Mitek Systems (MITK) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 ended with strong results, driven by SaaS acceleration and expansion of Fraud & Identity Solutions, now over half of total revenue and growing ~15% year-over-year amid rising AI-driven fraud.

• SaaS revenue grew 21% year-over-year to $77M, now 43% of total revenue, improving recurring revenue and business model durability.

• Check Fraud Defender annual contract value grew ~50% year-over-year, expanding coverage to over 25% of U.S. checking accounts, approaching 50% including pilots.

• Operational discipline led to a 30% adjusted EBITDA margin, improved efficiency, and a leaner, more scalable cost structure.

• Free cash flow reached $54M, a 100% conversion of adjusted EBITDA, ending FY25 with $40M net cash.

Financial highlights

• FY25 total revenue was $180M, up 4% year-over-year; Q4 revenue was $44.8M, up 4% from Q4 FY24.

• Fraud & Identity Solutions revenue reached $90M for FY25, up 15% year-over-year; Check Verification Solutions revenue was $90M, down from $94M.

• SaaS revenue for FY25 was $77M, up 21% year-over-year, now 43% of total revenue.

• Adjusted EBITDA for FY25 was $54M (30% margin), up 15% year-over-year.

• Free cash flow for FY25 was $54M, a 100% conversion of adjusted EBITDA, up 79% year-over-year.

Outlook and guidance

• FY26 revenue guidance is $185–$195M, representing ~5.5% year-over-year growth at the midpoint.

• Fraud & Identity Solutions revenue for FY26 is expected at $101–$105M, up ~15% year-over-year.

• Adjusted EBITDA margin for FY26 is projected between 27% and 30%, with flat EBITDA as investments increase.

• Q1 FY26 revenue guidance is $41M–$44M.

• Non-GAAP tax rate expected to decline to ~10% in FY26 due to tax legislation changes.