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Mitek Systems
(NASDAQ:MITK)
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Rating:71Outperform
Price Target:
$18.50
▲(9.66% Upside)
Action:Reiterated
Date:08/07/26
The score is driven primarily by stronger financial performance (improving profitability, sharply reduced leverage, and robust free cash flow) and a constructive earnings update with raised FY guidance and strong Fraud & Identity momentum. These positives are tempered by weak-to-mixed technical momentum and a relatively high P/E with no dividend yield support.
Positive Factors
Free Cash Flow Strength
Consistently robust free cash flow provides durable financial flexibility: it funds R&D, share repurchases, and debt retirement without relying on dilutive financing. Strong FCF also supports reinvestment in sales channels and network expansion that drive long‑term SaaS adoption.
Negative Factors
Moderate Revenue Growth
Top‑line growth remains moderate relative to market opportunity; without faster revenue expansion, margin gains and cash generation may not translate into materially higher scale. Sustained outperformance requires deeper enterprise wins or faster channel penetration.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Consistently robust free cash flow provides durable financial flexibility: it funds R&D, share repurchases, and debt retirement without relying on dilutive financing. Strong FCF also supports reinvestment in sales channels and network expansion that drive long‑term SaaS adoption.
Read all positive factors
Mitek Systems Key Performance Indicators (KPIs)
Any
Revenue by Type
Separates recurring and transaction-based revenue from one-time fees and services to reveal how predictable Mitek’s cash flow is. A larger share of recurring or transaction revenue implies steadier, more valuable growth and less volatility, whereas reliance on one-off project revenue can lead to lumpy results and greater sensitivity to deal cycles.
Separates recurring and transaction-based revenue from one-time fees and services to reveal how predictable Mitek’s cash flow is. A larger share of recurring or transaction revenue implies steadier, more valuable growth and less volatility, whereas reliance on one-off project revenue can lead to lumpy results and greater sensitivity to deal cycles.
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The Fly
The FlyMitek Systems (MITK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$835.67M
Dividend YieldN/A
Average Volume (3M)951.56K
Price to Earnings (P/E)37.0
Beta (1Y)1.12
Revenue Growth11.10%
EPS Growth47.69%
CountryUS
Employees578
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.50
Shares Outstanding45,122,375
10 Day Avg. Volume699,185
30 Day Avg. Volume951,563
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$24.17Price Target Upside43.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.11
Revenue Forecast (FY)$194.47M
Mitek Systems Business Overview & Revenue Model
Company Description
Mitek Systems, Inc. (MITK) specializes in developing and offering mobile image capture and digital identity verification technologies globally, with operations spanning the United States, Europe, Latin America, and other international markets. The...
How the Company Makes Money
Mitek makes money by licensing its software to organizations that embed Mitek’s capabilities into digital channels (mobile apps, web onboarding flows, and bank/fintech platforms). Revenue is primarily generated through (1) recurring software/SaaS-...
Mitek Systems Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed materially positive operational and financial momentum: record revenue and adjusted EBITDA, robust 28% growth in the strategic Fraud & Identity portfolio, improving SaaS mix, strengthened balance sheet (retired convertible notes, net cash position) and raised FY guidance. Headwinds are present but manageable — check verification seasonality and renewal timing, YoY gross margin compression due to mix and implementation costs, quarter-specific negative free cash flow from AR timing, and lumpy biometric license recognition. On balance, the positives (durable cash franchise, strong SaaS/network growth, margin leverage, and upgraded guidance) outweigh the near-term, largely timing-related challenges.Positive Updates
Record Revenue and Adjusted EBITDA
Total revenue of $54.8M, up 6% year-over-year, and record adjusted EBITDA of $22.3M (approx. 41% margin), up 10% year-over-year. Non-GAAP net income was $18.5M and adjusted diluted EPS was $0.38.
Negative Updates
Check Verification Near-Term Decline and Seasonality
Check verification revenue declined 8% year-over-year in the quarter (attributed to renewal timing vs. a strong prior year). Management expects seasonal renewal timing and a step down in biometric license recognition to pressure sequential revenue in parts of the back half.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Adjusted EBITDA
Total revenue of $54.8M, up 6% year-over-year, and record adjusted EBITDA of $22.3M (approx. 41% margin), up 10% year-over-year. Non-GAAP net income was $18.5M and adjusted diluted EPS was $0.38.
Read all positive updates
Company Guidance
Mitek raised its FY‑2026 revenue guide to $189–$198 million (about 8% YoY at the midpoint) and lifted Fraud & Identity revenue guidance to $103–$108 million (≈17% growth at the midpoint); quarterly guidance calls for Q3 revenue of $49–$53 million (implying Q4 of $41–$46 million), non‑GAAP operating expense in Q3 of $25–$26 million, and a full‑year adjusted EBITDA margin of 30%–33%. Management expects non‑GAAP gross margin to stay in the low‑80s, capital expenditures to be ~3.5% of revenue and depreciation & amortization ~1% of revenue, and noted that Fraud & Identity SaaS should step up sequentially through the remainder of the year.Mitek Systems Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
85
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Dec 2023 | Mar 2023 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 197.90M | 179.69M | 172.08M | 172.55M | 144.80M | 119.80M |
| Gross Profit | 173.99M | 152.90M | 147.69M | 149.60M | 124.80M | 105.26M |
| EBITDA | 61.59M | 36.85M | 25.26M | 38.45M | 27.01M | 22.88M |
| Net Income | 22.54M | 8.80M | 3.28M | 8.03M | 3.69M | 7.98M |
Balance Sheet | ||||||
| Total Assets | 368.06M | 459.11M | 413.75M | 405.38M | 364.48M | 419.69M |
| Cash, Cash Equivalents and Short-Term Investments | 99.71M | 193.01M | 130.34M | 133.61M | 90.33M | 179.37M |
| Total Debt | 51.67M | 155.19M | 148.64M | 140.28M | 134.19M | 129.45M |
| Total Liabilities | 117.53M | 218.85M | 198.95M | 200.19M | 193.50M | 226.86M |
| Stockholders Equity | 250.52M | 240.26M | 214.80M | 205.19M | 170.98M | 192.83M |
Cash Flow | ||||||
| Free Cash Flow | 48.61M | 54.19M | 30.25M | 30.55M | 19.99M | 35.95M |
| Operating Cash Flow | 53.69M | 55.34M | 31.69M | 31.59M | 21.12M | 37.34M |
| Investing Cash Flow | 33.68M | 5.83M | 28.75M | -6.78M | 1.70M | -170.49M |
| Financing Cash Flow | -124.01M | -1.85M | -25.88M | 1.70M | -21.14M | 143.68M |
Mitek Systems Technical Analysis
Positive
16.87
Price Trends
18.08
Positive
16.48
Positive
13.82
Positive
Market Momentum
0.25
Negative
53.20
Neutral
42.08
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 16.87 is below the 20-day moving average (MA) of 17.82, below the 50-day MA of 18.08, and above the 200-day MA of 13.82, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 53.20 is Neutral, neither overbought nor oversold. The STOCH value of 42.08 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $835.67M | 37.03 | 9.35% | ― | 11.10% | 47.69% | |
71 Outperform | $825.73M | 93.54 | 11.42% | ― | 21.99% | 271.66% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $302.90M | -8.47 | -47.79% | ― | ― | ― | |
49 Neutral | $281.75M | -6.67 | -32.17% | ― | 12.90% | 31.66% | |
46 Neutral | $540.56M | 9.66 | 20.58% | ― | 119.46% | -22.10% | |
44 Neutral | $359.58M | -22.21 | -9.84% | ― | 25.84% | 42.54% |
* Technology Sector Average
MITK
Mitek Systems
18.56
8.01
75.92%
CRNC
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-26.99%
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HKD
AMTD Digital, Inc. Sponsored ADR
1.70
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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.