MITEK SYSTEMS INCMITK

MITEK SYSTEMS INC Goodwill & Intangibles Disclosure

10-KFiled Dec 11, 20252 min read
5. GOODWILL AND INTANGIBLE ASSETS
Goodwill
The Company had a goodwill balance of $133.5 million and $131.6 million at September 30, 2025 and 2024, respectively, representing the excess of costs over the fair value of assets of businesses acquired. The following table summarizes changes in the balance of goodwill (amounts in thousands):
Balance at September 30, 2023$123,548 
Foreign currency effect on goodwill8,026 
Balance at September 30, 2024131,574 
Foreign currency effect on goodwill1,883 
Balance at September 30, 2025$133,457 
There was no impairment loss recognized related to goodwill in the twelve months ended September 30, 2025, 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 September 30, 2025 and 2024 are summarized as follows (amounts in thousands, except for years):
September 30, 2025:
Weighted
Average
Amortization
Period (in years)
Cost
Accumulated
Amortization
Net
Completed technologies7.0$76,524 $40,120 $36,404 
Customer relationships5.05,090 3,583 1,507 
Trade names5.06,580 4,692 1,888 
Total intangible assets$88,194 $48,395 $39,799 
September 30, 2024:
Weighted
Average
Amortization
Period (in years)
Cost
Accumulated
Amortization
Net
Completed technologies7.0$88,435 $40,104 $48,331 
Customer relationships5.05,000 2,483 2,517 
Trade names5.06,470 3,278 3,192 
Covenants not to compete3.0600 503 97 
Total intangible assets$100,505 $46,368 $54,137 
 Amortization expense related to acquired intangible assets was $14.1 million, $15.2 million, and $17.0 million for the twelve months ended September 30, 2025, 2024, and 2023, respectively, and is recorded within amortization and acquisition-related costs on the consolidated statements of operations and comprehensive income (loss). There were no impairment losses recognized related to intangible assets in the twelve months ended September 30, 2025, 2024, and 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):
Fiscal Year:
Estimated Future Amortization Expense
2026$13,240 
202712,019 
202810,243 
20294,297 
Total$39,799 

Historical Timeline

Fiscal YearFiled
2025Dec 11, 2025Showing above
2024Dec 16, 2024
2023Mar 19, 2024
2022Jul 31, 2023
2021Dec 13, 2021
2020Dec 7, 2020
2019Dec 6, 2019
2018Dec 14, 2018
2017Nov 30, 2017
2016Dec 9, 2016
2015Dec 7, 2015

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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