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REVENUE RECOGNITION - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
REVENUE RECOGNITION - Narrative (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue recognized included in contract liability balance at the beginning of the period	$ 2,600,000	$ 1,800,000	$ 16,300,000	$ 11,700,000
Unbilled receivables	300,000		300,000		$ 900,000
Allowance for credit losses	2,500,000		2,500,000		1,500,000
Amortization of costs capitalized to obtain revenue contracts			1,247,000	1,091,000
Impairment losses recognized on contract costs			0	0
Selling and marketing
Disaggregation of Revenue [Line Items]
Amortization of costs capitalized to obtain revenue contracts	400,000	$ 400,000	1,200,000	$ 1,100,000
Other Current and Non-current Assets
Disaggregation of Revenue [Line Items]
Contract costs	$ 2,300,000		$ 2,300,000		$ 2,600,000
Minimum
Disaggregation of Revenue [Line Items]
Estimated useful lives of intangible assets (in years)	3 years		3 years
Minimum \| Software
Disaggregation of Revenue [Line Items]
Estimated useful lives of intangible assets (in years)	1 year		1 year
Maximum
Disaggregation of Revenue [Line Items]
Estimated useful lives of intangible assets (in years)	7 years		7 years
Maximum \| Software
Disaggregation of Revenue [Line Items]
Estimated useful lives of intangible assets (in years)	3 years		3 years

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income (loss)	$ 216	$ (428)	$ (5,295)	$ 9,471

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

STOCKHOLDERS’ EQUITY - Stock-based Compensation Expense Related to Stock Options and RSUs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	$ 3,585	$ 2,644	$ 10,901	$ 7,790
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	194	124	447	316
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	818	885	2,579	2,423
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	1,344	644	3,751	2,097
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	$ 1,229	$ 991	$ 4,124	$ 2,954

REVENUE RECOGNITION

9 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

2. REVENUE RECOGNITION

Nature of Goods and Services

The following is a description of principal activities from which the Company generates its revenue. Contracts with customers are evaluated on a contract-by-contract basis as contracts may include multiple types of goods and services as described below.

Software and Hardware

Software and hardware revenue is generated from on premise software license sales, as well as sales of hardware scanner boxes and on premise appliance products. Software is typically sold as a time-based license with a term of one to three years. For software license agreements that are distinct, the Company recognizes software license revenue upon delivery and after evidence of a contract exists. Hardware revenue is recognized at a point in time upon shipment and after evidence of a contract exists.

Services and Other

Services and other revenue is generated from the sale of SaaS products and services, maintenance associated with the sale of on premise software licenses, and consulting and professional services. The Company’s SaaS offerings give customers the option to be charged upon their incurred usage in arrears (“Pay as You Go”), or commit to a minimum spend over their contracted period, with the ability to purchase unlimited additional transactions above the minimum during the contract term. Revenue related to Pay as You Go contracts are recognized based on the customer’s actual usage, in the period of usage. For contracts which include a minimum commitment, the Company is standing ready to provide as many transactions as desired by the customer throughout the contract term, and revenue is recognized on a ratable basis over the contract period including an estimate of usage above the minimum commitment. Usage above minimum commitment is estimated by looking at historical usage, expected volume, and other factors to project usage for the remainder of the contract term. The estimated usage-based revenues are constrained to the amount the Company expects to be entitled to receive in exchange for providing access to its platform. If professional services are deemed to be distinct, revenue is recognized as services are performed. The Company does not view the signing of the contract or the provision of initial setup services as discrete earnings events that are distinct.

Significant Judgments in Application of the Guidance

The Company uses the following methods, inputs, and assumptions in determining amounts of revenue to recognize:

Identification of Performance Obligations

For contracts that contain multiple performance obligations, which include combinations of software licenses, maintenance, and services, the Company accounts for individual goods or services as a separate performance obligation if they are distinct. The good or service is distinct if the good or service is separately identifiable from other items in the arrangement and if a customer can benefit from it on its own or with other resources that are readily available to the customer. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation.

Determination of Transaction Price

The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring products or services to the customer. The Company includes any fixed charges within its contracts as part of the total transaction price. To the extent that variable consideration is not constrained, the Company includes an estimate of the variable amount, as appropriate, within the total transaction price and updates its assumptions over the duration of the contract. As a practical expedient, the Company does not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less.

Assessment of Estimates of Variable Consideration

Certain of the Company’s contracts with customers contain some component of variable consideration; however, variable consideration will only be included in the transaction price to the extent it is probable that a significant reversal of revenues recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company may constrain the estimated transaction price in the event of a high degree of uncertainty as to the final consideration amount owed because of an extended length of time over which the fees may be adjusted or due to uncertainty surrounding collectability. The Company estimates variable consideration in its contracts primarily using the expected value method as the Company believes this method represents the most appropriate estimate for this consideration, based on historical usage trends, the individual contract considerations, and its best judgment at the time.

Allocation of Transaction Price

The transaction price, including any discounts, is allocated between separate goods and services in a contract that contains multiple performance obligations based on their relative standalone selling prices. The standalone selling prices are based on the prices at which the Company separately sells each good or service. For items that are not sold separately, the Company estimates the standalone selling prices using available information such as market conditions and internally approved pricing guidelines. In certain situations, primarily transactional SaaS revenue described above, the Company allocates variable consideration to a series of distinct goods or services within a contract. The Company allocates variable payments to one or more, but not all, of the distinct goods or services or to a series of distinct goods or services in a contract when (i) the variable payment relates specifically to the Company’s efforts to transfer the distinct good or service and (ii) the variable payment is for an amount that depicts the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised goods or services to its customer.

Disaggregation of Revenue

The following table presents the Company's revenue disaggregated by major product category (amounts in thousands):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2024		2023		2024		2023
Major product category
Deposits software and hardware	$	21,793	$	18,300	$	58,335	$	64,979
Deposits services and other	7,493		6,504		21,539		18,866
Deposits revenue	29,286		24,804		79,874		83,845
Identity verification software and hardware	869		3,147		5,196		8,104
Identity verification services and other	14,821		15,119		43,791		42,947
Identity verification revenue	15,690		18,266		48,987		51,051
Total revenue	$	44,976	$	43,070	$	128,861	$	134,896

Contract Balances

The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers (amounts in thousands):


	June 30, 2024		September 30, 2023		June 30, 2023		September 30, 2022
Accounts receivable, net	$	41,609	$	32,132	$	45,376	$	35,922
Contract assets, current	16,805		18,355		8,184		7,037
Contract assets, non-current	1,793		5,579		7,050		4,218
Contract liabilities (deferred revenue), current	23,746		17,360		20,448		21,350
Contract liabilities (deferred revenue), non-current	1,257		957		2,056		1,775

Contract assets, reported within a separate line in current assets and the other non-current assets line in the condensed consolidated balance sheets, primarily result from when the right to consideration is conditional upon factors other than the passage of time. Contract liabilities primarily relate to advance consideration received from customers (deferred revenue), for which transfer of control occurs, and therefore revenue is recognized as services are provided. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. The Company recognized $2.6 million and $1.8 million of revenue during the three months ended June 30, 2024, and 2023, respectively, and $16.3 million and $11.7 million of revenue during the nine months ended June 30, 2024 and 2023, respectively, which was included in the contract liability balance at the beginning of each such period. Unbilled receivables are included within accounts receivable, net on the condensed consolidated balance sheets and were $0.3 million and $0.9 million as of June 30, 2024 and September 30, 2023, respectively. The Company maintained an allowance for credit losses of $2.5 million and $1.5 million as of June 30, 2024 and September 30, 2023, respectively.

Contract assets, current and contract liabilities (deferred revenue), current, as of June 30, 2023 and September 30, 2022 have been revised, as previously disclosed in Note 15 in the Annual Report on Form 10-K for the year ended September 30, 2023, filed with the SEC on March 19, 2024. These immaterial revisions are made for consistency.

Contract Costs

Contract costs included in other current and non-current assets on the condensed consolidated balance sheets totaled $2.3 million and $2.6 million as of June 30, 2024 and September 30, 2023, respectively. Contract origination costs consist primarily of: (1) sales commissions and incentive payments made to the Company’s direct and indirect sales personnel, and (2) the associated payroll taxes and fringe benefit costs associated with the payments to the Company’s employees. Contract origination costs are amortized

based on the transfer of goods or services to which the asset relates, including consideration of the expected customer benefit period. Contract fulfillment costs related to goods or services transferred under a specific anticipated contract have historically been immaterial. These costs are included in selling and marketing expenses in the condensed consolidated statement of operations and comprehensive income (loss) and totaled $0.4 million during each of the three months ended June 30, 2024 and 2023, and $1.2 million and $1.1 million during the nine months ended June 30, 2024 and 2023, respectively. There were no impairment losses recognized during both the nine months ended June 30, 2024 and 2023 related to capitalized contract costs.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

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+ Details

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Calculation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accounting Policies [Abstract]
Net income (loss)	$ 216	$ (428)	$ (5,295)	$ 9,471
Weighted-average shares outstanding - basic (in shares)	47,017	46,002	46,764	45,625
Common stock equivalents (in shares)	1,290	471	1,028	585
Weighted-average shares outstanding - diluted (in shares)	48,307	46,473	47,792	46,210
Net income (loss) per share:
Basic (in dollars per share)	$ 0.00	$ (0.01)	$ (0.11)	$ 0.21
Diluted (in dollars per share)	$ 0.00	$ (0.01)	$ (0.11)	$ 0.20

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

STOCKHOLDERS’ EQUITY - RSU Activity (Details) - RSUs	9 Months Ended
STOCKHOLDERS’ EQUITY - RSU Activity (Details) - RSUs	Jun. 30, 2024 $ / shares shares
Number of Shares
Outstanding at beginning of period (in shares) \| shares	2,188,296
Granted (in shares) \| shares	1,278,764
Settled (in shares) \| shares	(670,167)
Canceled (in shares) \| shares	(411,547)
Outstanding at end of period (in shares) \| shares	2,385,346
Weighted-Average Fair Market Value Per Share
Outstanding at beginning of period (in dollars per share) \| $ / shares	$ 11.49
Granted (in dollars per share) \| $ / shares	11.36
Settled (in dollars per share) \| $ / shares	11.13
Canceled (in dollars per share) \| $ / shares	12.16
Outstanding at end of period (in dollars per share) \| $ / shares	$ 11.38

INVESTMENTS (Tables)

9 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Investments by Type of Security

The following tables summarize investments by type of security as of June 30, 2024 and September 30, 2023 (amounts in thousands):


June 30, 2024:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	3,814	$	—	$	(24)	$	3,790
U.S. Government and agency securities, short-term	6,722		—		(4)		6,718
Commercial paper, short-term	15,723		—		(12)		15,711
Corporate debt securities, short-term	12,538		—		(39)		12,499
U.S. Treasury, long-term	—		—		—		—
Foreign government and agency securities, long-term	—		—		—		—
Corporate debt securities, long-term	10,183		—		(26)		10,157
Total	$	48,980	$	—	$	(105)	$	48,875


September 30, 2023:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	40,329	$	1	$	(76)	$	40,254


Corporate debt securities, short-term	34,545		—		(99)		34,446
U.S. Treasury, long-term	1,371		—		(67)		1,304


Total	$	76,245	$	1	$	(242)	$	76,004

Schedule of Fair Value of Investments Measured on Recurring Basis

The following tables represent the fair value hierarchy of the Company’s investments and acquisition-related contingent consideration as of June 30, 2024 and September 30, 2023, respectively (amounts in thousands):


June 30, 2024:	Balance		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Short-term investments:
U.S. Treasury	$	3,790	$	3,790	$	—	$	—
Commercial paper	15,711		—		15,711		—
U.S. Government and agency securities, short-term	6,718		—		6,718		—
Corporate debt securities	12,499		—		12,499		—
Total short-term investments at fair value	38,718		3,790		34,928		—
Long-term investments:



Corporate debt securities	10,157		—		10,157		—
Total long-term investments at fair value	10,157		—		10,157		—



Total assets at fair value	$	48,875	$	3,790	$	45,085	$	—


September 30, 2023:	Balance		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Short-term investments:
U.S. Treasury	$	40,254	$	40,254	$	—	$	—


Corporate debt securities	34,446		—		34,446		—
Total short-term investments at fair value	74,700		40,254		34,446		—
Long-term investments:
U.S. Treasury	1,304		1,304		—		—


Total long-term investments at fair value	1,304		1,304		—		—



Total assets at fair value	$	76,004	$	41,558	$	34,446	$	—
Liabilities:

Acquisition-related contingent consideration	$	7,976	$	—	$	7,976



Total liabilities at fair value	$	7,976	$	—	$	7,976	$	—

Schedule of Acquisition-related Contingent Consideration Measured at Fair Value

The following table includes a roll-forward of the contingent consideration liability during the nine months ended June 30, 2024 (amounts in thousands):


Balance at September 30, 2023	$	7,976

Expenses recorded due to changes in fair value	136
Cash payment of contingent consideration associated with the ID R&D acquisition	(4,641)
Issuance of common stock as contingent consideration associated with the ID R&D acquisition	(3,471)

Balance at June 30, 2024	$	—

GOODWILL AND INTANGIBLE ASSETS (Tables)

9 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table summarizes changes in the balance of goodwill during the nine months ended June 30, 2024 (amounts shown in thousands):


Balance at September 30, 2023	$	123,548
Foreign currency effect on goodwill	2,723
Balance at June 30, 2024	$	126,271

Schedule of Intangible Assets

Intangible assets as of June 30, 2024 and September 30, 2023, respectively, are summarized as follows (amounts in thousands, except for years):


June 30, 2024:	Weighted Average Amortization Period (in years)	Cost		Accumulated Amortization		Net
Completed technologies	6.9	$	95,761	$	46,684	$	49,077
Customer relationships	4.7	25,168		22,553		2,615
Trade names	5.0	7,088		3,757		3,331
Covenants not to compete	3.0	600		460		140
Total intangible assets		$	128,617	$	73,454	$	55,163


September 30, 2023:	Weighted Average Amortization Period (in years)	Cost		Accumulated Amortization		Net
Completed technologies	6.9	$	95,761	$	39,254	$	56,507
Customer relationships	4.7	25,168		21,396		3,772
Trade names	5.0	7,088		2,967		4,121
Covenants not to compete	3.0	600		326		274
Total intangible assets		$	128,617	$	63,943	$	64,674

Schedule of Estimated Future Amortization Expense

The estimated future amortization expense related to intangible assets for each of the five succeeding fiscal years is expected to be as follows (amounts in thousands):


	Estimated Future Amortization Expense
2024	3,623
2025	13,789
2026	12,575
2027	11,423
2028	9,712
Thereafter	4,041
Total	$	55,163

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

INVESTMENTS - Investments by Type of Security (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Sep. 30, 2023
Debt Securities, Available-for-sale [Line Items]
Cost	$ 48,980	$ 76,245
Gross Unrealized Gains	0	1
Gross Unrealized Losses	(105)	(242)
Fair Market Value	48,875	76,004
Short-Term \| U.S. Treasury
Debt Securities, Available-for-sale [Line Items]
Cost	3,814	40,329
Gross Unrealized Gains	0	1
Gross Unrealized Losses	(24)	(76)
Fair Market Value	3,790	40,254
Short-Term \| U.S. Government and agency securities, short-term
Debt Securities, Available-for-sale [Line Items]
Cost	6,722
Gross Unrealized Gains	0
Gross Unrealized Losses	(4)
Fair Market Value	6,718
Short-Term \| Commercial paper, short-term
Debt Securities, Available-for-sale [Line Items]
Cost	15,723
Gross Unrealized Gains	0
Gross Unrealized Losses	(12)
Fair Market Value	15,711
Short-Term \| Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Cost	12,538	34,545
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(39)	(99)
Fair Market Value	12,499	34,446
Long-Term \| U.S. Treasury
Debt Securities, Available-for-sale [Line Items]
Cost	0	1,371
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(67)
Fair Market Value	0	$ 1,304
Long-Term \| Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Cost	10,183
Gross Unrealized Gains	0
Gross Unrealized Losses	(26)
Fair Market Value	10,157
Long-Term \| Foreign government and agency securities
Debt Securities, Available-for-sale [Line Items]
Cost	0
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Market Value	$ 0

GOODWILL AND INTANGIBLE ASSETS - Changes in Goodwill (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2024 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 123,548
Foreign currency effect on goodwill	2,723
Ending balance	$ 126,271

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Mitek Systems, Inc. (“Mitek,” the “Company,” “we,” “us,” and “our”) is a provider of mobile image capture and digital identity verification solutions. We are a software development company with expertise in artificial intelligence and machine learning. We currently serve more than 7,900 financial services organizations and financial technology (“fintech”) brands around the globe. Mitek markets and sells its products and services worldwide through internal, direct sales teams located in the United States (“U.S.”), Europe, and Latin America as well as through channel partners. Our partner sales strategy includes channel partners who are financial services technology providers and identity verification providers. These partners integrate our products into their solutions to meet the needs of their customers, typically provisioning Mitek services through their respective platforms.

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements of the Company as of and for the three and nine months ended June 30, 2024 have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and, accordingly, they do not include all information and footnote disclosures required by accounting principles generally accepted in the U.S. (“GAAP”). The Company believes the footnotes and other disclosures made in the financial statements are adequate for a fair presentation of the results of the interim periods presented. The financial statements include all adjustments (solely of a normal recurring nature) which are, in the opinion of management, necessary to make the information presented not misleading. These financial statements and the accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 19, 2024.

Certain amounts within the prior period’s condensed consolidated statement of cash flows have been reclassified and revised to conform to the current period presentation. Within “Changes in assets and liabilities, net of acquisitions,” “Income taxes payable,” which had previously been combined with “Other liabilities,” was reclassified as a separate line item. Non-cash expense associated with amortization of costs capitalized to obtain revenue contracts and bad debt expense were revised to be presented separately as adjustments to reconcile net income to net cash provided by operating activities. The reclassification and revision, which is considered to be immaterial to the previously issued condensed consolidated financial statements for the corresponding prior period in fiscal 2023, had no impact on net cash provided by operating activities, and did not change other amounts reported within the condensed consolidated balance sheet, statement of operations and comprehensive income (loss), or statement of stockholders’ equity.

Results for the three and nine months ended June 30, 2024, are not necessarily indicative of results for any other interim period or for a full fiscal year.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets, liabilities, revenue, expenses, deferred taxes, and related disclosure of contingent assets and liabilities. On an ongoing basis, management reviews its estimates based upon currently available information. Actual results could differ materially from those estimates. These estimates include, but are not limited to, assessing the collectability of accounts receivable, estimation of the value of stock-based compensation awards, fair value of assets and liabilities acquired, impairment of goodwill, useful lives of intangible assets, fair value of debt derivatives, standalone selling price related to revenue recognition, usage above minimum commitment for software as a service (“SaaS”) products and services, estimated variable consideration in contracts, contingent consideration, and income taxes.

Net Income (Loss) Per Share

For the three and nine months ended June 30, 2024 and 2023, the following potentially dilutive common shares were excluded from the calculation of net income (loss) per share, as they would have been antidilutive (amounts in thousands):


	Three Months Ended June 30,		Nine Months Ended June 30,
	2024	2023	2024	2023
Stock options	298	443	523	453
RSUs	1,731	1,256	2,315	1,138
ESPP common stock equivalents	43	295	32	89
Performance options	645	783	800	772
Performance RSUs	1,049	728	468	228
Convertible senior notes	7,448	7,448	7,448	7,448
Warrants	7,448	7,448	7,448	7,448
Total potentially dilutive common shares outstanding	18,662	18,401	19,034	17,576

The calculation of basic and diluted net income (loss) per share is as follows (amounts in thousands, except per share data):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2024		2023		2024		2023
Net income (loss)	$	216	$	(428)	$	(5,295)	$	9,471
Weighted-average shares outstanding—basic	47,017		46,002		46,764		45,625
Common stock equivalents	1,290		471		1,028		585
Weighted-average shares outstanding—diluted	48,307		46,473		47,792		46,210
Net income (loss) per share:
Basic	$	0.00	$	(0.01)	$	(0.11)	$	0.21
Diluted	$	0.00	$	(0.01)	$	(0.11)	$	0.20

Recently Adopted Accounting Pronouncements

The Company did not adopt any new accounting pronouncements in the nine months ended June 30, 2024.

Change in Significant Accounting Policy

The Company’s significant accounting policies are disclosed in the Company’s audited condensed consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2023, filed with the SEC on March 19, 2024. There have been no changes to these accounting policies through June 30, 2024.

Recently Issued Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, amending existing income tax disclosure guidance, primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation. The ASU is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retroactive basis. The Company is currently evaluating the ASU to determine its impact on its income tax disclosures.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and also issued subsequent amendments to the initial guidance (collectively, Topic 848). Topic 848 provides optional guidance for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. The Company will adopt Topic 848 when the relevant contracts are modified upon transition to alternative reference rates. The Company does not expect the adoption of Topic 848 will have a material impact on the condensed consolidated financial statements.

No other new accounting pronouncement issued or effective during the nine months ended June 30, 2024 had, or is expected to have, a material impact on the Company’s condensed consolidated financial statements.

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)	Jun. 30, 2024 institution
Accounting Policies [Abstract]
Number of financial services organizations, leading marketplace and financial technology brands (more than)	7,900

STOCKHOLDERS’ EQUITY - Narrative (Details) - USD ($)		3 Months Ended		9 Months Ended
STOCKHOLDERS’ EQUITY - Narrative (Details) - USD ($)	Nov. 06, 2018	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	May 13, 2024	Oct. 02, 2023	Sep. 30, 2023	Jan. 31, 2020	Mar. 07, 2018	Mar. 10, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to outstanding stock options and RSUs		$ 25,400,000		$ 25,400,000
Weighted average period for unrecognized compensation expense expected to be recognized (in years)				2 years 4 months 24 days
Purchase of common stock (in shares)		482,835		482,835				651,269
Recognized compensation expense		$ 3,585,000	$ 2,644,000	$ 10,901,000	$ 7,790,000
Options granted (in shares)				0	0
Amount authorized and approved under share repurchase program						$ 50,000,000.0
Amount of shares repurchased		$ 10,000,000.0		$ 10,000,000.0
Number of shares repurchased (in shares)		819,623		819,623
Average price of shares repurchased (in dollars per share)		$ 12.25		$ 12.25
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized compensation expense		$ 0	0	$ 0	$ 0
Unrecognized compensation expense related to options outstanding		$ 0		$ 0
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period for unrecognized compensation expense expected to be recognized (in years)				2 years 6 months
Awards outstanding (in shares)		2,385,346		2,385,346				2,188,296
Recognized compensation expense		$ 1,900,000	1,900,000	$ 6,800,000	5,400,000
Unrecognized compensation expense related to nonvested awards		$ 19,600,000		$ 19,600,000
Performance RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period for unrecognized compensation expense expected to be recognized (in years)				1 year 9 months 18 days
Awards outstanding (in shares)		879,598		879,598				730,393
Recognized compensation expense		$ 600,000	600,000	$ 2,900,000	2,000,000.0
Unrecognized compensation expense related to nonvested awards		5,800,000		5,800,000
Performance options \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock reserved for future grants (in shares)	800,000
Recognized compensation expense		$ 1,000,000.0	$ 0	$ 1,000,000.0	0
Exercise price per share (in dollars per share)	$ 9.50
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)							5,108,000		4,500,000
Number of common stock reserved for future grants (in shares)		4,435,200		4,435,200
2020 Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards outstanding (in shares)		2,218,360		2,218,360
2020 Plan \| Performance RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards outstanding (in shares)		879,598		879,598
Prior Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)									107,903
Purchase of common stock (in shares)		265,656		265,656
Prior Plans \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards outstanding (in shares)		0		0
ESPP common stock equivalents
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)										1,000,000
Number of common stock reserved for future grants (in shares)		270,876		270,876
Issuance of common stock under employee stock purchase plan (in shares)				729,124
Discount rate from market price, offering date				15.00%
Recognized compensation expense				$ 200,000	$ 200,000
Director Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)											1,500,000
Number of common stock reserved for future grants (in shares)		0		0
Director Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase of common stock (in shares)		166,986		166,986

INVESTMENTS - Fair Value of Investments Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Sep. 30, 2023
Assets:
Short-term investments:	$ 38,718	$ 74,700
Long-term investments:	10,157	1,304
Total assets at fair value	48,875	76,004
Liabilities:
Acquisition-related contingent consideration	0	7,976
Total liabilities at fair value		7,976
U.S. Treasury
Assets:
Short-term investments:	3,790	40,254
Long-term investments:		1,304
Commercial paper
Assets:
Short-term investments:	15,711
U.S. Government and agency securities, short-term
Assets:
Short-term investments:	6,718
Corporate debt securities
Assets:
Short-term investments:	12,499	34,446
Long-term investments:	10,157
Quoted Prices in Active Markets (Level 1)
Assets:
Short-term investments:	3,790	40,254
Long-term investments:	0	1,304
Total assets at fair value	3,790	41,558
Liabilities:
Acquisition-related contingent consideration		0
Total liabilities at fair value		0
Quoted Prices in Active Markets (Level 1) \| U.S. Treasury
Assets:
Short-term investments:	3,790	40,254
Long-term investments:		1,304
Quoted Prices in Active Markets (Level 1) \| Commercial paper
Assets:
Short-term investments:	0
Quoted Prices in Active Markets (Level 1) \| U.S. Government and agency securities, short-term
Assets:
Short-term investments:	0
Quoted Prices in Active Markets (Level 1) \| Corporate debt securities
Assets:
Short-term investments:	0	0
Long-term investments:	0
Significant Other Observable Inputs (Level 2)
Assets:
Short-term investments:	34,928	34,446
Long-term investments:	10,157	0
Total assets at fair value	45,085	34,446
Liabilities:
Acquisition-related contingent consideration		7,976
Total liabilities at fair value		7,976
Significant Other Observable Inputs (Level 2) \| U.S. Treasury
Assets:
Short-term investments:	0	0
Long-term investments:		0
Significant Other Observable Inputs (Level 2) \| Commercial paper
Assets:
Short-term investments:	15,711
Significant Other Observable Inputs (Level 2) \| U.S. Government and agency securities, short-term
Assets:
Short-term investments:	6,718
Significant Other Observable Inputs (Level 2) \| Corporate debt securities
Assets:
Short-term investments:	12,499	34,446
Long-term investments:	10,157
Significant Unobservable Inputs (Level 3)
Assets:
Short-term investments:	0	0
Long-term investments:	0	0
Total assets at fair value	0	0
Liabilities:
Acquisition-related contingent consideration
Total liabilities at fair value		0
Significant Unobservable Inputs (Level 3) \| U.S. Treasury
Assets:
Short-term investments:	0	0
Long-term investments:		0
Significant Unobservable Inputs (Level 3) \| Commercial paper
Assets:
Short-term investments:	0
Significant Unobservable Inputs (Level 3) \| U.S. Government and agency securities, short-term
Assets:
Short-term investments:	0
Significant Unobservable Inputs (Level 3) \| Corporate debt securities
Assets:
Short-term investments:	0	$ 0
Long-term investments:	$ 0

Cover - shares	9 Months Ended
Cover - shares	Jun. 30, 2024	Jul. 31, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-35231
Entity Registrant Name	MITEK SYSTEMS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-0418827
Entity Address, Address Line One	770 First Avenue, Suite 425
Entity Address, City or Town	San Diego,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92101
City Area Code	619
Local Phone Number	269-6800
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	MITK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		46,203,821
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000807863
Current Fiscal Year End Date	--09-30
Former Address
Document Information [Line Items]
Entity Address, Address Line One	600 B Street, Suite 100
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92101

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue
Total revenue	$ 44,976	$ 43,070	$ 128,861	$ 134,896
Operating costs and expenses
Selling and marketing	10,354	10,296	31,231	29,434
Research and development	9,982	7,461	28,569	22,504
General and administrative	12,604	11,588	43,085	30,126
Amortization and acquisition-related costs	3,750	6,207	11,581	15,302
Restructuring costs	1,070	14	1,648	2,000
Total operating costs and expenses	44,242	41,278	134,345	116,045
Operating income (loss)	734	1,792	(5,484)	18,851
Interest expense	2,329	2,362	6,895	6,662
Other income (expense), net	1,436	925	4,268	1,719
Income (loss) before income taxes	(159)	355	(8,111)	13,908
Income tax benefit (provision)	375	(783)	2,816	(4,437)
Net income (loss)	$ 216	$ (428)	$ (5,295)	$ 9,471
Net income (loss) per share – basic (in dollars per share)	$ 0.00	$ (0.01)	$ (0.11)	$ 0.21
Net income (loss) per share - diluted (in dollars per share)	$ 0.00	$ (0.01)	$ (0.11)	$ 0.20
Shares used in calculating net income (loss) per share – basic (in shares)	47,017	46,002	46,764	45,625
Shares used in calculating net income (loss) per share – diluted (in shares)	48,307	46,473	47,792	46,210
Comprehensive income (loss)
Net income (loss)	$ 216	$ (428)	$ (5,295)	$ 9,471
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	(307)	2,219	4,270	17,944
Unrealized gain (loss) on investments	32	123	93	771
Other comprehensive income (loss), net of tax	(275)	2,342	4,363	18,715
Comprehensive income (loss)	(59)	1,914	(932)	28,186
Software and hardware
Revenue
Total revenue	22,662	21,447	63,531	73,083
Operating costs and expenses
Cost of revenue	54	428	123	816
Services and other
Revenue
Total revenue	22,314	21,623	65,330	61,813
Operating costs and expenses
Cost of revenue	$ 6,428	$ 5,284	$ 18,108	$ 15,863

INVESTMENTS

9 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

4. INVESTMENTS

The following tables summarize investments by type of security as of June 30, 2024 and September 30, 2023 (amounts in thousands):


June 30, 2024:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	3,814	$	—	$	(24)	$	3,790
U.S. Government and agency securities, short-term	6,722		—		(4)		6,718
Commercial paper, short-term	15,723		—		(12)		15,711
Corporate debt securities, short-term	12,538		—		(39)		12,499
U.S. Treasury, long-term	—		—		—		—
Foreign government and agency securities, long-term	—		—		—		—
Corporate debt securities, long-term	10,183		—		(26)		10,157
Total	$	48,980	$	—	$	(105)	$	48,875


September 30, 2023:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	40,329	$	1	$	(76)	$	40,254


Corporate debt securities, short-term	34,545		—		(99)		34,446
U.S. Treasury, long-term	1,371		—		(67)		1,304


Total	$	76,245	$	1	$	(242)	$	76,004

All of the Company’s investments are designated as available-for-sale debt securities. As of June 30, 2024 and September 30, 2023, the Company’s short-term investments have maturity dates of less than one year from the balance sheet date and the Company’s long-term investments have maturity dates of greater than one year from the balance sheet date. The contractual maturities of the available-for-sale securities held at June 30, 2024 are as follows: $38.7 million within one year and $10.2 million beyond one year to five years. As of September 30, 2023, the contractual maturities of the available-for-sale securities were $74.7 million within one year and $1.3 million beyond one year to five years.


June 30, 2024:	Balance		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Short-term investments:
U.S. Treasury	$	3,790	$	3,790	$	—	$	—
Commercial paper	15,711		—		15,711		—
U.S. Government and agency securities, short-term	6,718		—		6,718		—
Corporate debt securities	12,499		—		12,499		—
Total short-term investments at fair value	38,718		3,790		34,928		—
Long-term investments:



Corporate debt securities	10,157		—		10,157		—
Total long-term investments at fair value	10,157		—		10,157		—



Total assets at fair value	$	48,875	$	3,790	$	45,085	$	—


September 30, 2023:	Balance		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Short-term investments:
U.S. Treasury	$	40,254	$	40,254	$	—	$	—


Corporate debt securities	34,446		—		34,446		—
Total short-term investments at fair value	74,700		40,254		34,446		—
Long-term investments:
U.S. Treasury	1,304		1,304		—		—


Total long-term investments at fair value	1,304		1,304		—		—



Total assets at fair value	$	76,004	$	41,558	$	34,446	$	—
Liabilities:

Acquisition-related contingent consideration	$	7,976	$	—	$	7,976



Total liabilities at fair value	$	7,976	$	—	$	7,976	$	—

•Level 1: Valuation is based on quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 2: Valuation is based on observable market-based inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

As of September 30, 2023, the fair value of acquisition-related contingent consideration for earnout payments associated with the acquisition of ID R&D Inc. was approximately $8.0 million. The earnout payments consisted of cash payments and issuances of Common Stock. At September 30, 2023, the fair value of contingent consideration expected to be settled in a variable number of shares of Common Stock was measured using the most recent closing price of the Company’s common stock on that date, as reported by the Nasdaq Capital Market. As the final earnout payments were known as of September 30, 2023, the inputs used to estimate the fair value of acquisition-related contingent consideration were determined to be Level 2. The contingent consideration was settled during the three months ended December 31, 2023.

The following table includes a roll-forward of the contingent consideration liability during the nine months ended June 30, 2024 (amounts in thousands):


Balance at September 30, 2023	$	7,976

Expenses recorded due to changes in fair value	136
Cash payment of contingent consideration associated with the ID R&D acquisition	(4,641)
Issuance of common stock as contingent consideration associated with the ID R&D acquisition	(3,471)

Balance at June 30, 2024	$	—

RESTRUCTURING (Tables)

9 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

Schedule of Changes in Restructuring Accrual

The following table summarizes changes in the restructuring accrual during the nine months ended June 30, 2024 (amounts in thousands):


Balance at September 30, 2023	$	—
Additional costs incurred	1,648
Payments	(1,606)
Foreign currency effect on the restructuring accrual	—
Balance at June 30, 2024	$	42

REVENUE CONCENTRATION (Tables)

9 Months Ended

Jun. 30, 2024

Risks and Uncertainties [Abstract]

Schedule of Revenue from External Customers by Geographic Areas

Revenue for the three and nine months ended June 30, 2024 and 2023 were as follows (amounts in thousands):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2024		2023		2024		2023
United States	$	35,902	$	32,742	$	102,193	$	107,975
United Kingdom	*		*		12,587		*
All other countries	9,074		10,328		14,081		26,921
Total revenue	$	44,976	$	43,070	$	128,861	$	134,896

*Revenues from the United Kingdom were not greater than 10% of the Company’s total revenue for this period.

GOODWILL AND INTANGIBLE ASSETS - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 3,623
2025	13,789
2026	12,575
2027	11,423
2028	9,712
Thereafter	4,041
Total	$ 55,163	$ 64,674

COMMITMENTS AND CONTINGENCIES (Details) € in Thousands, $ in Thousands																1 Months Ended			2 Months Ended		3 Months Ended		9 Months Ended
	Feb. 16, 2023 USD ($) patent	Sep. 02, 2022 EUR (€)	Jun. 07, 2022 EUR (€)	Jun. 02, 2022 USD ($)	Aug. 27, 2021 patent	Jul. 21, 2021 patent	Mar. 31, 2021 patent	Dec. 18, 2020 patent	Dec. 04, 2020 patent	Sep. 30, 2020 patent	Jan. 10, 2020 USD ($) patent	Nov. 06, 2019 USD ($) patent	Jul. 31, 2019 patent	Aug. 17, 2018 patent	Jul. 07, 2018 patent	May 31, 2022 USD ($) patent	Mar. 31, 2021 patent	Sep. 30, 2020 patent	Nov. 30, 2021 patent	Jan. 26, 2021 patent	Jun. 30, 2024 USD ($)	Feb. 23, 2021 patent	Jun. 30, 2024 USD ($) patent
Pending Litigation \| General and administrative
Loss Contingencies [Line Items]
Legal fees incurred related to third-party claims against customers \| $																					$ 100		$ 900
Pending Litigation \| UrbanFT
Loss Contingencies [Line Items]
Number of patents allegedly infringed								2					5
Number of patents invalid								2
Number of patents not infringed								2
Global Equity & Corporate Consulting, S.L. \| ICAR Vision Systems S.L. \| Pending Litigation
Loss Contingencies [Line Items]
Damages awarded			€ 800																				$ 800
Global Equity & Corporate Consulting, S.L.- Breach of Services Agreement \| ICAR Vision Systems S.L. \| Pending Litigation
Loss Contingencies [Line Items]
Settlement interest (as a percent)		30.00%
Litigation settlement interest \| €		€ 1,100
Claims against escrow funds \| €		900
Escrow deposit \| €		200
Accrued interest \| €		16,475
Litigation expense \| €		€ 10,995
USAA \| Pending Litigation \| Wells Fargo
Loss Contingencies [Line Items]
Number of patents allegedly infringed											2	3		5	4			2				4
Number of patents infringed											1	1
Amount awarded in damages to other party \| $											$ 102,000	$ 200,000
Number of patents dropped														2
Number of patents invalid														1
Number of patents instituted																				3
Number of patents denied institution																				1
USAA \| Pending Litigation \| PNC Bank
Loss Contingencies [Line Items]
Number of patents allegedly infringed							2		2	2						1							1
Amount awarded in damages to other party \| $																$ 218,000
Number of patents denied institution					2	6											2		4
USAA \| Settled Litigation \| PNC Bank
Loss Contingencies [Line Items]
Number of patents infringed	1
Amount awarded in damages to other party \| $	$ 4,300
UrbanFT \| Settled Litigation
Loss Contingencies [Line Items]
Amount awarded to the Company \| $				$ 2,300
UrbanFT \| Settled Litigation \| Compensatory Damages
Loss Contingencies [Line Items]
Amount awarded to the Company \| $				1,700
UrbanFT \| Settled Litigation \| Costs Of Judgement Awarded
Loss Contingencies [Line Items]
Amount awarded to the Company \| $				2,600
UrbanFT \| Settled Litigation \| Attorneys' Fees
Loss Contingencies [Line Items]
Amount awarded to the Company \| $				$ 600

REVENUE RECOGNITION - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 44,976	$ 43,070	$ 128,861	$ 134,896
Deposits revenue
Disaggregation of Revenue [Line Items]
Total revenue	29,286	24,804	79,874	83,845
Deposits software and hardware \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Total revenue	21,793	18,300	58,335	64,979
Deposits services and other \| Transferred over Time
Disaggregation of Revenue [Line Items]
Total revenue	7,493	6,504	21,539	18,866
Identity verification revenue
Disaggregation of Revenue [Line Items]
Total revenue	15,690	18,266	48,987	51,051
Identity verification software and hardware \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Total revenue	869	3,147	5,196	8,104
Identity verification services and other \| Transferred over Time
Disaggregation of Revenue [Line Items]
Total revenue	$ 14,821	$ 15,119	$ 43,791	$ 42,947

INVESTMENTS - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Sep. 30, 2023
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Contractual maturities of available-for-sale securities due within one year	$ 38,700	$ 74,700
Contractual maturities of available-for-sale securities due beyond one year to five years	10,200	1,300
Contingent Consideration
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Acquisition-related contingent consideration	$ 0	$ 7,976

STOCKHOLDERS’ EQUITY - Performance RSU Activity (Details) - Performance RSUs	9 Months Ended
	Jun. 30, 2024 $ / shares shares
Number of Shares
Outstanding at beginning of period (in shares) \| shares	730,393
Granted (in shares) \| shares	818,587
Settled (in shares) \| shares	(232,969)
Canceled (in shares) \| shares	(436,413)
Outstanding at end of period (in shares) \| shares	879,598
Weighted-Average Fair Market Value Per Share
Outstanding at beginning of period (in dollars per share) \| $ / shares	$ 13.37
Granted (in dollars per share) \| $ / shares	11.12
Settled (in dollars per share) \| $ / shares	10.11
Canceled (in dollars per share) \| $ / shares	13.40
Outstanding at end of period (in dollars per share) \| $ / shares	$ 12.12

INCOME TAXES	9 Months Ended
INCOME TAXES	Jun. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	7. INCOME TAXES The Company’s tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, management updates the estimate of the annual effective tax rate, and any changes are recorded in a cumulative adjustment in that quarter. The quarterly tax provision and quarterly estimate of the annual effective tax rate are subject to significant volatility due to several factors, including management’s ability to accurately predict the portion of income (loss) before income taxes in multiple jurisdictions, the tax effects of our stock-based compensation awards, and the effects of acquisitions and the integration of those acquisitions. For the three and nine months ended June 30, 2024, the Company recorded an income tax benefit of $0.4 million and $2.8 million, respectively, which yielded an effective tax rate of 236% and 35%, respectively. For the three and nine months ended June 30, 2023, the Company recorded an income tax provision of $0.8 million and $4.4 million, respectively, which yielded an effective tax rate of 221% and 32%, respectively. The effective tax rates for the three months ended June 30, 2024 and June 30, 2023 are not meaningful due to near break-even pre-tax income for the periods, which results in any discrete tax adjustments significantly impacting the rate. The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate for the three and nine months ended June 30, 2024 and 2023 was primarily due to a mix of worldwide income, the impact of non-deductible executive compensation as well as the impact of state taxes, and federal, state and foreign research and development credits on the tax provision.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-13

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/740/tableOfContent

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-17

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating activities:
Net income (loss)	$ (5,295)	$ 9,471
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Stock-based compensation expense	10,901	7,790
Amortization of intangible assets	11,445	13,270
Amortization of costs capitalized to obtain revenue contracts	1,247	1,091
Depreciation and amortization	1,380	1,187
Bad debt expense	1,090	564
Amortization of investment premiums & other	(1,756)	(64)
Accretion and amortization on debt securities	6,015	5,609
Net changes in estimated fair value of acquisition-related contingent consideration	136	2,093
Deferred taxes	(2,187)	(8,246)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(10,363)	(9,180)
Contract assets	5,527	(3,758)
Other assets	(8,840)	(1,164)
Accounts payable	(1,358)	2,633
Accrued payroll and related taxes	249	(1,099)
Income taxes payable	(4,125)	9,865
Deferred revenue	6,568	(1,155)
Restructuring accrual	42	(971)
Other liabilities	(90)	177
Net cash provided by (used in) operating activities	10,586	28,113
Investing activities:
Purchases of investments	(45,185)	(23,723)
Sales and maturities of investments	74,172	50,000
Purchases of property and equipment, net	(1,155)	(656)
Net cash provided by (used in) investing activities	27,832	25,621
Financing activities:
Payment of revolving credit line issuance costs	(290)	0
Proceeds from the issuance of equity plan common stock	1,048	1,351
Repurchases and retirements of common stock	(10,040)	0
Payment of acquisition-related contingent consideration	(4,641)	0
Proceeds from other borrowings	1,175	0
Principal payments on other borrowings	(123)	(36)
Net cash provided by (used in) financing activities	(12,871)	1,315
Foreign currency effect on cash and cash equivalents	(109)	382
Net increase in cash and cash equivalents	25,438	55,431
Cash and cash equivalents at beginning of period	58,913	32,059
Cash and cash equivalents at end of period	84,351	87,490
Supplemental disclosures of cash flow information:
Issuance of common stock for acquisition-related contingent consideration	3,471	0
Cash paid for interest	685	602
Cash paid for income taxes	11,942	2,057
Supplemental disclosures of non-cash investing and financing activities:
Unrealized holding gain on available for sale investments	$ 93	$ 771

REVENUE RECOGNITION - Contract Balances (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 41,609	$ 32,132	$ 45,376	$ 35,922
Contract assets, current	16,805	18,355	8,184	7,037
Contract assets, non-current	1,793	5,579	7,050	4,218
Contract liabilities (deferred revenue), current	23,746	17,360	20,448	21,350
Contract liabilities (deferred revenue), non-current	$ 1,257	$ 957	$ 2,056	$ 1,775

STOCKHOLDERS’ EQUITY (Tables)

9 Months Ended

Jun. 30, 2024

Equity [Abstract]

Schedule of Stock-Based Compensation Expense

The following table summarizes stock-based compensation expense related to restricted stock units (“RSUs”), stock options, and Employee Stock Purchase Plan (“ESPP”) shares, which was allocated as follows (amounts in thousands):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2024		2023		2024		2023
Cost of revenue	$	194	$	124	$	447	$	316
Selling and marketing	818		885		2,579		2,423
Research and development	1,344		644		3,751		2,097
General and administrative	1,229		991		4,124		2,954
Stock-based compensation expense included in expenses	$	3,585	$	2,644	$	10,901	$	7,790

Schedule of Stock Option Activity

The following table summarizes stock option activity under the Company’s equity plans during the nine months ended June 30, 2024:


	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at September 30, 2023	651,269	$	7.37	3.6	$	2,185
Granted	—	—
Exercised	(168,434)	6.21			833
Canceled	—	—
Outstanding at June 30, 2024	482,835	7.77		2.8	1,648
Vested and Expected to Vest at June 30, 2024	482,835	7.77		2.8	1,648
Exercisable at June 30, 2024	482,835	7.77		2.8	1,648

Schedule of RSU Activity

The following table summarizes RSU activity under the Company’s equity plans during the nine months ended June 30, 2024:


	Number of Shares	Weighted-Average Fair Market Value Per Share
Outstanding at September 30, 2023	2,188,296	$	11.49
Granted	1,278,764	11.36
Settled	(670,167)	11.13
Canceled	(411,547)	12.16
Outstanding at June 30, 2024	2,385,346	11.38

Schedule of Performance RSU Activity

The following table summarizes Performance RSU activity under the Company’s equity plans during the nine months ended June 30, 2024:


	Number of Shares	Weighted-Average Fair Market Value Per Share
Outstanding at September 30, 2023	730,393	$	13.37
Granted	818,587	11.12
Settled	(232,969)	10.11
Canceled	(436,413)	13.40
Outstanding at June 30, 2024	879,598	12.12

REVENUE RECOGNITION (Tables)

9 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The following table presents the Company's revenue disaggregated by major product category (amounts in thousands):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2024		2023		2024		2023
Major product category
Deposits software and hardware	$	21,793	$	18,300	$	58,335	$	64,979
Deposits services and other	7,493		6,504		21,539		18,866
Deposits revenue	29,286		24,804		79,874		83,845
Identity verification software and hardware	869		3,147		5,196		8,104
Identity verification services and other	14,821		15,119		43,791		42,947
Identity verification revenue	15,690		18,266		48,987		51,051
Total revenue	$	44,976	$	43,070	$	128,861	$	134,896

Schedule of Contract Balances

The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers (amounts in thousands):


	June 30, 2024		September 30, 2023		June 30, 2023		September 30, 2022
Accounts receivable, net	$	41,609	$	32,132	$	45,376	$	35,922
Contract assets, current	16,805		18,355		8,184		7,037
Contract assets, non-current	1,793		5,579		7,050		4,218
Contract liabilities (deferred revenue), current	23,746		17,360		20,448		21,350
Contract liabilities (deferred revenue), non-current	1,257		957		2,056		1,775

Insider Trading Arrangements

3 Months Ended

9 Months Ended

Jun. 30, 2024

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

In accordance with the disclosure requirement set forth in Item 408 of Regulation S-K, the following table discloses any executive officer or director who is subject to the filing requirements of Section 16 of the Exchange Act that adopted a Rule 10b5-1 trading arrangement during the quarter ended June 30, 2024. These trading arrangements are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).


Name and Title	Adoption Date	Aggregate Number of Securities to be Sold	Expiration Date(1)
Michael Diamond, Senior Vice President, General Manager — Digital Banking	June 11, 2024	100,712	June 11, 2025

(1) Each trading arrangement permitted or permits transactions through and including the earlier to occur of (a) the completion of all sales or (b) the date listed in the table.

Non-Rule 10b5-1 Arrangement Adopted

false

Rule 10b5-1 Arrangement Terminated

false

Non-Rule 10b5-1 Arrangement Terminated

false

Michael Diamond [Member]

Trading Arrangements, by Individual

Name

Michael Diamond

Title

Senior Vice President, General Manager — Digital Banking

Rule 10b5-1 Arrangement Adopted

true

June 11, 2024

June 11, 2025

365 days

100,712,000

GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

5. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company had a goodwill balance of $126.3 million at June 30, 2024, representing the excess of costs over fair value of assets of businesses acquired. The following table summarizes changes in the balance of goodwill during the nine months ended June 30, 2024 (amounts shown in thousands):


Balance at September 30, 2023	$	123,548
Foreign currency effect on goodwill	2,723
Balance at June 30, 2024	$	126,271

There was no impairment loss recognized related to goodwill in the three or nine months ended June 30, 2024 or 2023.

Intangible Assets

Intangible assets include the value assigned to purchased completed technology, customer relationships, trade names and covenants not to compete. The estimated useful lives for all of these intangible assets range from three to seven years and they are amortized on a straight-line basis. Intangible assets as of June 30, 2024 and September 30, 2023, respectively, are summarized as follows (amounts in thousands, except for years):


June 30, 2024:	Weighted Average Amortization Period (in years)	Cost		Accumulated Amortization		Net
Completed technologies	6.9	$	95,761	$	46,684	$	49,077
Customer relationships	4.7	25,168		22,553		2,615
Trade names	5.0	7,088		3,757		3,331
Covenants not to compete	3.0	600		460		140
Total intangible assets		$	128,617	$	73,454	$	55,163


September 30, 2023:	Weighted Average Amortization Period (in years)	Cost		Accumulated Amortization		Net
Completed technologies	6.9	$	95,761	$	39,254	$	56,507
Customer relationships	4.7	25,168		21,396		3,772
Trade names	5.0	7,088		2,967		4,121
Covenants not to compete	3.0	600		326		274
Total intangible assets		$	128,617	$	63,943	$	64,674

Amortization expense related to acquired intangible assets was $3.7 million and $11.4 million during the three and nine months ended June 30, 2024, respectively, compared to $4.3 million and $13.3 million during the three and nine months ended June 30, 2023, respectively, and is recorded within amortization and acquisition-related costs on the condensed consolidated statements of operations and comprehensive income (loss). There were no impairment losses recognized related to intangible assets in the three or nine months ended June 30, 2024 or 2023.

The estimated future amortization expense related to intangible assets for each of the five succeeding fiscal years is expected to be as follows (amounts in thousands):


	Estimated Future Amortization Expense
2024	3,623
2025	13,789
2026	12,575
2027	11,423
2028	9,712
Thereafter	4,041
Total	$	55,163

DEBT (Tables)

9 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Schedule of Carrying Values of Company's 2026 Notes

The carrying values of the 0.75% convertible notes due 2026 issued by the Company in an initial aggregate principal amount of $155.3 million (the “2026 Notes”) are as follows (amounts in thousands):


2026 Notes:	June 30, 2024		September 30, 2023
Principal amount	$	155,250	$	155,250
Less: unamortized discount and issuance costs, net of amortization	(13,719)		(19,734)
Carrying amount	$	141,531	$	135,516

Schedule of Interest Costs Recognized Related to 2026 Notes

The following table presents the total amount of interest cost recognized relating to the 2026 Notes (amounts in thousands):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2024		2023		2024		2023
Contractual interest expense	$	289	$	454	$	880	$	1,053
Amortization of debt discount and issuance costs	2,040		1,908		6,015		5,609
Total interest expense recognized	$	2,329	$	2,362	$	6,895	$	6,662

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

LEASES (Tables)

9 Months Ended

Jun. 30, 2024

Leases [Abstract]

Schedule of Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities as of June 30, 2024 were as follows (amounts in thousands):


	Operating leases(1)
2024 - remaining	$	241
2025	722
2026	711
2027	625
2028	418
2029 and thereafter	582

Total lease payments	3,299
Less: amount representing interest	(143)
Present value of future lease payments	$	3,156

(1) Excludes approximately $1.8 million of legally binding minimum lease payments for an office lease signed but not yet commenced.

REVENUE CONCENTRATION - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue, Major Customer [Line Items]
Revenue	$ 44,976	$ 43,070	$ 128,861	$ 134,896
United States
Revenue, Major Customer [Line Items]
Revenue	35,902	32,742	102,193	107,975
United Kingdom
Revenue, Major Customer [Line Items]
Revenue			12,587
All other countries
Revenue, Major Customer [Line Items]
Revenue	$ 9,074	$ 10,328	$ 14,081	$ 26,921

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2024	Sep. 30, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	120,000,000	120,000,000
Common stock, shares issued (in shares)	46,148,999	45,591,199
Common stock, shares outstanding (in shares)	46,148,999	45,591,199

GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Sep. 30, 2023
Goodwill and Intangible Assets [Line Items]
Goodwill	$ 126,271,000		$ 126,271,000		$ 123,548,000
Goodwill impairment	0	$ 0	0	$ 0
Amortization of intangible assets	3,700,000	4,300,000	11,445,000	13,270,000
Impairment charges related to intangible assets	$ 0	$ 0	$ 0	$ 0
Minimum
Goodwill and Intangible Assets [Line Items]
Estimated useful lives of intangible assets (in years)	3 years		3 years
Maximum
Goodwill and Intangible Assets [Line Items]
Estimated useful lives of intangible assets (in years)	7 years		7 years

- Definition

+ References

+ Details

STOCKHOLDERS’ EQUITY - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Sep. 30, 2023
Number of Shares
Outstanding at beginning of period (in shares)	651,269
Granted (in shares)	0	0
Exercised (in shares)	(168,434)
Canceled (in shares)	0
Outstanding at end of period (in shares)	482,835		651,269
Weighted-Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 7.37
Granted (in dollars per share)	0
Exercised (in dollars per share)	6.21
Canceled (in dollars per share)	0
Outstanding at end of period (in dollars per share)	$ 7.77		$ 7.37
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Vested and Expected to Vest (in shares)	482,835
Exercisable (in shares)	482,835
Vested and Expected to Vest, Weighted-Average Exercise Price (in dollars per share)	$ 7.77
Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 7.77
Outstanding, Weighted-Average Remaining Contractual Terms (in Years)	2 years 9 months 18 days		3 years 7 months 6 days
Vested and Expected to Vest, Weighted-Average Remaining Contractual Term (in Years)	2 years 9 months 18 days
Exercisable, Weighted-Average Remaining Contractual Term (in Years)	2 years 9 months 18 days
Outstanding, Aggregate Intrinsic Value	$ 1,648		$ 2,185
Exercised, Aggregate Intrinsic Value	833
Vested and Expected to Vest, Aggregate Intrinsic Value	1,648
Exercisable, Aggregate Intrinsic Value	$ 1,648

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Potentially Dilutive Common Shares Excluded from Calculation of Net Income per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	18,662	18,401	19,034	17,576
Stock options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	298	443	523	453
RSUs
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	1,731	1,256	2,315	1,138
ESPP common stock equivalents
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	43	295	32	89
Performance options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	645	783	800	772
Performance RSUs
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	1,049	728	468	228
Convertible senior notes
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	7,448	7,448	7,448	7,448
Warrants
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	7,448	7,448	7,448	7,448

RESTRUCTURING (Details) $ in Thousands	9 Months Ended
RESTRUCTURING (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Restructuring Reserve [Roll Forward]
Restructuring Reserve, Beginning Balance	$ 0
Additional costs incurred	1,648
Payments	(1,606)
Foreign currency effect on the restructuring accrual	0
Restructuring Reserve, Ending Balance	$ 42

RESTRUCTURING

9 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

RESTRUCTURING

3. RESTRUCTURING

Restructuring costs consist of employee severance obligations and other related costs on the condensed consolidated statements of operations. The following table summarizes changes in the restructuring accrual during the nine months ended June 30, 2024 (amounts in thousands):


Balance at September 30, 2023	$	—
Additional costs incurred	1,648
Payments	(1,606)
Foreign currency effect on the restructuring accrual	—
Balance at June 30, 2024	$	42

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income tax provision (benefit)	$ (375)	$ 783	$ (2,816)	$ 4,437
Effective tax rate (as a percent)	(236.00%)	(221.00%)	35.00%	32.00%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/exampleRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations Mitek Systems, Inc. (“Mitek,” the “Company,” “we,” “us,” and “our”) is a provider of mobile image capture and digital identity verification solutions. We are a software development company with expertise in artificial intelligence and machine learning. We currently serve more than 7,900 financial services organizations and financial technology (“fintech”) brands around the globe. Mitek markets and sells its products and services worldwide through internal, direct sales teams located in the United States (“U.S.”), Europe, and Latin America as well as through channel partners. Our partner sales strategy includes channel partners who are financial services technology providers and identity verification providers. These partners integrate our products into their solutions to meet the needs of their customers, typically provisioning Mitek services through their respective platforms.
Basis of Presentation	Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements of the Company as of and for the three and nine months ended June 30, 2024 have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and, accordingly, they do not include all information and footnote disclosures required by accounting principles generally accepted in the U.S. (“GAAP”). The Company believes the footnotes and other disclosures made in the financial statements are adequate for a fair presentation of the results of the interim periods presented. The financial statements include all adjustments (solely of a normal recurring nature) which are, in the opinion of management, necessary to make the information presented not misleading. These financial statements and the accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 19, 2024. Certain amounts within the prior period’s condensed consolidated statement of cash flows have been reclassified and revised to conform to the current period presentation. Within “Changes in assets and liabilities, net of acquisitions,” “Income taxes payable,” which had previously been combined with “Other liabilities,” was reclassified as a separate line item. Non-cash expense associated with amortization of costs capitalized to obtain revenue contracts and bad debt expense were revised to be presented separately as adjustments to reconcile net income to net cash provided by operating activities. The reclassification and revision, which is considered to be immaterial to the previously issued condensed consolidated financial statements for the corresponding prior period in fiscal 2023, had no impact on net cash provided by operating activities, and did not change other amounts reported within the condensed consolidated balance sheet, statement of operations and comprehensive income (loss), or statement of stockholders’ equity. Results for the three and nine months ended June 30, 2024, are not necessarily indicative of results for any other interim period or for a full fiscal year.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets, liabilities, revenue, expenses, deferred taxes, and related disclosure of contingent assets and liabilities. On an ongoing basis, management reviews its estimates based upon currently available information. Actual results could differ materially from those estimates. These estimates include, but are not limited to, assessing the collectability of accounts receivable, estimation of the value of stock-based compensation awards, fair value of assets and liabilities acquired, impairment of goodwill, useful lives of intangible assets, fair value of debt derivatives, standalone selling price related to revenue recognition, usage above minimum commitment for software as a service (“SaaS”) products and services, estimated variable consideration in contracts, contingent consideration, and income taxes.
Recently Adopted Accounting Pronouncements, Change in Significant Accounting Policy and Recently Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements The Company did not adopt any new accounting pronouncements in the nine months ended June 30, 2024. Change in Significant Accounting Policy The Company’s significant accounting policies are disclosed in the Company’s audited condensed consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2023, filed with the SEC on March 19, 2024. There have been no changes to these accounting policies through June 30, 2024. Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, amending existing income tax disclosure guidance, primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation. The ASU is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retroactive basis. The Company is currently evaluating the ASU to determine its impact on its income tax disclosures. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and also issued subsequent amendments to the initial guidance (collectively, Topic 848). Topic 848 provides optional guidance for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. The Company will adopt Topic 848 when the relevant contracts are modified upon transition to alternative reference rates. The Company does not expect the adoption of Topic 848 will have a material impact on the condensed consolidated financial statements. No other new accounting pronouncement issued or effective during the nine months ended June 30, 2024 had, or is expected to have, a material impact on the Company’s condensed consolidated financial statements.
Revenue Recognition	Nature of Goods and Services The following is a description of principal activities from which the Company generates its revenue. Contracts with customers are evaluated on a contract-by-contract basis as contracts may include multiple types of goods and services as described below. Software and Hardware Software and hardware revenue is generated from on premise software license sales, as well as sales of hardware scanner boxes and on premise appliance products. Software is typically sold as a time-based license with a term of one to three years. For software license agreements that are distinct, the Company recognizes software license revenue upon delivery and after evidence of a contract exists. Hardware revenue is recognized at a point in time upon shipment and after evidence of a contract exists. Services and Other Services and other revenue is generated from the sale of SaaS products and services, maintenance associated with the sale of on premise software licenses, and consulting and professional services. The Company’s SaaS offerings give customers the option to be charged upon their incurred usage in arrears (“Pay as You Go”), or commit to a minimum spend over their contracted period, with the ability to purchase unlimited additional transactions above the minimum during the contract term. Revenue related to Pay as You Go contracts are recognized based on the customer’s actual usage, in the period of usage. For contracts which include a minimum commitment, the Company is standing ready to provide as many transactions as desired by the customer throughout the contract term, and revenue is recognized on a ratable basis over the contract period including an estimate of usage above the minimum commitment. Usage above minimum commitment is estimated by looking at historical usage, expected volume, and other factors to project usage for the remainder of the contract term. The estimated usage-based revenues are constrained to the amount the Company expects to be entitled to receive in exchange for providing access to its platform. If professional services are deemed to be distinct, revenue is recognized as services are performed. The Company does not view the signing of the contract or the provision of initial setup services as discrete earnings events that are distinct. Significant Judgments in Application of the Guidance The Company uses the following methods, inputs, and assumptions in determining amounts of revenue to recognize: Identification of Performance Obligations For contracts that contain multiple performance obligations, which include combinations of software licenses, maintenance, and services, the Company accounts for individual goods or services as a separate performance obligation if they are distinct. The good or service is distinct if the good or service is separately identifiable from other items in the arrangement and if a customer can benefit from it on its own or with other resources that are readily available to the customer. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation. Determination of Transaction Price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring products or services to the customer. The Company includes any fixed charges within its contracts as part of the total transaction price. To the extent that variable consideration is not constrained, the Company includes an estimate of the variable amount, as appropriate, within the total transaction price and updates its assumptions over the duration of the contract. As a practical expedient, the Company does not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less. Assessment of Estimates of Variable Consideration Certain of the Company’s contracts with customers contain some component of variable consideration; however, variable consideration will only be included in the transaction price to the extent it is probable that a significant reversal of revenues recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company may constrain the estimated transaction price in the event of a high degree of uncertainty as to the final consideration amount owed because of an extended length of time over which the fees may be adjusted or due to uncertainty surrounding collectability. The Company estimates variable consideration in its contracts primarily using the expected value method as the Company believes this method represents the most appropriate estimate for this consideration, based on historical usage trends, the individual contract considerations, and its best judgment at the time. Allocation of Transaction Price The transaction price, including any discounts, is allocated between separate goods and services in a contract that contains multiple performance obligations based on their relative standalone selling prices. The standalone selling prices are based on the prices at which the Company separately sells each good or service. For items that are not sold separately, the Company estimates the standalone selling prices using available information such as market conditions and internally approved pricing guidelines. In certain situations, primarily transactional SaaS revenue described above, the Company allocates variable consideration to a series of distinct goods or services within a contract. The Company allocates variable payments to one or more, but not all, of the distinct goods or services or to a series of distinct goods or services in a contract when (i) the variable payment relates specifically to the Company’s efforts to transfer the distinct good or service and (ii) the variable payment is for an amount that depicts the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised goods or services to its customer. Contract assets, reported within a separate line in current assets and the other non-current assets line in the condensed consolidated balance sheets, primarily result from when the right to consideration is conditional upon factors other than the passage of time. Contract liabilities primarily relate to advance consideration received from customers (deferred revenue), for which transfer of control occurs, and therefore revenue is recognized as services are provided. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period.Contract costs included in other current and non-current assets on the condensed consolidated balance sheetsContract origination costs are amortized based on the transfer of goods or services to which the asset relates, including consideration of the expected customer benefit period. Contract fulfillment costs related to goods or services transferred under a specific anticipated contract have historically been immaterial. These costs are included in selling and marketing expenses in the condensed consolidated statement of operations and comprehensive income (loss)
Fair Value Measurements and Disclosures	Level 1: Valuation is based on quoted prices (unadjusted) in active markets for identical assets or liabilities.•Level 2: Valuation is based on observable market-based inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Other Borrowings	Other Borrowings The Company has certain loan agreements with Spanish government agencies. These agreements have repayment periods of five to twelve years and bear no interest.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Schedule of Potentially Dilutive Common Shares Excluded from Calculation of Net Income (Loss) per Share


	Three Months Ended June 30,		Nine Months Ended June 30,
	2024	2023	2024	2023
Stock options	298	443	523	453
RSUs	1,731	1,256	2,315	1,138
ESPP common stock equivalents	43	295	32	89
Performance options	645	783	800	772
Performance RSUs	1,049	728	468	228
Convertible senior notes	7,448	7,448	7,448	7,448
Warrants	7,448	7,448	7,448	7,448
Total potentially dilutive common shares outstanding	18,662	18,401	19,034	17,576

Schedule of Calculation of Basic and Diluted Net Income (Loss) per Share

The calculation of basic and diluted net income (loss) per share is as follows (amounts in thousands, except per share data):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2024		2023		2024		2023
Net income (loss)	$	216	$	(428)	$	(5,295)	$	9,471
Weighted-average shares outstanding—basic	47,017		46,002		46,764		45,625
Common stock equivalents	1,290		471		1,028		585
Weighted-average shares outstanding—diluted	48,307		46,473		47,792		46,210
Net income (loss) per share:
Basic	$	0.00	$	(0.01)	$	(0.11)	$	0.21
Diluted	$	0.00	$	(0.01)	$	(0.11)	$	0.20

LEASES

9 Months Ended

Jun. 30, 2024

Leases [Abstract]

LEASES

10. LEASES

Leases

The Company leases office and research and development facility space under non-cancelable operating leases for various terms through 2030. Certain lease agreements include renewal options, rent abatement periods, and rental increases throughout the term. As of June 30, 2024, the weighted-average remaining lease term for the Company’s operating leases was 4.9 years and the weighted-average discount rate was 2.8%.

As of June 30, 2024, the Company had operating ROU assets of $2.8 million. As of June 30, 2024, total operating lease liabilities of $3.2 million were comprised of current lease liabilities of $0.8 million and non-current lease liabilities of $2.4 million. As of September 30, 2023, the Company had operating ROU assets of $4.1 million. As of September 30, 2023, total operating lease liabilities of $4.8 million were comprised of current lease liabilities of $1.9 million and non-current lease liabilities of $2.9 million.

The Company recognized $0.6 million and $0.5 million of operating lease costs in the three months ended June 30, 2024 and 2023, respectively. The Company recognized $1.5 million of operating lease costs in each of the nine months ended June 30, 2024 and 2023. Operating lease costs are included within cost of revenue, selling and marketing, research and development, and general and administrative expenses, dependent upon the nature and use of the ROU asset, in the Company’s condensed consolidated statement of operations and comprehensive income (loss).

The Company paid $1.7 million in operating cash flows for operating leases in the nine months ended June 30, 2024.

Maturities of operating lease liabilities as of June 30, 2024 were as follows (amounts in thousands):


	Operating leases(1)
2024 - remaining	$	241
2025	722
2026	711
2027	625
2028	418
2029 and thereafter	582

Total lease payments	3,299
Less: amount representing interest	(143)
Present value of future lease payments	$	3,156

(1) Excludes approximately $1.8 million of legally binding minimum lease payments for an office lease signed but not yet commenced.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Sep. 30, 2022		44,680,000
Beginning balance at Sep. 30, 2022	$ 170,979	$ 44	$ 216,493	$ (28,219)	$ (17,339)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		99,000
Exercise of stock options	676		676
Settlement of restricted stock units (in shares)		656,000
Settlement of restricted stock units	56	$ 1	55
Issuance of common stock under employee stock purchase plan (in shares)		72,000
Issuance of common stock under employee stock purchase plan	619		619
Stock-based compensation expense	7,790		7,790
Components of comprehensive income (loss), net of tax:
Net income (loss)	9,471				9,471
Currency translation adjustment	17,944			17,944
Change in unrealized gain (loss) on investments	771			771
Ending balance (in shares) at Jun. 30, 2023		45,507,000
Ending balance at Jun. 30, 2023	208,306	$ 45	225,633	(9,504)	(7,868)
Beginning balance (in shares) at Mar. 31, 2023		45,410,000
Beginning balance at Mar. 31, 2023	203,692	$ 45	222,933	(11,846)	(7,440)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		13,000
Exercise of stock options	56		56
Settlement of restricted stock units (in shares)		84,000
Settlement of restricted stock units	0
Stock-based compensation expense	2,644		2,644
Components of comprehensive income (loss), net of tax:
Net income (loss)	(428)				(428)
Currency translation adjustment	2,219			2,219
Change in unrealized gain (loss) on investments	123			123
Ending balance (in shares) at Jun. 30, 2023		45,507,000
Ending balance at Jun. 30, 2023	$ 208,306	$ 45	225,633	(9,504)	(7,868)
Beginning balance (in shares) at Sep. 30, 2023	45,591,199	45,591,000
Beginning balance at Sep. 30, 2023	$ 205,188	$ 46	228,691	(14,237)	(9,312)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	168,434	169,000
Exercise of stock options	$ 1,048		1,048
Settlement of restricted stock units (in shares)		898,000
Settlement of restricted stock units	0	$ 1	(1)
Acquisition-related shares issued (in shares)		311,000
Acquisition-related shares issued	3,471		3,471
Stock-based compensation expense	10,901		10,901
Repurchases and retirement of common stock (in shares)		(820,000)
Repurchases and retirements of common stock	(10,040)	$ (1)			(10,039)
Components of comprehensive income (loss), net of tax:
Net income (loss)	(5,295)				(5,295)
Currency translation adjustment	4,270			4,270
Change in unrealized gain (loss) on investments	$ 93			93
Ending balance (in shares) at Jun. 30, 2024	46,148,999	46,149,000
Ending balance at Jun. 30, 2024	$ 209,636	$ 46	244,110	(9,874)	(24,646)
Beginning balance (in shares) at Mar. 31, 2024		46,791,000
Beginning balance at Mar. 31, 2024	216,146	$ 47	240,521	(9,599)	(14,823)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		2,000
Exercise of stock options	4		4
Settlement of restricted stock units (in shares)		176,000
Settlement of restricted stock units	0
Stock-based compensation expense	3,585		3,585
Repurchases and retirement of common stock (in shares)		(820,000)
Repurchases and retirements of common stock	(10,040)	$ (1)			(10,039)
Components of comprehensive income (loss), net of tax:
Net income (loss)	216				216
Currency translation adjustment	(307)			(307)
Change in unrealized gain (loss) on investments	$ 32			32
Ending balance (in shares) at Jun. 30, 2024	46,148,999	46,149,000
Ending balance at Jun. 30, 2024	$ 209,636	$ 46	$ 244,110	$ (9,874)	$ (24,646)

DEBT - Interest Costs Recognized on 2026 Notes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Debt Instrument [Line Items]
Total interest expense recognized	$ 2,329	$ 2,362	$ 6,895	$ 6,662
Convertible Debt \| 2026 Notes
Debt Instrument [Line Items]
Contractual interest expense	289	454	880	1,053
Amortization of debt discount and issuance costs	2,040	1,908	6,015	5,609
Total interest expense recognized	$ 2,329	$ 2,362	$ 6,895	$ 6,662

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 55
-Paragraph 8
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+ Details

LEASES - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Sep. 30, 2023
Leases [Abstract]
2024 - remaining	$ 241
2025	722
2026	711
2027	625
2028	418
2029 and thereafter	582
Total lease payments	3,299
Less: amount representing interest	(143)
Present value of future lease payments	3,156	$ 4,800
Minimum lease payments for an office lease signed but not yet commenced	$ 1,800

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2023	Jun. 30, 2024	Sep. 30, 2023
Indefinite Lived Intangible Assets By Major Class [Line Items]
Cost		$ 128,617	$ 128,617
Accumulated Amortization		73,454	63,943
Total		$ 55,163	64,674
Completed technologies
Indefinite Lived Intangible Assets By Major Class [Line Items]
Weighted Average Amortization Period (in years)	6 years 10 months 24 days	6 years 10 months 24 days
Cost		$ 95,761	95,761
Accumulated Amortization		46,684	39,254
Total		$ 49,077	56,507
Customer relationships
Indefinite Lived Intangible Assets By Major Class [Line Items]
Weighted Average Amortization Period (in years)	4 years 8 months 12 days	4 years 8 months 12 days
Cost		$ 25,168	25,168
Accumulated Amortization		22,553	21,396
Total		$ 2,615	3,772
Trade names
Indefinite Lived Intangible Assets By Major Class [Line Items]
Weighted Average Amortization Period (in years)	5 years	5 years
Cost		$ 7,088	7,088
Accumulated Amortization		3,757	2,967
Total		$ 3,331	4,121
Covenants not to compete
Indefinite Lived Intangible Assets By Major Class [Line Items]
Weighted Average Amortization Period (in years)	3 years	3 years
Cost		$ 600	600
Accumulated Amortization		460	326
Total		$ 140	$ 274

LEASES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
LEASES - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Weighted average remaining lease term of operating leases (in years)	4 years 10 months 24 days		4 years 10 months 24 days
Weighted average discount rate of operating leases (as a percent)	2.80%		2.80%
Right-of-use assets	$ 2,848		$ 2,848	$ 4,140
ROU liabilities	3,156		3,156	4,800
Lease liabilities, current portion, rounded	800		800
Lease liabilities, non-current portion	2,409		2,409	2,867
Lease liabilities, current portion	747		747	$ 1,902
Operating lease costs	$ 600	$ 500	1,500
Operating cash flows for operating leases paid			$ 1,700

INVESTMENTS - Contingent Consideration Measured at Fair Value (Details) - Contingent Consideration $ in Thousands	9 Months Ended
	Jun. 30, 2024 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 7,976
Expenses recorded due to changes in fair value	136
Cash payment of contingent consideration associated with the ID R&D acquisition	(4,641)
Issuance of common stock as contingent consideration associated with the ID R&D acquisition	(3,471)
Ending Balance	$ 0

DEBT

9 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

DEBT

8. DEBT

Convertible Senior Notes


2026 Notes:	June 30, 2024		September 30, 2023
Principal amount	$	155,250	$	155,250
Less: unamortized discount and issuance costs, net of amortization	(13,719)		(19,734)
Carrying amount	$	141,531	$	135,516

In February 2021, the Company issued $155.3 million aggregate principal amount of the 2026 Notes (including the Additional Notes, as defined below). The 2026 Notes are senior unsecured obligations of the Company. The 2026 Notes were issued pursuant to an Indenture, dated February 5, 2021 (the “Indenture”), between the Company and UMB Bank, National Association, as trustee. The Indenture includes customary covenants and sets forth certain events of default after which the 2026 Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving the Company after which the 2026 Notes become automatically due and payable. The Company granted the initial purchasers of the 2026 Notes (collectively, the “Initial Purchasers”) a 13-day option to purchase up to an additional $20.25 million aggregate principal amount of the 2026 Notes (the “Additional Notes”), which was exercised in full. The 2026 Notes were purchased in a transaction that was completed on February 5, 2021. As of January 13, 2024 (“Date of Noncompliance”), the Company was not in compliance with certain of the covenants in the Indenture as a result of the Company not timely filing its Form 10-K for the fiscal year ended September 30, 2023 (“Form 10-K”) with the SEC. As a result of not being in compliance, the 2026 Notes began to accrue additional special interest of 0.25% of the outstanding principal of the 2026 Notes for the 90 days after the Date of Noncompliance and 0.50% of the outstanding principal of the 2026 Notes for the 91st through 180th day after the Date of Noncompliance. The Company subsequently did not timely file its Form 10-Q for the quarter ended December 31, 2023 (the “Q1 Form 10-Q”) with the SEC. The Company filed its Form 10-K with the SEC on March 19, 2024 and its Q1 Form 10-Q with the SEC on April 15, 2024. As of June 30, 2024, the Company was in compliance with the covenants in the Indenture.

The 2026 Notes will mature on February 1, 2026, unless earlier redeemed, repurchased or converted. The 2026 Notes bear interest from February 5, 2021 at a rate of 0.75% per year payable semiannually in arrears on February 1 and August 1 of each year, beginning on August 1, 2021. The 2026 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding August 1, 2025, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021, if the last reported sale price per share of Common Stock exceeds 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during five consecutive business days immediately after any five consecutive trading day period (such five consecutive trading day period, the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of the Common Stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions on the Common Stock. On or after August 1, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their 2026 Notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances. Upon conversion, the Company may satisfy its conversion obligation by paying and/or delivering, as the case may be, cash and, if applicable at the Company’s election, shares of the Common Stock, based on the applicable conversion rate(s); provided that the Company will be required to settle conversions solely in cash unless and until the Company (i) receives stockholder approval to increase the number of authorized shares of the Common Stock and (ii) reserves such amount of shares of the Common Stock for future issuance as required pursuant to the Indenture that governs the 2026 Notes. The conversion rate for the 2026 Notes will initially be 47.9731 shares of the Common Stock per $1,000 principal amount of 2026 Notes, which is equivalent to an initial conversion price of approximately $20.85 per share of the Common Stock. The initial conversion price of the 2026 Notes represents a premium of approximately 37.5% to the $15.16 per share last reported sale price of the Common Stock on February 2, 2021. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the Indenture.

The net proceeds from this offering were approximately $149.7 million, after deducting the Initial Purchasers’ discounts and commissions and the Company’s estimated offering expenses related to the offering. The Company used approximately $9.3 million of the net proceeds from the offering to pay the cost of the Notes Hedge (as defined below), after such cost is partially offset by the proceeds from the Warrant Transactions described below. The Initial Purchasers exercised their option to purchase Additional Notes in full and the Company used a portion of the net proceeds from the sale of such Additional Notes to enter into additional Notes Hedges, after such cost is partially offset by the proceeds from the additional Warrant Transactions, with the Option Counterparties (as defined below).

As of June 30, 2024, the number of authorized and unissued shares of Common Stock that are not reserved for other purposes is sufficient to settle the 2026 Notes into equity. Accordingly, the Company has the option to settle conversions of notes through payment or delivery, as the case may be, of cash, shares of Common Stock or a combination of cash and shares of Common Stock, at the Company’s election.

In accounting for the issuance of the 2026 Notes, the conversion option of the 2026 Notes was deemed an embedded derivative requiring bifurcation from the 2026 Notes (“host contract”) and separate accounting as an embedded derivative liability, as a result of the Company not having the necessary number of authorized but unissued shares of its Common Stock available to settle the conversion option of the 2026 Notes in shares. The proceeds from the 2026 Notes were first allocated to the embedded derivative liability and the remaining proceeds were then allocated to the host contract. On February 5, 2021, the fair value of the embedded derivative liability representing the conversion option was $33.2 million and the remaining $116.5 million was allocated to the host contract. The difference between the principal amount of the 2026 Notes and the fair value of the host contract (the “debt discount”) is amortized to interest expense using the effective interest method over the term of the 2026 Notes.

In the second quarter of fiscal 2022, the stockholders of the Company approved an increase to the number of authorized shares of Common Stock, to an amount sufficient to settle the conversion of the 2026 Notes. As a result of the increase to the number of authorized shares of Common Stock, the Company reclassified the embedded conversion derivative to additional paid-in capital.

As of June 30, 2024, the embedded conversion derivative is included in additional paid-in capital in the condensed consolidated balance sheets and will not be remeasured provided the requirements to qualify for the scope exception in Accounting Standards Codification (“ASC”) 815-10-15-74(a) continue to be met.

Debt issuance costs for the issuance of the 2026 Notes were approximately $5.5 million, consisting of initial purchasers' discount and other issuance costs. In accounting for the transaction costs, the Company allocated the total amount incurred to the 2026 Notes. Transaction costs were recorded as debt issuance cost (presented as contra debt in the condensed consolidated balance sheet) and are being amortized using the effective interest method to interest expense over the term of the 2026 Notes.

The following table presents the total amount of interest cost recognized relating to the 2026 Notes (amounts in thousands):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2024		2023		2024		2023
Contractual interest expense	$	289	$	454	$	880	$	1,053
Amortization of debt discount and issuance costs	2,040		1,908		6,015		5,609
Total interest expense recognized	$	2,329	$	2,362	$	6,895	$	6,662

The derived effective interest rate on the 2026 Notes host contract was determined to be 6.71%, which remains unchanged from the date of issuance. The remaining unamortized debt discount was $13.7 million as of June 30, 2024, and will be amortized over approximately 1.6 years. The fair value, based on a quoted market price (Level 2), of the 2026 Notes at June 30, 2024 was approximately $147.4 million.

Convertible Senior Notes Hedge and Warrants

In connection with the pricing of the 2026 Notes, the Company entered into transactions for convertible notes hedge (the “Notes Hedge”with Bank of America, N.A., Jefferies International Limited and Goldman Sachs & Co. LLC (the “Option Counterparties”). The Notes Hedge provided the Company with the option to acquire, on a net settlement basis, approximately 7.4 million shares of Common Stock at a strike price of $20.85, which is equal to the number of shares of Common Stock that notionally underlie and correspond to the conversion price of the 2026 Notes. The Company also entered into Warrant Transactions with the Option Counterparties relating to the same number of shares of the Common Stock, subject to customary anti-dilution adjustments. The strike price of the Warrant Transactions is $26.53 per share, which represents a 75.0% premium to the last reported sale price of the Common Stock on the Nasdaq Capital Market on February 2, 2021, and is subject to certain adjustments under the terms of the Warrant Transactions.

The Company was initially required to settle the Notes Hedge in cash, as they did not qualify for the scope exception for contracts involving an issuer’s own equity in ASC 815 and were accounted for as a derivative asset. Upon initial purchase, the Notes Hedge was recorded in convertible senior notes hedge at $33.2 million in our condensed consolidated balance sheets. In the second

quarter of fiscal 2022, the stockholders of the Company approved an increase to the number of authorized shares of Common Stock, to an amount sufficient to settle the conversion of the 2026 Notes. As a result of the increase to the number of authorized shares of Common Stock, the Company reclassified the Notes Hedge to additional paid-in capital.

As of June 30, 2024, the Notes Hedge is included in additional paid-in capital in the condensed consolidated balance sheet and will not be remeasured provided the requirements to qualify for the scope exception in ASC 815-10-15-74(a) continue to be met and the Company had not purchased any shares under the Notes Hedge.

As a result of the Warrant Transactions, the Company is required to recognize incremental dilution of earnings per share to the extent the average share price is over $26.53 for any fiscal quarter. During the three months ended June 30, 2024, there was no dilution of earnings per share. The Warrant Transactions expire over a period of 80 trading days commencing on May 1, 2026 and may be settled in net shares of Common Stock or net cash at the Company’s election. Upon initial sale, the Warrant Transactions were recorded as an increase in additional paid-in capital within stockholders’ equity of $23.9 million. As of June 30, 2024, the Warrant Transactions had not been exercised and remained outstanding.

Revolving Credit Line

On February 13, 2024, the Company entered into a Loan and Security Agreement (the “Credit Agreement”) with Silicon Valley Bank, a division of First-Citizens Bank & Trust Company (the “Bank”) that provides for a revolving line of credit whereby the Company may borrow up to $35.0 million (the “Revolving Line”) with an additional $15.0 million to be advanced under the Revolving Line at the sole discretion of the Bank. The Revolving Line is secured on a first priority basis by the Company’s assets. In connection with the Credit Agreement, the Company incurred issuance costs of $0.3 million which will be amortized to interest expense using the straight-line method over the term of the Credit Agreement.

The Revolving Line terminates, and any outstanding principal amount of all advances made thereunder, and any accrued and unpaid interest thereon, become immediately due and payable on the earlier of (a) the three year anniversary of the Closing Date and (b) the date that is within 90 days of the maturity date of the 2026 Notes if such notes are outstanding as of such date.

Borrowings under the Credit Agreement generally bear interest at a variable rate equal to (a) term SOFR plus a specified margin or (b) WSJ prime plus a specified margin, in each case which will be adjusted based on the Company’s net leverage ratio at the time of borrowing. The Company must also pay the Bank (i) a commitment fee of $87,500 and (ii) an “Unused Revolving Line Facility Fee” of 0.25% per annum of the average unused portion of the Revolving Line.

The Credit Agreement contains representations, warranties, and negative and affirmative covenants customary for transactions of this type. These include covenants limiting the ability of the Company, and any of their subsidiaries, subject to certain exceptions and baskets, to, among other things, (i) incur indebtedness, (ii) incur liens on their assets, (iii) enter into any merger or consolidation with, or acquire all or substantially all of the equity or property of, another person, (iv) dispose of any of their business or property, (v) make or permit any payment on subordinated debt, or (vi) pay any dividend, make any other distribution, or redeem any equity.

The Credit Agreement contains customary events of default and also provides that an event of default includes any default resulting in a right by third parties to accelerate maturity of indebtedness in excess of $500,000. If any event of default occurs and is not cured within applicable grace periods set forth in the Credit Agreement or waived, all loans and other obligations could become due and immediately payable and the facility could be terminated. In addition, the Company may be required to deposit cash with the Bank in an amount equal to 115% of any undrawn letters of credit denominated in a foreign currency.

The Credit Agreement requires the Company to maintain a net leverage ratio of no more than 2.25 to 1.00 and if the Company engages in a share repurchase program, the net leverage ratio may not exceed 2.00 to 1.00. As disclosed in Note 6, on May 13, 2024, the Board authorized and approved a share repurchase program for up to $50.0 million of the currently outstanding shares of Common Stock. As of June 30, 2024 the Company’s net leverage ratio was 2.02 to 1.00 and as such the Company was not in compliance with the net leverage ratio covenant of the Credit Agreement. The Company obtained a waiver from the Bank which covers the compliance period ended June 30, 2024. Additionally, as there are no outstanding borrowings under the Credit Agreement, the Company’s waived non-compliance did not trigger any adverse impacts on the Credit Agreement or the 2026 Notes.

Other Borrowings

The Company has certain loan agreements with Spanish government agencies. These agreements have repayment periods of five to twelve years and bear no interest. As of June 30, 2024, $2.3 million was outstanding under these agreements and $0.2 million and $2.1 million is recorded in other current liabilities and other non-current liabilities, respectively, in the condensed consolidated balance sheets. As of September 30, 2023, $1.3 million was outstanding under these agreements and approximately $0.2 million and $1.1 million is recorded in other current liabilities and other non-current liabilities, respectively, in the condensed consolidated balance sheets.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(1)
-Publisher FASB
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
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-Section S99
-Paragraph 1
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+ Details

REVENUE CONCENTRATION - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Sep. 30, 2023	Sep. 30, 2022
Revenue, Major Customer [Line Items]
Revenue	$ 44,976	$ 43,070	$ 128,861	$ 134,896
Accounts receivable, net	41,609	45,376	41,609	45,376	$ 32,132	$ 35,922
Customer Concentration Risk \| Sales Revenue Net
Revenue, Major Customer [Line Items]
Revenue	6,700	7,000	22,600	35,200
Customer Concentration Risk \| Accounts Receivable
Revenue, Major Customer [Line Items]
Accounts receivable, net	$ 10,800	$ 7,100	$ 10,800	$ 7,100
Customer Concentration Risk \| Customer One \| Sales Revenue Net
Revenue, Major Customer [Line Items]
Total revenue, percentage	15.00%	16.00%	18.00%	15.00%
Customer Concentration Risk \| Customer Two \| Sales Revenue Net
Revenue, Major Customer [Line Items]
Total revenue, percentage				11.00%
Geographic Concentration Risk \| Long-term Assets \| International
Revenue, Major Customer [Line Items]
Total revenue, percentage			70.00%		72.00%
Geographic Concentration Risk \| Long-term Assets, Excluding Goodwill and Other Intangibles \| International
Revenue, Major Customer [Line Items]
Total revenue, percentage			18.00%		23.00%

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Sep. 30, 2023
Current assets:
Cash and cash equivalents	$ 84,351	$ 58,913
Short-term investments	38,718	74,700
Accounts receivable, net	41,609	32,132
Contract assets, current portion	16,805	18,355
Prepaid expenses	11,520	3,513
Other current assets	2,681	2,396
Total current assets	195,684	190,009
Long-term investments	10,157	1,304
Property and equipment, net	2,597	2,829
Right-of-use assets	2,848	4,140
Intangible assets, net	55,163	64,674
Goodwill	126,271	123,548
Deferred income tax assets	13,268	11,645
Contract assets, non-current portion	1,793	5,579
Other non-current assets	1,446	1,647
Total assets	409,227	405,375
Current liabilities:
Accounts payable	6,275	7,589
Accrued payroll and related taxes	10,889	10,554
Accrued interest payable	500	305
Income tax payables	132	4,329
Deferred revenue, current portion	23,746	17,360
Lease liabilities, current portion	747	1,902
Acquisition-related contingent consideration	0	7,976
Restructuring accrual	42	0
Other current liabilities	1,577	1,482
Total current liabilities	43,908	51,497
Convertible senior notes	141,531	135,516
Deferred revenue, non-current portion	1,257	957
Lease liabilities, non-current portion	2,409	2,867
Deferred income tax liabilities	6,696	6,476
Other non-current liabilities	3,790	2,874
Total liabilities	199,591	200,187
Stockholders’ equity:
Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.001 par value, 120,000,000 and 120,000,000 shares authorized, 46,148,999 and 45,591,199 issued and outstanding, as of June 30, 2024 and September 30, 2023, respectively	46	46
Additional paid-in capital	244,110	228,691
Accumulated other comprehensive loss	(9,874)	(14,237)
Accumulated deficit	(24,646)	(9,312)
Total stockholders’ equity	209,636	205,188
Total liabilities and stockholders’ equity	$ 409,227	$ 405,375

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES Legal Proceedings Claim Against ICAR On June 11, 2018, a claim was filed before Court of First Instance 5 (Juzgado de Primera Instancia) of Barcelona, Spain, the first instance court in the Spanish civil procedure system, against ICAR Vision Systems, S.L., (“ICAR”). The claim, also directed towards Mr. Xavier Codó Grasa, the former controlling shareholder of ICAR and its current General Manager at the time the claim was filed, was brought by the Spanish company Global Equity & Corporate Consulting, S.L. for an alleged breach by ICAR of a services agreement entered into in the context of the sale of all of the shares in ICAR to Mitek Holding B.V., a wholly owned subsidiary of the Company. ICAR responded to the claim on September 7, 2018. After several postponements as a consequence of the COVID-19 pandemic, on March 3, 2022 the trial was held. On June 7, 2022, the Court of First Instance 5 of Barcelona issued a judgment which fully upheld the claim and declared that Mr. Xavier Codó Grasa and ICAR had to pay the amount and damages claimed by Global Equity & Corporate Consulting, S.L. equal to €0.8 million (or $0.8 million as of June 30, 2024), plus the interest accrued and the legal fees. ICAR and Mr Xavier Codó Grasa submitted an appeal against this judgment on July 13, 2022. Global Equity & Corporate Consulting, S.L. filed an opposition to that appeal on September 2, 2022. The next procedural step will be the voting and issuing of the ruling on the appeal. Global Equity & Corporate Consulting, S.L. requested the provisional enforcement of the judgment, asking ICAR and Mr. Xavier Codó Grasa to deposit the damages awarded plus 30% to cover the possible interests that may continue to accrue during the appeal (€1.1 million in total) with the Court. According to the terms of the sale and purchase agreement concerning the acquisition of the shares in ICAR, Mitek Holding B.V. is to be indemnified in respect of any damages suffered by ICAR and/or Mitek Holding B.V. in respect of this claim. As a consequence, the escrow (€0.9 million) was released pursuant to the provisional enforcement of the judgment, and Mr. Xavier Codó Grasa deposited the remaining €0.2 million. Global Equity & Corporate Consulting, S.L. also requested that ICAR and Mr. Xavier Codó Grasa bear the costs of the provisional enforcement. This amounted to €16,475 for the accrued interests and €10,995 as legal costs. ICAR and Mr. Xavier Codó Grasa have complied with this request, having such amounts charged to the damages deposited with the Court. Third Party Claims Against the Company’s Customers The Company receives indemnification demands from end-user customers who received third party patentee offers to license patents and allegations of patent infringement. Some of the offers and allegations have resulted in ongoing litigation. The Company is not a party to any such litigation. License offers to and infringement allegations against the Company’s end-customers were made by Lighthouse Consulting Group, LLC; Lupercal, LLC; Pebble Tide, LLC; Dominion Harbor Group, LLC; and IP Edge, LLC, which appear to be non-practicing entities (“NPEs”)—often called “patent trolls”—and not the Company’s competitors. These NPEs may seek to extract settlements from our end-customers, resulting in new or renewed indemnification demands to the Company. At this time, the Company does not believe it is obligated to indemnify any customers or end-customers resulting from license offers or patent infringement allegations by the companies listed above. However, the Company could incur substantial costs if it is determined that it is required to indemnify any customers or end-customers in connection with these offers or allegations. Given the potential for impact to other customers and the industry, the Company is actively monitoring the offers, allegations and any resulting litigation. On July 7, 2018, United Services Automobile Association (“USAA”) filed a lawsuit against Wells Fargo Bank, N.A. (“Wells Fargo”) in the Eastern District of Texas alleging that Wells Fargo’s remote deposit capture systems (which in part utilize technology provided by the Company to Wells Fargo through a partner) infringe four USAA owned patents related to mobile deposits (the “First Wells Lawsuit”). On August 17, 2018, USAA filed a second lawsuit (the “Second Wells Lawsuit” and together with the First Wells Lawsuit, the “Wells Lawsuits”) against Wells Fargo in the Eastern District of Texas asserting that an additional five patents owned by USAA were infringed by Wells Fargo’s remote deposit capture system. In neither lawsuit was the Company named in the Complaint as an infringer nor at any time did USAA allege specifically that the Company’s products by themselves infringed any of the asserted patents. Subsequently, on November 6, 2019, a jury in the First Wells Lawsuit found that Wells Fargo willfully infringed at least one of the Subject Patents (as defined below) and awarded USAA $200 million in damages. In the Second Wells Lawsuit, USAA dropped two of the patents from the litigation, and the judge in the case found that one of the remaining three patents was invalid. On January 10, 2020, a jury in the Second Wells Lawsuit found that Wells Fargo willfully infringed at least one of the patents at issue in that case and awarded USAA $102 million in damages. No Mitek product was accused of infringing either of the two patents in question in the Second Wells Lawsuit as the litigation involved broad banking processes and not the Company’s specific mobile deposit features. USAA and Wells Fargo subsequently reached a settlement, and on April 1, 2021 the Court granted the parties’ joint motion and stipulation of dismissal of the Wells Lawsuits with prejudice. Wells Fargo filed petitions for Inter Partes Review (“IPR”) with the Patent Trial and Appeal Board (“PTAB”) challenging the validity of the four patents in the First Wells Lawsuit. Three of those four petitions were instituted, while one (relating to U.S. Patent No. 9,818,090 (“the ‘090 Patent”)) was denied institution. On November 24, 2020, and January 26, 2021, the PTAB issued final written decisions determining that Wells Fargo had not demonstrated by a preponderance of the evidence that any claims of the U.S. Patent Nos. 8,977,571 (“the ‘571 Patent”), 8,699,779 (“the ‘779 Patent”), or 9,336,517 (“the ‘517 Patent”) were unpatentable. On September 30, 2020, USAA filed suit against PNC Bank (the “First PNC Lawsuit”) in the Eastern District of Texas alleging infringement of U.S. Patent Nos. 10,482,432 (“the ‘432 Patent”) and 10,621,559. These two patents are continuations of an asserted patent in the Second Wells Lawsuit and relate to similar subject matter. On October 19, 2020, PNC Bank’s integration partner, NCR Corporation, sent an indemnification demand to the Company requesting indemnification from all claims related to the First PNC Lawsuit. The complaint against PNC Bank does not claim that any Company product infringes any of the asserted patents. At this time, the Company does not believe it is obligated to indemnify NCR Corporation or end-users of NCR Corporation resulting from the patent infringement allegations by USAA. On December 4, 2020, USAA filed an amended complaint against PNC Bank also asserting two patents at issue in the First Wells Lawsuit—the ’779 Patent and the ’571 Patent. On February 2, 2021, NCR Corporation sent a second indemnification demand to the Company requesting indemnification of the claims described in the amended complaint. On March 31, 2021, USAA filed another suit against PNC Bank in the Eastern District of Texas alleging infringement of two patents from the Second Wells Lawsuit, U.S. Patent Nos. 10,013,605 (“the ‘605 Patent”) and 10,013,681 (“the ‘681 Patent”) (the “Second PNC Lawsuit”). On July 7, 2021, USAA filed a third lawsuit against PNC Bank (the “Third PNC Lawsuit” and together with the First PNC Lawsuit and the Second PNC Lawsuit, the “PNC Lawsuits”) asserting infringement of U.S. Patents 10,769,598; 10,402,638; and 9,224,136. A jury trial was held in May 2022 on the consolidated First PNC Lawsuit and Second PNC Lawsuit. The jury found that PNC willfully infringed at least one patent claim and awarded USAA $218 million in damages. The Court denied PNC Bank’s equitable defenses and entered a Final Judgment in the consolidated First PNC Lawsuit and Second PNC Lawsuit on August 19, 2022. A jury trial was held in September 2022 on the Third PNC Lawsuit. The jury found that PNC infringed at least one patent claim and awarded USAA $4.3 million in damages. The Court entered a Final Judgment in the Third PNC Lawsuit on February 16, 2023. While neither the Wells Lawsuits nor the PNC Lawsuits name the Company as a defendant, given (among other factors) the Company’s prior history of litigation with USAA and the continued use of the Company’s products by its customers, on November 1, 2019, the Company filed a complaint in the U.S. District Court for the Northern District of California seeking declaratory judgment that its products do not infringe the ’779 Patent, the ’571 Patent, the ’517 Patent, and the ’090 Patent (collectively, the “Subject Patents”). On January 15, 2020, USAA filed motions requesting the dismissal of the declaratory judgement of the Subject Patents and transfer of the case to the Eastern District of Texas, both of which the Company opposed. On April 21, 2020, the Court in the Northern District of California transferred the Company’s declaratory judgement action to the Eastern District of Texas and did not rule on USAA’s motion to dismiss. On April 28, 2021, the Court in the Eastern District of Texas granted USAA’s motion to dismiss the Company’s declaratory judgment action on jurisdictional grounds. The Court’s ruling did not address the merits of the Company’s claim of non-infringement. The Company appealed the ruling on the motion to dismiss and the decision to transfer the declaratory judgment action from California to Texas to the U.S. Court of Appeals for the Federal Circuit. The Federal Circuit heard oral argument on the Company’s appeal on April 4, 2022 and on May 20 2022, issued an opinion vacating and remanding the district court’s order granting USAA’s motion to dismiss. On August 1, 2022, the parties submitted additional briefing to the district court in light of Federal Circuit’s opinion. The court held another hearing on USAA’s motion to dismiss the Company’s declaratory judgment action on jurisdictional grounds, and once again granted USAA’s motion to dismiss on February 23, 2023. The Company timely filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit. The appeal is fully briefed, and the Company is awaiting oral argument. The Company continues to believe that its products do not infringe the Subject Patents and will vigorously defend the right of its end-users to use its technology. In April, May, and June 2020, the Company filed petitions for IPR with the PTAB of the U.S. Patent & Trademark Office challenging the validity of the Subject Patents. On November 6 and 17, 2020, the PTAB decided to exercise its discretion and deny institution of the four petitions due to the alleged relationship between the Company and Wells Fargo, who previously filed petitions for IPR on the Subject Patents. The PTAB did not address the merits of the Company’s petitions or the prior art cited in those petitions. The Company continues to believe that the prior art cited in the petitions renders all the claims of the Subject Patents invalid. On each of December 6, 2020, December 17, 2020, and February 23, 2021, the Company filed requests for rehearing and Precedential Opinion Panel (“POP”) review of the four denied IPR petitions. The Patent Office denied the requests for rehearing and for POP review. In September 2020, the Company filed an additional two petitions for IPR with the U.S. Patent & Trademark Office challenging the validity of the ‘681 Patent and the ‘605 Patent—two of the patents at issue in the Second Wells Lawsuit. In March 2021, the PTAB decided not to institute the two petitions. On July 7, July 14, and July 21 2021, PNC Bank filed six additional petitions for IPR with the U.S. Patent & Trademark Office challenging the validity of the ’779 Patent, the ’571 Patent, the ‘559 Patent, and the ‘432 Patent. On August 27, 2021, PNC filed two additional petitions for IPR challenging the validity of the ‘681 Patent and the ‘605 Patent. In October and November of 2021, PNC Bank filed four more petitions for IPR challenging the validity of the ‘638 Patent, the ‘136 Patent, and the ‘598 Patent. The Patent Office denied institution with respect to the petitions challenging the ‘432 Patent, the ‘605 Patent, the ‘681 Patent, and the ‘638 Patent, but instituted inter partes review on the petitions relating to the ‘779 Patent, the ‘571 Patent, the ‘559 Patent, and the ‘598 Patent—finding a reasonable likelihood that at least one challenged patent claim was invalid. The U.S. Patent & Trademark Office issued a final written decision in each of the IPRs challenging the ‘779 Patent, the ‘571 Patent, and the ‘559 Patent and found all challenged claims of each patent unpatentable. USAA filed requests for rehearing and requests for POP review. The requests for POP review and for rehearing were denied in March 2023. On August 16, 2021, USAA filed suit against BBVA USA (“BBVA”) in the Eastern District of Texas alleging infringement of the same patents at issue in the PNC Lawsuits. While the Company’s IPR petitions were mentioned in the complaint, the Company was not named as a defendant or mentioned in connection with any alleged infringement. BBVA then sent the Company an indemnification demand on September 7, 2021. For the same reasons discussed above in connection with PNC Bank and the PNC Lawsuits, the Company does not believe it is obligated to indemnify BBVA. On June 6, 2022, the Court granted the parties’ request to administratively close the case and stay all deadlines in view of the pending appeal in the PNC Lawsuits. On July 29, 2022, USAA filed another patent infringement lawsuit against Truist Bank (“Truist”) in the Eastern District of Texas. The lawsuit alleges infringement of the ’090 Patent, the ’432 Patent, and the U.S. Patent No. 11,182,753 (“the ’753 Patent”). The Company was not named as a defendant or mentioned in connection with any alleged infringement. On October 5, 2022, Truist’s integration partner, NCR Corporation, sent an indemnification demand to the Company requesting indemnification from all claims related to the lawsuit. For the same reasons discussed above in connection with the PNC Lawsuits, the Company does not believe it is obligated to indemnify NCR Corporation or end-users of NCR Corporation resulting from the patent infringement allegations by USAA. On October 7, 2022, Truist filed a motion to transfer venue to the Western District of North Carolina. The motion was denied on April 8, 2023. On December 30, 2022, Truist filed a motion for leave to file counterclaims against USAA alleging patent infringement of U.S. Patent Nos. 7,336,813; 7,519,214; 8,136,721; and 9,760,797, which was granted on April 8, 2023. On March 13, 2023, USAA moved for leave to file a First Amended Complaint, adding an additional allegation of patent infringement of U.S. Patent No. 11,544,944 (“the ’944 Patent”). On April 4, 2023, Truist sent another indemnification demand to the Company requesting indemnification related to the lawsuit. On May 3, 2023, USAA moved for leave to file a Second Amended Complaint, adding an additional allegation of patent infringement of U.S. Patent No. 11,625,770 (“the ’770 Patent”). On May 30, 2023, Truist sent another indemnification demand to the Company requesting indemnification related to the Second Amended Complaint. On October 6, 2023, the parties filed a Notice of Settlement and Joint Motion and Stipulation of Dismissal. All claims and causes of action between the parties were dismissed with prejudice on October 10, 2023 in view of the settlement. In October and November of 2022, Truist filed a petition for IPR with the U.S. Patent & Trademark Office challenging the validity of the ’090 Patent, the ’432 Patent, and the ’753 Patent. The Patent Office instituted the petitions directed to the ’090 and ’753 Patents, but denied institution of the petition directed to the ’432 Patent. In view of the settlement between USAA and Truist, the IPRs were withdrawn. The Company incurred legal fees of $0.1 million and $0.9 million in the three and nine months ended June 30, 2024, respectively, related to third party claims against our customers. Such fees are included in general and administrative expenses in the condensed consolidated statement of operations and comprehensive income (loss). Claim Against UrbanFT, Inc. On July 31, 2019, the Company filed a lawsuit against one of its customers, UrbanFT, Inc. (“UrbanFT”) in the United States District Court for the Southern District of California (case No. 19-CV-1432-CAB-DEB). UrbanFT is delinquent in payment and attempted to justify its non-payment by asserting that the Company is or may be infringing on purported UrbanFT patents. The Company filed such lawsuit to collect the delinquent payments and to obtain a declaratory judgment of non-infringement of five purported UrbanFT patents. UrbanFT filed an answer and later asserted infringement of two of the five patents-at-issue in the Company’s lawsuit against UrbanFT. The Company thereafter filed counterclaims seeking a declaration that the two patents now asserted by UrbanFT are invalid in addition to being not infringed. During the course of the litigation, the Company learned that a judgment had been entered against UrbanFT’s affiliates and its predecessor owner in which an Oregon court ordered that the patents in issue revert to a prior owner, Mr. Stevens, because UrbanFT’s affiliates did not pay the purchase price owed to the prior owner. On September 8, 2020, the Company filed a motion for summary judgment on its breach of contract claim. On September 15, 2020, the district court issued an order to show cause regarding jurisdiction over patent issues in light of the Oregon judgment. On December 17, 2020, the district court dismissed Mitek’s claims for declaratory judgment of non-infringement and UrbanFT’s counterclaims for patent infringement and related affirmative defenses based on infringement of the patents for lack of subject matter jurisdiction because UrbanFT does not own the patents. The district court then dismissed the remaining state law claims without prejudice to refiling in state court. On December 18, 2020, the Company filed a new suit against UrbanFT in the Superior Court of the State of California, County of San Diego (case no. 37-2020-00046670-CU-BC-CTL) asserting claims for breach of contract, open book account, and monetary damages. UrbanFT filed an answer and did not assert any cross-claims. The Company filed a motion for summary judgment which was heard on April 15, 2022. The Court granted the Company’s motion and on June 2, 2022, entered a judgment in favor of the Company for $1.7 million in compensatory damages, plus costs, including attorney’s fees. The Court awarded the Company $2,600 in costs plus $0.6 million in attorneys’ fees for a total judgment of $2.3 million. The time for UrbanFT to appeal the $1.7 million in compensatory damage judgment has expired but the time for UrbanFT to appeal the attorneys’ fee and cost award has not. No appeal has been filed. On August 2, 2023, the Company filed a separate lawsuit against Richard Steggall, UFT (North America), LLC fka Urban FT LLC; Urban FT Group, Inc; Urban FT Client Solutions, LLC; UFT Professional Services, LLC; and X-35 Financial Technologies, in the San Diego Superior Court, (case No. 37-2023-00033005-CU-FR-CTL) (“Fraud Conveyance Action”). The Fraud Conveyance Action alleges that the Mr. Steggall orchestrated a scheme to strip UFT (North America), LLC of any assets and effectively transfer the Urban FT business to other entities he owns and controls, all to avoid the Company’s collection efforts. The Fraud Conveyance Action also alleges that Mr. Steggall funnels Urban FT’s revenues through a web of other entities he owns and controls, all to ensure that creditors, including the Company, cannot collect their debts. The parties have started discovery. On February 23, 2024, the Court set the Fraud Conveyance Action for trial on March 14, 2025. Separately, the Company filed two motions to compel discovery set for April 12, 2024. The defendants have filed a motion to quash the Company’s subpoena to Chase Bank and the defendants filed an Order to Show Cause to hold the Company in contempt for violating the parties’ Protective Order. The Company anticipates filing its own motion for sanctions against defendants for their frivolous contempt motion. On April 12, 2024, the Court granted the Company’s two motions to compel discovery and the parties are presently working through various issues in Urban FT’s discovery responses following the Court granting the motions to compel. Separately, the parties agreed to withdraw: (1) the subpoena to Chase Bank; (2) the motion to quash the subpoena to Chase Bank; (3) the Order to Show cause to hold Company in contempt; and (4) the Company’s motion for sanctions in response to the contempt motion. The parties are also pursuing other discovery and preparing for trial which is set in March 2025. Other Legal Matters In addition to the foregoing, the Company is subject to various claims and legal proceedings arising in the ordinary course of its business. The Company accrues for such liabilities when it is both (i) probable that a loss has occurred and (ii) the amount of the loss can be reasonably estimated in accordance with ASC 450, Contingencies. While any legal proceeding has an element of uncertainty, the Company believes that the disposition of such matters, in the aggregate, will not have a material effect on the Company’s financial condition or results of operations.

DEBT - Carrying Value of 2026 Notes (Details) - Convertible Debt - 2026 Notes - USD ($)	Jun. 30, 2024	Sep. 30, 2023	Feb. 28, 2021	Feb. 05, 2021
Debt Instrument [Line Items]
Debt interest rate (as a percent)	0.75%			0.75%
Debt issued	$ 155,300,000		$ 155,300,000
Principal amount	155,250,000	$ 155,250,000
Less: unamortized discount and issuance costs, net of amortization	(13,719,000)	(19,734,000)
Carrying amount	$ 141,531,000	$ 135,516,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

- Definition

Amount of unamortized debt discount (premium) and debt issuance costs.

+ References + Details

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

DEBT - Narrative (Details)								3 Months Ended	9 Months Ended
DEBT - Narrative (Details)	Feb. 13, 2024 USD ($)	Feb. 05, 2021 USD ($) $ / shares	Feb. 05, 2021 USD ($) shares $ / shares	Feb. 05, 2021 USD ($) $ / shares	Feb. 05, 2021 USD ($) $ / shares	Feb. 05, 2021 USD ($) tradingDay $ / shares	Feb. 05, 2021 USD ($) businessDay $ / shares	Jun. 30, 2024 USD ($) shares	Jun. 30, 2024 USD ($) shares	Sep. 30, 2023 USD ($)	Jan. 13, 2023	Feb. 28, 2021 USD ($)	Feb. 02, 2021 $ / shares
Debt Instrument [Line Items]
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]								Convertible senior notes	Convertible senior notes
Spanish Government Agencies \| HooYu
Debt Instrument [Line Items]
Debt interest rate (as a percent)								0.00%	0.00%
Amount outstanding under loan agreement								$ 2,300,000	$ 2,300,000	$ 1,300,000
Spanish Government Agencies \| HooYu \| Other current liabilities
Debt Instrument [Line Items]
Current loans payable								200,000	200,000	200,000
Spanish Government Agencies \| HooYu \| Other non-current liabilities
Debt Instrument [Line Items]
Noncurrent loans payable								$ 2,100,000	$ 2,100,000	1,100,000
Spanish Government Agencies \| Minimum \| HooYu
Debt Instrument [Line Items]
Term of loan agreement (in years)									5 years
Spanish Government Agencies \| Maximum \| HooYu
Debt Instrument [Line Items]
Term of loan agreement (in years)									12 years
Revolving Credit Facility
Debt Instrument [Line Items]
Unused revolving line facility fee (as a percent)	0.25%
Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Debt issuance costs	$ 300,000
Maximum borrowing capacity	35,000,000
Additional value, line of credit facility, maximum borrowing capacity	15,000,000
Commitment fees	87,500
Indebtedness amount	$ 500,000
Maximum net leverage ratio								2.25	2.25
Maximum net leverage ratio if engaged in a share purchase program								2.00	2.00
Net leverage ratio								2.02	2.02
Carrying amount								$ 0	$ 0
Foreign Letter Of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Cash deposit, percentage	115.00%
2026 Notes \| Significant Other Observable Inputs (Level 2)
Debt Instrument [Line Items]
Fair value								147,400,000	147,400,000
2026 Notes \| Convertible Debt
Debt Instrument [Line Items]
Debt issued								$ 155,300,000	$ 155,300,000			$ 155,300,000
Debt interest rate (as a percent)		0.75%	0.75%	0.75%	0.75%	0.75%	0.75%	0.75%	0.75%
Debt conversion ratio (per $1,000 principal amount)					0.0479731000
Debt conversion price (in dollars per share) \| $ / shares		$ 20.85	$ 20.85	$ 20.85	$ 20.85	$ 20.85	$ 20.85
Conversion price premium percentage													37.50%
Proceeds from debt offerings, net of discounts, commissions and expenses				$ 149,700,000
Debt issuance costs		$ 5,500,000	$ 5,500,000	$ 5,500,000	$ 5,500,000	$ 5,500,000	$ 5,500,000
Remaining unamortized debt discount								$ 13,719,000	$ 13,719,000	19,734,000
Carrying amount								$ 141,531,000	$ 141,531,000	$ 135,516,000
2026 Notes \| Convertible Debt \| Common Stock
Debt Instrument [Line Items]
Share price (in dollars per share) \| $ / shares													$ 15.16
2026 Notes \| Convertible Debt \| During any calendar quarter commencing after the calendar quarter ending on June 30, 2021
Debt Instrument [Line Items]
Debt conversion price percentage		130.00%	130.00%	130.00%	130.00%	130.00%	130.00%
Trading days in period (in days) \| tradingDay						20
Consecutive trading days in period (in days) \| tradingDay						30
2026 Notes \| Convertible Debt \| Measurement period
Debt Instrument [Line Items]
Debt conversion price percentage		98.00%	98.00%	98.00%	98.00%	98.00%	98.00%
Consecutive trading days in period (in days)						5	5
2026 Notes \| Convertible Debt \| Embedded Derivative Financial Instruments
Debt Instrument [Line Items]
Payment costs related to hedge transactions				$ 9,300,000
Embedded derivative, fair value of embedded derivative liability		$ 33,200,000	$ 33,200,000	33,200,000	$ 33,200,000	$ 33,200,000	$ 33,200,000
Value of remaining embedded derivative allocated to host contract		$ 116,500,000	116,500,000	116,500,000	116,500,000	116,500,000	116,500,000
Derivative interest rate								6.71%	6.71%
Remaining unamortized debt discount								$ 13,700,000	$ 13,700,000
Remaining debt discount amortization period (in years)									1 year 7 months 6 days
2026 Notes \| Convertible Debt \| Interest Rate Period One
Debt Instrument [Line Items]
Additional interest percentage											0.25%
Interest rate threshold period											90 days
2026 Notes \| Convertible Debt \| Interest Rate Period Two
Debt Instrument [Line Items]
Additional interest percentage											0.50%
Interest rate threshold period											180 days
Additional Notes \| Convertible Debt
Debt Instrument [Line Items]
Option period to purchase additional notes (in days)		13 days
Additional aggregate principal amount purchased		$ 20,250,000	$ 20,250,000	$ 20,250,000	$ 20,250,000	$ 20,250,000	$ 20,250,000
Notes Hedge \| Convertible Debt
Debt Instrument [Line Items]
Debt conversion price (in dollars per share) \| $ / shares		$ 20.85	$ 20.85	$ 20.85	$ 20.85	$ 20.85	$ 20.85
Conversion price premium percentage													75.00%
Number of shares that can initially be converted into common stock (in shares) \| shares			7,400,000
Strike price of warrants (in dollar per share) \| $ / shares		$ 26.53	$ 26.53	$ 26.53	$ 26.53	$ 26.53	$ 26.53
Senior notes hedge balance		$ 33,200,000	$ 33,200,000	$ 33,200,000	$ 33,200,000	$ 33,200,000	$ 33,200,000
Shares purchased under the notes hedge (in shares) \| shares									0
Increase in additional paid-in-capital for sale or warrants				$ 23,900,000
Warrants exercised (in shares) \| shares									0
Warrants outstanding (in shares) \| shares								0	0
Notes Hedge \| Convertible Debt \| Observation period
Debt Instrument [Line Items]
Consecutive trading days in period (in days) \| tradingDay						80
Incremental dilution of earnings per share of warrants (in shares) \| shares								0

STOCKHOLDERS’ EQUITY

9 Months Ended

Jun. 30, 2024

Equity [Abstract]

STOCKHOLDERS’ EQUITY

6. STOCKHOLDERS’ EQUITY

Stock-Based Compensation Expense


	Three Months Ended June 30,				Nine Months Ended June 30,
	2024		2023		2024		2023
Cost of revenue	$	194	$	124	$	447	$	316
Selling and marketing	818		885		2,579		2,423
Research and development	1,344		644		3,751		2,097
General and administrative	1,229		991		4,124		2,954
Stock-based compensation expense included in expenses	$	3,585	$	2,644	$	10,901	$	7,790

As of June 30, 2024, the Company had $25.4 million of unrecognized compensation expense expected to be recognized over a weighted-average period of approximately 2.4 years.

2020 Incentive Plan

In January 2020, the Company’s Board of Directors (the “Board”) adopted the Mitek Systems, Inc. 2020 Incentive Plan (the “2020 Plan”) upon the recommendation of the Compensation Committee of the Board. On March 4, 2020, the Company’s stockholders approved the 2020 Plan. The total number of shares of Common Stock reserved for issuance under the 2020 Plan is 4,500,000 shares plus such number of shares, not to exceed 107,903, as remained available for issuance under the 2002 Stock Option Plan, 2006 Stock Option Plan, 2010 Stock Option Plan, and 2012 Incentive Plan (collectively, the “Prior Plans”) as of January 17, 2020, plus any shares underlying awards under the Prior Plans that are terminated, forfeited, cancelled, expire unexercised or are settled in cash after January 17, 2020. As of June 30, 2024, (i) 2,218,360 RSUs and 879,598 performance-based restricted stock unit awards (“Performance RSUs”) were outstanding under the 2020 Plan, (ii) 4,435,200 shares of Common Stock were reserved for future grants under the 2020 Plan, and (iii) stock options to purchase an aggregate of 265,656 shares of Common Stock and no RSUs were outstanding under the Prior Plans.

On October 2, 2023, the Company held an annual meeting of its stockholders (the “Annual Meeting”). At the Annual Meeting, the Company’s stockholders approved an amendment and restatement of the 2020 Plan to increase the number of shares authorized for issuance thereunder by 5,108,000 shares (the 2020 Plan as so amended and restated, the “A&R 2020 Plan”).

The A&R 2020 Plan had been previously approved, subject to stockholder approval, by the Company’s Board of Directors (the “Board”), upon recommendation of the Compensation Committee of the Board, on August 9, 2023. A summary of the A&R 2020 Plan was included in the Company’s definitive proxy statement for the Annual Meeting filed with the U.S. Securities and Exchange Commission on August 22, 2023, as supplemented and amended on September 19, 2023 (the “Proxy Statement”).

Employee Stock Purchase Plan

In January 2018, the Board adopted the ESPP. On March 7, 2018, the Company’s stockholders approved the ESPP. The total number of shares of Common Stock reserved for issuance thereunder is 1,000,000 shares. As of June 30, 2024, (i) 729,124 shares have been issued to participants pursuant to the ESPP and (ii) 270,876 shares of Common Stock were reserved for future purchases under the ESPP. The Company commenced the initial offering period on April 2, 2018.

The ESPP enables eligible employees to purchase shares of Common Stock at a discount from the market price through payroll deductions, subject to certain limitations. Eligible employees may elect to participate in the ESPP only during an open enrollment period. The offering period immediately follows the open enrollment window, at which time ESPP contributions are withheld from the participant's regular paycheck. The ESPP provides for a 15% discount on the market value of the stock at the lower of the grant date price (first day of the offering period) and the purchase date price (last day of the offering period). Stock-based compensation expense related to the ESPP was immaterial in each of the three months ended June 30, 2024 and 2023. The Company recognized $0.2 million in stock-based compensation expense related to the ESPP in each of the nine months ended June 30, 2024 and 2023.

Director Restricted Stock Unit Plan

In January 2011, the Board adopted the Mitek Systems, Inc. Director Restricted Stock Unit Plan, as amended and restated (the “Director Plan”). On March 10, 2017, the Company’s stockholders approved an amendment to the Director Plan to increase the number of shares of Common Stock available for future grants. The total number of shares of Common Stock reserved for issuance thereunder is 1,500,000 shares. The Director Plan expired on December 31, 2022. As of June 30, 2024, (i) 166,986 RSUs were outstanding under the Director Plan and (ii) no shares of Common Stock were reserved for future grants under the Director Plan.

Stock Options

The following table summarizes stock option activity under the Company’s equity plans during the nine months ended June 30, 2024:


	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at September 30, 2023	651,269	$	7.37	3.6	$	2,185
Granted	—	—
Exercised	(168,434)	6.21			833
Canceled	—	—
Outstanding at June 30, 2024	482,835	7.77		2.8	1,648
Vested and Expected to Vest at June 30, 2024	482,835	7.77		2.8	1,648
Exercisable at June 30, 2024	482,835	7.77		2.8	1,648

Stock-based compensation expense related to outstanding stock options was immaterial during each of the three and nine months ended June 30, 2024 and 2023. As of June 30, 2024, the Company had no unrecognized compensation expense related to outstanding stock options.

Aggregate intrinsic value represents the value of the Company’s closing stock price on the last trading day of the fiscal period in excess of the weighted-average exercise price, multiplied by the number of options outstanding and exercisable. There were no options granted during either of the nine months ended June 30, 2024 or 2023.

Restricted Stock Units

The following table summarizes RSU activity under the Company’s equity plans during the nine months ended June 30, 2024:


	Number of Shares	Weighted-Average Fair Market Value Per Share
Outstanding at September 30, 2023	2,188,296	$	11.49
Granted	1,278,764	11.36
Settled	(670,167)	11.13
Canceled	(411,547)	12.16
Outstanding at June 30, 2024	2,385,346	11.38

The cost of RSUs is determined using the fair value of Common Stock on the award date, and the compensation expense is recognized ratably over the vesting period. The Company recognized $1.9 million in stock-based compensation expense related to outstanding RSUs during each of the three months ended June 30, 2024 and 2023. The Company recognized $6.8 million and $5.4 million in stock-based compensation expense related to outstanding RSUs during the nine months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, the Company had $19.6 million of unrecognized compensation expense related to outstanding RSUs expected to be recognized over a weighted-average period of approximately 2.5 years.

Performance Restricted Stock Units

The following table summarizes Performance RSU activity under the Company’s equity plans during the nine months ended June 30, 2024:


	Number of Shares	Weighted-Average Fair Market Value Per Share
Outstanding at September 30, 2023	730,393	$	13.37
Granted	818,587	11.12
Settled	(232,969)	10.11
Canceled	(436,413)	13.40
Outstanding at June 30, 2024	879,598	12.12

The cost of Performance RSUs is determined using a Monte Carlo simulation to estimate the fair value on the award date, and the compensation expense is recognized ratably over the vesting period. The Company recognized $0.6 million in stock-based compensation expense related to outstanding Performance RSUs during each of the three months ended June 30, 2024 and 2023. The Company recognized $2.9 million and $2.0 million in stock-based compensation expense related to outstanding Performance RSUs during the nine months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, the Company had $5.8 million of unrecognized compensation expense related to outstanding RSUs expected to be recognized over a weighted-average period of approximately 1.8 years.

Performance Options

On November 6, 2018, as an inducement grant pursuant to Nasdaq Listing Rule 5635(c)(4), the Company’s Chief Executive Officer was granted performance options (the “Performance Options”) to purchase up to 800,000 shares of Common Stock at an exercise price of $9.50 per share, the closing market price for a share of Common Stock on the date of the grant. In November 2021, the time vesting condition was met and during the fiscal year ended September 30, 2022, the performance conditions were achieved and the performance options vested in full. On May 31, 2024, the Company’s Chief Executive Officer was terminated and in connection with their termination the Company’s Board of Director’s extended the exercise period from the standard 90 days post-termination to September 30, 2025. As a result, the Company recognized a one-time expense of $1.0 million related to the outstanding Performance Options during each of the three and nine months ended June 30, 2024. The Company did not recognize any stock-based compensation expense related to outstanding Performance Options during each of the three and nine months ended June 30, 2023.

Share Repurchase Program

On May 13, 2024, the Board authorized and approved a share repurchase program for up to $50.0 million of the currently outstanding shares of our Common Stock. The share repurchase program was effective as of May 16, 2024 and will expire on May 16, 2026. The timing, price and actual number of shares of Common Stock repurchased will depend on a variety of factors including price, market conditions and corporate and regulatory requirements. The repurchases may be made from time (i) through open market purchases, block trades, privately negotiated transactions, one or more trading plans adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or any combination of the foregoing, in each case in accordance with applicable laws, rules and regulations or (ii) in such other manner as will comply with the provisions of the Exchange Act. The share repurchase program does not require the Company to repurchase shares of its Common Stock and it may be discontinued, suspended or amended at any time.

The Company made purchases of $10.0 million, or 819,623 shares, during each of the three and nine months ended June 30, 2024 at an average price of $12.25 per share and subsequently retired the shares.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI https://asc.fasb.org/505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

REVENUE CONCENTRATION

9 Months Ended

Jun. 30, 2024

Risks and Uncertainties [Abstract]

REVENUE CONCENTRATION

11. REVENUE CONCENTRATION

For the three months ended June 30, 2024, the Company derived revenue of $6.7 million from one customer, with such customer accounting for 15% of the Company’s total revenue. For the three months ended June 30, 2023, the Company derived revenue of $7.0 million from one customer, with such customer accounting for 16% of the Company’s total revenue. For the nine months ended June 30, 2024, the Company derived revenue of $22.6 million from one customer, with such customer accounting for 18% of the Company’s total revenue. For the nine months ended June 30, 2023 the Company derived revenue of $35.2 million from two customers, with each such customer accounting for 15% and 11% of the Company’s total revenue, respectively. The corresponding accounts receivable balances of customers from which revenues were in excess of 10% of total revenue were $10.8 million and $7.1 million at June 30, 2024 and 2023, respectively.

From a geographic perspective, approximately 70% and 72% of the Company’s total long-term assets as of June 30, 2024 and September 30, 2023, respectively, are associated with the Company’s international subsidiaries. From a geographic perspective, approximately 18% and 23% of the Company’s total long-term assets excluding goodwill and other intangible assets as of June 30, 2024 and September 30, 2023, respectively, are associated with the Company’s international subsidiaries.

The United States was the only country that accounted for more than 10% of the Company’s revenue in each of the three months ended June 30, 2024 and June 30, 2023. The United States and the United Kingdom were the only countries that accounted for more than 10% of the Company’s revenue in the nine months ended June 30, 2024. The United States was the only country that accounted for more than 10% of the Company’s revenue in the nine months ended June 30, 2023. Revenue for the three and nine months ended June 30, 2024 and 2023 were as follows (amounts in thousands):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2024		2023		2024		2023
United States	$	35,902	$	32,742	$	102,193	$	107,975
United Kingdom	*		*		12,587		*
All other countries	9,074		10,328		14,081		26,921
Total revenue	$	44,976	$	43,070	$	128,861	$	134,896

*Revenues from the United Kingdom were not greater than 10% of the Company’s total revenue for this period.