MITK Mitek Systems Inc

Raises Lower-End of Adjusted EBITDA Margin Guidance Range for Fiscal 2025

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 first quarter ended December 31, 2024 and raised the lower end of its Adjusted EBITDA margin guidance range for its fiscal 2025 full year ending September 30, 2025 (“fiscal 2025”).

“We delivered a solid first quarter, with results ahead of our expectations in our SaaS products, which grew 29% year over year, offset by year-over-year variances in software license sales,” said Ed West, Mitek’s CEO. “We are encouraged by the performance of our Identity product portfolio, the continued resilience of our Deposit solutions, and the accelerating momentum of our fraud offerings. Our cultural and technological integration efforts are now well underway, which we believe are strengthening the company’s foundation for durable, profitable revenue growth in fiscal 2026 and beyond.”

Fiscal 2025 First Quarter Financial Highlights

GAAP

• Revenue of $37.3 million was relatively flat year-over-year, compared to $36.9 million a year ago.
• Gross profit of $28.0 million was relatively flat year-over-year, compared to $28.1 million a year ago.
• GAAP gross profit margin was 75.1%, compared to 76.2% a year ago.
• GAAP net loss was $4.6 million, compared to a GAAP net loss of $5.8 million a year ago.
• GAAP net loss per diluted share was $0.10, compared to a GAAP net loss of $0.13 a year ago.
• Total cash and investments was $137.9 million at December 31, 2024, a decrease of $3.9 million from $141.8 million at September 30, 2024.
• Mitek repurchased 0.4 million shares at an average per share price of $8.99, totaling approximately $3.3 million.

Non-GAAP

• Non-GAAP gross profit was flat at $31.5 million for both periods.
• Non-GAAP gross profit margin was 84.5%, compared to 85.4% a year ago.
• Adjusted EBITDA was $7.8 million, compared to $5.9 million a year ago.
• Adjusted EBITDA margin was 21%, compared to 16% a year ago.
• Non-GAAP net income was $6.6 million, compared to $6.3 million a year ago.
• Non-GAAP net income per diluted share was $0.15, compared to $0.14 a year ago.
• Free cash flow was $0.2 million, compared to negative $9.7 million a year ago, and was $40.2 million for the twelve months ended December 31, 2024, compared to $15.7 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 between $170 million and $180 million.
• Mitek is raising the lower end of its fiscal 2025 full-year adjusted EBITDA margin guidance by 100 basis points, resulting in a new guidance range of 25%-28%.

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 first 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: 9576188.

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 than ever, 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 impact of the Company’s acquisition of HooYu Ltd. including any operational or cultural difficulties associated with the integration of the businesses of Mitek and HooYu Ltd., 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.

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 cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP net income, non-GAAP net income per share, non-GAAP operating income, non-GAAP operating margin, adjusted EBITDA, adjusted EBITDA margin and non-GAAP operating expense that exclude acquisition-related costs and expenses, litigation and other legal costs, executive transition costs, stock 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 operating margin with its forward-looking GAAP operating 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 operating 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,

 

 

2024

 

 

 

2023

 

Revenue

 

 

 

Software and hardware

$

11,985

 

 

$

15,980

 

Services and other

 

25,269

 

 

 

20,937

 

Total revenue

 

37,254

 

 

 

36,917

 

Operating costs and expenses

 

 

 

Cost of revenue—software and hardware (exclusive of depreciation & amortization)

 

67

 

 

 

40

 

Cost of revenue—services and other (exclusive of depreciation & amortization)

 

5,877

 

 

 

5,494

 

Selling and marketing

 

9,695

 

 

 

9,856

 

Research and development

 

8,323

 

 

 

8,874

 

General and administrative

 

11,901

 

 

 

15,538

 

Amortization and acquisition-related costs

 

3,657

 

 

 

3,983

 

Restructuring costs

 

808

 

 

 

48

 

Total operating costs and expenses

 

40,328

 

 

 

43,833

 

Operating income (loss)

 

(3,074

)

 

 

(6,916

)

Interest expense

 

2,398

 

 

 

2,263

 

Other income (expense), net

 

563

 

 

 

1,642

 

Income (loss) before income taxes

 

(4,909

)

 

 

(7,537

)

Income tax benefit (provision)

 

297

 

 

 

1,744

 

Net income (loss)

$

(4,612

)

 

$

(5,793

)

Net income (loss) per share—basic

$

(0.10

)

 

$

(0.13

)

Net income (loss) per share—diluted

$

(0.10

)

 

$

(0.13

)

Shares used in calculating net loss per share—basic and diluted

 

45,195

 

 

 

46,294

 

Shares used in calculating net loss per share—diluted

 

45,195

 

 

 

46,294

 

MITEK SYSTEMS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(amounts in thousands except share data)

 

 

 

 

 

December 31, 2024

 

September 30, 2024

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

90,617

 

 

$

93,456

 

Short-term investments

 

30,591

 

 

 

36,884

 

Accounts receivable, net

 

32,348

 

 

 

31,682

 

Contract assets, current portion

 

15,588

 

 

 

15,818

 

Prepaid expenses

 

5,054

 

 

 

4,514

 

Other current assets

 

2,639

 

 

 

2,697

 

Total current assets

 

176,837

 

 

 

185,051

 

Long-term investments

 

16,667

 

 

 

11,410

 

Property and equipment, net

 

2,418

 

 

 

2,564

 

Right-of-use assets

 

2,653

 

 

 

4,662

 

Goodwill and intangible assets

 

172,508

 

 

 

185,711

 

Deferred income tax assets

 

19,272

 

 

 

19,145

 

Contract assets, non-current portion

 

3,897

 

 

 

3,620

 

Other non-current assets

 

1,707

 

 

 

1,590

 

Total assets

$

395,959

 

 

$

413,753

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

4,983

 

 

$

7,236

 

Accrued payroll and related taxes

 

7,544

 

 

 

10,324

 

Accrued liabilities

 

508

 

 

 

424

 

Accrued interest payable

 

498

 

 

 

205

 

Value added tax payables

 

1,768

 

 

 

1,222

 

Deferred revenue, current portion

 

21,694

 

 

 

21,231

 

Lease liabilities, current portion

 

639

 

 

 

805

 

Other current liabilities

 

912

 

 

 

700

 

Total current liabilities

 

38,546

 

 

 

42,147

 

Convertible senior notes

 

145,706

 

 

 

143,601

 

Deferred revenue, non-current portion

 

692

 

 

 

753

 

Lease liabilities, non-current portion

 

2,317

 

 

 

4,230

 

Deferred income tax liabilities

 

3,642

 

 

 

3,889

 

Other non-current liabilities

 

4,139

 

 

 

4,332

 

Total liabilities

 

195,042

 

 

 

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, 45,211,865 and 44,998,939 issued and outstanding, as of December 31, 2024 and September 30, 2024, respectively

 

45

 

 

 

45

 

Additional paid-in capital

 

251,967

 

 

 

247,326

 

Accumulated other comprehensive loss

 

(12,950

)

 

 

(2,302

)

Accumulated deficit

 

(38,145

)

 

 

(30,268

)

Total stockholders’ equity

 

200,917

 

 

 

214,801

 

Total liabilities and stockholders’ equity

$

395,959

 

 

$

413,753

 

MITEK SYSTEMS, INC.

DISAGGREGATION OF REVENUE BY PRODUCT AND TYPE

(Unaudited)

(amounts in thousands)

 

 

 

 

 

Three Months Ended December 31,

 

 

2024

 

 

2023

Deposits

 

 

 

Deposits software and hardware

 

 

 

Software

$

11,097

 

$

14,048

Hardware

 

—

 

 

—

Total deposits software and hardware

 

11,097

 

 

14,048

Deposits services

 

 

 

SaaS

 

2,221

 

 

1,355

Maintenance

 

5,685

 

 

5,495

Professional services and other

 

282

 

 

179

Total deposits services

 

8,188

 

 

7,029

Total deposits revenue

$

19,285

 

$

21,077

 

 

 

 

Identity

 

 

 

Identity software and hardware

 

 

 

Software

$

888

 

$

1,913

Hardware

 

—

 

 

19

Total identity software and hardware

 

888

 

 

1,932

Identity services

 

 

 

SaaS

 

16,207

 

 

12,898

Maintenance

 

425

 

 

600

Professional services and other

 

449

 

 

410

Total identity services

 

17,081

 

 

13,908

Total identity revenue

$

17,969

 

$

15,840

 

 

 

 

Consolidated results

 

 

 

Total software and hardware

 

 

 

Software

$

11,985

 

$

15,961

Hardware

 

—

 

 

19

Total software and hardware

 

11,985

 

 

15,980

Total services

 

 

 

SaaS

 

18,428

 

 

14,253

Maintenance

 

6,110

 

 

6,095

Professional services and other

 

731

 

 

589

Total services

 

25,269

 

 

20,937

Total revenue

$

37,254

 

$

36,917

MITEK SYSTEMS, INC.

NON-GAAP GROSS PROFIT RECONCILIATION

(Unaudited)

(amounts in thousands)

 

 

 

 

 

Three Months Ended December 31,

 

 

2024

 

 

 

2023

 

Software and hardware

 

 

 

Revenue

$

11,985

 

 

$

15,980

 

Cost of revenue (exclusive of depreciation and amortization)

 

67

 

 

 

40

 

Depreciation and amortization

 

1,190

 

 

 

1,136

 

GAAP gross profit for software and hardware

 

10,728

 

 

 

14,804

 

Depreciation and amortization

 

1,190

 

 

 

1,136

 

Non-GAAP gross profit for software and hardware

$

11,918

 

 

$

15,940

 

 

 

 

 

GAAP gross margin for software and hardware

 

89.5

%

 

 

92.6

%

Non-GAAP gross margin for software and hardware

 

99.4

%

 

 

99.7

%

 

 

 

 

Services and other

 

 

 

Services and other revenue

$

25,269

 

 

$

20,937

 

Cost of revenue (exclusive of depreciation and amortization)

 

5,877

 

 

 

5,494

 

Depreciation and amortization

 

2,131

 

 

 

2,106

 

GAAP gross profit for services and other

 

17,261

 

 

 

13,337

 

Depreciation and amortization

 

2,131

 

 

 

2,106

 

Stock-based compensation expense

 

161

 

 

 

129

 

Non-GAAP gross profit for services and other

$

19,553

 

 

$

15,572

 

 

 

 

 

GAAP gross margin for services and other

 

68.3

%

 

 

63.7

%

Non-GAAP gross margin for services and other

 

77.4

%

 

 

74.4

%

 

 

 

 

Consolidated results

 

 

 

Total revenue

$

37,254

 

 

$

36,917

 

Cost of revenue (exclusive of depreciation and amortization)

 

5,944

 

 

 

5,534

 

Depreciation and amortization

 

3,321

 

 

 

3,242

 

GAAP gross profit

 

27,989

 

 

 

28,141

 

Depreciation and amortization

 

3,321

 

 

 

3,242

 

Stock-based compensation expense

 

161

 

 

 

129

 

Non-GAAP gross profit

$

31,471

 

 

$

31,512

 

 

 

 

 

GAAP gross margin

 

75.1

%

 

 

76.2

%

Non-GAAP gross margin

 

84.5

%

 

 

85.4

%

MITEK SYSTEMS, INC.

NON-GAAP OPERATING EXPENSE RECONCILIATION

(Unaudited)

(amounts in thousands)

 

 

 

 

 

Three Months Ended December 31,

 

 

2024

 

 

2023

Selling and marketing

$

9,695

 

$

9,856

Non-GAAP adjustments:

 

 

 

Stock-based compensation expense

 

974

 

 

820

Non-GAAP selling and marketing

$

8,721

 

$

9,036

 

 

 

 

Research and development

$

8,323

 

$

8,874

Non-GAAP adjustments:

 

 

 

Stock-based compensation expense

 

1,124

 

 

1,041

Non-GAAP research and development

$

7,199

 

$

7,833

 

 

 

 

General and administrative

$

11,901

 

$

15,538

Non-GAAP adjustments:

 

 

 

Stock-based compensation expense

 

2,206

 

 

1,440

Litigation and other legal costs(1)

 

233

 

 

2,169

Executive transition costs

 

494

 

 

209

Non-recurring audit fees

 

867

 

 

1,638

Enterprise risk, portfolio positioning and other related costs(2)

 

—

 

 

996

Non-GAAP general and administrative

$

8,101

 

$

9,086

 

 

 

 

Total Non-GAAP operating expense

$

24,021

 

$

25,955

(1)

During the three month periods ended December 31, 2024 and 2023, 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 three months ended December 31, 2023, we used three third party experts to evaluate our product portfolio positioning, competitive landscape, enterprise risk and other related analyses.

MITEK SYSTEMS, INC.

GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

(amounts in thousands)

 

 

 

 

 

Three Months Ended December 31,

 

 

2024

 

 

 

2023

 

GAAP net income (loss)

$

(4,612

)

 

$

(5,793

)

Add:

 

 

 

Income tax (benefit) provision

 

(297

)

 

 

(1,744

)

Other (income) expense, net

 

(563

)

 

 

(1,642

)

Interest Expense

 

2,398

 

 

 

2,263

 

GAAP operating income (loss)

$

(3,074

)

 

$

(6,916

)

 

 

 

 

Non-GAAP Adjustments

 

 

 

Depreciation and amortization

$

395

 

 

$

391

 

Amortization of intangibles

 

3,657

 

 

 

3,848

 

Net changes in estimated fair value of acquisition-related contingent consideration

 

—

 

 

 

136

 

Litigation and other legal costs(1)

 

233

 

 

 

2,169

 

Executive transition costs

 

494

 

 

 

209

 

Stock-based compensation expense

 

4,465

 

 

 

3,430

 

Non-recurring audit fees

 

867

 

 

 

1,638

 

Enterprise risk, portfolio positioning and other related costs(2)

 

—

 

 

 

996

 

Restructuring costs(3)

 

808

 

 

 

48

 

Adjusted EBITDA

$

7,845

 

 

$

5,949

 

Total revenue

$

37,254

 

 

$

36,917

 

Adjusted EBITDA margin

 

21

%

 

 

16

%

(1)

During the three month periods ended December 31, 2024 and 2023, 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 three months ended December 31, 2023, 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 three months ended December 31, 2024 and were related to expenses incurred to relocate employees and a restructuring that occurred in the first quarter of fiscal 2025. Restructuring costs were $48,000 in the three months ended December 31, 2023.

MITEK SYSTEMS, INC.

NON-GAAP NET INCOME RECONCILIATION

(Unaudited)

(amounts in thousands except per share data)

 

 

 

 

 

Three Months Ended December 31,

 

 

2024

 

 

 

2023

 

Net income (loss)

$

(4,612

)

 

$

(5,793

)

Non-GAAP adjustments:

 

 

 

Amortization of acquisition-related intangibles(1)

 

3,657

 

 

 

3,848

 

Net changes in estimated fair value of acquisition-related contingent consideration(1)

 

—

 

 

 

136

 

Litigation and other legal costs(2)

 

233

 

 

 

2,169

 

Executive transition costs

 

494

 

 

 

209

 

Stock-based compensation expense

 

4,465

 

 

 

3,430

 

Non-recurring audit fees

 

867

 

 

 

1,638

 

Enterprise risk, portfolio positioning and other related costs(3)

 

—

 

 

 

996

 

Restructuring costs(4)

 

808

 

 

 

48

 

Amortization of debt discount and issuance costs

 

2,147

 

 

 

1,970

 

Income tax effect of pre-tax adjustments

 

(1,919

)

 

 

(2,967

)

Cash tax difference(5)

 

493

 

 

 

641

 

Non-GAAP net income

$

6,633

 

 

$

6,325

 

Non-GAAP income per share—basic

$

0.15

 

 

$

0.14

 

Non-GAAP income per share—diluted

$

0.15

 

 

$

0.14

 

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

 

45,195

 

 

 

46,294

 

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

 

45,195

 

 

 

46,294

 

(1)

December 31, 2023 amounts reflect reclassifications to conform to the current year presentation.

(2)

During the three month periods ended December 31, 2024 and 2023, 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.

(3)

During the three months ended December 31, 2023, we used three third party experts to evaluate our product portfolio positioning, competitive landscape, enterprise risk and other related analyses.

(4)

Restructuring costs consist of employee severance obligations and other related costs. Restructuring costs were $0.8 million in the three months ended December 31, 2024 and were related to expenses incurred to relocate employees and a restructuring that occurred in the first quarter of fiscal 2025. Restructuring costs were $48,000 in the three months ended December 31, 2023.

(5)

The Company’s non-GAAP net income is calculated using a cash tax rate of 15% 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 fiscal 2025 and 2024 was 6% and 23%, respectively.

MITEK SYSTEMS, INC.

NON-GAAP FREE CASH FLOW RECONCILIATION

(Unaudited)

(amounts in thousands)

 

Three months ended

 

Twelve months ended December 31, 2024

 

March 31, 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

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Twelve months ended December 31, 2023

 

March 31, 2023

 

June 30, 2023

 

September 30, 2023

 

December 31, 2023

 

Net cash provided by (used in) operating activities

$

6,301

 

 

$

16,552

 

 

$

3,473

 

 

$

(9,463

)

 

$

16,863

 

Less:

 

 

 

 

 

 

 

 

 

Purchases of property and equipment, net

 

(218

)

 

 

(284

)

 

 

(378

)

 

 

(241

)

 

 

(1,121

)

Free Cash Flow

$

6,083

 

 

$

16,268

 

 

$

3,095

 

 

$

(9,704

)

 

$

15,742

 

STOCK-BASED COMPENSATION EXPENSE

(Unaudited)

(amounts in thousands)

 

 

 

 

 

Three Months Ended December 31,

 

 

2024

 

 

2023

Cost of revenue

$

161

 

$

129

Selling and marketing

 

974

 

 

820

Research and development

 

1,124

 

 

1,041

General and administrative

 

2,206

 

 

1,440

Total stock-based compensation expense

$

4,465

 

$

3,430

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250210278856/en/

Investor Contact: Todd Kehrli or Jim Byers PondelWilkinson, Inc. tkehrli@pondel.com jbyers@pondel.com