Financial Analysis

9. COMMITMENTS AND CONTINGENCIES Legal Proceedings Third Party Claims Against the Companys Customers The Company receives indemnification demands from end-user customers who received third party patentee offers to license patents and allegations of patent infringement. Some of the offers and allegations have resulted in ongoing litigation. The Company is not a party to any such litigation. From time to time, license offers to and infringement allegations against the Companys end-customers are made by non-practicing entities (NPEs)often called patent trollsand not the Companys competitors. These NPEs may seek to extract settlements from our end-customers, resulting in new or renewed indemnification demands to the Company. At this time, the Company does not believe it is obligated to indemnify any customers or end-customers resulting from license offers or patent infringement allegations by any such NPEs. However, the Company could incur substantial costs if it is determined that it is required to indemnify any customers or end-customers in connection with these offers or allegations. Given the potential for impact to other customers and the industry, the Company is actively monitoring the offers, allegations and any resulting litigation. Since 2018, United Services Automobile Association (USAA) has filed suit against various parties alleging patent infringement concerning USAA-owned patents related to mobile check deposit technology. While these lawsuits do not name the Compan …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

8. DEBT Convertible Senior Notes The carrying values of the 0.75% convertible notes due 2026 issued by the Company in an initial aggregate principal amount of $155.3 million (the 2026 Notes) are as follows ( amounts in thousands ): September 30, 2025 September 30, 2024 2026 Notes: Principal amount $ 155,250 $ 155,250 Less: unamortized discount and issuance costs, net of amortization (3,034) (11,649) Carrying amount $ 152,216 $ 143,601 In February 2021, the Company issued $155.3 million aggregate principal amount of the 2026 Notes (including the Additional Notes, as defined below). The 2026 Notes are senior unsecured obligations of the Company. The 2026 Notes were issued pursuant to an Indenture, dated February 5, 2021 (the Indenture), between the Company and UMB Bank, National Association, as trustee. The Indenture includes customary covenants and sets forth certain events of default after which the 2026 Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving the Company after which the 2026 Notes become automatically due and payable. The Company granted the initial purchasers of the 2026 Notes (collectively, the Initial Purchasers) a 13-day option to purchase up to an additional $20.3 million aggregate principal amount of the 2026 Notes (the Additional Notes), which was exercised in full. The 2026 Notes were purchased in a transaction that was completed on February 5, 2021. As of September 30, 202 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables present the Company's revenue disaggregated by major product category ( amounts in thousands ): Twelve Months Ended September 30, 2025 2024 2023 Major product category Fraud and identity solutions SaaS $ 72,415 $ 59,713 $ 55,770 Software license and support 15,458 16,529 16,083 Professional services and other 2,060 1,762 2,572 Total fraud and identity solutions revenue 89,933 78,004 74,425 Check verification solutions SaaS 4,595 3,876 3,679 Software license and support 84,081 89,559 93,545 Professional services and other 1,082 644 903 Total check verification solutions revenue 89,758 94,079 98,127 Total by revenue type SaaS 77,010 63,588 59,499 Software license and support 99,539 106,088 109,628 Professional services and other 3,142 2,406 3,475 Total revenue $ 179,691 $ 172,083 $ 172,552 The Company changed the presentation of its disaggregation of revenue in fiscal 2025, as shown in the table above. The Company has included the prior presentation in the table below for comparative purposes. Twelve Months Ended September 30, 2025 2024 2023 Major product category Deposits software license and hardware $ 67,661 $ 74,108 $ 78,212 Deposits SaaS, maintenance, and other 35,353 29,450 25,922 Deposits revenue 103,014 103,558 104,134 Identity verification software license and hardware 6,425 7,764 10,162 Identity verification SaaS, maintenance, and other 70,252 60,761 58,256 Identity verification revenue 76,677 68,525 68,418 Total revenue $ 179,691 $ 172,083 $ 172, …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

4. FAIR VALUE MEASUREMENT Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on the following three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which consists of the following: Level 1: Valuation is based on quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Valuation is based on observable market-based inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: Valuation is based on significant unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following tables represent the fair value hierarchy of the Companys investments as of September 30, 2025 and 2024, respectively (amounts in thousands): Sep …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

5. GOODWILL AND INTANGIBLE ASSETS Goodwill The Company had a goodwill balance of $133.5 million and $131.6 million at September 30, 2025 and 2024, respectively, representing the excess of costs over the fair value of assets of businesses acquired. The following table summarizes changes in the balance of goodwill ( amounts in thousands ): Balance at September 30, 2023 $ 123,548 Foreign currency effect on goodwill 8,026 Balance at September 30, 2024 131,574 Foreign currency effect on goodwill 1,883 Balance at September 30, 2025 $ 133,457 There was no impairment loss recognized related to goodwill in the twelve months ended September 30, 2025, 2024, or 2023. Intangible Assets Intangible assets include the value assigned to purchased completed technology, customer relationships, trade names, and covenants not to compete. The estimated useful lives for all of these intangible assets range from three to seven years and they are amortized on a straight-line basis. Intangible assets as of September 30, 2025 and 2024 are summarized as follows (amounts in thousands, except for years): September 30, 2025: Weighted Average Amortization Period (in years) Cost Accumulated Amortization Net Completed technologies 7.0 $ 76,524 $ 40,120 $ 36,404 Customer relationships 5.0 5,090 3,583 1,507 Trade names 5.0 6,580 4,692 1,888 Total intangible assets $ 88,194 $ 48,395 $ 39,799 September 30, 2024: Weighted Average Amortization Period (in years) Cost Accumulated Amortization Net Completed technologi …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

7. INCOME TAXES Provision for Income Taxes Income (loss) before income taxes for the twelve months ended September 30, 2025, 2024, and 2023 is comprised of the following ( amounts in thousands ): 2025 2024 2023 Domestic $ 14,418 $ 10,246 $ 23,836 Foreign (2,809) (11,155) (13,495) Total $ 11,609 $ (909) $ 10,341 For the twelve months ended September 30, 2025, 2024, and 2023 the income tax benefit (provision) was as follows (amounts in thousands): 2025 2024 2023 Current: Federal $ (10,217) $ (6,323) $ (4,414) State (906) (420) (1,215) Foreign (1,266) 495 (1,023) Total current benefit (provision) for income taxes (12,389) (6,248) (6,652) Deferred: Federal 6,128 4,291 (659) State 548 397 819 Foreign 2,900 5,747 4,178 Total deferred benefit (provision) for income taxes 9,576 10,435 4,338 Total tax benefit (provision) $ (2,813) $ 4,187 $ (2,314) Deferred Income Tax Assets and Liabilities Significant components of the Companys net deferred tax assets and liabilities as of September 30, 2025 and 2024 are as follows (amounts in thousands): 2025 2024 Deferred tax assets: Stock-based compensation $ 2,664 $ 2,866 Net operating loss carryforwards 11,552 12,437 Research credit carryforwards 5,311 5,398 Lease liability 717 1,235 Accrued bonus 1,771 Capitalized research and development costs 12,596 8,408 Other, net 921 682 Total deferred assets 35,532 31,026 Deferred tax liabilities: Right of use asset (633) (1,141) Intangibles (9,860) (13,414) Total deferred liabilities (10,493) (14,555) Va …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

10. LEASES The Company leases office and research and development facilities under non-cancelable operating leases for various terms through 2031. Certain lease agreements include renewal options, rent abatement periods, and rental increases throughout the term. Operating lease costs are included within cost of revenue, selling and marketing, research and development, and general and administrative expenses, dependent upon the nature and use of the ROU asset, in the Companys consolidated statements of operations and comprehensive income (loss). The following table provides the components of lease cost recognized in the consolidated statements of operations and comprehensive income (loss) for the periods presented ( amounts in thousands ): Twelve Months Ended September 30, 2025 2024 2023 Operating lease costs $ 747 $ 1,784 $ 2,025 Short-term lease costs 528 384 150 Variable lease costs 203 249 169 Total lease costs $ 1,478 $ 2,417 $ 2,344 Supplemental cash flow information related to leases was as follows ( amounts in thousands ): Twelve Months Ended September 30, 2025 2024 2023 Right of use assets acquired under new operating leases $ 429 $ 1,947 $ Cash paid for amounts included in the measurement of lease liabilities 845 1,960 2,368 Other information related to leases as of the balance sheet dates presented was as follows: Twelve Months Ended September 30, 2025 2024 Weighted-average remaining lease term (years) - operating leases 4.0 5.3 Weighted-average discount rate - oper …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (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 adopted ASU 2023-07 in the fourth quarter of fiscal 2025. See Segment Reporting in Note 1 for additional details. Recently Issued Accounting Pronouncements In September 2025, the FASB issued Accounting Standards Update (ASU) No. 2025-06, IntangiblesGoodwill and Other Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06), which improves the operability of the guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods, including methods that entities may use to develop software in the future. ASU 2025-06 is effective for annual periods beginning after December 15, 2027 and for interim periods within those annual periods on a prospective, retrospective, or modified transition basis, with early adoption permitted. The Company is evaluating the effect that ASU 2025-06 will …

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2. REVENUE RECOGNITION Nature of Goods and Services The following is a description of principal activities from which the Company generates its revenue. Contracts with customers are evaluated on a contract-by-contract basis as contracts may include multiple types of goods and services as described below. Software License and Hardware Software license and hardware revenue is generated from on premise software license sales, as well as sales of on premise appliance products which were phased out in fiscal 2024. Software is typically sold as a time-based license with a term of one to three years. For software license agreements that are distinct, the Company recognizes software license revenue upon delivery and after evidence of a contract exists. Our standard payment terms are generally no more than 60 days. Invoices for software are typically issued when the license is made available for customer use. SaaS, Maintenance, and Other SaaS, maintenance, and other revenue is generated from the sale of SaaS products and services, maintenance associated with the sale of on premise software licenses and consulting and professional services. The Companys SaaS offerings give customers the option to be charged upon their incurred usage in arrears (Pay as You Go), or commit to a minimum spend over their contracted period, with the ability to purchase additional transactions above the minimum during the contract term. Revenue related to Pay as You Go contracts are generally recognized based …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

6. STOCKHOLDERS EQUITY Stock-Based Compensation Expense The following table summarizes stock-based compensation expense related to RSUs, Performance RSUs, stock options, Performance Options (as defined below), and ESPP shares for the twelve months ended September 30, 2025, 2024, and 2023, which were allocated as follows (amounts in thousands): 2025 2024 2023 Cost of revenue $ 647 $ 574 $ 468 Selling and marketing 3,898 3,041 3,023 Research and development 4,206 3,368 2,757 General and administrative 8,059 5,641 4,215 Stock-based compensation expense included in expenses $ 16,810 $ 12,624 $ 10,463 As of September 30, 2025, the Company had $31.7 million of unrecognized compensation expense expected to be recognized over a weighted-average period of approximately 2.2 years. The Company recorded tax benefits related to stock-based compensation expense of $1.8 million, $2.0 million, and $1.4 million, during the years ended September 30, 2025, 2024, and 2023, respectively. 2020 Incentive Plan In January 2020, the Companys Board of Directors (the Board) adopted the Mitek Systems, Inc. 2020 Incentive Plan (the 2020 Plan) upon the recommendation of the Compensation Committee of the Board. On March 4, 2020, the Companys stockholders approved the 2020 Plan. The total number of shares of Common Stock reserved for issuance under the 2020 Plan is 9,608,000 shares plus such number of shares, not to exceed 107,903, as remained available for issuance under the 2002 Stock Option Plan, 2006 Sto …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

11. SUBSEQUENT EVENTS TBD

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