The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Logan Hennen - Northland Securities Inc - Analyst
: This is Logan on for Mike. First, so now with SaaS revenue up 23% year-over-year and being 41% of trailing 12-month revenue, how are you guys
thinking about return to double-digit growth in 2026? Is there any updates to call on your strategy?
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AUGUST 07, 2025 / 9:00PM, MITK.OQ - Q3 2025 Mitek Systems Inc Earnings Call
Question: Logan Hennen - Northland Securities Inc - Analyst
: Then, is there anything to call out? We saw that deposit software revenue was down 20% year-over-year. How are you guys viewing that going
forward? Is that expected to stabilize in the coming quarters?
Question: Logan Hennen - Northland Securities Inc - Analyst
: That was helpful. Then switching over to Check Fraud Defender. How is the pipeline looking for new partners? And anything big to call out kind
of in the near term?
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AUGUST 07, 2025 / 9:00PM, MITK.OQ - Q3 2025 Mitek Systems Inc Earnings Call
Question: Logan Hennen - Northland Securities Inc - Analyst
: That's great. And then one last one from us. What are you guys most excited about for the rest of fiscal year '25 and heading into 2026? Yes.
Question: Jake Roberge - William Blair & Co. - Analyst
: Could you talk a little bit more about what you're seeing on the demand front for Check Fraud Defender? Do you still feel confident in that product
hitting your $20 million ACV target? And now that you've gotten more customers on that solution, do you feel like the new logo opportunities are
-- or maybe better understanding the ROI of the solution that you can start getting these new deals across the finish line quicker?
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AUGUST 07, 2025 / 9:00PM, MITK.OQ - Q3 2025 Mitek Systems Inc Earnings Call
Question: Jake Roberge - William Blair & Co. - Analyst
: Okay. Very helpful. And then obviously, last year, you had the larger ID R&D deals that had pushed out a little bit. Can you give us an update on
how those deals are trending? And then just how the integration of that ID R&D team has been into the broader Fraud and ID verification suite?
Question: Jake Roberge - William Blair & Co. - Analyst
: Okay. That's helpful. And then if I could just sneak one more in. You all obviously brought in Garrett a couple of quarters ago. Can you just talk
about some of the low-hanging fruit that he's been able to identify within the organization to help improve some of the operational efficiencies
around the business?
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AUGUST 07, 2025 / 9:00PM, MITK.OQ - Q3 2025 Mitek Systems Inc Earnings Call
Question: George Sutton - Craig Hallum - Analyst
: First, I just want to make sure I have the numbers right. So on the Identity side, I believe you mentioned you -- last 12 months have had $75 million
of Identity revenues and $80 million of fully burdened costs. So that fulcrum you speak to is in front of us. Did I get those numbers correct?
Question: George Sutton - Craig Hallum - Analyst
: And just so I'm clear, in Identity, the goal is still to migrate customers to the platform away from the point solutions. Is that effort continuing,
accelerating?
Question: George Sutton - Craig Hallum - Analyst
: So Ed, separate from this conversation, you've begun to talk about taking the Check Fraud Defender concept and migrating it to the broader
payment market. Is this similar to what you're now starting to refer to as the Enterprise Fraud platform?
Question: George Sutton - Craig Hallum - Analyst
: Got you. Last question for me. You mentioned that you're seeing positive signals across a number of your KPIs. I'm wondering if you could just be
more specific what you're referring to there?
Question: Derek Greenberg - Maxim Group LLC - Analyst
: I was wondering, just looking at the balance sheet, with $175 million in cash and then generating $55 million, $56 million over the last 12 months.
I was wondering if you could maybe talk a little bit about how you plan to allocate cash and cash flow going forward? I know part of that will be
used towards paying off the debt in February, but thereafter, just wondering how you plan to use your resources.
Question: Derek Greenberg - Maxim Group LLC - Analyst
: Okay. Got it. And then my other question is just in prior quarters, you had outlined some of the margin improvement you received from automation
on costs. I think last quarter was around 230 basis points in the services gross margin. I was wondering if you had any statistics like that for this
quarter?
And going forward, if you still see potential incremental improvements from automation? Or if you think you've largely tapped that avenue as a
driver of margin expansion?
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