Mitek Reports Record Fiscal 2025 Revenue | MITK Stock News

Fiscal 2025 revenue of $179.7 million; returned to full-year growthFiscal 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 HighlightsGAAPTotal 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-GAAPNon-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 HighlightsGAAPTotal 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-GAAPNon-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.GuidanceGuidance includes non-GAAP financial measures.Full Year FY26Q1 FY26GuidanceGuidanceTotal revenue$185 - $195 million$41 - $44 millionY/Y growth (midpoint)Approximately 5.5%Fraud & Identity solutions revenue(1)$101 - $105 millionY/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 InformationMitek 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 +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 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 StatementsStatements 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 MeasuresThis 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 30,2025202420252024RevenueSoftware license and hardware$15,894$18,341$74,086$81,872SaaS, maintenance, and other28,88524,881105,60590,211Total revenue44,77943,222179,691172,083Operating costs and expensesCost of revenue—software license and hardware (exclusive of depreciation & amortization)82186218309Cost of revenue—SaaS, maintenance, and other (exclusive of depreciation & amortization)7,2085,97826,56924,086Selling and marketing10,1549,53841,51640,769Research and development8,2356,07335,28434,642General and administrative11,0829,90844,33252,993Amortization and acquisition-related costs3,3253,71014,14215,291Restructuring costs31148401,762Total operating costs and expenses40,08935,507162,901169,852Operating income (loss)4,6907,71516,7902,231Interest expense2,5052,3649,7799,259Other income (expense), net1,1201,8514,5986,119Income (loss) before income taxes3,3057,20211,609(909)Income tax benefit (provision)(1,445)1,371(2,813)4,187Net income (loss)$1,860$8,573$8,796$3,278Net income (loss) per share—basic$0.04$0.19$0.19$0.07Net income (loss) per share—diluted$0.04$0.18$0.19$0.07Shares used in calculating net income per share—basic45,96045,95245,71646,560Shares used in calculating net income per share—diluted47,32346,57346,92647,468 MITEK SYSTEMS, INC.CONSOLIDATED BALANCE SHEETS(amounts in thousands except share data)September 30, 2025September 30, 2024ASSETSCurrent assets:Cash and cash equivalents$154,153$93,456Short-term investments38,85836,884Accounts receivable, net36,81131,682Contract assets, current portion12,68715,818Prepaid expenses3,0504,514Other current assets2,9352,697Total current assets248,494185,051Long-term investments3,46411,410Property and equipment, net2,3142,564Right-of-use assets2,6244,662Goodwill and intangible assets173,256185,711Deferred income tax assets25,33419,145Contract assets, non-current portion1,4053,620Other non-current assets2,2181,590Total assets$459,109$413,753LIABILITIES AND STOCKHOLDERS’ EQUITYCurrent liabilities:Accounts payable$3,874$7,236Accrued payroll and related taxes16,83710,324Accrued liabilities343424Deferred revenue, current portion29,06121,231Lease liabilities, current portion890805Convertible senior notes152,216—Other current liabilities5,8132,127Total current liabilities209,03442,147Convertible senior notes—143,601Deferred revenue, non-current portion1,085753Lease liabilities, non-current portion2,0804,230Deferred income tax liabilities2953,889Other non-current liabilities6,3574,332Total liabilities218,851198,952Stockholders’ 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, respectively4645Additional paid-in capital265,835247,326Accumulated other comprehensive income (loss)586(2,302)Accumulated deficit(26,209)(30,268)Total stockholders’ equity240,258214,801Total 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 30,2025202420252024Operating activities:Net income (loss)$1,860$8,573$8,796$3,278Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:Stock-based compensation expense3,5711,72316,81012,624Loss on extinguishment of revolving credit line——309—Amortization of intangible assets3,3263,71114,14315,156Amortization of costs capitalized to obtain revenue contracts5024151,8961,662Depreciation expense1443751,3151,755Bad debt expense283(443)803647Amortization of investment premiums & other(343)(868)(1,107)(2,624)Accretion and amortization on debt securities2,2112,0708,6148,085Net changes in estimated fair value of acquisition-related contingent consideration———136Deferred taxes(1,634)(8,247)(9,576)(10,434)Changes in assets and liabilities, net of acquisitions:Accounts receivable3,15510,852(5,697)489Contract assets(508)(927)5,4894,600Other assets(538)7,306(1,293)(1,534)Accounts payable320908(3,371)(450)Accrued payroll and related taxes2,415(9)6,362240Income taxes payable540(435)2,530(4,560)Deferred revenue3,365(3,347)7,9493,221Restructuring accrual—(42)——Other liabilities792(513)1,368(603)Net cash provided by (used in) operating activities19,46121,10255,34031,688Investing activities:Purchases of investments(6,418)(17,248)(40,610)(62,433)Maturities of investments11,35018,44546,25092,617Sales of investments1,350—1,350—Purchases of property and equipment, net(259)(283)(1,155)(1,438)Net cash provided by (used in) investing activities6,0239145,83528,746Financing activities:Payment of debt issuance costs——(224)(290)Proceeds from the issuance of equity plan common stock1,1718411,7011,889Repurchases and retirements of common stock(1,479)(14,140)(4,738)(24,180)Payment of acquisition-related contingent consideration———(4,641)Proceeds from other borrowings1,6913211,6911,496Principal payments on other borrowings(134)(33)(276)(156)Net cash provided by (used in) financing activities1,249(13,011)(1,846)(25,882)Foreign currency effect on cash and cash equivalents2961001,368(9)Net Unrealized holding gain (loss) on available-for-sale investments27,0299,10560,69734,543Cash and cash equivalents at beginning of period127,12484,35193,45658,913Cash and cash equivalents at end of period$154,153$93,456$154,153$93,456Supplemental disclosures of cash flow information:Cash paid for interest$582$589$1,164$1,274Cash paid for income taxes$2,022$47$9,087$11,989Supplemental disclosures of non-cash investing and financing activities:Acquisition-related shares issued$—$—$—$3,471Unrealized holding gain (loss) on available-for-sale investments$—$208$(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 30,2025202420252024Fraud and identity solutionsSaaS$20,232$17,083$72,415$59,713Software license and support3,9494,75815,45816,529Professional services and other5293822,0601,762Total fraud and identity solutions revenue$24,710$22,223$89,933$78,004Check verification solutionsSaaS$1,095$905$4,595$3,876Software license and support18,62719,89284,08189,559Professional services and other3472021,082644Total check verification solutions revenue$20,069$20,999$89,758$94,079Total by revenue typeSaaS$21,327$17,988$77,010$63,589Software license and support22,57624,65099,539106,088Professional services and other8765843,1422,406Total 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 30,2025202420252024DepositsSoftware license$14,335$15,773$67,661$74,108Deposits SaaS, maintenance, and otherSaaS2,8801,79910,2646,406Maintenance6,0895,84623,43922,275Professional services and other5142661,650769Total deposits SaaS, maintenance, and other9,4837,91135,35329,450Total deposits revenue$23,818$23,684$103,014$103,558IdentityIdentity software license and hardwareSoftware license$1,559$2,568$6,425$7,631Hardware———133Total identity software license and hardware1,5592,5686,4257,764Identity SaaS, maintenance, and otherSaaS18,44716,18866,74657,182Maintenance5944632,0142,074Professional services and other3613191,4921,505Total identity SaaS, maintenance, and other19,40216,97070,25260,761Total identity revenue$20,961$19,538$76,677$68,525Consolidated resultsTotal software license and hardwareSoftware license$15,894$18,341$74,086$81,739Hardware———133Total software license and hardware15,89418,34174,08681,872Total SaaS, maintenance, and otherSaaS21,32717,98777,01063,588Maintenance6,6836,30925,45324,349Professional services and other8755853,1422,274Total SaaS, maintenance, and other28,88524,881105,60590,211Total 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 30,2025202420252024GAAP net income (loss)$1,860$8,573$8,796$3,278Add:Income tax (benefit) provision1,445(1,371)2,813(4,187)Other (income) expense, net(1,120)(1,851)(4,598)(6,119)Interest Expense2,5052,3649,7799,259GAAP operating income (loss)$4,690$7,715$16,790$2,231Non-GAAP AdjustmentsDepreciation and amortization$144$375$1,315$1,755Amortization of intangibles3,3263,71114,14315,156Net changes in estimated fair value of acquisition-related contingent consideration———136Litigation and other legal costs(1)282514853,496Executive transition costs2855998062,632Stock-based compensation expense3,5711,72316,81012,624Non-recurring audit fees8069312,7435,956Enterprise risk, portfolio positioning and other related costs(2)———996Restructuring costs(3)31148401,762Adjusted EBITDA$12,853$15,419$53,932$46,744Total revenue$44,779$43,222$179,691$172,083Adjusted EBITDA margin28.7%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 30,2025202420252024Net income (loss)$1,860$8,573$8,796$3,278Non-GAAP adjustments:Amortization of acquisition-related intangibles3,3263,71114,14315,156Net changes in estimated fair value of acquisition-related contingent consideration———136Litigation and other legal costs(1)282514853,496Executive transition costs2855998062,632Stock-based compensation expense3,5711,72316,81012,624Non-recurring audit fees8069312,7435,956Enterprise risk, portfolio positioning and other related costs(2)———996Restructuring costs(3)31148401,762Amortization of debt discount and issuance costs2,2122,1129,0088,169Income tax effect of pre-tax adjustments(3,201)(2,696)(10,864)(11,970)Cash tax difference(4)2,2502111,9293,151Non-GAAP net income$11,140$15,529$44,696$45,386Non-GAAP net income per share—basic$0.24$0.34$0.98$0.97Non-GAAP net income per share—diluted$0.24$0.33$0.95$0.96Shares used in calculating non-GAAP net income per share—basic45,96045,95245,71646,560Shares used in calculating non-GAAP net income per share—diluted47,32346,57346,92647,468(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 endedTwelve months ended September 30, 2025December 31, 2024March 30, 2025June 30, 2025September 30, 2025Net cash provided by (used in) operating activities$565$13,743$21,571$19,461$55,340Less:Purchases of property and equipment, net(335)(232)(329)(259)(1,155)Free Cash Flow$230$13,511$21,242$19,202$54,185Three months endedTwelve months ended September 30, 2024December 31, 2023March 30, 2024June 30, 2024September 30, 2024Net cash provided by (used in) operating activities$(9,463)$7,064$12,985$21,102$31,688Less:Purchases of property and equipment, net(241)(483)(431)(283)(1,438)Free Cash Flow$(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 30,2025202420252024Software license and hardwareSoftware license and hardware revenue$15,894$18,341$74,086$81,872Cost 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 hardware15,12116,96669,87576,929Depreciation and amortization6911,1893,9934,634Non-GAAP gross profit for software license and hardware$15,812$18,155$73,868$81,563GAAP gross margin for software license and hardware95.1%92.5%94.3%94.0%Non-GAAP gross margin for software license and hardware99.5%99.0%99.7%99.6%SaaS, maintenance, and otherSaaS, maintenance and other revenue$28,885$24,881$105,605$90,211Cost 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 other19,43516,74170,34957,652Depreciation and amortization2,2422,1628,6878,473Stock-based compensation expense143127647574Non-GAAP gross profit for SaaS, maintenance, and other$21,820$19,030$79,683$66,699GAAP gross margin for SaaS, maintenance, and other67.3%67.3%66.6%63.9%Non-GAAP gross margin for SaaS, maintenance, and other75.5%76.5%75.5%73.9%Consolidated resultsTotal revenue$44,779$43,222$179,691$172,083Cost 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 profit34,55633,707140,224134,581Depreciation and amortization2,9333,35112,68013,107Stock-based compensation expense143127647574Non-GAAP gross profit$37,632$37,185$153,551$148,262GAAP gross profit margin77.2%78.0%78.0%78.2%Non-GAAP gross profit margin84.0%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 30,2025202420252024Selling and marketing$10,154$9,538$41,516$40,769Non-GAAP adjustments:Stock-based compensation expense9394623,8983,041Non-GAAP selling and marketing$9,215$9,076$37,618$37,728Research and development$8,235$6,073$35,284$34,642Non-GAAP adjustments:Stock-based compensation expense457(383)4,2063,368Non-GAAP research and development$7,778$6,456$31,078$31,274General and administrative$11,082$9,908$44,332$52,993Non-GAAP adjustments:Stock-based compensation expense2,0321,5178,0595,641Litigation and other legal costs(1)282514853,496Executive transition costs2855998062,632Non-recurring audit fees8069312,7435,956Enterprise risk, portfolio positioning and other related costs(2)———996Non-GAAP general and administrative$7,931$6,610$32,239$34,272Total 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 30,2025202420252024Cost of revenue$143$127$647$574Selling and marketing9394623,8983,041Research and development457(383)4,2063,368General and administrative2,0321,5178,0595,641Total stock-based compensation expense$3,571$1,723$16,810$12,624View source version on businesswire.com: https://www.businesswire.com/news/home/20251211740185/en/Investor Contacts:Ryan FlanaganICR for Mitek Systemsir@miteksystems.comMichael HolderVP, Finance and Investor Relationsmholder@miteksystems.comSource: Mitek Systems, Inc.