Mitek Systems (MITK) AI Stock Analysis

• Market Cap: $436.96M
• Dividend Yield: N/A
• Average Volume (3M): 435.52K
• Price to Earnings (P/E): 33.1
• Beta (1Y): 0.94
• Revenue Growth: 7.76%
• EPS Growth: N/A
• Country: US
• Employees: 565
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): 0.36
• Shares Outstanding: 45,564,205
• 10 Day Avg. Volume: 336,997
• 30 Day Avg. Volume: 435,518
• PEG Ratio: 0.04
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.09
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 2.77
• Enterprise Value/Ebitda: 4.59
• 1Y Price Target: $13.33
• Price Target Upside: 42.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: $11.00 ▲(17.52%Upside)

Mitek Systems' strong financial health and positive earnings call sentiment are the primary contributors to its stock score. Financial flexibility from the SVB loan and strategic leadership changes further support the score. However, high valuation metrics and technical analysis suggest caution, balancing the overall outlook.

Positive Factors

Business Strategy

The evolution of its ID verification platform from a point solution sale to a broader platform opportunity has received good feedback from customers.

Financial Performance

Mitek reported F2Q25 results with revenue of $51.9M, up 11% year-over-year, and adjusted EBITDA of $20.2M, up 52% year-over-year, beating estimates due to better-than-expected performance in SaaS revenue, the Deposits segment, and expense control.

Product Demand

Demand for its core mobile deposit solution continues to trend well, with the percentage of checks deposited over mobile phones continuing to increase.

Negative Factors

Revenue Growth Outlook

Revenue growth is likely to result in muted revenue growth in FY25.

Mitek Systems Business Overview & Revenue Model

Company Description

Mitek Systems (MITK) is a leading provider of mobile capture and digital identity verification solutions, primarily serving the financial services sector. The company is headquartered in San Diego, California, and it specializes in developing technologies that enable end-users to deposit checks and manage identity verification processes through mobile devices. Mitek's core offerings include mobile deposit solutions, identity verification tools, and fraud prevention technologies, which are leveraged by banks, financial institutions, and other organizations to enhance customer experience and operational efficiency.

How the Company Makes Money

Mitek Systems generates revenue through a combination of software licensing, subscription services, and professional services. The company's primary revenue stream comes from licensing its mobile capture and identity verification software to banks and financial institutions. Mitek charges these clients recurring fees based on the volume of transactions or number of users utilizing their software. Additionally, the company offers subscription-based services for ongoing software updates and support. Professional services, including consulting and custom integration work, contribute to Mitek's earnings by assisting clients in implementing and optimizing the use of its solutions. Strategic partnerships with technology providers and financial institutions further bolster Mitek's market reach and revenue potential.

Mitek Systems Financial Statement Overview

Summary

Mitek Systems demonstrates strong financial health with robust revenue growth, high profit margins, and effective cash flow management. Although the balance sheet is stable, attention to growing debt levels is needed.

Income Statement

Mitek Systems has demonstrated strong revenue growth with a notable increase from $101.31M in 2020 to $177.38M in the TTM period. The gross profit margin is robust at 96.2% for TTM, indicating effective cost management. Net profit margin improved to 7.5% from prior periods, showing enhanced profitability. EBIT and EBITDA margins are strong at 9.4% and 18.6% respectively, reflecting efficient operational management. Consistent revenue growth and improving margins contribute positively to the income statement score.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.68 in the TTM period, showing manageable leverage. The return on equity has improved to 6.1%, reflecting enhanced shareholder returns. The equity ratio stands at 51.8%, indicating a strong equity position relative to total assets. However, a significant increase in total debt over the years requires cautious monitoring.

Cash Flow

Operating cash flow has shown a positive trend, increasing to $48.39M in the TTM period. Free cash flow grew by 55.7% compared to the prior period, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is robust, indicating efficient cash conversion from operations. However, the financing cash flow is negative, suggesting outflows primarily due to debt repayments.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	172.08M	172.55M	143.94M	119.80M	101.31M
Gross Profit	171.77M	149.60M	123.94M	105.26M	88.12M
EBITDA	26.96M	39.62M	28.08M	24.07M	18.15M
Net Income	3.28M	8.03M	3.69M	7.98M	7.81M
Balance Sheet
Total Assets	413.75M	405.38M	360.41M	419.28M	169.15M
Cash, Cash Equivalents and Short-Term Investments	130.34M	133.61M	90.33M	179.37M	60.02M
Total Debt	148.64M	140.28M	134.19M	129.45M	7.15M
Total Liabilities	198.95M	200.19M	190.09M	226.02M	36.91M
Stockholders Equity	214.80M	205.19M	170.32M	193.26M	132.24M
Cash Flow
Free Cash Flow	30.25M	30.55M	25.23M	35.95M	23.32M
Operating Cash Flow	31.69M	31.59M	26.35M	37.34M	24.12M
Investing Cash Flow	28.75M	-6.78M	-3.53M	-170.49M	-24.71M
Financing Cash Flow	-25.88M	1.70M	-21.14M	143.68M	3.40M

Mitek Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.36
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 9.36 is below the 20-day moving average (MA) of 9.87, below the 50-day MA of 9.65, and above the 200-day MA of 9.36, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 38.53 is Neutral, neither overbought nor oversold. The STOCH value of 5.15 is Positive, 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	76 Outperform	$436.96M	33.10	6.11%	―	7.76%	―
OPFI	75 Outperform	$1.04B	50.49	-47.39%	―	3.82%	-251.96%
Sector *	63 Neutral	$33.80B	5.84	-11.67%	1.84%	5.28%	-18.34%
MLNK	60 Neutral	$1.26B	―	-6.49%	―	5.15%	28.27%
BMBL	58 Neutral	$689.99M	―	-46.57%	―	-2.39%	-2961.26%
FRGE	58 Neutral	$208.10M	―	-27.44%	―	16.03%	30.99%
SMRT	58 Neutral	$181.37M	―	-22.66%	―	-25.43%	-135.09%

Mitek Systems Corporate Events

Mitek Systems Updates Investor Presentation June 2025

On June 3, 2025, Mitek Systems, Inc. updated its investor presentation, which is now available on their website. The company clarified that the furnishing of these materials is not required by Regulation FD or other securities laws, and they do not assume any obligation to update the information in the future.

The most recent analyst rating on (MITK) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Mitek Systems stock, see the MITK Stock Forecast page.

Mitek Systems Secures $75M Loan with SVB

On May 7, 2025, Mitek Systems announced an amendment to its existing credit facility with Silicon Valley Bank, establishing a $75 million term loan and a revised $25 million revolving line of credit. This financial maneuver aims to retire the company’s outstanding Convertible Notes by February 2026, securing financial flexibility and supporting Mitek’s strong balance sheet. Additionally, Mitek reported record financial results for the second quarter of fiscal 2025, with an 11% year-over-year revenue increase to $51.9 million and a significant rise in GAAP net income. The company also raised its adjusted EBITDA margin guidance for fiscal 2025, reflecting its robust performance and strategic focus on long-term growth.

Mitek Systems Appoints Garrett Gafke as COO

On April 25, 2025, Mitek Systems appointed Garrett Gafke as Chief Operating Officer to drive growth and innovation. Gafke, a seasoned executive in identity, fraud, and payments markets, is expected to enhance Mitek’s operations and solidify its position as a leader in digital identity verification and fraud prevention. His compensation package is heavily performance-based, aligning his incentives with shareholder value creation.