Mitek Systems (MITK) AI Stock Analysis

• Market Cap: $453.90M
• Dividend Yield: N/A
• Average Volume (3M): 384.32K
• Price to Earnings (P/E): 55.8
• Beta (1Y): 1.05
• Revenue Growth: 4.42%
• EPS Growth: 165.42%
• Country: US
• Employees: 565
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.24
• Shares Outstanding: 45,299,664
• 10 Day Avg. Volume: 445,003
• 30 Day Avg. Volume: 384,324
• PEG Ratio: 0.30
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 8.24
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 3.26
• Enterprise Value/Ebitda: 11.51
• 1Y Price Target: $14.67
• Price Target Upside: 42.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $11.00 ▲(6.80% Upside)

The score is driven primarily by solid financial performance (strong growth and improving profitability) and a positive earnings-call outlook for SaaS and Fraud & Identity, partially offset by high valuation (elevated P/E), mixed near-term technical momentum, and concerns around debt levels and recent free cash flow growth softness.

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 Business Overview & Revenue Model

Company Description

Mitek 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 Money

Mitek 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 Financial Statement Overview

Summary

Strong revenue growth and improved EBIT/EBITDA margins support the score, and the balance sheet remains healthy with a solid equity ratio. Offsetting factors include low net margin, rising total debt, and recent negative free cash flow growth despite strong operating cash flow.

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

• Technical Analysis Sentiment: Positive
• Last Price: 10.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 10.3 is below the 20-day moving average (MA) of 10.35, above the 50-day MA of 9.93, and above the 200-day MA of 9.61, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 51.35 is Neutral, neither overbought nor oversold. The STOCH value of 33.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MITK.

Mitek Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MITK	66 Neutral	$453.90M	55.77	3.87%	―	4.42%	165.42%
DSP	65 Neutral	$737.97M	467.05	4.45%	―	22.97%	49.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CRNC	55 Neutral	$510.03M	-22.88	-12.83%	―	-24.05%	96.90%
LAW	54 Neutral	$390.57M	-6.41	-41.00%	―	6.33%	-66.34%
AZ	47 Neutral	$290.80M	-6.64	-78.92%	―	-1.36%	-35.79%
HKD	44 Neutral	$430.56M	―	―	―	―	―

Mitek Systems Corporate Events

Mitek Systems Draws $50 Million Loan to Manage Debt

On January 21, 2026, Mitek Systems, Inc. drew $50 million under an existing delayed draw term loan facility arranged with Silicon Valley Bank (a division of First-Citizens Bank & Trust Company) and affiliates, bolstering its liquidity ahead of the February 1, 2026 maturity of its 0.750% Convertible Senior Notes. The company said it intends to use the borrowings to preserve financial flexibility, including potentially repaying the convertible notes at maturity and covering related fees, with the new term loan carrying a variable interest rate tied to term SOFR or WSJ prime plus a margin that adjusts with Mitek’s net leverage, signaling a proactive balance-sheet move to manage upcoming debt obligations.

The most recent analyst rating on (MITK) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Mitek Systems stock, see the MITK Stock Forecast page.