Document

“The team’s execution on our Unify and Grow ethos resulted in a record revenue and profitability quarter, led by 18% year-over-year SaaS growth as customers route more transactions through Mitek to counter AI-driven fraud,” said Ed West, Chief Executive Officer of Mitek. “Our recent growth has been driven by deepening and broadening relationships with some of the world’s leading financial institutions and adding new high-assurance customers in multiple markets. Based on this momentum, we have again raised our full-year outlook, and our focus remains on disciplined execution, continued innovation, and scaling our business model to drive durable, long-term value.”

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)]

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.

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 SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(amounts in thousands except per share data)

	Three Months Ended March 31,				Six Months Ended March 31,
	2026		2025		2026		2025
Revenue
Software license	$	25,950	$	26,700	$	39,851	$	38,685
SaaS, maintenance, and other	28,891		25,229		59,234		50,498
Total revenue	54,841		51,929		99,085		89,183
Operating costs and expenses
Cost of revenue—software license (exclusive of depreciation & amortization)	33		16		66		83
Cost of revenue—SaaS, maintenance, and other (exclusive of depreciation & amortization)	8,525		6,515		16,899		12,392
Selling and marketing	9,601		10,540		17,749		20,235
Research and development	7,566		9,766		14,940		18,089
General and administrative	12,244		10,098		23,318		21,999
Amortization of acquired intangibles and acquisition-related costs	3,323		3,600		6,609		7,257
Restructuring costs	—		29		515		837
Total operating costs and expenses	41,292		40,564		80,096		80,892
Operating income (loss)	13,549		11,365		18,989		8,291
Interest expense	1,450		2,407		3,992		4,805
Other income (expense), net	637		1,110		2,137		1,673
Income (loss) before income taxes	12,736		10,068		17,134		5,159
Income tax benefit (provision)	(3,200)		(916)		(4,826)		(619)
Net income (loss)	$	9,536	$	9,152	$	12,308	$	4,540
Net income (loss) per share—basic	$	0.21	$	0.20	$	0.27	$	0.10
Net income (loss) per share—diluted	$	0.20	$	0.20	$	0.25	$	0.10
Shares used in calculating net income (loss) per share—basic	45,050		45,651		45,380		45,501
Shares used in calculating net income (loss) per share—diluted	48,535		46,610		48,470		46,599
Comprehensive income (loss)
Net income (loss)	$	9,536	$	9,152	$	12,308	$	4,540
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	(2,980)		4,944		(3,069)		(5,566)
Unrealized gain (loss) on investments, net of tax benefit/(expense) of $7, $(8), $14, and $34	(25)		54		(48)		(84)
Other comprehensive income (loss), net of tax	(3,005)		4,998		(3,117)		(5,650)
Comprehensive income (loss)	$	6,531	$	14,150	$	9,191	$	(1,110)


MITEK SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(amounts in thousands except share data)

	March 31, 2026 (Unaudited)		September 30, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	69,187	$	154,153
Short-term investments	8,400		38,858
Accounts receivable, net	63,308		36,811
Contract assets, current portion	8,626		12,687
Prepaid expenses	2,942		3,050
Other current assets	4,038		2,935
Total current assets	156,501		248,494
Long-term investments	—		3,464
Property and equipment, net	4,500		2,314
Right-of-use assets	2,167		2,624
Intangible assets, net	32,672		39,799
Goodwill	131,439		133,457
Deferred income tax assets	24,437		25,334

Contract assets, non-current portion	1,447		1,405
Other non-current assets	3,775		2,218
Total assets	$	356,938	$	459,109
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	3,976	$	3,874
Accrued payroll and related taxes	11,850		16,837
Accrued liabilities	627		343

Income tax payables	3,000		2,683
Deferred revenue, current portion	36,056		29,061
Lease liabilities, current portion	894		890


Convertible senior notes	—		152,216
Current portion of term loan	2,500		—
Other current liabilities	1,035		3,130
Total current liabilities	59,938		209,034

Deferred revenue, non-current portion	1,501		1,085
Long-term portion of term loan	47,500		—
Lease liabilities, non-current portion	1,623		2,080
Deferred income tax liabilities	290		295
Other non-current liabilities	6,619		6,357
Total liabilities	117,471		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, 44,864,835 and 45,636,531 issued and outstanding, as of March 31, 2026 and September 30, 2025, respectively	45		46
Additional paid-in capital	273,642		265,835
Accumulated other comprehensive income (loss)	(2,531)		586
Accumulated deficit	(31,689)		(26,209)

Total stockholders’ equity	239,467		240,258
Total liabilities and stockholders’ equity	$	356,938	$	459,109


MITEK SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(amounts in thousands)

	Six Months Ended March 31,
		2026		2025
Operating activities:
Net income (loss)		$	12,308	$	4,540
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Stock-based compensation expense		7,692		8,817

Amortization of acquired intangible assets		6,609		7,257
Amortization of costs capitalized to obtain revenue contracts		1,354		878
Depreciation and amortization expense		781		739
Bad debt expense		293		411
Amortization of investment premiums & other		(262)		(1,146)
Accretion and amortization on convertible senior notes		3,034		4,224

Deferred taxes		822		(5,423)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable		(26,939)		(18,898)
Contract assets		3,967		5,649
Other assets		(3,998)		578
Accounts payable		123		(3,674)
Accrued payroll and related taxes		(4,908)		1,157
Income taxes payable		351		837
Deferred revenue		7,550		7,922

Other liabilities		(1,704)		440
Net cash provided by (used in) operating activities		7,073		14,308
Investing activities:
Purchases of investments		(2,218)		(21,973)
Maturities of investments		30,321		23,000
Sales of investments		6,035		—

Purchases of property and equipment, net		(2,978)		(567)
Net cash provided by (used in) investing activities		31,160		460
Financing activities:
Proceeds from term loan		50,000		—

Repayments of senior convertible notes		(155,250)		—


Proceeds from the issuance of equity plan common stock		2,246		261
Repurchases and retirements of common stock		(17,789)		(3,258)
Payment of tax withholding obligations related to net share settlements of equity awards		(2,131)		—


Proceeds from other borrowings		304		—
Principal payments on other borrowings		—		(96)
Net cash provided by (used in) financing activities		(122,620)		(3,093)
Foreign currency effect on cash and cash equivalents		(579)		(432)
Net increase (decrease) in cash and cash equivalents		(84,966)		11,243
Cash and cash equivalents at beginning of period		154,153		93,456
Cash and cash equivalents at end of period		$	69,187	$	104,699
Supplemental disclosures of cash flow information:
Cash paid for interest		$	1,042	$	582
Cash paid for income taxes		$	4,349	$	4,952
Supplemental disclosures of non-cash investing and financing activities:


Unrealized holding gain (loss) on available-for-sale investments		$	(48)	$	(84)


MITEK SYSTEMS, INC.
DISAGGREGATION OF REVENUE BY PRODUCT AND TYPE
(Unaudited)
(amounts in thousands)

	Three Months Ended March 31,				Six Months Ended March 31,
	2026		2025		2026		2025
Fraud and Identity Solutions
SaaS	$	19,979	$	16,790	$	40,895	$	34,083
Software license and support	5,089		2,843		8,997		4,565
Professional services and other	632		486		1,278		1,040
Total fraud and identity solutions revenue	$	25,700	$	20,119	$	51,170	$	39,688

Check Verification Solutions
SaaS	$	1,241	$	1,205	$	2,562	$	2,339
Software license and support	27,612		30,234		44,519		46,608
Professional services and other	288		371		834		548
Total check verification solutions revenue	$	29,141	$	31,810	$	47,915	$	49,495

Consolidated Revenue
SaaS	$	21,220	$	17,995	$	43,457	$	36,422
Software license and support	32,701		33,077		53,516		51,173
Professional services and other	920		857		2,112		1,588
Consolidated revenue	$	54,841	$	51,929	$	99,085	$	89,183


MITEK SYSTEMS, INC.
GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION
(Unaudited)
(amounts in thousands)

	Three Months Ended March 31,						Six Months Ended March 31,
	2026			2025			2026			2025
GAAP net income (loss)	$	9,536		$	9,152		$	12,308		$	4,540
Add:
Income tax (benefit) provision	3,200			916			4,826			619
Other (income) expense, net	(637)			(1,110)			(2,137)			(1,673)
Interest expense	1,450			2,407			3,992			4,805
GAAP operating income (loss)	$	13,549		$	11,365		$	18,989		$	8,291

Non-GAAP Adjustments
Depreciation and amortization expense	$	428		$	395		$	781		$	739
Amortization of acquired intangible assets	3,323			3,657			6,609			7,257

Litigation and other legal costs	5			187			28			420
Executive and other transition costs	—			27			262			521
Stock-based compensation expense	5,001			4,352			7,692			8,817
Non-recurring audit fees	—			263			719			1,130

Restructuring costs(1)	—			29			515			837
Adjusted EBITDA	$	22,306		$	20,275		$	35,595		$	28,012
Total revenue	$	54,841		$	51,929		$	99,085		$	89,183
Adjusted EBITDA margin	40.7		%	39.0		%	35.9		%	31.4		%


MITEK SYSTEMS, INC.
NON-GAAP NET INCOME RECONCILIATION
(Unaudited)
(amounts in thousands except per share data)

	Three Months Ended March 31,				Six Months Ended March 31,
	2026		2025		2026		2025
Net income (loss)	$	9,536	$	9,152	$	12,308	$	4,540
Non-GAAP adjustments:
Amortization of acquired intangible assets	3,323		3,600		6,609		7,257

Litigation and other legal costs	5		187		28		420


Executive and other transition costs	—		27		262		521
Stock-based compensation expense	5,001		4,352		7,692		8,817
Non-recurring audit fees	—		263		719		1,130

Restructuring costs(1)	—		29		515		837
Amortization of debt discount and issuance costs	785		2,162		3,034		4,309
Income tax effect of pre-tax adjustments	(1,802)		(3,440)		(4,850)		(5,359)

Cash tax difference(2)	1,629		414		4,594		907
Non-GAAP net income	$	18,477	$	16,746	$	30,911	$	23,379
Non-GAAP net income per share—basic	$	0.41	$	0.37	$	0.68	$	0.51
Non-GAAP net income per share—diluted	$	0.38	$	0.36	$	0.64	$	0.50
Shares used in calculating non-GAAP net income per share—basic	45,050		45,651		45,380		45,501
Shares used in calculating non-GAAP net income per share—diluted	48,535		46,610		48,470		46,599

(2)The Company’s non-GAAP net income is calculated using a cash tax rate of 14% in fiscal 2026 and 18% 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 March 31, 2026 and 2025 was 25% and 9%, respectively. The Company’s effective tax rate used for the purposes of calculating GAAP net income for the six months ended March 31, 2026 and 2025 was 28% and 12%, respectively.


MITEK SYSTEMS, INC.
NON-GAAP FREE CASH FLOW RECONCILIATION
(Unaudited)
(amounts in thousands)

	Three months ended								Twelve months ended March 31, 2026
	June 30, 2025		September 30, 2025		December 31, 2025		March 31, 2026
Net cash provided by (used in) operating activities	$	21,571	$	19,461	$	8,018	$	(945)	$	48,105
Less:
Purchases of property and equipment, net	(329)		(259)		(1,426)		(1,552)		(3,566)
Free Cash Flow	$	21,242	$	19,202	$	6,592	$	(2,497)	$	44,539

	Three months ended								Twelve months ended March 31, 2025
	June 30, 2024		September 30, 2024		December 31, 2024		March 31, 2025
Net cash provided by (used in) operating activities	$	12,985	$	21,102	$	565	$	13,743	$	48,395
Less:
Purchases of property and equipment, net	(431)		(283)		(335)		(232)		(1,281)
Free Cash Flow	$	12,554	$	20,819	$	230	$	13,511	$	47,114


MITEK SYSTEMS, INC.
NON-GAAP GROSS PROFIT RECONCILIATION
(Unaudited)
(amounts in thousands)

	Three Months Ended March 31,						Six Months Ended March 31,
	2026			2025			2026			2025
Software license
Software license revenue	$	25,950		$	26,700		$	39,851		$	38,685
Cost of revenue (exclusive of depreciation and amortization expense)	(33)			(16)			(66)			(83)
Depreciation and amortization expense	(177)			(246)			(367)			(512)
Amortization of acquired completed technology assets	(501)			(918)			(1,002)			(1,842)
GAAP gross profit for software license and hardware	25,239			25,520			38,416			36,248
Depreciation and amortization expense	177			246			367			512
Amortization of acquired completed technology assets	501			918			1,002			1,842

Non-GAAP gross profit for software license	$	25,917		$	26,684		$	39,785		$	38,602

GAAP gross margin for software license	97.3		%	95.6		%	96.4		%	93.7		%
Non-GAAP gross margin for software license	99.9		%	99.9		%	99.8		%	99.8		%

SaaS, maintenance, and other
SaaS, maintenance and other revenue	$	28,891		$	25,229		$	59,234		$	50,498
Cost of revenue (exclusive of depreciation and amortization expense)	(8,525)			(6,515)			(16,899)			(12,392)
Depreciation and amortization expense	(150)			(3)			(215)			(6)
Amortization of acquired completed technology assets	(2,238)			(2,090)			(4,446)			(4,218)
GAAP gross profit for SaaS, maintenance, and other	17,978			16,621			37,674			33,882
Depreciation and amortization expense	150			3			215			6
Amortization of acquired completed technology assets	2,238			2,090			4,446			4,218
Stock-based compensation expense	355			162			663			323
Non-GAAP gross profit for SaaS, maintenance, and other	$	20,721		$	18,876		$	42,998		$	38,429

GAAP gross margin for SaaS, maintenance, and other	62.2		%	65.9		%	63.6		%	67.1		%
Non-GAAP gross margin for SaaS, maintenance, and other	71.7		%	74.8		%	72.6		%	76.1		%

Consolidated results
Total revenue	$	54,841		$	51,929		$	99,085		$	89,183
Cost of revenue (exclusive of depreciation and amortization expense)	(8,558)			(6,531)			(16,965)			(12,475)
Depreciation and amortization expense	(327)			(249)			(582)			(518)
Amortization of acquired completed technology assets	(2,739)			(3,008)			(5,448)			(6,060)
GAAP gross profit	43,217			42,141			76,090			70,130
Depreciation and amortization expense	327			249			582			518
Amortization of acquired completed technology assets	2,739			3,008			5,448			6,060
Stock-based compensation expense	355			162			663			323
Non-GAAP gross profit	$	46,638		$	45,560		$	82,783		$	77,031

GAAP gross profit margin	78.8		%	81.2		%	76.8		%	78.6		%
Non-GAAP gross profit margin	85.0		%	87.7		%	83.5		%	86.4		%


MITEK SYSTEMS, INC.
NON-GAAP OPERATING EXPENSE RECONCILIATION
(Unaudited)
(amounts in thousands)

	Three Months Ended March 31,				Six Months Ended March 31,
	2026		2025		2026		2025
Selling and marketing	$	9,601	$	10,540	$	17,749	$	20,235
Non-GAAP adjustments:
Stock-based compensation expense	1,135		1,035		1,191		2,009
Executive and other transition costs	—		—		170		—
Non-GAAP selling and marketing	$	8,466	$	9,505	$	16,388	$	18,226

Research and development	$	7,566	$	9,766	$	14,940	$	18,089
Non-GAAP adjustments:
Stock-based compensation expense	466		1,338		247		2,462
Non-GAAP research and development	$	7,100	$	8,428	$	14,693	$	15,627

General and administrative	$	12,244	$	10,098	$	23,318	$	21,999
Non-GAAP adjustments:
Stock-based compensation expense	3,045		1,817		5,591		4,023
Litigation and other legal costs	5		187		28		420
Executive and other transition costs	—		27		92		521
Non-recurring audit fees	—		263		719		1,130

Non-GAAP general and administrative	$	9,194	$	7,804	$	16,888	$	15,905

Total Non-GAAP operating expense	$	24,760	$	25,737	$	47,969	$	49,758


	Full Year FY26	Q3 FY26
	Guidance	Guidance
Total revenue	$189 - $198 million	$49 - $53 million
Y/Y growth (midpoint)	Approximately 8%
Fraud & Identity solutions revenue(1)	$103 - $108 million
Y/Y growth (midpoint)	Approximately 17%
Adjusted EBITDA margin %(2)	30% - 33%
Total Non-GAAP operating expense(2)		$25 - $26 million