mitk-20251231

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number 001-35231

MITEK SYSTEMS, INC.

(Exact name of registrant as specified in its charter)


Delaware						87-0418827
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

770 First Avenue, Suite 425
San Diego, California						92101
(Address of principal executive offices)						(Zip Code)

(619) 269-6800

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	MITK	The NASDAQ Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 45,316,289 shares of the registrant’s common stock outstanding as of January 30, 2026.

MITEK SYSTEMS, INC.

FORM 10-Q

For The Quarterly Period Ended December 31, 2025

INDEX


	PART I. FINANCIAL INFORMATION	Page No.
Item 1.	Financial Statements	1
	Condensed Consolidated Balance Sheets at December 31, 2025 (Unaudited) and September 30, 2025	1
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) for the Three Months Ended December 3 1 , 2025 and 2024	2
	Condensed Consolidated Statements of Stockholders' Equity (Unaudited) for the Three Ended December 3 1 , 2025 and 2024	3
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended December 3 1 , 2025 and 2024	4
	Notes to Condensed Consolidated Financial Statements (Unaudited)	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.	Controls and Procedures	26
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3.	Defaults Upon Senior Securities	27
Item 4.	Mine Safety Disclosures	27
Item 5.	Other Information	27
Item 6.	Exhibits	28
	Signatures	29

PART I

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

MITEK SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands except share data)


	December 31, 2025 (Unaudited)		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
Intangible assets, net	36,469		39,799
Goodwill	133,399		133,457
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


Deferred revenue, non-current portion	742		1,085
Lease liabilities, non-current portion	1,858		2,080
Deferred income tax liabilities	295		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, 45,282,535 and 44,998,939 issued and outstanding, as of December 31, 2025 and September 30, 2025, respectively	45		46
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

See accompanying notes to condensed consolidated financial statements.

MITEK SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME (LOSS)

(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)	33		67
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
Comprehensive income (loss)
Net income (loss)	$	2,772	$	(4,612)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	(89)		(10,510)
Unrealized gain (loss) on investments, net of tax benefit/(expense) of $7 and $34	(23)		(138)
Other comprehensive income (loss), net of tax	(112)		(10,648)
Comprehensive income (loss)	$	2,660	$	(15,260)

See accompanying notes to condensed consolidated financial statements.

MITEK SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)

(amounts in thousands)


	Three Months Ended December 31, 2025
	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount
Balance, September 30, 2025	45,637	$	46	$	265,835		$	586	$	(26,209)	$	240,258
Exercise of stock options	5	—		25			—		—		25
Settlement of restricted stock units	719	—		—			—		—		—

Payment of tax withholding obligations related to net share settlements of equity awards	—	—		(1,983)			—		—		(1,983)
Stock-based compensation expense	—	—		2,691			—		—		2,691
Repurchases and retirement of common stock	(1,078)	(1)		—			—		(9,994)		(9,995)
Components of comprehensive income (loss), net of tax:
Net income (loss)	—	—		—			—		2,772		2,772
Currency translation adjustment	—	—		—			(89)		—		(89)
Change in unrealized gain (loss) on investments	—	—		—			(23)		—		(23)

Balance, December 31, 2025	45,283	$	45	$	266,568		$	474	$	(33,431)	$	233,656


	Three Months Ended December 31, 2024
	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount
Balance, September 30, 2024	44,999	$	45	$	247,326	$	(2,302)	$	(30,268)	$	214,801
Exercise of stock options	66	—		177		—		—		177
Settlement of restricted stock units	517	1		(1)		—		—		—


Stock-based compensation expense	—	—		4,465		—		—		4,465

Repurchases and retirement of common stock	(370)	(1)		—		—		(3,265)		(3,266)
Components of comprehensive income (loss), net of tax:
Net income (loss)	—	—		—		—		(4,612)		(4,612)
Currency translation adjustment	—	—		—		(10,510)		—		(10,510)
Change in unrealized gain (loss) on investments	—	—		—		(138)		—		(138)

Balance, December 31, 2024	45,212	$	45	$	251,967	$	(12,950)	$	(38,145)	$	200,917

See accompanying notes to condensed consolidated financial statements.

MITEK SYSTEMS, INC.

CONDENSED 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		28
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	25		177
Repurchases and retirements of common stock	(9,995)		(3,257)
Payment of tax withholding obligations related to net share settlements 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	46		(1,115)
Net increase (decrease) in cash and cash equivalents	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	$	80	$	690
Supplemental disclosures of non-cash investing and financing activities:


Unrealized holding loss on available for sale investments	$	(23)	$	(138)

See accompanying notes to condensed consolidated financial statements... ..

MITEK SYSTEMS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Mitek Systems, Inc. (“Mitek,” the “Company,” “we,” “us,” and “our”) is a global provider of digital identity verification and fraud prevention solutions. We are a software development company with expertise in artificial intelligence (“AI”) and machine learning. We currently serve more than 7,000 organizations globally, including financial institutions, financial technology (“fintech”) companies, telecommunications providers, and digital marketplaces. We market and sell our products and services worldwide through internal, direct sales teams located in the U.S., Europe, and Latin America as well as through channel partners. Our partner sales strategy includes channel partners who are financial services technology, and identity verification providers. These partners integrate our products into their solutions to meet the needs of their customers, typically provisioning Mitek services through their respective platforms.

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated balance sheet as of December 31, 2025 and the condensed consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for the three months ended December 31, 2025 and 2024, are unaudited.

These financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and, accordingly, they do not include all information and footnote disclosures required by accounting principles generally accepted in the U.S. (“GAAP”) for complete financial statements. The Company believes the footnotes and other disclosures made in the financial statements are adequate for a fair presentation of the results of the interim periods presented. The financial statements include all adjustments (solely of a normal recurring nature) which are, in the opinion of management, necessary to make the information presented not misleading.

These unaudited interim condensed consolidated financial statements and the accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 11, 2025 (the “2025 Annual Report”).

Results for the three months ended December 31, 2025, are not necessarily indicative of results for any other interim period or for a full fiscal year.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets, liabilities, revenue, expenses, deferred taxes, and related disclosures. On an ongoing basis, management reviews its estimates based upon currently available information. Actual results could differ materially from those estimates. These estimates include, but are not limited to, assessing the collectability of accounts receivable, estimation of the value of stock-based compensation awards, assessing for impairment of goodwill, useful lives of intangible assets, standalone selling price related to revenue recognition, estimated variable consideration in contracts, and income taxes.

Segment Reporting

Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”), in deciding how to allocate resources and assess performance. The Company’s CODM is comprised of its Chief Executive Officer, Chief Financial Officer and Chief Operating Officer.

The Company provides software and service offerings focused on fraud prevention and check verification. The Company has grown its product and service offerings through both organic development and through acquisitions, which have allowed the Company to expand its offerings, presence and reach in the fraud prevention and check verification markets. While the Company has a number of product and service offerings, and operates in multiple countries, the Company has determined it has one operating segment. This

determination is based on how the CODM evaluates the Company’s financial information, allocates resources, and assesses the performance of these resources, on a consolidated basis. While there are different product and service offerings, the Company manages the development, sale, deployment, and support of its offerings in a similar manner.

The Company’s significant segment expenses are the expenses included in operating income and other segment items, which includes other income (expense), net, and the benefit (provision) for income taxes, are included in the Company’s condensed consolidated statement of operations. An additional component of the Company’s measure of profit or loss is net income. The measure of segment assets is reported on the condensed consolidated balance sheet as total consolidated assets.

Net Income (Loss) Per Share

For the three months ended December 31, 2025 and 2024, the following potentially dilutive common shares were excluded from the calculation of net income (loss) per share, as they would have been antidilutive (amounts in thousands):


	Three Months Ended December 31,
		2025	2024
Stock options		155	273
RSUs		2,151	2,226
ESPP common stock equivalents		128	52
Performance options		—	717
Performance RSUs		1,183	1,908
Convertible senior notes		7,448	7,448
Warrants		7,448	7,448
Total potentially dilutive common shares outstanding		18,513	20,072

The calculation of basic and diluted net income (loss) per share is as follows (amounts in thousands, except per share data):


	Three Months Ended December 31,
		2025		2024
Net income (loss)		$	2,772	$	(4,612)
Weighted-average shares outstanding—basic		45,702		45,195
Common stock equivalents		1,460		—
Weighted-average shares outstanding—diluted		47,162		45,195
Net income (loss) per share:
Basic		$	0.06	$	(0.10)
Diluted		$	0.06	$	(0.10)

Concentrations of Significant Customers and Assets

For the three months ended December 31, 2025, the Company derived revenue of $4.5 million from one customer, with such customer accounting for 10% of the Company’s total revenue. For the three months ended December 31, 2024, the Company derived revenue of $5.6 million from the same customer, with such customer accounting for 15% of the Company’s total revenue. The corresponding accounts receivable balances of customers from which revenues were in excess of 10% of total revenue were $3.9 million and $3.4 million at December 31, 2025 and 2024, respectively.

From a geographic perspective, approximately 77% and 78% of the Company’s total long-term assets as of December 31, 2025 and September 30, 2025, respectively, are associated with the Company’s international subsidiaries. From a geographic perspective, approximately 17% of the Company’s total long-term assets excluding goodwill and other intangible assets as of December 31, 2025 and September 30, 2025, respectively, are associated with the Company’s international subsidiaries.

Recently Adopted Accounting Pronouncements

The Company did not adopt any new accounting pronouncements in the three months ended December 31, 2025.

Change in Significant Accounting Policy

The Company’s significant accounting policies are disclosed in the Company’s audited consolidated financial statements and related notes thereto included in the Company’s 2025 Annual Report. There have been no changes to these accounting policies through December 31, 2025.

Recently Issued Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which amends existing income tax disclosure guidance, primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation. The ASU is effective for the Company’s annual reporting period beginning after October 1, 2025, with early adoption permitted and can be applied on either a prospective or retroactive basis. The enhanced income tax disclosures will be included in the Company’s Annual Report on Form 10-K for the fiscal year ending September 30, 2026.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires disaggregation of certain costs in a separate note to the financial statements, such as the amounts of employee compensation, depreciation and intangible asset amortization, included in each relevant expense caption in annual and interim consolidated financial statements. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and for interim periods beginning after December 15, 2027 on a retrospective or prospective basis, with early adoption permitted. The Company is evaluating the effect that ASU 2024-03 will have on its financial statement disclosures.

In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”), which improves the operability of the guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods, including methods that entities may use to develop software in the future. ASU 2025-06 is effective for annual periods beginning after December 15, 2027 and for interim periods within those annual periods on a prospective, retrospective, or modified transition basis, with early adoption permitted. The Company is evaluating the effect that ASU 2025-06 will have on its financial statement disclosures.

In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270). The ASU improves the navigability of the required interim disclosures and clarifies when the guidance is applicable, as well as provides additional guidance on what disclosures should be provided in interim reporting periods. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods beginning after December 15, 2028. The Company is evaluating the impact this ASU will have on its consolidated financial statements which is not expected to be material.

SEC Form 10-Q filed by Mitek Systems Inc.