Mitek Systems (MITK) AI Stock Analysis

• Market Cap: $420.41M
• Dividend Yield: N/A
• Average Volume (3M): 315.61K
• Price to Earnings (P/E): 28.0
• Beta (1Y): 1.18
• Revenue Growth: 6.98%
• EPS Growth: N/A
• Country: US
• Employees: 565
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.22
• Shares Outstanding: 45,647,050
• 10 Day Avg. Volume: 332,255
• 30 Day Avg. Volume: 315,614
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 2.54
• Enterprise Value/Gross Profit: 2.54
• Enterprise Value/Ebitda: 10.84
• 1Y Price Target: $13.75
• Price Target Upside: 49.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: $11.00 ▲(19.44% Upside)

Mitek Systems' overall stock score reflects strong financial performance and positive earnings call insights, which are slightly offset by technical analysis indicators suggesting caution and a valuation that may indicate overvaluation. The company's strategic focus on SaaS revenue growth and operational efficiency is a significant strength.

Positive Factors

SaaS Revenue Growth

This growth in SaaS revenue demonstrates a successful strategic shift towards a more stable and recurring revenue model, enhancing long-term financial stability.

Operational Efficiency

High free cash flow conversion indicates strong cash generation ability, supporting strategic initiatives and providing a buffer against economic fluctuations.

Fraud and Identity Solutions Expansion

Expansion in fraud and identity solutions strengthens market position in a growing sector, ensuring sustained demand and competitive advantage.

Negative Factors

Deposit Software Revenue Decline

A decline in deposit software revenue highlights challenges in maintaining stable revenue from this segment, potentially impacting overall growth.

Gross Margin Decline

A slight decline in gross margin indicates pressure on profitability, which could affect the company's ability to invest in growth and innovation.

Debt Fluctuations

Inconsistent debt levels may strain financial flexibility and increase risk, potentially affecting long-term financial health and strategic opportunities.

Mitek Systems Business Overview & Revenue Model

Company Description

Mitek Systems, Inc. (MITK) is a technology company that specializes in mobile capture and identity verification solutions. Operating primarily in the financial services, insurance, and healthcare sectors, Mitek offers products that enable businesses to automate document verification, streamline customer onboarding, and enhance fraud prevention. Its core offerings include mobile check deposit, identity verification software, and document capture solutions, which leverage advanced computer vision and artificial intelligence technologies.

How the Company Makes Money

Mitek generates revenue primarily through software licensing and subscription fees for its mobile capture and identity verification solutions. The company offers its products as a SaaS (Software as a Service) model, allowing clients to pay on a subscription basis, which provides a recurring revenue stream. Key revenue streams include transaction fees charged for each successful document verification or mobile deposit processed through its platform. Additionally, Mitek has formed significant partnerships with financial institutions and technology providers, expanding its customer base and enhancing its market reach, which contributes to its earnings. The company may also generate revenue through consulting services and implementation fees related to its software solutions.

Mitek Systems Financial Statement Overview

Summary

Mitek Systems exhibits strong financial health with impressive revenue growth and profitability improvements. The company maintains a solid balance sheet with manageable leverage and effective equity utilization. Cash flow generation is robust, supporting operational and strategic initiatives. While there are some fluctuations in revenue and leverage, the overall financial trajectory is positive, positioning the company well for future growth.

Income Statement

Mitek Systems has demonstrated strong revenue growth with a 42.5% increase in TTM, indicating robust demand for its products. The company maintains an impressive gross profit margin of nearly 100%, showcasing excellent cost management. Net profit margin has improved significantly to 8.7% in TTM, reflecting enhanced profitability. EBIT and EBITDA margins have also shown improvement, indicating operational efficiency. However, the company experienced a slight revenue decline in the previous annual period, which could be a concern if it recurs.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.64 in TTM, indicating prudent leverage. Return on equity has improved to 7.1%, suggesting effective use of equity to generate profits. The equity ratio remains healthy, indicating a strong capital structure. However, the company has seen fluctuations in its debt-to-equity ratio over the years, which could pose risks if not controlled.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 18.44% in TTM, highlighting the company's ability to generate cash. The operating cash flow to net income ratio is 0.29, indicating a solid conversion of income to cash. The free cash flow to net income ratio is high at 0.98, suggesting efficient cash management. However, the operating cash flow coverage ratio has decreased compared to previous periods, which could impact liquidity if it continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	178.13M	172.08M	172.55M	144.80M	119.80M	101.31M
Gross Profit	177.81M	171.77M	149.60M	124.80M	105.26M	88.12M
EBITDA	41.72M	26.96M	39.62M	28.08M	24.07M	18.15M
Net Income	15.51M	3.28M	8.03M	3.69M	7.98M	7.81M
Balance Sheet
Total Assets	446.71M	413.75M	405.38M	364.48M	419.28M	169.15M
Cash, Cash Equivalents and Short-Term Investments	167.07M	130.34M	133.61M	90.33M	179.37M	60.02M
Total Debt	152.73M	151.34M	141.59M	135.49M	130.25M	7.85M
Total Liabilities	209.12M	198.95M	200.19M	193.50M	226.02M	36.91M
Stockholders Equity	237.59M	214.80M	205.19M	170.32M	193.26M	132.24M
Cash Flow
Free Cash Flow	55.80M	30.25M	30.55M	25.23M	35.95M	23.32M
Operating Cash Flow	56.98M	31.69M	31.59M	26.35M	37.34M	24.12M
Investing Cash Flow	726.00K	28.75M	-6.78M	1.70M	-170.49M	-24.71M
Financing Cash Flow	-16.11M	-25.88M	1.70M	-21.14M	143.68M	3.40M

Mitek Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MITK, the sentiment is Negative. The current price of 9.21 is below the 20-day moving average (MA) of 9.33, below the 50-day MA of 9.74, and below the 200-day MA of 9.45, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 41.55 is Neutral, neither overbought nor oversold. The STOCH value of 27.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MITK.

Mitek Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MITK	―	$420.41M	27.95	6.94%	―	6.98%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DSP	―	$559.01M	264.29	5.20%	―	30.92%	―
LAW	―	$390.21M	―	-36.64%	―	4.05%	-100.64%
CRNC	―	$464.82M	-16.36	-16.63%	―	-31.20%	95.56%
AZ	―	$310.52M	―	-175.82%	―	-0.66%	-173.09%

Mitek Systems Corporate Events

Mitek Systems Chief Product Officer Resigns

On September 12, 2025, Christopher Briggs resigned from his role as Chief Product Officer at Mitek Systems, effective September 19, 2025. His resignation was not due to any disagreements with the company’s operations, policies, or practices.

The most recent analyst rating on (MITK) stock is a Buy with a $11.50 price target. To see the full list of analyst forecasts on Mitek Systems stock, see the MITK Stock Forecast page.

Mitek Systems Reports Strong SaaS Growth and Profitability Prospects

Mitek Systems’ recent earnings call painted a positive picture, highlighting a robust quarter marked by significant growth in SaaS revenue and strides towards profitability in their Identity product portfolio. The company has made notable improvements in operational efficiencies, and their Check Fraud Defender product continues to experience substantial growth. While there are challenges, such as a decline in deposits software revenue and delays in closing larger identity deals, the overall sentiment remains optimistic, with positive aspects significantly outweighing the negatives.

Mitek Systems Reports Strong Q3 2025 Earnings

Mitek Systems, Inc., a leader in digital identity verification and fraud prevention, operates in the technology sector, providing solutions to secure digital interactions against evolving threats. In its fiscal 2025 third-quarter earnings report, Mitek Systems announced a 2% increase in total revenue year-over-year to $45.7 million, with SaaS revenue showing a significant 23% growth. The company also raised the midpoint of its revenue and adjusted EBITDA margin guidance for the full fiscal year 2025, indicating confidence in its strategic direction.