Mitek (MITK) Q4 2025 Earnings Call Transcript

Image source: The Motley Fool.

Thursday, December 11, 2025 astatine 5 p.m. ET

• Chief Executive Officer — Edward West

• Chief Financial Officer — David Lyle

Need a punctuation from a Motley Fool analyst? Email [email protected]

Edward West: Thank you, Ryan. Good afternoon, everyone, and convey you for joining america today. For those little acquainted with Mitek, we supply the individuality verification, authentication and fraud decisioning infrastructure that precocious assurance institutions trust connected to onboard customers, authenticate users and support what's existent crossed integer interactions. We closed fiscal '25 with a beardown 4th quarter, coming successful up of our expectations, driven by broad-based request crossed our portfolio of business. As we bespeak upon fiscal '25, 1 changeless stands out. The fraud scenery is changing astatine an bonzer gait arsenic generative AI is accelerating some the measurement and sophistication of fraud and identity-based attacks. AI is lowering the outgo of creating heavy fakes and synthetic identities for fraudsters.

The Deloitte Center for Financial Services estimates that AI-enabled fraud successful the United States could scope $40 cardinal by 2027, and caller manufacture probe shows that a bulk of fiscal institutions present presumption synthetic individuality fraud arsenic their astir urgent emerging threat. In caller conversations with respective of our largest banking partners, we person heard the aforesaid message. AI-enabled fraud attempts person risen sharply implicit the past twelvemonth and institutions are turning to Mitek with a wide mandate to assistance support their customers and their concern arsenic these attacks scale. Before returning to cardinal takeaways, I privation to item a little operational update.

To present connected our committedness to amended transparency and supply a simpler presumption for our investors that matches however customers bargain and however we are operating, we're updating our outer reporting opening this quarter. We are present disaggregating our revenues betwixt fraud and individuality and cheque verification. Customers are progressively asking america to code fraud holistically, not arsenic an isolated individuality oregon payments problems. This has led to tighter integration crossed our identity, biometrics, authentication and fraud capabilities. Those solutions are included successful the fraud and individuality portfolio. Check verification includes the practice mobile deposit and cheque quality solutions.

With synthetic fraud accelerating, fiscal institutions are wide astir what they need, less constituent solutions and a halfway spouse who tin assistance unafraid integer interactions crossed the full lawsuit journey. I would present similar to sermon a fewer cardinal takeaways for you arsenic we exit fiscal '25. First, fraud and individuality present accounts for implicit fractional of our full business. Growing much than 15% twelvemonth implicit year, it is present firmly established arsenic our maturation motor for gross and SaaS expansion. Second, SaaS gross maturation accelerated to 21% successful fiscal '25, a meaningful acceleration from mid-single digits successful fiscal '24, portion the premix of SaaS accrued to 43% of full revenue.