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Mitek Systems Inc (MITK)
NASDAQ:MITK
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Mitek Systems
(NASDAQ:MITK)
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Rating:74Outperform
Price Target:
$12.00
▲(12.99% Upside)
Mitek Systems' strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The company's robust revenue growth and operational efficiencies are significant strengths. However, high valuation metrics and challenges in certain business segments slightly temper the overall score.
Positive Factors
SaaS Revenue Growth
The acceleration in SaaS revenue growth from mid-single digits to 21% highlights Mitek's successful transition towards a scalable and recurring revenue model, enhancing long-term financial stability.
Fraud and Identity Segment Expansion
The strong growth in the Fraud and Identity segment, now over half of Mitek's business, underscores the company's strategic focus on high-demand areas, securing a competitive edge in the market.
Operational Efficiency
Improved operational efficiency with high EBITDA margins indicates effective cost management and profitability, supporting sustainable growth and shareholder value.
Negative Factors
Check Verification Revenue Decline
The decline in check verification revenue highlights potential challenges in maintaining growth in traditional segments, which could impact overall revenue diversification.
Challenges with Large Enterprise Deployments
Delays in large enterprise deployments suggest potential hurdles in scaling operations, which could affect future revenue growth and market penetration.
Gross Margin Pressure
The slight decline in gross margins due to increased SaaS delivery costs may pressure profitability, necessitating careful management to sustain margins.
Mitek Systems (MITK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$488.53M
Dividend YieldN/A
Average Volume (3M)735.64K
Price to Earnings (P/E)57.5
Beta (1Y)1.06
Revenue Growth4.42%
EPS Growth165.42%
CountryUS
Employees565
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.24
Shares Outstanding45,742,350
10 Day Avg. Volume336,173
30 Day Avg. Volume735,639
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)1.86
Price to Sales (P/S)2.49
P/FCF Ratio8.24
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue2.53
Enterprise Value/Gross Profit3.32
Enterprise Value/Ebitda11.73
Forecast
1Y Price Target
$14.00Price Target Upside31.83% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Mitek Systems Business Overview & Revenue Model
Company DescriptionMitek Systems, Inc. develops, markets, and sells mobile image capture and digital identity verification solutions in the United States, Europe, Latin America, and internationally. The company's solutions are embedded in native mobile apps and web browsers to facilitate digital consumer experiences. It offers Mobile Deposit that enables individuals and businesses to remotely deposit checks using their camera-equipped smartphone or tablet; and Mobile Verify, an identity verification solution that is integrated into mobile apps, mobile websites, and desktop applications. The company also provides Mobile Fill, which includes automatic image capture, minimizes the numbers of clicks, and expedites form fill completion; and MiSnap, a mobile-capture software development kit that enables an intuitive user experience and instant capture of quality images of identity documents and checks. In addition, it offers CheckReader that enables financial institutions to automatically extract data from checks; Check Fraud Defender, an AI-powered and cloud-hosted model for fighting check fraud; and Check Intelligence that enables financial institutions to automatically extract data from a check image received across any deposit channel, including branch, ATM, remote deposit capture, and mobile. Further, the company provides ID_CLOUD, an automated identity verification solution that is integrated into a customers' application to read and validate identity documents; IDLive Face, a passive facial liveness detection product; IDVoice, a robust AI-driven voice biometric engine; IDLive Voice that helps stop spoofing attacks on voice biometric systems; and IDLive Doc that works to fight fraud related to digitally displayed document images. Mitek Systems, Inc. was incorporated in 1986 and is based in San Diego, California.
How the Company Makes MoneyMitek Systems generates revenue through a subscription-based model and transactional fees associated with its software solutions. The company primarily earns money by licensing its mobile capture technology to banks, credit unions, and other financial institutions, which pay for the use of Mitek's software as part of their digital banking services. Additionally, Mitek earns revenue from processing fees each time its technology is used to verify identities or process transactions. Significant partnerships with major financial institutions and technology providers also bolster Mitek's earnings, as these collaborations expand the reach of its solutions and enhance its market presence.
Mitek Systems Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jan 22, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in the SaaS and Fraud & Identity segments, operational efficiencies, and increased free cash flow. However, there were challenges with check verification revenue decline and deployment delays in large enterprises. While the highlights strongly indicate a positive performance trajectory, certain areas like check verification and gross margin pressures remain concerns.Q4-2025 Updates
Positive Updates
Strong SaaS Revenue Growth
SaaS revenue growth accelerated to 21% in fiscal 2025, up from mid-single digits in fiscal 2024, with SaaS now comprising 43% of total revenue.
Fraud and Identity Segment Expansion
Fraud and Identity revenue grew more than 15% year-over-year, now accounting for over half of Mitek’s total business.
Check Fraud Defender Progress
ACV grew 50% year-over-year, with data sets covering over 25% of all U.S. checking accounts, and nearly 50% including those in pilot phase.
Operational Efficiency Improvements
Adjusted EBITDA margins reached 30%, with a reduction in non-GAAP operating expenses and an 11% increase in revenue per employee.
Free Cash Flow Conversion
Achieved 100% free cash flow conversion of adjusted EBITDA, a significant increase from just under 65% the previous year.
Negative Updates
Check Verification Revenue Decline
Check verification revenue decreased from $94 million in fiscal 2024 to $90 million in fiscal 2025, primarily due to deal timing.
Challenges with Large Enterprise Deployments
Check Fraud Defender ACV for the year fell below initial goals due to slower-than-anticipated multistage validation and procurement cycles.
Gross Margin Pressure
Non-GAAP gross margin decreased from approximately 86% to 85%, primarily due to higher investment in SaaS services delivery.
Company Guidance
During the Mitek fiscal year 2025 fourth-quarter and full-year financial results call, the company provided significant guidance and updates across various metrics. The call highlighted that fraud and identity now account for over half of Mitek's business, growing by more than 15% year-over-year, establishing it as a key revenue and SaaS expansion driver. SaaS revenue growth was noted to have accelerated to 21% in fiscal 2025, up from mid-single digits in fiscal 2024, with SaaS now making up 43% of total revenue. Mitek reported adjusted EBITDA margins of 30% for fiscal 2025, reflecting a 15% year-over-year growth in adjusted EBITDA to $54 million, despite a slight decline in non-GAAP gross margin from 86% to 85%. The company also achieved a 100% free cash flow conversion rate of adjusted EBITDA, resulting in $54 million of free cash flow, although they projected a long-term steady-state conversion rate of approximately 75%. Mitek's fiscal 2026 revenue outlook is set at $185 million to $195 million, implying a 6% growth at the midpoint, with targets of 15% growth for the fraud and identity product portfolio, forecasting continued investment in R&D and go-to-market strategies while maintaining adjusted EBITDA margins between 27% and 30%.Mitek Systems Financial Statement Overview
Summary
Mitek Systems demonstrates strong revenue growth and profitability improvements, supported by efficient cost management and a solid capital structure. However, increased debt levels and recent declines in free cash flow growth warrant attention.Income Statement
Mitek Systems has demonstrated strong revenue growth with a 87.4% increase in the latest year, indicating robust demand for its software applications. The gross profit margin remains high, reflecting efficient cost management. However, the net profit margin is relatively low, suggesting room for improvement in operational efficiency. The EBIT and EBITDA margins have improved, showcasing better profitability compared to previous years.Balance Sheet
The company's debt-to-equity ratio is moderate, indicating a balanced approach to leveraging. Return on equity has improved, reflecting better utilization of shareholder funds. The equity ratio is healthy, suggesting a strong capital structure. However, the increase in total debt over the years could pose a risk if not managed carefully.Cash Flow
Operating cash flow has increased significantly, indicating strong cash generation capabilities. However, free cash flow growth has been negative recently, which could be a concern if it persists. The operating cash flow to net income ratio is strong, suggesting good cash conversion from earnings. The free cash flow to net income ratio is also healthy, indicating efficient cash management.| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 179.69M | 179.69M | 172.08M | 172.55M | 144.80M | 119.80M |
| Gross Profit | 136.86M | 136.86M | 171.77M | 149.60M | 124.80M | 105.26M |
| EBITDA | 38.74M | 38.74M | 26.96M | 39.62M | 28.08M | 24.07M |
| Net Income | 8.80M | 8.80M | 3.28M | 8.03M | 3.69M | 7.98M |
Balance Sheet | ||||||
| Total Assets | 459.11M | 459.11M | 413.75M | 405.38M | 364.48M | 419.28M |
| Cash, Cash Equivalents and Short-Term Investments | 193.01M | 193.01M | 130.34M | 133.61M | 90.33M | 179.37M |
| Total Debt | 159.49M | 159.49M | 151.34M | 141.59M | 135.49M | 130.25M |
| Total Liabilities | 218.85M | 218.85M | 198.95M | 200.19M | 193.50M | 226.02M |
| Stockholders Equity | 240.26M | 240.26M | 214.80M | 205.19M | 170.32M | 193.26M |
Cash Flow | ||||||
| Free Cash Flow | 54.19M | 54.19M | 30.25M | 30.55M | 25.23M | 35.95M |
| Operating Cash Flow | 55.34M | 55.34M | 31.69M | 31.59M | 26.35M | 37.34M |
| Investing Cash Flow | 5.83M | 5.83M | 28.75M | -6.78M | 1.70M | -170.49M |
| Financing Cash Flow | -1.85M | -1.85M | -25.88M | 1.70M | -21.14M | 143.68M |
Mitek Systems Technical Analysis
Positive
10.62
Price Trends
9.61
Positive
9.70
Positive
9.45
Positive
Market Momentum
0.28
Positive
62.03
Neutral
90.61
Negative
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 10.62 is above the 20-day moving average (MA) of 10.39, above the 50-day MA of 9.61, and above the 200-day MA of 9.45, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 62.03 is Neutral, neither overbought nor oversold. The STOCH value of 90.61 is Negative, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $488.53M | 57.50 | 3.87% | ― | 4.42% | 165.42% | |
65 Neutral | $711.74M | 429.55 | 4.45% | ― | 22.97% | 49.49% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $555.95M | -25.83 | -12.83% | ― | -24.05% | 96.90% | |
54 Neutral | $461.19M | -7.37 | -41.00% | ― | 6.33% | -66.34% | |
47 Neutral | $329.77M | -8.06 | -78.92% | ― | -1.36% | -35.79% | |
44 Neutral | $443.13M | ― | ― | ― | ― | ― |
* Technology Sector Average
MITK
Mitek Systems
10.62
0.41
4.02%
CRNC
Cerence
12.31
-0.81
-6.17%
AZ
A2Z Smart Technologies
7.85
1.53
24.21%
DSP
Viant Technology
11.34
-6.19
-35.31%
LAW
CS Disco
7.40
2.44
49.19%
HKD
AMTD Digital, Inc. Sponsored ADR
1.42
-1.23
-46.42%
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.