Mitek Systems, Inc. Q4 FY2025 earnings call

Mitek provides identity verification, authentication and fraud decisioning infrastructure for high assurance institutions. Fiscal 2025 ended with a strong fourth quarter, driven by broad-based demand. Fraud and identity now accounts for over half of total business, growing over 15% year-over-year. SaaS revenue growth accelerated to 21% in fiscal 2025, with SaaS mix increasing to 43% of total revenue. Adjusted EBITDA margins were 30% in fiscal 2025. Check Fraud Defender ACV grew 50% year-over-year, with data sets configured in the consortium expanding. North America and EMEA saw growth in identity portfolio, with higher assurance identity journeys and automation at ~90%.

For fiscal 2025, total revenue was approximately $180 million, evenly split between fraud and identity and check verification. Fraud and identity revenue was $90 million, up 15% year-over-year. Check verification revenue was $90 million, compared to $94 million in fiscal 2024. In the fourth quarter of fiscal 2025, total revenue was $44.8 million, up 4% year-over-year. Identity revenue was $21 million, up 7% year-over-year, driven by 14% SaaS growth. Deposits revenue was $23.8 million, up 1% year-over-year, driven by growth in CFD SaaS revenue.

Expect fiscal 2026 revenue of $185 million to $195 million, implying ~6% growth at midpoint. Fraud and identity product portfolio revenue expected to be $101 million to $105 million in fiscal 2026, ~15% growth at midpoint. Expect modest gross margin pressure in fiscal 2026 due to mix shift towards SaaS and services, but gross profit dollars expected to continue rising. Adjusted EBITDA margins expected in the 27% to 30% range in fiscal 2026.

Fraud landscape changing at an extraordinary pace due to generative AI, accelerating fraud and identity-based attacks. Timing of large enterprise deployments for Check Fraud Defender impacting ACV. Shift in fraud vectors changing rapidly, requiring continuous adaptation.

Q: Mike Grondahl from Northland asked Dave Lyle about the drivers behind SaaS growth.

A: Underlying demand driven by growth in synthetic fraud due to generative AI, partnerships with large financial institutions, growth in relationships, transactions, and authentication.

Q: Jake Roberts from William Blair asked about visibility into the path to organic growth above 10% with SaaS accelerating.

A: Market moving in right direction, Mitek well positioned with credibility and growing need for fraud and identity detection.

Q: Surinder Thind from Jefferies asked about investment level.

A: Investment driven by confidence in customer position, market trends, and need to accelerate growth, with focus on R&D, AI decisioning, biometrics, and go-to-market.

Q: George Sutton from Craig-Hallum asked about synthetic fraud and pilot process for banks.

A: Synthetic fraud accelerating drives need for layered detection, consortium provides value with data access, pilot process takes time but value increases over time.

Q: Allen Klee from Maxim Group asked about mobile deposit business and capital structure.

A: Mobile deposit transaction volumes stable but rev rec affected by deal timing; will pay off entire convert debt due February 1, 2026, with flexibility from facilities.