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Mitek Systems Inc (MITK)
NASDAQ:MITK

Mitek Systems (MITK) AI Stock Analysis

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Mitek Systems

(NASDAQ:MITK)

Rating:78Outperform
Price Target:
$12.00
▲(23.46%Upside)
Mitek Systems scores well due to strong financial performance and positive earnings call sentiment, indicating a solid growth trajectory. Technical indicators show bullish trends but suggest caution due to overbought conditions. The high P/E ratio indicates potential valuation concerns, while recent corporate events positively influence the outlook.
Positive Factors
Financial Performance
Higher revenue, higher gross margin, and lower operating expense resulted in an EBITDA of $20.2M, well above expectations.
Operational Efficiency
The company has modestly increased its adjusted EBITDA guidance range reflecting improved efficiencies and ongoing cost discipline.
Product Adoption
The evolution of its ID verification platform from a point solution sale to a broader platform opportunity has received good feedback from customers.
Negative Factors
Growth Projections
Revenue growth is likely to result in muted revenue growth in FY25.
Market Valuation
MITK trades at an EV/EBITDA multiple of 7.2x based on FY26E adjusted EBITDA, with a price target based on a peer group average multiple of 11.5x.

Mitek Systems (MITK) vs. SPDR S&P 500 ETF (SPY)

Mitek Systems Business Overview & Revenue Model

Company DescriptionMitek Systems, Inc. is a leader in digital identity verification and mobile capture solutions. The company operates primarily within the technology sector, offering advanced software solutions that enable businesses to verify identities and authenticate transactions using mobile and web devices. Mitek's technology is widely used in the financial services sector, helping institutions reduce fraud, streamline processes, and enhance customer experiences.
How the Company Makes MoneyMitek Systems generates revenue primarily through the sale of its software solutions and services. The company's key revenue streams include licensing fees for its identity verification and mobile capture technologies, as well as subscription fees for ongoing access to its software as a service (SaaS) offerings. Additionally, Mitek earns revenue from implementation services, support, and maintenance contracts. The company benefits from partnerships with financial institutions, technology providers, and other enterprises that integrate Mitek's solutions into their own offerings, expanding the reach and application of its technologies.

Mitek Systems Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q2-2025)
|
% Change Since: 10.33%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with strong revenue growth, increased SaaS adoption, and expanded data coverage for Check Fraud Defender. However, some caution remains due to macroeconomic uncertainties and slower growth in the identity segment.
Q2-2025 Updates
Positive Updates
Record Revenue Growth
Total revenue reached a record $51.9 million, up 11% year-over-year in the second quarter.
SaaS Revenue Increase
SaaS revenue grew 15% year-over-year in Q2 and now accounts for 40% of total last 12 months revenue, up from 39% last quarter.
Check Fraud Defender Expansion
Check Fraud Defender now has data sets on 23% of U.S. checking accounts, up from 18% last quarter.
Improved Identity Portfolio Performance
Identity portfolio revenue reached $71.4 million in the last 12 months, driven by strong transaction growth and a 9% increase in identity SaaS revenue.
Increased EBITDA and Free Cash Flow
Adjusted EBITDA was $20.2 million, representing a 39% margin, and the company generated $47 million in free cash flow over the last 12 months.
Negative Updates
Macro Environment Caution
Management remains cautious about potential macroeconomic headwinds despite not seeing any cancellations tied to the macro backdrop.
Identity Revenue Growth Rate
Identity products revenue increased by only 4% year-over-year, indicating a slower growth rate compared to other segments.
Lumpiness in Term License Revenue
Due to the lumpiness inherent to term license revenue, which makes up 70% of deposits products revenue, management urges focus on longer-term trends.
Company Guidance
During Mitek's Fiscal 2025 Second Quarter Earnings Conference Call, several key metrics and forward-looking statements were discussed. The company reported a record total revenue of $51.9 million for the quarter, marking an 11% increase year-over-year. Mitek's identity portfolio reached over $71 million in revenue over the last 12 months, driven by strong transaction growth. The Check Fraud Defender product expanded its data set coverage to approximately 23% of U.S. checking accounts, up from 18% in the previous quarter. Additionally, Mitek reported a 15% year-over-year growth in SaaS revenue, now accounting for 40% of the total revenue. The company's non-GAAP gross profit was $45.6 million, representing an 88% gross margin, while adjusted EBITDA was $20.2 million, corresponding to a 39% margin. Mitek also generated $47 million in free cash flow over the last 12 months, highlighting its financial discipline and strategic focus on organic growth, SaaS revenue increase, margin expansion, and free cash flow conversion.

Mitek Systems Financial Statement Overview

Summary
Mitek Systems demonstrates strong financial health with robust revenue growth, high profit margins, and effective cash flow management. The balance sheet is stable, although growing debt levels warrant attention. Overall, Mitek is well-positioned in its industry with a solid financial foundation.
Income Statement
85
Very Positive
Mitek Systems has demonstrated strong revenue growth with a notable increase from $101.31M in 2020 to $177.38M in the TTM period. The gross profit margin is robust at 96.2% for TTM, indicating effective cost management. Net profit margin improved to 7.5% from prior periods, showing enhanced profitability. EBIT and EBITDA margins are strong at 9.4% and 18.6% respectively, reflecting efficient operational management. Consistent revenue growth and improving margins contribute positively to the income statement score.
Balance Sheet
78
Positive
The company maintains a solid balance sheet with a debt-to-equity ratio of 0.68 in the TTM period, showing manageable leverage. The return on equity has improved to 6.1%, reflecting enhanced shareholder returns. The equity ratio stands at 51.8%, indicating a strong equity position relative to total assets. However, a significant increase in total debt over the years requires cautious monitoring.
Cash Flow
82
Very Positive
Operating cash flow has shown a positive trend, increasing to $48.39M in the TTM period. Free cash flow grew by 55.7% compared to the prior period, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is robust, indicating efficient cash conversion from operations. However, the financing cash flow is negative, suggesting outflows primarily due to debt repayments.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
177.38M172.08M172.55M143.94M119.80M101.31M
Gross Profit
170.63M171.77M149.60M123.94M105.26M88.12M
EBIT
16.74M2.23M15.56M27.57M13.71M8.87M
EBITDA
32.97M26.96M39.62M28.08M24.07M18.15M
Net Income Common Stockholders
13.33M3.28M8.03M3.69M7.98M7.81M
Balance SheetCash, Cash Equivalents and Short-Term Investments
136.17M130.34M133.61M90.33M179.37M60.02M
Total Assets
425.34M413.75M405.38M360.41M419.28M169.15M
Total Debt
150.70M148.64M140.28M134.19M129.45M7.15M
Net Debt
46.00M55.18M81.37M102.13M99.14M-12.84M
Total Liabilities
205.13M198.95M200.19M190.09M226.02M36.91M
Stockholders Equity
220.21M214.80M205.19M170.32M193.26M132.24M
Cash FlowFree Cash Flow
47.11M30.25M30.55M25.23M35.95M23.32M
Operating Cash Flow
48.40M31.69M31.59M26.35M37.34M24.12M
Investing Cash Flow
1.82M28.75M-6.78M-3.53M-170.49M-24.71M
Financing Cash Flow
-25.96M-25.88M1.70M-21.14M143.68M3.40M

Mitek Systems Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.72
Price Trends
50DMA
8.85
Positive
100DMA
9.18
Positive
200DMA
9.24
Positive
Market Momentum
MACD
0.28
Positive
RSI
54.01
Neutral
STOCH
57.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MITK, the sentiment is Positive. The current price of 9.72 is above the 20-day moving average (MA) of 9.72, above the 50-day MA of 8.85, and above the 200-day MA of 9.24, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 54.01 is Neutral, neither overbought nor oversold. The STOCH value of 57.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MITK.

Mitek Systems Risk Analysis

Mitek Systems disclosed 35 risk factors in its most recent earnings report. Mitek Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Mitek Systems Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$460.20M35.406.11%7.76%
77
Outperform
$1.09B50.49-47.39%3.82%-251.96%
63
Neutral
$1.31B-6.49%5.15%28.27%
62
Neutral
$11.97B10.08-7.46%2.96%7.37%-8.22%
56
Neutral
$508.19M-46.57%-2.39%-2961.26%
53
Neutral
$195.77M-27.44%16.03%30.99%
51
Neutral
$172.45M-22.66%-25.43%-135.09%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MITK
Mitek Systems
9.72
-1.22
-11.15%
OPFI
OppFi
12.21
8.75
252.89%
FRGE
Forge Global Holdings
16.00
-6.95
-30.28%
SMRT
SmartRent
0.88
-1.53
-63.49%
BMBL
Bumble
4.95
-5.67
-53.39%
MLNK
MeridianLink
15.77
-4.66
-22.81%

Mitek Systems Corporate Events

Business Operations and Strategy
Mitek Systems Updates Investor Presentation June 2025
Neutral
Jun 3, 2025

On June 3, 2025, Mitek Systems, Inc. updated its investor presentation, which is now available on their website. The company clarified that the furnishing of these materials is not required by Regulation FD or other securities laws, and they do not assume any obligation to update the information in the future.

The most recent analyst rating on (MITK) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Mitek Systems stock, see the MITK Stock Forecast page.

Private Placements and FinancingFinancial Disclosures
Mitek Systems Secures $75M Loan with SVB
Positive
May 8, 2025

On May 7, 2025, Mitek Systems announced an amendment to its existing credit facility with Silicon Valley Bank, establishing a $75 million term loan and a revised $25 million revolving line of credit. This financial maneuver aims to retire the company’s outstanding Convertible Notes by February 2026, securing financial flexibility and supporting Mitek’s strong balance sheet. Additionally, Mitek reported record financial results for the second quarter of fiscal 2025, with an 11% year-over-year revenue increase to $51.9 million and a significant rise in GAAP net income. The company also raised its adjusted EBITDA margin guidance for fiscal 2025, reflecting its robust performance and strategic focus on long-term growth.

Executive/Board ChangesBusiness Operations and Strategy
Mitek Systems Appoints Garrett Gafke as COO
Positive
Apr 28, 2025

On April 25, 2025, Mitek Systems appointed Garrett Gafke as Chief Operating Officer to drive growth and innovation. Gafke, a seasoned executive in identity, fraud, and payments markets, is expected to enhance Mitek’s operations and solidify its position as a leader in digital identity verification and fraud prevention. His compensation package is heavily performance-based, aligning his incentives with shareholder value creation.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.