Mitek Systems, Inc. (MITK) Q3 2025 Earnings Call Transcript
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.
Trade with 70% Backtested Accuracy
Analyst Views on MITK
About MITK
About the author
Wall Street Analysts Predict a 34.72% Surge for Mitek Systems (MITK): Here's How to Invest
Stock Performance: Mitek Systems (MITK) closed at $9.65, showing an 11.6% gain over the past month, with a mean price target of $13 suggesting a potential upside of 34.7%.
Analyst Price Targets: Analysts' price targets for MITK range from $10.00 to $15.00, with a low standard deviation indicating a consensus among analysts, though their reliability is often questioned.
Earnings Estimates: There is growing optimism regarding MITK's earnings, as analysts have revised EPS estimates higher, which historically correlates with positive stock price movements.
Investment Caution: While price targets can provide insights, investors should approach them with skepticism and consider other factors, such as earnings estimates, for making informed investment decisions.
Reasons Behind Today's Surge in Mitek Stock
Mitek's Earnings Performance: Mitek Systems' stock surged over 8% after reporting earnings that exceeded expectations, with total revenue rising 4% year-over-year to $44.8 million, driven by a 19% increase in SaaS revenue.
CEO's Vision for Growth: CEO Ed West emphasized the company's strategy to unify identity, authentication, and fraud solutions to enhance SaaS adoption and customer value, aiming for total revenue of $185 million to $195 million in the upcoming fiscal year.
EBITDA Decline: Despite the revenue growth, Mitek's EBITDA fell 16% to $12.9 million due to growth investments, although adjusted earnings per share of $0.24 surpassed Wall Street's expectations.
Investment Considerations: The Motley Fool's Stock Advisor identified 10 stocks they believe are better investment opportunities than Mitek Systems, highlighting the potential for significant returns from those recommendations.
