Mitek Systems Reports 11% Revenue Growth to $51.9 Million in Q2 Fiscal 2025

Mitek Systems, Inc. reported a notable financial performance for the second quarter of fiscal 2025, with total revenue reaching $51.9 million, an increase of 11% from $46.9 million in the same period last year. The company’s net income for the quarter was $9.2 million, or $0.20 per diluted share, compared to a modest net income of $0.3 million, or $0.01 per diluted share, in the prior year. This improvement in profitability is attributed to increased sales in its software and services segments, particularly from its Mobile Deposit and Check Fraud Defender products.

In terms of operational metrics, Mitek's cash provided by operating activities was $14.3 million for the six months ended March 31, 2025, a significant turnaround from the cash used in operating activities of $2.4 million during the same period in 2024. The company also reported a total of 7,900 customers globally, reflecting its strong market presence in the financial services and fintech sectors. Mitek's Mobile Check Deposit product continues to facilitate approximately 1.2 billion transactions annually, underscoring its critical role in the company's offerings.

The company experienced a shift in its revenue composition, with software and hardware revenue decreasing by 5% to $38.7 million for the six months ended March 31, 2025, while services and other revenue increased by 17% to $50.5 million. This change indicates a growing reliance on service-based revenue streams, which now account for 57% of total revenue, compared to 51% in the previous year. Mitek's strategic focus on enhancing its service offerings appears to be yielding positive results, as evidenced by the growth in this segment.

Mitek's balance sheet reflects a total asset value of $425.3 million as of March 31, 2025, up from $413.8 million at the end of the previous fiscal year. The company reported a significant increase in accounts receivable, which rose to $49.9 million from $31.7 million, indicating improved sales performance. However, the company also noted a rise in current liabilities, primarily due to the reclassification of $147.8 million in convertible senior notes to current liabilities as they are set to mature in February 2026.

Looking ahead, Mitek remains optimistic about its growth trajectory, driven by increasing demand for its fraud prevention and digital identity verification solutions. The company is committed to investing in research and development to enhance its product offerings and maintain its competitive edge in the market. Mitek's management believes that the current cash reserves, along with expected operational cash flows, will be sufficient to meet its working capital needs for the foreseeable future.