Mitek Systems (MITK)
NASDAQ:MITK
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Mitek Systems
(NASDAQ:MITK)
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Rating:75Outperform
Price Target:
$17.00
▲(12.21% Upside)
Action:Reiterated
Date:05/12/26
The score is driven primarily by strong earnings-call momentum (raised guidance and margin outlook) and a solid financial profile (high margins and reduced leverage). The main constraints are the recent TTM free-cash-flow decline/weaker cash conversion and only moderate technical/valuation support.
Positive Factors
High gross and EBITDA margins
Sustained very high gross margins (~88%) and healthy EBITDA margins (~23%) reflect strong unit economics typical of software platforms. Durable margin structure supports scalable operating leverage, funding product investment and shareholder returns while insulating profitability against moderate revenue swings.
Negative Factors
Declining free cash flow and weaker cash conversion
A meaningful YoY drop in free cash flow (~26%) and weaker operating cash conversion indicate working-capital swings or timing issues that can strain near-term cash available for reinvestment or buybacks. If these patterns persist, they could reduce the durability of reported earnings quality.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross and EBITDA margins
Sustained very high gross margins (~88%) and healthy EBITDA margins (~23%) reflect strong unit economics typical of software platforms. Durable margin structure supports scalable operating leverage, funding product investment and shareholder returns while insulating profitability against moderate revenue swings.
Read all positive factors
Mitek Systems Key Performance Indicators (KPIs)
Mitek Systems (MITK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$668.80M
Dividend YieldN/A
Average Volume (3M)1.17M
Price to Earnings (P/E)15.9
Beta (1Y)0.95
Revenue Growth6.88%
EPS Growth26.04%
CountryUS
Employees565
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.36
Shares Outstanding45,158,850
10 Day Avg. Volume1,482,440
30 Day Avg. Volume1,168,258
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 Cap1.06
Enterprise Value/Revenue3.73
Enterprise Value/Gross Profit4.24
Enterprise Value/Ebitda14.90
Forecast
1Y Price Target
$18.67Price Target Upside23.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.15
Revenue Forecast (FY)$192.99M
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 ...
How the Company Makes Money
Mitek primarily makes money by licensing its software and charging recurring fees for access to its identity verification and transaction-enablement products. A key revenue stream is fees from identity verification solutions (e.g., document verifi...
Mitek Systems Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 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
76
Positive
Balance Sheet
78
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Dec 2023 | Mar 2023 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 189.59M | 179.69M | 172.08M | 172.55M | 144.80M | 119.80M |
| Gross Profit | 166.84M | 152.90M | 147.69M | 149.60M | 124.80M | 105.26M |
| EBITDA | 47.47M | 36.85M | 25.26M | 38.45M | 27.01M | 22.88M |
| Net Income | 16.56M | 8.80M | 3.28M | 8.03M | 3.69M | 7.98M |
Balance Sheet | ||||||
| Total Assets | 356.94M | 459.11M | 413.75M | 405.38M | 364.48M | 419.69M |
| Cash, Cash Equivalents and Short-Term Investments | 77.59M | 193.01M | 130.34M | 133.61M | 90.33M | 179.37M |
| Total Debt | 52.52M | 155.19M | 148.64M | 140.28M | 134.19M | 129.45M |
| Total Liabilities | 117.47M | 218.85M | 198.95M | 200.19M | 193.50M | 226.86M |
| Stockholders Equity | 239.47M | 240.26M | 214.80M | 205.19M | 170.98M | 192.83M |
Cash Flow | ||||||
| Free Cash Flow | 44.54M | 54.19M | 30.25M | 30.55M | 19.99M | 35.95M |
| Operating Cash Flow | 48.10M | 55.34M | 31.69M | 31.59M | 21.12M | 37.34M |
| Investing Cash Flow | 36.53M | 5.83M | 28.75M | -6.78M | 1.70M | -170.49M |
| Financing Cash Flow | -121.37M | -1.85M | -25.88M | 1.70M | -21.14M | 143.68M |
Mitek Systems Technical Analysis
Positive
15.15
Price Trends
14.30
Positive
13.06
Positive
11.34
Positive
Market Momentum
0.09
Negative
58.22
Neutral
45.30
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 15.15 is above the 20-day moving average (MA) of 14.56, above the 50-day MA of 14.30, and above the 200-day MA of 11.34, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 58.22 is Neutral, neither overbought nor oversold. The STOCH value of 45.30 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $668.80M | 15.94 | 6.97% | ― | 6.88% | 26.04% | |
67 Neutral | $693.30M | -385.45 | 16.65% | ― | 18.15% | 331.16% | |
64 Neutral | $417.54M | 42.52 | -12.77% | ― | 18.84% | 94.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | $246.28M | -6.32 | -32.73% | ― | 11.07% | 27.51% | |
47 Neutral | $272.62M | -9.20 | -62.33% | ― | ― | ― | |
47 Neutral | $534.27M | 8.39 | 20.58% | ― | 119.46% | -22.10% |
* Technology Sector Average
MITK
Mitek Systems
15.36
5.91
62.54%
CRNC
Cerence
9.69
1.15
13.47%
AZ
A2Z Smart Technologies
6.07
-2.93
-32.56%
DSP
Viant Technology
11.00
-2.48
-18.40%
LAW
CS Disco
3.72
-0.13
-3.38%
HKD
AMTD Digital, Inc. Sponsored ADR
1.73
-0.33
-16.02%
Mitek Systems Corporate Events
Business Operations and StrategyShareholder Meetings
Mitek Systems Shareholders Approve Governance and Equity Plans
Positive
Mar 4, 2026
On March 3, 2026, Mitek Systems, Inc. held its annual meeting of stockholders, with 38,435,860 of 45,299,662 eligible shares represented, and shareholders elected eight directors to serve until the 2027 annual meeting. Investors also ratified BDO ...
Business Operations and Strategy
Mitek Systems Adopts New Performance-Based Annual Incentive Plan
Positive
Feb 20, 2026
On February 20, 2026, Mitek Systems’ board adopted a new Annual Incentive Plan that ties cash bonuses for full-time employees, including executives, to corporate and individual performance goals. The plan is aimed at attracting, motivating, ...
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.