MITK · Technology(computer peripheral equipment, nec) · 10 years of annual accounts filed with the SEC · latest fiscal year ended 2025-09-30
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Mitek Systems Inc reported revenue of $179.7 million in fiscal 2025. Of the $215.4 million its operations generated over 10 years, 62.9% went to acquisitions and 21.0% to buybacks. On the accounting screens, it passes 5 of 8 Piotroski tests, its Altman Z'' of 1.78 is in the grey zone and its Beneish M-score is below the -1.78 line; none of the six cross-checks between its statements fires.
Revenue, fiscal 2025179.7M
Operating margin9.3%gross margin —
Return on invested capital5.2%5.5% on average over 2 years
Free cash flow after stock pay37.4M20.8% of revenue
Net debt ÷ EBITDANet cash149.8M more cash than debt
Piotroski F-score5/8tests of improvement passed
Is it growing?
Revenue and the operating income it turns into. Growth that does not reach operating income is growth bought with margin.
RevenueOperating income
-50.0M050.0M100.0M150.0M200.0M
2018
2019Revenue 84.6MOperating income -4.6M
2020Revenue 101.3MOperating income 8.9M
2021Revenue 119.8MOperating income 13.3M
2022
2022
2022Revenue 144.8MOperating income 12.2M
2023Revenue 172.6MOperating income 15.6M
2024Revenue 172.1MOperating income 2.2M
2025Revenue 179.7MOperating income 16.8M
2018201920202021202220222022202320242025
Compound growth a year
3 yrs
5 yrs
9 yrs
Revenue
+7.5%
—
—
Operating income
+11.2%
—
—
Net income
+33.5%
—
—
Earnings per share
+32.4%
—
—
Free cash flow per share
+38.3%
—
—
Shares
+0.8%
+1.1%
—
Falling shares are buybacks: each remaining share owns more of the company.
Does it earn more than its capital costs?
Margins say how much of each sale is kept; return on invested capital says how much the business earns on the money it needs to operate. Growth only creates value when that return is above the cost of the capital.
GrossOperatingNetFree cash flow
-10.0%0.0%10.0%20.0%30.0%40.0%
2018
2019Operating -5.4%Net -0.9%Free cash flow 15.6%
2020Operating 8.8%Net 7.7%Free cash flow 23.0%
2021Operating 11.1%Net 6.7%Free cash flow 30.0%
2022
2022
2022Operating 8.4%Net 2.6%Free cash flow 13.8%
2023Operating 9.0%Net 4.7%Free cash flow 17.7%
2024Operating 1.3%Net 1.9%Free cash flow 17.6%
2025Operating 9.3%Net 4.9%Free cash flow 30.2%
2018201920202021202220222022202320242025
Return on invested capital
Return on invested capital
0.0%2.0%4.0%6.0%
2018
2019
2020
2021
2022
2022
2022
2023
2024Return on invested capital 5.8%
2025Return on invested capital 5.2%
2018201920202021202220222022202320242025
Economic profit
Needs a cost of capital, which comes from the valuation below.
Return on equity
3.7%
Return on assets
1.9%
Asset turnover
0.39×
Research & development
19.6% of revenue
Overheads (SG&A)
24.7% of revenue
Is the profit cash, and where does the cash go?
Net income is an accounting opinion; free cash flow is what was left in the bank after investing. Stock-based pay does not leave the bank — shareholders pay it through dilution — so it is shown taken off as well.
Net incomeFree cash flowAfter stock-based pay
-20.0M020.0M40.0M60.0M
2018
2019Net income -724,000Free cash flow 13.2MAfter stock-based pay 3.5M
2020Net income 7.8MFree cash flow 23.3MAfter stock-based pay 13.8M
2021Net income 8.0MFree cash flow 36.0MAfter stock-based pay 24.4M
2022
2022
2022Net income 3.7MFree cash flow 20.0MAfter stock-based pay 6.6M
2023Net income 8.0MFree cash flow 30.6MAfter stock-based pay 20.1M
2024Net income 3.3MFree cash flow 30.2MAfter stock-based pay 17.6M
2025Net income 8.8MFree cash flow 54.2MAfter stock-based pay 37.4M
2018201920202021202220222022202320242025
Where 10 years of operating cash went, 2018–2025
215.4M generated by the business. Each band is its share of that total.
Reinvested in the business 4%8.0M
Acquisitions 63%135.5M
Dividends 0%0
Share buybacks 21%45.3M
Kept, or used to pay down debt 12%26.7M
Over the same years it paid 84.0M in stock. The buybacks did not even cover what was handed out in stock.
Per share
Earnings per shareFree cash flow per shareDividend per share
$-0.50$0.00$0.50$1.00$1.50
2018
2019Earnings per share $-0.02Free cash flow per share $0.34
2020Earnings per share $0.18Free cash flow per share $0.55
2021Earnings per share $0.18Free cash flow per share $0.80
2022
2022
2022Earnings per share $0.08Free cash flow per share $0.44
2023Earnings per share $0.17Free cash flow per share $0.66
2024Earnings per share $0.07Free cash flow per share $0.64
2025Earnings per share $0.19Free cash flow per share $1.15
2018201920202021202220222022202320242025
Shares outstanding
Diluted shares
37.5M40.0M42.5M45.0M47.5M
2018
2019Diluted shares 39.3M
2020Diluted shares 42.5M
2021Diluted shares 45.1M
2022Diluted shares 44.3M
2022Diluted shares 44.4M
2022Diluted shares 45.8M
2023Diluted shares 46.5M
2024Diluted shares 47.5M
2025Diluted shares 46.9M
2018201920202021202220222022202320242025
How strong is the balance sheet?
Debt is not bad in itself; debt the business cannot service in a bad year is. Net debt is debt minus cash, and below zero the company holds more cash than it owes.
Net debt
-150.0M-100.0M-50.0M0
2018
2019
2020
2021
2022
2022
2022
2023
2024Net debt -90.8M
2025Net debt -149.8M
2018201920202021202220222022202320242025
Net debt ÷ EBITDA
-8.3×
Interest coverage
2× operating income ÷ interest
Current ratio
1.19 current assets ÷ current liabilities
Cash conversion cycle
— collects in 75d
Three classic screens of the accounts
Each asks a different question of the same statements — is it improving, does it look like a company heading for distress, do the accounts resemble ones that were manipulated. None is a verdict; each shows what moves it.
Piotroski F-score
Is the business improving? Nine yes-or-no tests, this year against last.
5of 8 tests passed
✓ProfitableReturn on assets above zeropassed
✓Cash from operationsOperating cash flow above zeropassed
✓Profitability improvedReturn on assets higher than a year beforepassed
✓Profit backed by cashOperating cash flow above net income (low accruals)passed
✕Less long-term debtLong-term debt as a share of assets fellfailed
✕More liquidCurrent ratio higher than a year beforefailed
✓No new sharesShare count did not growpassed
–Better gross marginGross margin higher than a year before — not reportedno data
✕Sells more per assetAsset turnover higher than a year beforefailed
Where it misleads: it measures change, not level. An excellent business that stood still for a year scores low; a poor one recovering from a disaster scores high.
Altman Z''-score
Does the balance sheet look like those of companies that went bankrupt?
1.78grey zone
1.12.6
Working capital ÷ assets 0.09 × 6.56+0.56
Retained earnings ÷ assets -0.06 × 3.26-0.19
Operating income ÷ assets 0.04 × 6.72+0.25
Equity ÷ liabilities 1.10 × 1.05+1.15
Where it misleads: buybacks. A company that returns so much cash that its equity turns small or negative sinks the last two ratios without being anywhere near bankruptcy. Banks and insurers do not fit the model at all.
Beneish M-score
Do the accounts resemble those of companies that manipulated their earnings?
-3.90below the -1.78 line
-1.78
Receivables vs sales 1.11+1.02
Gross margin slipping 1.00 (not reported, set to 1)+0.53
Soft assets 0.83+0.34
Sales growth 1.04+0.93
Slower depreciation 1.15+0.13
Overheads vs sales 0.80-0.14
Profit not in cash -0.10-0.47
Leverage rising 4.29-1.40
Where it misleads: fast growth and acquisitions. Sales growth carries a heavy weight, so a company growing 50% a year scores like a suspect without having done anything. It is a screen from a 1999 study, not an accusation.
Where the statements disagree
Cross-checks between the income statement, the balance sheet and the cash flow for the latest year, each with the benign reading and the worrying one.
None of the six cross-checks fires for the latest year: receivables and inventory move with revenue, profit turns into cash, investment keeps up with depreciation, the tax rate is ordinary and debt is moderate.
What is it worth, under which assumptions?
A company is worth the cash it will generate, brought back to today. This model projects revenue with growth that fades over the years, applies a free cash flow margin, and discounts the result at the cost of capital. Every assumption says where it came from, and all of them can be changed.
With a free cash flow margin at or below zero in year ten, the business never generates cash for its owners and a DCF says nothing useful. Set a positive margin for year ten to see what it would take.
What it has filed lately
The last twelve months at the SEC, most important first: annual and quarterly reports, events, large holders and insiders.
Every Form 4 filed in the last twelve months, read line by line: 6 filings by 5 people. Open-market purchases and sales are counted apart from awards, option exercises and shares withheld for taxes.
Bought on the open market—none in the period
Sold on the open market$2.4M2 sale(s) by 1 insider(s)
Under pre-arranged plans0%of the sales followed a 10b5-1 plan set months earlier
A Form 4 says what happened, when, how many shares and at what price. It does not say why: a sale can be diversification, a tax bill or a plan fixed months earlier, and an award is pay, not a purchase. Nothing here is a reason to buy or sell anything.
Companies like this one
Same SEC industry (computer peripheral equipment, nec) first, then the rest of technology.
Accounts from the company's own SEC filings; lines some companies do not report are shown as a dash rather than estimated. The risk-free rate is the 10-year US Treasury yield. A DCF is a way of making assumptions explicit, not a forecast: it states what the company would be worth if the assumptions held. The scores are screens that point where to look, not verdicts. Nothing here is a recommendation to buy or sell.
