

74.3

75.1

Non-GAAP gross profit margin

81.7

84.5

MITEK SYSTEMS, INC.

NON-GAAP OPERATING EXPENSE RECONCILIATION

(Unaudited)

(amounts in thousands)

Three Months Ended December 31,

2025

2024

Selling and marketing

8,148

9,695

Non-GAAP adjustments:

Stock-based compensation expense

974

Executive and other transition costs

170

—

Non-GAAP selling and marketing

7,922

8,721

Research and development

7,374

8,323

Non-GAAP adjustments:

Stock-based compensation expense

(219

)

1,124

Non-GAAP research and development

7,593

7,199

General and administrative

11,074

11,901

Non-GAAP adjustments:

Stock-based compensation expense

2,546

2,206

Litigation and other legal costs

233

Executive and other transition costs

494

Non-recurring audit fees

719

867

Non-GAAP general and administrative

7,694

8,101

Total Non-GAAP operating expense

23,209

24,021