Mitek Systems (MITK) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $37.3M, nearly flat year-over-year, with SaaS and identity growth offsetting declines in deposit and software license revenue.

• Adjusted EBITDA rose 32% year-over-year to $7.8M, with margin improving to 21% from 16% and non-GAAP net income at $6.6M.

• Net loss narrowed to $4.6M from $5.8M in the prior year; non-GAAP net income per diluted share was $0.15.

• Free cash flow conversion improved to 83% over the last 12 months, with LTM free cash flow at $40.2M.

• Share repurchases totaled $3.3M in Q1 2025, with $46.7M remaining authorized.

Financial highlights

• Total Q1 2025 revenue: $37.3M, up 1% year-over-year; GAAP gross margin: 75.1%; non-GAAP gross margin: 84.5%.

• SaaS revenue grew 29% year-over-year, now representing over 39% of last 12 months' revenue.

• Identity products revenue increased 13% year-over-year to $18M; identity services revenue reached $17.1M.

• Deposit products revenue declined 9% year-over-year to $19.3M; software and hardware revenue fell to $12.0M.

• Non-GAAP net income: $6.6M, or $0.15 per diluted share; GAAP net loss: $4.6M (EPS: -$0.10).

Outlook and guidance

• Fiscal 2025 revenue guidance reiterated at $170M–$180M.

• Adjusted EBITDA margin guidance raised to 25%–28% (previously 24%–28%).

• SaaS revenue expected to approach half of total revenue by fiscal 2026.

• Management expects continued demand for digital identity and fraud prevention solutions amid rising cyber threats.

• Current liquidity and cash flow expected to meet working capital needs for at least the next twelve months.