Mitek Systems

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 11 Dec 2025, plus the 10-Q filed 6 Aug 2026 and 6 later 8-Ks.

Cheap for a reason is the question the numbers cannot answer.

Whether the price already reflects the risks is what the deep dive is for.

• Our ability to adopt and deploy AI and other new technologies may impact demand for our products and services and impact our internal operations.

  Could happen

  If we do not successfully adopt or integrate new technologies, including generative AI, our offerings may become unreliable or uncompetitive. Competitors may develop or commercialize AI-enabled technologies more quickly or effectively than we do. In addition, use of AI to support our internal operations carries risks, such as unauthorized transmission of sensitive information, flawed outputs due to inaccurate data, and operational vulnerabilities that may affect customers, partners, or suppliers. Because AI and other emerging technologies are complex and developing quickly, we cannot predict all related risks, which could materially and adversely affect our business.

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• Our solutions depend on compatibility with third-party mobile operating systems and hardware. Changes in such systems could disrupt our business.

  Could happen

  We rely on the interoperability of our solutions with mobile operating systems such as iOS and Android. If these platform providers alter their operating systems, terms of service, or APIs—particularly regarding camera access, privacy permissions, or biometric data handling—we may be unable to maintain the functionality of our products, or we may be forced to incur significant R&D costs to adapt our software, which could result in a loss of customers.

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• We may incur goodwill and intangible asset impairment charges that adversely affect our operating results.

  Could happen

  As of September 30, 2025, we had $133.5 million of goodwill and $39.8 million of intangible assets, net, on our Consolidated Balance Sheet. We review our indefinite-lived intangible assets, including goodwill, for impairment on at least an annual basis or more frequently if an event or events indicate the potential for impairment. We assess as needed whether there have been impairments in our intangible assets. We make assumptions and estimates in our assessments that can be complex and subjective. In our assumptions and estimates we consider whether negative factors exist such as deteriorating economic conditions, disruptions to our business, inability to effectively integrate acquired businesses, intensified competition, market capitalization declines, or significant changes in use of the intangible assets. To the extent that such factors or other negative factors emerge, we may record non-cash impairment charges in the future that could negatively impact our financial condition and results of operations.

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• We may be exposed to tariff policy changes that could negatively impact our financial results.

  Could happen

  The current global trade environment is characterized by uncertainty and evolving tariff policies. Further imposition of increased tariffs, trade restrictions, or trade disputes between major economies could lead to broader economic instability, decreased global customer demand, and increased volatility in currency exchange rates. Higher prices for goods due to tariffs may reduce consumer spending, which could lead to decreased demand for our customers’ products, which may ultimately affect our revenue and profitability. These factors could negatively impact our business, financial condition, and results of operations.

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• Our ability to adopt and deploy AI and other new technologies may impact demand for our products and services and impact our internal operations.

  Could happen

  Our ability to timely and accurately implement AI and other emerging technologies in our products and in our internal operations is critical to our competitiveness. Failure to do so could materially and adversely affect our business, results of operations, financial condition, and prospects, and could also result in reputational harm or liability.

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