Mitek Systems, Inc. (MITK) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 07 2025
0mins
Should l Buy MITK?
Source: SeekingAlpha
SaaS revenue SaaS revenue grew 23% year-over-year, representing over 41% of total revenue for the last 12 months. This growth was driven by operational efficiencies and increased adoption of Identity and Fraud solutions.
Free cash flow Free cash flow for the last 12 months was $56 million, representing a 99% conversion rate. This was achieved through tighter cost controls, operational discipline, and improved working capital efficiency.
Identity revenue Trailing 12-month Identity revenue reached $75 million, up 13% year-over-year. This growth was attributed to increased automation, improved gross profit per transaction, and higher transaction volumes.
Check Fraud Defender annual contract value (ACV) ACV reached approximately $13.1 million, up 56% year-over-year. Growth was driven by enterprise banking deployments and expansion through channel partner networks.
Total revenue Total revenue for Q3 2025 was $45.7 million, up 2% year-over-year. This was primarily driven by a 24% growth in Identity products and 19% growth in Identity SaaS.
Non-GAAP gross margin Non-GAAP gross margin for Q3 2025 was 85%, about 100 basis points less than a year ago. The slight decline was due to a mix shift away from higher-margin deposits products.
Adjusted EBITDA Adjusted EBITDA for Q3 2025 was $13.1 million, representing a 28.6% margin and a 170 basis point improvement year-over-year. This was driven by cost discipline and operational efficiency.
Deposits revenue Deposits revenue for Q3 2025 was $26.2 million. Trailing 12-month license revenue totaled $69.1 million, reflecting resilience in Mobile Deposit transactions despite declining check volumes.
Deposit SaaS revenue Deposit SaaS revenue grew 55% year-over-year, driven by organic usage growth and expansion across direct and partner channels.
Non-GAAP operating expense Non-GAAP operating expense for Q3 2025 was $26.3 million, representing a 3% year-over-year improvement. This was achieved through cost discipline and operational excellence.
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Analyst Views on MITK
Wall Street analysts forecast MITK stock price to rise
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 11.510
Low
13.00
Averages
14.67
High
17.00
Current: 11.510
Low
13.00
Averages
14.67
High
17.00
About MITK
Mitek Systems, Inc. is a provider of mobile image capture and digital identity verification solutions. The Company is a software development company with expertise in artificial intelligence and machine learning. It is a global provider of solutions in the fraud prevention, digital identity verification, and cybersecurity markets. Its verification and fraud detection technology is embedded directly within mobile and Web applications, providing verification at every touchpoint in the customer lifecycle. The Company's products include Mobile Deposit, Check Fraud Defender, Mitek Verified Identity Platform (MiVIP), Mobile Verify, MiSnap, CheckReader, Check Intelligence, MiPass, IDLive Face, and IDLive Doc. Its products are used in various cases, including age verification, compliance (KYC), customer onboarding, passwordless authentication, and in-person identity verification. It serves various industries, including financial institutions, fintech, igaming, lending, marketplace, and travel.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Technology Upgrade: Mitek has enhanced its unassisted video verification solution to combat AI-driven identity fraud, ensuring a fast and seamless experience for customers while maintaining compliance, thereby boosting customer trust and satisfaction.
- Compliance Assurance: Unassisted video verification is a regulatory requirement for financial institutions in Spain, and Mitek's improvements aim to bolster these institutions' protective capabilities, ensuring compliance and security in a rapidly changing fraud environment.
- Ongoing Investment: Mitek continues to invest in adaptive, intelligence-driven verification technologies, aiming to help organizations maintain competitiveness in the face of rapidly advancing AI threats by providing stronger security and compliance for customer digital interactions.
See More
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- Escalating Fraud Threats: National data indicates that 89% of Spanish companies reported an increase in fraud attempts last year, with identity fraud remaining the leading cause of corporate fraud losses, highlighting the critical importance of Mitek's new features in the current landscape.
- Technological Innovations: The new system incorporates deepfake detection, digital manipulation, and screen replay analysis, which not only bolster protection against attacks but also ensure compliance and a seamless user experience for legitimate customers.
- Ongoing Investment: Mitek continues to invest in adaptive, intelligence-driven verification technologies to address rapidly evolving fraud tactics, ensuring that clients maintain security and compliance while enhancing the onboarding experience in a fast-changing threat environment.
See More
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- Tech Sector Leadership: Within the small-cap space, Mitek Systems (MITK) leads with a last price percentage above the 200-day simple moving average (200DSMA) of 19.21%, reflecting strong market confidence and robust performance in the technology sector.
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