The company’s SaaS products grew 29 percent year-over-year, now accounting for 39 percent of total revenue, up from 35 percent in previous quarters. The increase stems from strong performance of the MiVIP identity verification platform and Check Fraud Defender (CFD) solution.
Mitek’s identity business is nearing a key profitability threshold, with last 12-months identity revenue reaching $70.7 million, compared to $68.5 million at the end of fiscal 2024. The company expects to achieve profitability in its identity products at the $80-85 million revenue level.
The Check Fraud Defender solution continues to gain momentum, with annual contract value approaching $12 million. CFD now protects 18 percent of all U.S. checking accounts, up from 17 percent last quarter, though market penetration among U.S. financial institutions remains below 1 percent. A recent contract with a top-10 U.S. financial institution signals growing market potential.
First quarter financial results show a GAAP net loss of $4.6 million, improved from $5.8 million a year ago. Adjusted EBITDA reached $7.8 million, up from $5.9 million year-over-year, while free cash flow improved to $0.2 million from -$9.7 million in the previous year.
The company maintains its fiscal 2025 revenue guidance of $170-180 million and has increased the lower end of its adjusted EBITDA margin guidance to 25-28 percent.
Under CEO Edward H. West, Mitek is integrating identity verification and fraud prevention into a unified MiVIP platform while restructuring R&D to centralize AI/machine learning efforts and enhance cross-functional execution.
Customer spending shows positive trends, with existing customers from Q1 2024 increasing spending by 40 percent, while customers from Q1 2023 have tripled their initial investment. The company’s top-10 identity customers have increased spending by 80 percent over the past two years.
Mitek expects SaaS revenue to reach nearly 50 percent of total revenue in fiscal 2026 as it continues to strengthen its capital structure and maintain financial flexibility.
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February 13, 2025 – by Ali Nassar-Smith
