MITEK SYSTEMS INC (MITK) Business

ITEM  1.    BUSINESS.

Overview

Mitek Systems, Inc. (“Mitek” or the “Company”) is a global provider of digital identity verification and fraud prevention solutions. The Company’s technologies help organizations verify identities, mitigate fraud risk, and enable secure digital interactions in response to increasingly complex and evolving threats, including those driven by artificial intelligence (“AI”).

Mitek’s platform addresses key use cases across digital interactions and customer lifecycle, including new account openings, account access, and mobile check deposit. Core capabilities include AI, machine learning, computer vision, and proprietary biometric liveness, and deepfake detection technologies that support identity verification, detect manipulation, and help prevent digital impersonation.

The Company’s Mobile Check Deposit product enables approximately 1.2 billion transactions annually and is widely used by financial institutions to provide consumers with fast, accurate, and secure remote deposit functionality. Mitek’s identity verification technologies are embedded within mobile and web applications, delivering real-time, automated identity validation across critical digital interactions.

As of the date of this filing, Mitek serves more than 7,000 organizations globally, including financial institutions, financial technology (“fintech”) companies, telecommunications providers, and digital marketplaces. The Company’s solutions assist customers in addressing fraud risk, complying with Know Your Customer (“KYC”) and anti-money laundering (“AML”) regulations, and improving operational efficiency and user experience.

Strategic Acquisitions and Innovation

Mitek has expanded its offerings through targeted acquisitions that support long-term innovation and enhance core capabilities in fraud prevention and identity verification. ID R&D, Inc., a provider of biometric authentication and passive liveness detection technologies, was acquired in 2021 and fully integrated by 2025. ID R&D combines applied AI research, biometric science, and product engineering to accelerate the Company’s technology roadmap and support development of secure, scalable identity and fraud solutions. This acquisition strengthened the Company’s ability to support multimodal authentication across multiple points in the digital identity lifecycle. These proprietary capabilities provide rapid response to evolving threats such as injection attacks, template attacks, and deepfakes.

In 2022, Mitek acquired HooYu Ltd., a provider of orchestration and KYC solutions that integrate biometric verification with real-time data aggregation from third party data providers that include credit bureaus, sanctions lists, and law enforcement databases. The addition of HooYu further expanded the Company’s offerings in fraud, risk management, and compliance.

Addressing Emerging Threats

The rapid advancement of AI has introduced a new class of fraud threats, including hyper-realistic deepfakes, voice clones, and synthetic identities that challenge traditional fraud and identity detection methods. These technologies have altered the market and lowered the barrier to entry for fraudsters, enabling scalable attacks that can bypass legacy systems and exploit digital channels.

Mitek’s solutions are specifically designed to help organizations detect and prevent these advanced forms of manipulation. The Company’s platform incorporates multilayered security capabilities, including biometric validation, passive and active liveness detection, device and behavioral analysis, and deepfake detection. These capabilities work in concert to identify signs of synthetic or altered content and validate the authenticity of users in real time.

To stay ahead of emerging threats, Mitek continues to invest in research and development across fraud, data, AI, identity science, and anti-manipulation technologies. These efforts support the Company’s ability to adapt to the evolving threat landscape and help customers maintain trust, compliance, and security in high-risk digital environments.

Global Reach and Distribution

Mitek’s solutions are delivered globally through a combination of direct sales and strategic channel partnerships. The Company operates in North America, United Kingdom and Europe and maintains relationships with technology, fraud, and identity providers that integrate Mitek’s solutions into their platforms. These relationships extend the reach of the Company’s products and services across key verticals where trust, compliance, and digital security are essential as well as into new geographies.

Corporate Vision

Mitek’s purpose is to protect what is real across digital interactions in a world of evolving threats. The Company is focused on enabling trust, security, and compliance across the digital landscape by providing organizations with the tools they need to authenticate identities, prevent fraud, and secure high-risk transactions.

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Mitek’s technology portfolio supports critical identity and fraud prevention functions across regulated and high-risk sectors, including financial services, fintech, telecommunications, healthcare and digital commerce. By combining proven technologies with continuous innovation, Mitek is positioned to meet the evolving needs of its customers and partners and address the increasingly complex challenges of the global threat environment.

Product and Technology Overview

Technology

Our digital technology solutions are provided in various formats: (i) cloud software platforms utilizing AI, computer vision and machine learning to enable mobile check deposits and check verifications, verify identities, and authenticate documents (including passports, identity cards, and driver's licenses); (ii) licensed software for mobile check deposits and check verifications, and biometric identifications; and (iii) software development kits (“SDK”) designed for mobile image and voice pattern capture.

Our proprietary technology uses patented algorithms that analyze images of both documents and selfies in a variety of ways, including but not limited to: image quality analysis, image repair and optimization, document identification and classification, data extraction, and numerous authenticators including detection for deepfakes, digital manipulation, and evidence of injected content.

Products

Mobile Deposit®

Mitek’s Mobile Deposit is used today by millions of consumers in the United States (“U.S.”) and Canada for mobile check deposit. Mobile Deposit enables individuals and businesses to remotely deposit checks using their camera-equipped smartphone or tablet. Mobile Deposit is embedded directly within countless financial institutions’ digital banking apps and used by their customers to process more than one billion check deposits annually. Mobile Deposit’s patented technology has been trusted by the US’s largest financial institutions for nearly 20 years.

Mobile Deposit allows consumers to capture images of the front and back of a check and then remotely deposit the check directly within their financial institution’s mobile banking app. Mitek delivers a simple and convenient user experience with our proprietary mobile automatic capture, which assists users in capturing a high quality image of a check.

Check Fraud Defender

Check Fraud Defender is our patented cloud-hosted fraud mitigation service, powered by our proprietary analytical tools, neural networks, and a financial industry data consortium, designed to detect check fraud in real-time driving lower operational costs, accelerated decisioning, and enhanced loss prevention for our customers. It analyzes and scores check images and behavioral data from all channels and evaluates attributes that can be missed by legacy systems. Check Fraud Defender also incorporates elements of our MiVIP platform for reporting and case management. This product family includes a legacy on-premise solution still utilized by a few customers but no longer marketed or sold by the Company.

Mitek Verified Identity Platform (“MiVIP®”)

MiVIP is an advanced, patented, end-to-end identity verification solution designed to address the increasing demands for seamless, secure, and scalable KYC processes. It allows companies to quickly design, build, and deploy robust KYC journeys with little or no development resources. MiVIP utilizes Mitek’s Mobile Verify engine and combines facial biometrics, liveness detection, ID document validation, database checks, geolocation, digital footprint analysis, and more to provide the clearest picture of who is requesting access to a business’ services. This multi-layered approach provides comprehensive protection against fraud, enabling businesses to verify identities with precision while mitigating sophisticated threats, including synthetic identities and deepfakes.

A key differentiator of MiVIP is its focus on enhancing the user experience. The platform supports omni-channel journeys, allowing users to seamlessly transition between devices—mobile, desktop, or others—without losing progress. This flexibility minimizes friction, making it ideal for diverse industries, including financial services, telecommunications, and e-commerce. MiVIP further empowers businesses by offering modular, scalable solutions that can adapt to the unique needs of highly regulated environments. By combining advanced security features, streamlined deployment, and user-friendly design, MiVIP exemplifies Mitek's commitment to delivering a trusted and comprehensive identity verification platform that empowers organizations to protect their customers and their ecosystems.

Mobile Verify®

Mobile Verify is our patented omnichannel Identity Document Verification (“IDV”) engine, deployable seamlessly across mobile, web, and desktop environments. This solution merges a frictionless user experience with forensic-grade document authentication to instantly validate the integrity of government-issued credentials. Mobile Verify helps establish a definitive “chain of

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trust” by biometrically binding the physical user to their document-leveraging advanced facial recognition and liveness detection to proactively neutralize deepfakes, synthetic identifies, and digital injection attacks.

MiSnap™

Mitek MiSnap™ is the industry-standard patented SDK for optimizing digital funnels and maximizing user conversion. It replaces manual image capture with a frictionless, auto-capture experience that can guide users to a successful result instantaneously. By enabling “first-time right” image acceptance, MiSnap can significantly reduce abandonment rates across all of fraud and identity for mobile deposits and identity onboarding, driving superior engagement metrics and lower support costs for our enterprise clients.

CheckReader™

CheckReader enables financial institutions to automatically extract data from checks once they have been scanned or photographed by the application. Easily integrated into mobile and server-based applications providing automatic image pre-processing and recognition capabilities, CheckReader allows for the automatic recognition of all fields on checks and generic payments documents, whether handwritten or machine printed. CheckReader is utilized as a core component throughout a wide range of check processing applications, including ATMs, centralized and back office processes, remittance, merchants, and fraud applications.

Check Intelligence

Check Intelligence enables financial institutions to automatically extract data from a check image received across any deposit channel—branch, ATM, remote deposit capture, and mobile. Through the automatic recognition of all fields on checks, whether handwritten or machine printed, Check Intelligence speeds up the time to deposit for banks and customers and helps enable financial institutions to comply with check clearing regulations. With built-in image quality analysis and image usability analysis, Check Intelligence also ensures that the check meets the Check Clearing for the 21st Century Act (Check 21) requirements and other industry and regulatory standards.

MiPass®

MiPass is a next-generation passwordless authentication solution that leverages multimodal biometrics to secure high-value transactions. By combining voice and facial recognition with forensic liveness detection, the platform proactively neutralizes synthetic identities and AI-driven presentation attacks. MiPass® offers a scalable, secure alternative to vulnerable legacy credentials, reducing fraud losses while streamlining user access across the enterprise ecosystem. Recognized for its innovation and market leadership, MiPass has received multiple industry accolades, including awards for excellence in biometric technology and fraud prevention.

ID LIVE Products

Our biometric and liveness capabilities serve as intrinsic elements of our verification solutions. They provide enterprise-grade security through passive facial liveness assessment, fast and frictionless voice authentication, or instantaneous document liveness detection. In addition to their integration into our greater platform offerings, these capabilities can also be consumed as stand-alone integrations via application programming interfaces (“API”) or SDKs for on-premises deployments.

Digital Fraud Defender (DFD)

Digital Fraud Defender is designed to safeguard the identity verification process from modern fraud techniques like deepfakes, injection attacks, and generative AI-based template attacks, helping to future proof organizations from emerging threat vectors. Unlike other deepfake and injection attack detection technologies, Digital Fraud Defender is designed to examine evidence from the point of capture, in its transit state, and at the point of comparison. In addition, Mitek’s advanced approach tests for multiple types of attacks, whether used individually or in combination, to avoid relying on a single source or point of failure.

Sales and Marketing

Our revenue is comprised of transactional and SaaS-based recurring revenue, generated from the use of our fraud prevention, verification and digital identity solutions along with revenue generated from traditional software licensing and associated maintenance services. These solutions are delivered globally through a robust network of channel partners and direct sales, ensuring broad market reach across both cloud and on-premise deployments.

Our global marketing strategy is integrated directly with revenue goals and aimed to maximize market reach and lead generation. We utilize a unified brand and digital framework to support both direct and channel sales. This strategy is executed by a specialized internal marketing team, supported by a network of external marketing experts to ensure scalable, omnichannel delivery across all key geographies.

Intellectual Property

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Our success depends in a large part upon our proprietary technology. We attempt to protect our intellectual property rights primarily through a combination of patents, copyrights, trademarks, trade secrets, employee and third-party non-disclosure agreements, and other measures. We believe that factors such as the technological and creative skills of our personnel, new product development, frequent product enhancements, name recognition, and reliable product maintenance are essential to establishing and maintaining a technological leadership position. There can be no assurance that our means of protecting our proprietary rights in the U.S. or abroad will be adequate. We seek to protect our software, documentation, and other written materials under trade secret and copyright laws, which afford only limited protection. Further, there can be no assurance that our patents will offer any protection or that they will not be challenged, invalidated, or circumvented. If we are unable to protect our intellectual property, or we infringe on the intellectual property rights of a third-party, our operating results could be adversely affected.

As of September 30, 2025, the Company had 110 issued patents with expiration dates ranging from 2026 through 2045 and we have filed for 25 additional domestic and international patents. In addition, we generally enter into confidentiality agreements with certain employees.

Market Opportunities, Challenges & Risks

We believe that financial institutions, fintech platforms, and other companies see our patented solutions as a way to provide a superior digital customer experience to meet growing consumer demands for trust and convenience online and, at the same time, assist them in meeting regulatory requirements. The value of digital transformation to our customers is associated with a possible increase in top line revenue and a reduction in the cost of sales and service. In addition, increasing rates of fraud, combined with expanding global regulatory requirements for identity verification and transaction monitoring, are driving demand for advanced, compliant digital identity and fraud prevention solutions. Furthermore, as the use of new technologies like deepfakes and generative AI increase, so do associated fraud and cyber-attacks. The negative outcomes of fraud and cyber-attacks encompass financial losses, brand damage, and loss of loyal customers, which we predict will lead to growth in demand for identity verification and sophisticated fraud detection, prevention and management products.

Demand for our digital identity and fraud prevention solutions may be adversely affected by several factors, including increased competition from alternative products or emerging technologies, evolving customer preferences, slower adoption of digital transactions, or negative publicity related to security or trust in digital platforms. Rapid changes in technology or shifts in regulatory requirements could also render certain aspects of our solutions less relevant or obsolete. Because a substantial portion of our revenues is derived from a limited number of core solution areas, this product concentration exposes us to heightened risk. If market demand shifts, competitors introduce more advanced or cost-effective technologies, or customers transition to different approaches, our revenues and margins could be materially and adversely impacted. The sales cycle for our software and services can be lengthy and the implementation cycles for our software and services by our channel partners and customers can also be lengthy, often as long as six months and sometimes longer for larger customers. If implementation of our products by our channel partners and customers is delayed or otherwise not completed, our business, financial condition, and results of operations may be adversely affected.

During each of the last few years, sales of licenses to one or more channel partners have comprised a significant portion of our revenue each year. This is attributable to the timing of renewals or purchases of licenses and does not represent a dependence on any single channel partner. If we were to lose a channel partner relationship, we believe either we or another channel partner could sell our products to the end-users that had purchased products from the channel partner we lost. However, in that case, we or another channel partner must establish a relationship with the end-users, which could take time to develop.

We operate in a highly competitive and rapidly evolving industry for identity verification, authentication, and fraud prevention. Many of our competitors have greater financial, technical, and marketing resources, and new entrants continue to emerge. Our ability to remain competitive is highly dependent on our capacity to respond quickly and effectively to several external factors. These include frequent and varying regulatory requirements across jurisdictions, which necessitate continuous investment in compliance and agile product adaptation. The increasing use of AI by both enterprises and fraudsters is creating new forms of risk, including the rapid rise and complexity of synthetic identities, deepfakes, and other sophisticated attack vectors. The market is crowded with numerous providers, and the threat landscape continues to grow in scope and sophistication as fraudsters relentlessly adapt their methods. While we believe our patented mobile image capture technology, our product portfolio, and our market expertise provide meaningful advantages, our future success depends on sustained investment in innovation, regulatory alignment, and the ability to anticipate and mitigate increasingly advanced fraud threats. Failure to adapt effectively to these dynamics could adversely affect our competitiveness, revenues, and operating results.

Competition

The market for our products and solutions is highly competitive and continues to evolve rapidly. We face direct and indirect competition from a broad range of competitors who offer a variety of products and solutions to our current and potential customers. Competition among product providers in this market generally focuses on price, accuracy, reliability, global coverage, and technical support. Our principal competition comes from: (i) customer-developed solutions; (ii) companies offering alternative methods of fraud and identity solutions; (iii) companies offering competing technologies capable of mobile remote deposit capture or authenticating identity documents and facial photo comparison; and (iv) alternate forms of user authentication, including face and voice recognition.

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We may also face growing competition from adjacent vendors expanding through partnerships or acquisitions, as well as from new entrants and emerging technologies. As markets for automated document processing, image recognition, check imaging, and fraud detection evolve, larger companies with greater resources could enter or increase their focus either directly or by aligning with our competitors. In some cases, competitors may collaborate or form partnerships to strengthen their offerings and better serve our current and potential customers.

We believe our primary competitive advantages in this market are: (i) our mobile auto image capture user experience used by millions of consumers; (ii) in house expertise including proprietary algorithms and patented technologies developed by internal data science and engineering teams; (iii) scalability; and (iv) our vertically integrated proprietary technology stack that allows us to innovate rapidly, maintain control over and enforce rigorous quality and security standards, capture higher margins by eliminating vendor reliance, and adapt efficiently to changing customer and market needs.

Research and Development

We develop software products internally and also purchase or license rights to third-party intellectual property. We believe that our future success depends in part on our ability to maintain and improve our core technologies, enhance our existing products, and develop new products that meet an expanding range of customer requirements and build lasting technology differentiation.

Internal research and development allows us to maintain closer technical control over our products and gives us the ability to determine which modifications and enhancements are most important and when they should be implemented to ensure the proper functioning and improved performance of our products. It also allows the company to build new capabilities that can differentiate the product offering from the competition. We intend to expand our existing product offerings and introduce new mobile image capture, digital identity verification, and deepfake detection capabilities that meet a broader set of needs for our customers. We intend to continue to support the major industry standard operating environments.

Our research and development organization includes software engineers and scientists, many of whom have advanced degrees, as well as additional personnel in quality assurance and related disciplines. All our scientists and software engineers are involved in product development.

The development team includes specialists in AI, fraud, data analytics, computer vision, machine learning, data science, software engineering, user interface design, product documentation, product management, and quality assurance. The team is responsible for maintaining and enhancing the performance, quality, and utility of all of our products. In addition to research and development, our engineering staff provides customer technical support on an as-needed basis.

Variability and Quarterly Results

Occasionally, the timing of large one-time orders, such as those associated with large customer refresh cycles or significant volume rollouts, creates variability in our quarterly results.

Government Regulation

As a company with global operations, we are subject to the laws of the United States and multiple foreign jurisdictions in which we operate and the rules and regulations of various governing bodies, which may differ among jurisdictions. For additional information, see the risk factors herein in “Item 1A. Risk Factors” and the subheading “Risks Related to Regulation and Compliance.”

Human Capital Resources

As of September 30, 2025, we had 595 employees, 177 in the U.S. and 418 internationally, 561 of which are full time. We have never had a work stoppage and none of our employees in the United States are represented by a labor union. However, employees of certain foreign subsidiaries are represented by works councils. Substantially all of our employees, other than a certain number of our executive officers and employees with customary employment arrangements within Europe, are at will employees, which means that each employee can terminate his or her relationship with us and we can terminate our relationship with him or her at any time. We offer industry competitive wages and benefits and are committed to maintaining a workplace environment that promotes employee productivity and satisfaction.

Available Information

We are subject to the reporting requirements of the Exchange Act. Consequently, we are required to file reports and information with the SEC, including reports on the following forms: annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act. These reports and other information concerning us may be accessed, free of charge, through the SEC’s website at www.sec.gov and our website at www.miteksystems.com. These reports are placed on our website as soon as reasonably practicable after they are filed with the SEC. Information contained in, or that can be accessed through, our website is not incorporated by reference into, nor is it in any way a part of, this Form 10-K.