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Mitek Systems
(NASDAQ:MITK)
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Rating:76Outperform
Price Target:
$19.00
▲(5.44% Upside)
Action:Reiterated
Date:09/07/26
The score is driven primarily by improved financial strength—higher profitability, significantly reduced leverage, and strong/free-cash-flow generation. Technicals add support with an uptrend across major moving averages and neutral momentum. The main offset is valuation: a ~37 P/E with no dividend yield provided leaves less margin for error if growth remains modest or results remain variable.
Positive Factors
Profitability Improvement
High gross margins and improved EBIT, EBITDA, and net margins indicate meaningful operating leverage and stronger cost control. If these levels persist, Mitek can convert customer usage into earnings efficiently while funding product investment and reinforcing its competitive position.
Negative Factors
Modest Revenue Growth
Moderate top-line growth limits the pace at which Mitek can expand its earnings base, particularly if margin improvement becomes harder to repeat. Slower expansion may also constrain investment capacity and make sustained profitability increasingly dependent on efficiency gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Improvement
High gross margins and improved EBIT, EBITDA, and net margins indicate meaningful operating leverage and stronger cost control. If these levels persist, Mitek can convert customer usage into earnings efficiently while funding product investment and reinforcing its competitive position.
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
$791.00M
Dividend YieldN/A
Average Volume (3M)610.87K
Price to Earnings (P/E)36.2
Beta (1Y)1.18
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. Volume628,829
30 Day Avg. Volume610,866
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 Cap1.18
Enterprise Value/Revenue4.71
Enterprise Value/Gross Profit5.36
Enterprise Value/Ebitda16.88
Forecast
1Y Price Target
$24.17Price Target Upside34.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.18
Revenue Forecast (FY)$214.24M
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 and delivering its solutions primarily as recurring, usage-based, and/or subscription-style services to enterprise customers (most commonly financial institutions and other digital businesses). Key reven...
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 | 55.24M | 36.85M | 25.26M | 38.12M | 26.78M | 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
18.02
Price Trends
17.73
Positive
17.73
Positive
15.55
Positive
Market Momentum
-0.14
Negative
55.79
Neutral
79.57
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 18.02 is above the 20-day moving average (MA) of 17.22, above the 50-day MA of 17.73, and above the 200-day MA of 15.55, indicating a bullish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 79.57 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $791.00M | 36.17 | 9.35% | ― | 11.10% | 47.69% | |
71 Outperform | $1.16B | -83.33 | -5.70% | ― | 9.63% | 55.51% | |
65 Neutral | $46.01M | 15.02 | 15.02% | ― | 16.70% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $243.61M | -13.40 | -1.22% | ― | -10.34% | 49.81% | |
49 Neutral | $15.58M | -1.12 | -141.04% | ― | 2.13% | 95.54% | |
47 Neutral | $19.63M | -2.26 | -35.20% | 35.00% | 1.75% | -47.10% |
* Technology Sector Average
MITK
Mitek Systems
17.86
8.24
85.65%
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Mitek Systems Corporate Events
Business Operations and StrategyExecutive/Board Changes
Mitek Systems Announces Senior Sales Executive Transition
Neutral
Oct 9, 2026
On October 9, 2026, Mitek Systems, Inc. disclosed that the employment of Michael E. Diamond, Senior Vice President of Sales, Check Verification and a named executive officer for fiscal year 2026, will end on December 8, 2026. The company stated th...
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.