Mitek Systems, Inc. (“Mitek,” the “Company,” “we,” “us,” and “our”) is a pioneer in mobile image capture and a global provider of solutions in the fraud prevention, digital identity verification, and cybersecurity markets. Our products address the increasing sophistication of fraud in areas such as new account openings, digital account access, and payments. Utilizing artificial intelligence, computer vision, and proprietary biometrics, our enterprise-grade verification tools protect organizations from escalating check fraud, ongoing account opening fraud, and new cyber threats such as deepfakes and voice clones.

Mitek’s Mobile Check Deposit product is trusted by consumers for its convenience and accuracy verifying checks for deposit, facilitating approximately 1.2 billion transactions annually. This solution powers secure, fast, and convenient deposit services for many organizations, enhancing consumer experience.

We serve over 7,900 financial services organizations, financial technology (“fintech”) brands, telecommunications companies, and marketplace brands globally. Our verification and fraud detection technology is embedded directly within mobile and web applications, providing seamless verification at every touchpoint in the customer lifecycle. By equipping banks, marketplaces, and fintech platforms with these tools, we help reduce the costs associated with fraud, impersonation, Know Your Customer (“KYC”) and anti-money laundering (“AML”) compliance. Additionally, our solutions improve the customer experience, help to ensure regulatory compliance, and lower operational costs.

The accompanying condensed consolidated balance sheet as of June 30, 2025 and the condensed consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for the three and nine months ended June 30, 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, 2024, filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 16, 2024 (the “2024 Annual Report”).

Certain amounts within the prior period’s consolidated balance sheet have been reclassified to conform to the current period presentation. Income tax payables and accrued interest payable were presented separately on the consolidated balance sheet as of September 30, 2024, however, they are included in the other current liabilities line in the consolidated balance sheet as of June 30, 2025.

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.

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 disclosure of contingent assets and liabilities. 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, fair value of assets and liabilities acquired,

impairment of goodwill, useful lives of intangible assets, standalone selling price related to revenue recognition, estimated variable consideration in contracts, contingent consideration, and income taxes.

For the three and nine months ended June 30, 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 June 30,		Nine Months Ended June 30,
	2025	2024	2025	2024
Stock options	352	298	361	523
RSUs	2,458	1,731	2,077	2,315
ESPP common stock equivalents	125	43	40	32
Performance options	759	645	729	800
Performance RSUs	1,545	1,049	1,154	468
Convertible senior notes	7,448	7,448	7,448	7,448
Warrants	7,448	7,448	7,448	7,448
Total potentially dilutive common shares outstanding	20,135	18,662	19,257	19,034

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


	Three Months Ended June 30,				Nine Months Ended June 30,
	2025		2024		2025		2024
Net income (loss)	$	2,396	$	216	$	6,936	$	(5,295)
Weighted-average shares outstanding—basic	45,894		47,017		45,632		46,764
Common stock equivalents	954		1,290		1,158		1,028
Weighted-average shares outstanding—diluted	46,848		48,307		46,790		47,792
Net income (loss) per share:
Basic	$	0.05	$	0.00	$	0.15	$	(0.11)
Diluted	$	0.05	$	0.00	$	0.15	$	(0.11)

For the three months ended June 30, 2025, the Company derived revenue of $6.1 million from one customer, with such customer accounting for 13% of the Company’s total revenue. For the three months ended June 30, 2024, the Company derived revenue of $6.7 million from one customer, with such customer accounting for 15% of the Company’s total revenue. For the nine months ended June 30, 2025, the Company derived revenue of $22.6 million from one customer, with such customer accounting for 17% of the Company’s total revenue. For the nine months ended June 30, 2024 the Company derived revenue of $22.6 million from one customer, with such customer accounting for 18% 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 $5.7 million and $10.8 million at June 30, 2025 and 2024, respectively.

From a geographic perspective, approximately 79% and 78% of the Company’s total long-term assets as of June 30, 2025 and September 30, 2024, respectively, are associated with the Company’s international subsidiaries. From a geographic perspective, approximately 15% and 19% of the Company’s total long-term assets excluding goodwill and other intangible assets as of June 30, 2025 and September 30, 2024, respectively, are associated with the Company’s international subsidiaries.

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 2024 Annual Report. There have been no changes to these accounting policies through June 30, 2025.

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, amending 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 annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retroactive basis. The Company is currently evaluating the ASU to determine its impact on its income tax disclosures.

In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which requires additional operating segment disclosures in annual and interim consolidated financial statements. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024 on a retrospective basis, with early adoption permitted. The Company will adopt ASU 2023-07 in the fourth quarter of fiscal 2025 and does not expect the additional required disclosures to have a material impact on its financial statements.

No other new accounting pronouncement issued or effective during the nine months ended June 30, 2025 had, or is expected to have, a material impact on the Company’s condensed consolidated financial statements.