Shares of Mitek Systems (MITK - Free Report) have gained 0.4% over the past four weeks to close the last trading session at $18.57, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $23.63 indicates a potential upside of 27.3%.
The average comprises four short-term price targets ranging from a low of $22.00 to a high of $26.00, with a standard deviation of $1.8. While the lowest estimate indicates an increase of 18.5% from the current price level, the most optimistic estimate points to an 40% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in MITK. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why MITK Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 5.8% over the past month, as two estimates have gone higher compared to no negative revision.
Moreover, MITK currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much MITK could gain, the direction of price movement it implies does appear to be a good guide.
Presentation attack detection solution demonstrates exceptional performance against sophisticated spoofing attacks in the 2026 LivDet-Face competition, reinforcing Mitek's leadership in AI-powered identity verification
SAN DIEGO--(BUSINESS WIRE)--Mitek Systems, Inc. (NASDAQ: MITK), a global leader in digital identity verification, mobile capture and fraud management, today announced that its Presentation Attack Detection (PAD) technology took the top three places in the Image category of the 2026 LivDet-Face competition, an independent evaluation organized by the Center for Identification Technology Research (CITeR).
The 2026 LivDet-Face competition evaluated face presentation attack detection solutions against a diverse range of sophisticated spoofing methods, including print attacks, replay attacks and advanced 3D mask attacks, using standardized protocols designed to measure robustness against previously unseen attack scenarios.
The LivDet-Face competition is recognized as one of the industry's leading fully blind independent benchmarks for face liveness detection. Unlike traditional benchmarking exercises, participants are evaluated against previously unseen presentation attacks using sequestered test data, providing an objective assessment of how solutions perform against emerging fraud techniques in real-world conditions.
"As AI continues to lower the barrier for sophisticated identity fraud, organizations need security technologies that can distinguish legitimate users from increasingly convincing presentation attacks without creating unnecessary friction," said Garrett Gafke, Chief Operating Officer at Mitek. "These results reinforce our commitment to delivering AI-powered identity verification that helps organizations strengthen security while providing seamless digital experiences."
Mitek’s Presentation Attack Detection technology passively verifies liveness from a single facial image, eliminating the need for users to blink, turn their head or perform other active steps. This frictionless approach helps organizations strengthen fraud prevention while improving the user experience and increasing completion rates. Built on an ensemble of AI models trained using proprietary datasets encompassing diverse devices, demographic groups and more than 20 presentation attack types, the technology delivers accurate, resilient protection against a broad and evolving range of spoofing techniques.
Mitek’s bandwidth-efficient, compressed-capture architecture minimizes upload size and latency, enabling fast, reliable performance without compromising protection. Available as both standalone Dockerized services and SDK integration, and via the MiVIP platform, Mitek's production-ready PAD solutions provide organizations with deployment flexibility while integrating into existing identity verification workflows.
Mitek continues to invest in AI-powered identity verification technologies that help organizations establish trust throughout the digital customer journey while staying ahead of increasingly sophisticated fraud threats.
About Mitek Systems, Inc.
Mitek Systems protects what’s real across digital interactions in a world of evolving threats. Mitek helps businesses verify identities, prevent fraud before it happens, and deliver secure, seamless digital experiences in the face of rapidly advancing AI-generated threats. From account opening to authentication and deposit, Mitek’s technology safeguards critical digital interactions. More than 7,000 organizations rely on Mitek to protect their most important customer connections and stay ahead of emerging risks. Learn more at www.miteksystems.com.
Follow Mitek on LinkedIn and YouTube, and read Mitek’s latest blog posts here.
Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding Mitek’s technology performance, product roadmap, and continued investment in AI-powered identity verification. These statements are based on the Company’s current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially, including the risks described in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date of this press release, and the Company undertakes no obligation to update them except as required by law.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Mitek Systems (MITK - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Mitek Systems currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for MITK that show why this mobile imaging software company shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For MITK, shares are up 1.56% over the past week while the Zacks Computer - Optical Imaging industry is up 0.78% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 8.65% compares favorably with the industry's 4.33% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Mitek Systems have risen 19.87%, and are up 81.51% in the last year. In comparison, the S&P 500 has only moved 1.67% and 20.15%, respectively.
Investors should also take note of MITK's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now MITK is averaging 774,734 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with MITK.
Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost MITK's consensus estimate, increasing from $1.08 to $1.15 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that MITK is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Mitek Systems on your short list.
A Look at Mitek Systems Inc (MITK) After 8.3% Gain -- GF Value $11.49 vs Price $19.21
On August 27, 2026, Mitek Systems Inc MITK shares rose 8.3% to a current price of $19.21, continuing a strong upward trend characterized by an 82.1% year-to-date increase. The stock has experienced significant volatility over the past year, trading between a 52-week low of $8.53 and a high of $21.05.
GF Value™ verdict: Current price $19.21 vs GF Value™ at $11.49, indicating a 67.2% overvaluation.GF Score™: 80/100, suggesting strong overall performance with potential concerns in valuation.Notable signal: Insider activity shows $3.5 million in sales over the past 12 months with no buying.Is MITK Overvalued or Undervalued?Mitek Systems Inc MITK is currently assessed as significantly overvalued, with a GF Value™ of $11.49 compared to its current trading price of $19.21. This represents a 67.2% margin of overvaluation, indicating that the stock price may not be sustainable based on its intrinsic value. GF Value™ is GuruFocus' proprietary estimate of a company's fair value, calculated through historical trading multiples, growth rates, and future expectations. Given the stark difference between the market price and the GF Value™, investors should approach MITK with caution, as the risk of price correction is high.
The GF Valuation label of "Significantly Overvalued" emphasizes the necessity for potential investors to carefully consider the implications of purchasing a stock at such a high premium. The current price suggests that many positive expectations are already priced in, which may not materialize as anticipated, leaving investors exposed to downside risk.
How Does MITK's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)40.9x62.2xForward P/E15.5xN/ACurrently, MITK's P/E (TTM) stands at 40.9x, significantly lower than its 5-year median P/E of 62.2x, suggesting that the stock is trading at a more favorable valuation relative to its historical range. However, this analysis also aligns with the GF Value™ verdict, reinforcing the notion that while the current P/E is below historical averages, the stock remains overvalued based on GF Value™ estimates.
What Does MITK's GF Score™ Tell Us?The GF Score™ evaluates a company's financial strength, profitability, growth potential, valuation, and momentum, providing an overall performance measure. With a GF Score™ of 80/100, Mitek Systems Inc exhibits robust fundamentals, particularly in growth and profitability, while its valuation and momentum ranks are relatively weak.
MetricRatingGF Score™80Financial Strength8/10Profitability8/10Growth9/10Valuation3/10Momentum3/10The strong growth (9/10) and profitability (8/10) scores suggest that Mitek Systems is effectively managing its operations and expanding its business. However, the low valuation (3/10) and momentum (3/10) scores highlight concerns regarding the stock's current pricing and recent performance trends, indicating potential challenges ahead.
What Are Gurus and Insiders Doing with MITK?Currently, 2 gurus are holding positions in Mitek Systems Inc, while 0 have added to their holdings, and 3 have trimmed their positions in recent quarters. This trend suggests a cautious sentiment among institutional investors, as they appear to be reducing exposure rather than increasing it.
Additionally, insider activity reveals that insiders have sold $3.5 million worth of shares over the past 12 months without any recorded purchases. This pattern of selling may indicate a lack of confidence in the company's future performance or an effort to capitalize on elevated stock valuations. Such behavior can be a red flag for potential investors, signaling that insiders may be anticipating a decline in stock price.
What This Means for InvestorsBased on the GF Value™ analysis, Mitek Systems Inc MITK is currently overvalued. The significant disparity between the market price and GF Value™, coupled with insider selling and cautious guru activity, suggests that investors should exercise caution when considering an investment in this stock. The potential for a price correction looms large, making it essential to remain vigilant.
For further details on Mitek Systems Inc MITK, visit the Mitek Systems Inc (MITK) stock page, as well as the GF Value™ page for valuation insights or explore the GuruFocus Stock Screener for more investment opportunities.
Frequently Asked QuestionsWhat is MITK's GF Score™?
MITK has a GF Score™ of 80/100, indicating strong overall performance with particular strength in growth and profitability metrics.
Is MITK overvalued or undervalued?
MITK is currently overvalued, with a GF Value™ of $11.49, which highlights a significant risk due to the current price being 67.2% above this intrinsic value.
What is MITK's P/E ratio?
MITK's P/E (TTM) is 40.9x, which is considerably lower than its 5-year median P/E of 62.2x, suggesting a better valuation compared to its historical trading multiples.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
Shares of Mitek Systems (MITK - Free Report) have gained 10% over the past four weeks to close the last trading session at $18.88, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $23.63 indicates a potential upside of 25.2%.
The mean estimate comprises four short-term price targets with a standard deviation of $1.8. While the lowest estimate of $22.00 indicates a 16.5% increase from the current price level, the most optimistic analyst expects the stock to surge 37.7% to reach $26.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in MITK. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why MITK Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 5.8%, as two estimates have moved higher compared to no negative revision.
Moreover, MITK currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much MITK could gain, the direction of price movement it implies does appear to be a good guide.
When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
There are several stocks that passed through the screen and Mitek Systems (MITK - Free Report) is one of them. Here are the key reasons why this stock is a solid choice for "trend" investing.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. MITK is quite a good fit in this regard, gaining 9.8% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 10% over the past four weeks ensures that the trend is still in place for the stock of this mobile imaging software company.
Moreover, MITK is currently trading at 82.7% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in MITK may not reverse anytime soon.
In addition to MITK, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
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Investors might want to bet on Mitek Systems (MITK - Free Report) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Mitek Systems basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Mitek Systems imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Mitek SystemsThis mobile imaging software company is expected to earn $1.15 per share for the fiscal year ending September 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Mitek Systems. Over the past three months, the Zacks Consensus Estimate for the company has increased 5.8%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Mitek Systems to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
SAN DIEGO--(BUSINESS WIRE)--Mitek Systems, Inc. (NASDAQ: MITK), a global leader in digital identity verification and fraud prevention, announced the appointment of Aaron Seyler as Mitek’s Chief Revenue Officer to lead Mitek’s go-to-market organization, effective as of his start date, August 17, 2026.
Mr. Seyler joins Mitek from Vonage, an Ericsson company, where he led a global go-to-market organization across 17 countries. In his role as Chief Revenue Officer there, he scaled an API-based enterprise software business through a global partner and channel ecosystem, a motion similar to Mitek’s delivery of its identity and fraud capabilities into customer onboarding, authentication, and transaction workflows. Prior to Vonage, he led the go-to-market function at Telesign, a digital fraud and identity protection company, where he helped scale revenue from approximately $200 million to more than $600 million and led its expansion into international markets.
“We are pleased to welcome Aaron to Mitek. Unifying our go-to-market functions under a single CRO creates greater alignment and accountability for growth. Aaron has a strong track record of driving revenue growth at global enterprise software businesses, including in digital identity and fraud, and we believe he is the right leader to drive the next phase of our growth,” said Edward H. West, Chief Executive Officer of Mitek.
"I have spent my career scaling enterprise revenue for software platform businesses, including in digital fraud and identity, and what stands out about Mitek is the trust it has earned with many of the world's largest institutions, the banks and enterprises where protecting identity and assets is mission critical. That trust, together with the technology, data, and services ecosystem beneath it, is difficult to build and difficult to replicate. I am excited to bring our go-to-market teams together and, alongside our partners, help more of these institutions put Mitek's capabilities to work against the growing threat of digital and AI-driven fraud," said Aaron Seyler, Chief Revenue Officer of Mitek.
In connection with Mr. Seyler’s appointment as the Company’s Chief Revenue Officer, the Human Capital Committee of the Company’s Board of Directors approved, effective as of his start date, employment inducement awards in the form of performance-based vesting restricted stock units (“PSUs”) and service-based vesting restricted stock units (“RSUs”), with an aggregate grant date fair value of approximately $2,500,000.
The awards consist of (i) 67,459 PSUs which may vest, if at all, following the completion of the three-year performance period based on the Company’s relative total shareholder return performance measured against the Russell 2000 Index, with up to an additional 67,459 PSUs eligible to vest for above-target performance, and (ii) 67,459 RSUs that vest in four equal annual installments beginning on the first anniversary of the grant date. In each case, vesting of the PSUs and RSUs is subject to Mr. Seyler’s continued employment through the applicable vesting date, subject to earlier vesting provisions in connection with a change in control and certain qualifying terminations of employment.
The PSUs and RSUs were granted as inducement awards material to Mr. Seyler’s acceptance of employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4). The awards were granted outside of, and the shares subject to the awards were not drawn from the share reserve under, the Company’s Second Amended and Restated 2020 Incentive Plan (the “Plan”), but are subject to terms and conditions substantially similar to those applicable to awards granted under the Plan.
About Mitek Systems, Inc.
Mitek Systems protects what’s real across digital interactions in a world of evolving threats. Mitek helps businesses verify identities, prevent fraud before it happens, and deliver secure, seamless digital experiences in the face of rapidly advancing AI-generated threats. From account opening to authentication and deposit, Mitek’s technology safeguards critical digital interactions. More than 7,000 organizations rely on Mitek to protect their most important customer connections and stay ahead of emerging risks. Learn more at www.miteksystems.com. [(MITK-F)]
Follow Mitek on LinkedIn and YouTube, and read Mitek’s latest blog posts here.
Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding Mr. Seyler’s expected contributions, the Company’s go-to-market strategy and next phase of growth, and the potential vesting of the PSUs and RSUs. These statements are based on the Company’s current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially, including the risks described in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date of this press release, and the Company undertakes no obligation to update them except as required by law.
Arrowstreet Capital Limited Partnership purchased a new position in shares of Mitek Systems, Inc. (NASDAQ:MITK – Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 30,435 shares of the software maker’s stock, valued at approximately $411,000. Arrowstreet Capital Limited Partnership owned about 0.07% of Mitek Systems as of its most recent SEC filing.
Several other institutional investors and hedge funds have also made changes to their positions in MITK. Bank of Nova Scotia acquired a new position in Mitek Systems during the first quarter worth about $299,000. Sei Investments Co. acquired a new position in shares of Mitek Systems during the 1st quarter worth approximately $2,531,000. Globeflex Capital L P raised its position in shares of Mitek Systems by 107.3% during the 1st quarter. Globeflex Capital L P now owns 31,902 shares of the software maker’s stock worth $431,000 after purchasing an additional 16,512 shares during the last quarter. First Trust Advisors LP lifted its stake in Mitek Systems by 4.6% in the 1st quarter. First Trust Advisors LP now owns 136,909 shares of the software maker’s stock valued at $1,848,000 after buying an additional 6,063 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in Mitek Systems by 1.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,685,657 shares of the software maker’s stock valued at $22,756,000 after buying an additional 29,997 shares in the last quarter. 83.64% of the stock is currently owned by hedge funds and other institutional investors.
Analyst Ratings Changes A number of research firms have issued reports on MITK. Wall Street Zen upgraded shares of Mitek Systems from a “buy” rating to a “strong-buy” rating in a report on Saturday. Maxim Group set a $26.00 price objective on shares of Mitek Systems in a research note on Friday. Weiss Ratings upgraded shares of Mitek Systems from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday, May 11th. Northland Securities set a $17.00 target price on shares of Mitek Systems in a research note on Wednesday, April 15th. Finally, Zacks Research downgraded Mitek Systems from a “strong-buy” rating to a “hold” rating in a report on Thursday, April 16th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Mitek Systems presently has a consensus rating of “Hold” and an average price target of $19.33.
Check Out Our Latest Analysis on Mitek Systems
Insider Activity In other Mitek Systems news, COO Garrett Gafke sold 21,108 shares of the business’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $14.19, for a total value of $299,522.52. Following the sale, the chief operating officer directly owned 244,279 shares in the company, valued at approximately $3,466,319.01. The trade was a 7.95% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 2.20% of the company’s stock.
Mitek Systems Stock Up 10.0% Mitek Systems stock opened at $18.49 on Friday. The company’s 50-day moving average price is $17.72 and its two-hundred day moving average price is $15.06. The stock has a market cap of $835.01 million, a price-to-earnings ratio of 39.34 and a beta of 0.98. Mitek Systems, Inc. has a 52 week low of $8.53 and a 52 week high of $21.05. The company has a current ratio of 2.61, a quick ratio of 2.61 and a debt-to-equity ratio of 0.20.
Mitek Systems (NASDAQ:MITK – Get Free Report) last announced its earnings results on Thursday, August 6th. The software maker reported $0.34 EPS for the quarter, topping the consensus estimate of $0.28 by $0.06. The firm had revenue of $54.04 million for the quarter, compared to analysts’ expectations of $50.82 million. Mitek Systems had a return on equity of 19.41% and a net margin of 11.39%. On average, analysts expect that Mitek Systems, Inc. will post 0.86 EPS for the current fiscal year.
Key Mitek Systems News Here are the key news stories impacting Mitek Systems this week:
Positive Sentiment: Mitek reported fiscal Q3 EPS of $0.34, up from $0.22 a year earlier and ahead of analyst estimates ranging from $0.26 to $0.28. Revenue reached $54.04 million, exceeding the approximately $50.8 million consensus forecast. Mitek Systems Q3 Earnings and Revenues Beat Estimates Positive Sentiment: Management projected fiscal 2026 revenue of $195 million to $200 million, above the $194.3 million analyst consensus. The outlook suggests continued demand for Mitek’s digital identity and fraud-prevention products. Mitek Systems Fiscal Q3 Earnings Snapshot Positive Sentiment: The earnings beat was supported by solid profitability, including a reported 8.74% net margin and 16.74% return on equity. The results and outlook provide a fundamental explanation for the stock’s increased trading activity. Mitek Systems Q3 2026 Earnings Call Transcript Neutral Sentiment: Fourth-quarter revenue guidance of $42 million to $47 million brackets the $44.4 million consensus estimate, indicating an outlook broadly in line with expectations. The company did not provide a specific EPS figure in the supplied guidance update. Compared to Estimates Mitek Systems Q3 Earnings Key Metrics About Mitek Systems (Free Report)
Mitek Systems, Inc (NASDAQ: MITK) is a software company specializing in mobile capture and digital identity verification solutions. Headquartered in San Diego, California, Mitek develops and licenses patented technology that enables organizations to securely capture, authenticate and process identity documents, checks and other physical media using smartphones and other digital devices. Its platforms leverage advanced image processing, machine learning and biometrics to streamline customer onboarding and prevent fraud in real time.
The company’s core offerings include mobile check deposit and deposit automation tools for financial institutions, as well as identity verification and authentication services for banks, fintechs, insurers and government agencies.
Read More Five stocks we like better than Mitek Systems Datadog’s Drop Says More About Expectations Than Earnings D-Wave’s Quantum Breakthrough Couldn’t Save QBTS From a Sell-Off Cloudflare’s Beat-and-Raise Quarter Puts Its AI Edge Story in Focus Solventum Nears Inflection Point As It Begins to Unlock Value Want to see what other hedge funds are holding MITK? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Mitek Systems, Inc. (NASDAQ:MITK – Free Report).
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Mitek Systems NASDAQ: MITK reported fiscal third-quarter 2026 revenue growth of 18% year over year, supported by record fraud and identity revenue, higher SaaS sales and continued expansion of its Check Fraud Defender consortium network.
Total revenue reached $54 million, exceeding the high end of the company’s prior guidance range. Adjusted EBITDA margin was approximately 38%, while non-GAAP diluted earnings per share rose 58% year over year to about $0.34. The company raised its full-year revenue and profitability outlook.
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Fraud and Identity Growth Supported by SaaS and Age-Verification Demand Fraud and identity revenue was $29 million, an increase of 14% from the prior-year quarter. Fraud and identity SaaS revenue grew 37%, driven by underlying identity transaction growth, new Check Fraud Defender customers and an unexpected surge in age-verification demand in Europe, the Middle East and Africa.
Chief Financial Officer Dave Lyle said the age-verification volume increase stemmed from new regulations requiring one-time upfront age verification. He characterized the event as a specific regulatory-driven surge and said normalized fraud and identity SaaS growth was in the high teens to low 20% range, consistent with recent quarters.
Chief Executive Officer Ed West said Mitek is seeing increasing demand for identity verification, authentication and fraud-detection tools as AI-assisted, digital and synthetic fraud become more prevalent. He said customers are increasingly adopting broader “multi-signal” know-your-customer workflows rather than using isolated verification checks.
The company also cited customer expansion across onboarding, verification and authentication. West said financial institutions are broadening deployments beyond account opening into authentication use cases, including biometric authentication tied to a verified identity.
Mitek said approximately 80% of its revenue remains connected to financial services, although it is also serving customers in other markets through partners. Recent examples included an enterprise software customer using verification for employee screening and a U.K. football club using Mitek tools to verify and authenticate season-ticket holders.
Check Fraud Defender Network Expands Through Partners Mitek highlighted continued growth in its Check Fraud Defender, or CFD, data consortium, which uses shared intelligence and cloud-based fraud software to identify check fraud. The company said a top-five U.S. bank completed a pilot and is moving into the CFD consortium after Mitek demonstrated stronger results than the bank’s existing solution.
Fiserv is now live as a reseller of Check Fraud Defender, according to West. The relationship extends access to the network across thousands of institutions served by Fiserv. Mitek also added dozens of logos during the quarter through partners including Abrigo, CSI and DataVisor.
The company estimates that contributing data sets now cover approximately 70% of U.S. checking accounts, with annualized transaction volumes measured in billions. Check Fraud Defender annual contract value grew 73% year over year and exceeded $22 million.
West said Mitek’s direct sales efforts have historically focused on the top 100 financial institutions, while its partner relationships provide access to a broader base of banks. He said the partner channel had begun contributing over the last several quarters and is expected to become an accelerating part of growth.
The company also continued to build out Positive Pay+, a product designed to help stop fraudulent payments at the point of check presentment. Mitek expanded the product with an existing bank and signed its first non-bank design partner, a business-payments company, extending the offering into business-to-business payments and accounts payable.
Check Verification Revenue Boosted by Renewal Timing Check verification revenue totaled $25 million, up 24% year over year. Lyle said the increase was driven by two large renewals that did not occur in the comparable prior-year quarter, rather than underlying growth. Mitek continues to expect check verification revenue of approximately $90 million on a trailing 12-month basis for the full year.
West said paper-check use continues to decline over the long term, citing a Federal Reserve payment study showing about 9.2 billion checks were written in the United States in 2024. However, he said Mitek’s check-verification revenue has remained range-bound as mobile-deposit penetration and pricing have offset volume declines.
Mitek expects check-verification revenue to soften gradually over time but views the business as a cash-generating foundation and a source of financial-institution and channel-partner relationships. The company noted that its check-verification software also supports the Check Fraud Defender network.
Margins, Cash Flow and Outlook Total SaaS revenue represented about 46% of revenue over the last 12 months, compared with 41% a year earlier. Non-GAAP gross margin rose about 40 basis points year over year to 85.5%, aided by improved SaaS maintenance and other gross margins, as well as a heavier license-revenue mix from check-verification renewals.
Non-GAAP operating expense declined about 1% year over year to $25.9 million despite the revenue increase, producing approximately 950 basis points of operating leverage. Lyle said cash-based research and development spending increased 17% year over year as Mitek continued to invest in AI-based decisioning, fraud intelligence and biometrics.
Free cash flow was $25.3 million in the quarter. Trailing-12-month free cash flow was $48.6 million, representing a 70% conversion rate that was within Mitek’s long-term target range of 70% to 80%.
The company ended the quarter with $100 million in cash and investments and $54 million in total debt, for net cash of approximately $46 million. Mitek repurchased about $2 million of shares during the quarter and had $48 million remaining under its current repurchase authorization.
Full-year revenue guidance was raised to $195 million to $200 million, representing about 10% growth at the midpoint. Full-year fraud and identity revenue guidance was raised to $105 million to $109 million, or about 19% growth at the midpoint. Adjusted EBITDA margin guidance was raised to 32% to 34%. Fourth-quarter revenue is expected to be between $42 million and $47 million. Mitek expects fraud and identity SaaS revenue to decline modestly sequentially in the fourth quarter following the age-verification surge. The company also expects seasonal softness in the first and fourth fiscal quarters due to check-verification renewal timing.
Separately, Mitek said Aaron Saylor will join the company as chief revenue officer effective Aug. 17. The company is consolidating direct and channel sales, customer success, sales engineering and professional services under a unified CRO organization.
About Mitek Systems (NASDAQ:MITK)Mitek Systems, Inc NASDAQ: MITK is a software company specializing in mobile capture and digital identity verification solutions. Headquartered in San Diego, California, Mitek develops and licenses patented technology that enables organizations to securely capture, authenticate and process identity documents, checks and other physical media using smartphones and other digital devices. Its platforms leverage advanced image processing, machine learning and biometrics to streamline customer onboarding and prevent fraud in real time.
The company's core offerings include mobile check deposit and deposit automation tools for financial institutions, as well as identity verification and authentication services for banks, fintechs, insurers and government agencies.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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For the quarter ended June 2026, Mitek Systems (MITK - Free Report) reported revenue of $54.04 million, up 18.2% over the same period last year. EPS came in at $0.34, compared to $0.22 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $50.77 million, representing a surprise of +6.44%. The company delivered an EPS surprise of +30.77%, with the consensus EPS estimate being $0.26.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Mitek Systems performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Software license: $20.71 million versus the two-analyst average estimate of $19.83 million. The reported number represents a year-over-year change of +6.2%.Revenue- SaaS, maintenance, and other: $33.32 million versus $30.94 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +27.1% change.Non-GAAP gross profit for SaaS, maintenance, and other: $25.53 million versus the two-analyst average estimate of $22.18 million.Non-GAAP gross profit for software license: $20.65 million compared to the $19.61 million average estimate based on two analysts.View all Key Company Metrics for Mitek Systems here>>>
Shares of Mitek Systems have returned -7.3% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
SAN DIEGO--(BUSINESS WIRE)--Mitek Systems, Inc. (NASDAQ: MITK, www.miteksystems.com, “Mitek” or the “Company”), a global leader in digital identity verification and fraud prevention, today reported financial results for its third quarter ended June 30, 2026 and raised its revenue and adjusted EBITDA margin guidance range for the fiscal year ending September 30, 2026 (“fiscal 2026”).
"The team delivered a strong fiscal third quarter driven by Fraud and Identity SaaS revenue growth, as more of the world's highest-assurance institutions rely on Mitek to counter AI-driven fraud across the digital life cycle," said Ed West, Chief Executive Officer of Mitek. "Our consortium data network reached an important milestone this quarter, as a top five US bank completed pilot testing and joined the full consortium network on Check Fraud Defender. We also materially expanded our partner and reseller channel, which puts the consortium within reach of thousands of additional financial institutions. As each one joins, it both draws on and strengthens the network's shared intelligence, so every member benefits as the network grows. Both our consortium data network and our identity platform are driving growth, and executing across both is our Unify and Grow ethos showing up in the results."
Fiscal 2026 Third Quarter Financial Highlights
GAAP
Total revenue of $54.0 million was an 18% increase year-over-year, compared to $45.7 million a year ago. SaaS revenue of $26.2 million was a 36% increase year-over-year, compared to $19.3 million a year ago. Gross profit of $42.7 million, compared to $35.5 million a year ago. GAAP gross profit margin was 79.1%, compared to 77.7% a year ago. GAAP net income was $8.4 million, compared to $2.4 million a year ago. GAAP net income per diluted share was $0.17, compared to $0.05 a year ago. Total cash and investments of $100.2 million at June 30, 2026, was a decrease of $96.3 million from $196.5 million at September 30, 2025; the retirement of the $155 million Convertible Senior Notes was the primary contributor to the decrease. This cash and investments balance was an increase of $22.6 million from $77.6 million at March 31, 2026. LTM net cash provided by operating activities was $53.7 million, compared to $57.0 million for the corresponding period a year ago. Non-GAAP
Non-GAAP gross profit of $46.2 million, compared to $38.9 million a year ago. Non-GAAP gross profit margin was 85.5%, compared to 85.0% a year ago. Adjusted EBITDA was $20.8 million, compared to $13.1 million a year ago, an increase of 59%. Adjusted EBITDA margin was 38.5%, compared to 28.6% a year ago. Non-GAAP net income was $16.8 million, compared to $10.2 million a year ago, an increase of 65%. Non-GAAP net income per diluted share was $0.34, compared to $0.22 a year ago, an increase of 58%. LTM free cash flow was $48.6 million, compared to $55.8 million for the corresponding period a year ago. Guidance
Guidance includes non-GAAP financial measures. Mitek is raising its revenue and adjusted EBITDA margin guidance for the fiscal year, and providing guidance for its fiscal fourth quarter, ending September 30, 2026, as follows:
Full Year FY26
Q4 FY26
Guidance
Guidance
Total revenue
$195 - $200 million
$42 - $47 million
Y/Y growth (midpoint)
Approximately 10%
Fraud & Identity solutions revenue(1)
$105 - $109 million
Y/Y growth (midpoint)
Approximately 19%
Adjusted EBITDA margin %(2)
32% - 34%
Total Non-GAAP operating expense(2)
$26 - $27 million
(1) See revenue categorizations as presented in the “Disaggregation of Revenue by Product and Type”.
(2) See 'Note Regarding Use of Non-GAAP Financial Measures'.
Leadership Appointment: Chief Revenue Officer
Mitek also announced the appointment of Aaron Seyler as Chief Revenue Officer, effective August 17, 2026. Seyler will lead Mitek's go-to-market organization bringing the Company's sales, channel partnerships, customer success and support, and sales engineering and professional services teams under a single leader signaling a natural next step in Mitek's Unify and Grow ethos and next phase of growth.
Seyler joins Mitek from Vonage, an Ericsson company, where he led a global go-to-market organization across 17 countries. In his role as Chief Revenue Officer, he scaled an API-based enterprise software business through a global partner and channel ecosystem, a motion similar to Mitek’s delivery of its identity and fraud capabilities into customer onboarding, authentication, and transaction workflows. Prior to Vonage, he led the go-to-market function at Telesign, a digital fraud and identity protection company, where he helped scale revenue from approximately $200 million to more than $600 million and led its expansion into the international markets.
"I have spent my career scaling enterprise revenue for software platform businesses, including in digital fraud and identity, and what stands out about Mitek is the trust it has earned with many of the world's largest institutions, the banks and enterprises where protecting identity and assets is mission critical. That trust and the technology, data, and services ecosystem beneath it, is difficult to build and difficult to replicate. I am excited to bring our go-to-market teams together and, alongside our partners, help more of these institutions put Mitek's capabilities to work against the growing threat of digital and AI-driven fraud," said Aaron Seyler, incoming Chief Revenue Officer of Mitek.
Board Leadership Transition
On August 5, 2026, Mark Rossi was elected to serve as non-executive Chairman of the Board, effective October 1, 2026. Mr. Rossi will succeed Scott Carter, who is stepping down as Chairman at the end of the current fiscal year, due to personal time constraints and will continue to serve as a director.
"On behalf of the Board and the entire company, I would like to thank Scott for his commitment and steady leadership as Chairman through a period of significant change in Mitek's history," said Ed West, Chief Executive Officer of Mitek. "Mark brings a strong track record as an investor and decades of governance experience. Since joining our Board in March 2025, he has served on the Audit Committee and developed a deep understanding of our business, strategy, and financial profile, positioning him to lead with continuity as we look ahead into fiscal 2027 and beyond.”
Conference Call Information
Mitek management will host a conference call and live webcast for analysts and investors today at 2 p.m. PT (5 p.m. ET) to discuss the Company’s financial results for the third quarter of fiscal 2026. To join the webcast, visit our Investor Relations website at https://investors.miteksystems.com.
Participants may also dial +1 800-717-1738 (US and Canada) or +1 646-307-1865 (International) to access the call. A dial-in replay will be available for one week by dialing +1 844-512-2921 (U.S. and Canada) or +1 412-317-6671 (International) and entering the passcode 1141184. An archived webcast replay will remain accessible for one year on Mitek’s Investor Relations website.
About Mitek Systems, Inc.
Mitek Systems protects what’s real across digital interactions in a world of evolving threats. Mitek helps businesses verify identities, prevent fraud before it happens, and deliver secure, seamless digital experiences in the face of rapidly advancing AI-generated threats. From account opening to authentication and deposit, Mitek’s technology safeguards critical digital interactions. More than 7,000 organizations rely on Mitek to protect their most important customer connections and stay ahead of emerging risks. Learn more at www.miteksystems.com. [(MITK-F)]
Follow Mitek on LinkedIn and YouTube, and read Mitek’s latest blog posts here.
Notice Regarding Forward-Looking Statements
Statements contained in this news release relating to the Company or its management’s intentions, hopes, beliefs, expectations or predictions of the future, including, but not limited to, statements relating to the Company’s fiscal 2026 guidance, are forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks related to the Company’s ability to withstand negative conditions in the global economy, a lack of demand for or market acceptance of the Company’s products, the Company’s ability to continue to develop, produce and introduce innovative new products in a timely manner, the Company’s ability to capitalize on a growing market, quarterly variations in revenue, the profitability of certain sectors of the Company, the performance of the Company’s growth initiatives, the outcome of any pending or threatened litigation or investigation, and the timing of the implementation and launch of the Company’s products by the Company’s signed customers.
Additional risks and uncertainties faced by the Company are contained from time to time in the Company’s filings with the U.S. Securities and Exchange Commission (SEC), including, but not limited to, the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025, as filed with the SEC on December 11, 2025 and its quarterly reports on Form 10-Q and current reports on Form 8-K, which you may obtain for free on the SEC’s website at www.sec.gov. Collectively, these risks and uncertainties could cause the Company’s actual results to differ materially from those projected in its forward-looking statements and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company disclaims any intention or obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Note Regarding Use of Non-GAAP Financial Measures
This news release contains non-U.S. generally accepted accounting principles (“GAAP”) financial measures for adjusted EBITDA, adjusted EBITDA margin, non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP net income per basic share, non-GAAP net income per diluted share, non-GAAP free cash flow, and non-GAAP operating expense that excludes stock-based compensation expense, litigation and other legal costs, executive and other transition costs, non-recurring audit fees, enterprise risk, portfolio positioning and other related costs, and non-GAAP net income which additionally excludes amortization of acquisition-related intangibles, net changes in estimated fair value of acquisition-related contingent consideration, restructuring costs, amortization of debt discount and issuance costs, income tax effect of pre-tax adjustments, and cash tax difference. These financial measures are not calculated in accordance with GAAP and are not based on any comprehensive set of accounting rules or principles. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement financial statements prepared under GAAP. Management believes these non-GAAP financial measures provide a useful measure of the Company’s operating results, a meaningful comparison with historical results and with the results of other companies, and insight into the Company’s ongoing operating performance. Further, management and the Board of Directors of the Company utilize these non-GAAP financial measures to gain a better understanding of the Company’s comparative operating performance from period-to-period and as a basis for planning and forecasting future periods. Management believes these non-GAAP financial measures, when read in conjunction with the Company’s GAAP financial statements, are useful to investors because they provide a basis for meaningful period-to-period comparisons of the Company’s ongoing operating results, including results of operations against investor and analyst financial models, which helps identify trends in the Company’s underlying business and provides a better understanding of how management plans and measures the Company’s underlying business.
The Company has not provided a reconciliation of its forward outlook for non-GAAP adjusted EBITDA margin or total non-GAAP operating expense with their most directly comparable forward-looking GAAP measures, GAAP net income margin and GAAP operating expense, respectively, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to quantify share-based compensation expense, which is excluded from these non-GAAP measures, as it requires additional inputs such as the number of shares granted and market prices that are not ascertainable due to the volatility of the Company’s share price. Additionally, a significant portion of the Company’s operations are in foreign countries and the transactional currencies are primarily Euros and British pound sterling and the Company is not able to predict fluctuations in those currencies without unreasonable efforts. These non-GAAP measures also exclude litigation and other legal costs, executive and other transition costs, non-recurring audit fees, restructuring costs, and acquisition and integration expenses. While certain of these additional items may be estimable for future periods, the Company is unable to provide a complete quantitative reconciliation of the forward-looking measures without unreasonable efforts, and expects the foregoing excluded items may have a potentially significant impact on future GAAP financial results.
We define free cash flow as net cash provided by operating activities, less cash used for purchases of property and equipment. We define free cash flow margin as free cash flow as a percentage of revenue. In addition to the reasons stated above, we believe that free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment in order to enhance the strength of our balance sheet and further invest in our business and potential strategic initiatives. A limitation of the utility of free cash flow as a measure of our liquidity is that it does not represent the total increase or decrease in our cash balance for the period. We use free cash flow in conjunction with traditional U.S. GAAP measures as part of our overall assessment of our liquidity, including the preparation of our annual operating budget and quarterly forecasts and to evaluate the effectiveness of our business strategies. There are a number of limitations related to the use of free cash flow as compared to net cash provided by operating activities, including that free cash flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made. We may refer to certain financial metrics on a Last Twelve Months (“LTM”) basis. LTM figures represent the sum of the most recently reported four fiscal quarters and are used to provide a view of the company's financial performance over the past year.
Mitek encourages investors to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate Mitek’s business.
MITEK SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(amounts in thousands except per share data)
Three Months Ended June 30,
Nine Months Ended June 30,
2026
2025
2026
2025
Revenue
Software license
$
20,714
$
19,507
$
60,565
$
58,192
SaaS, maintenance, and other
33,324
26,222
92,558
76,720
Total revenue
54,038
45,729
153,123
134,912
Operating costs and expenses
Cost of revenue—software license (exclusive of depreciation & amortization)
60
53
126
136
Cost of revenue—SaaS, maintenance, and other (exclusive of depreciation & amortization)
8,119
6,969
25,018
19,361
Selling and marketing
10,026
11,127
27,775
31,362
Research and development
8,059
8,960
22,999
27,049
General and administrative
12,926
11,251
36,244
33,250
Amortization of acquired intangibles and acquisition-related costs
3,304
3,560
9,913
10,817
Restructuring costs
—
—
515
837
Total operating costs and expenses
42,494
41,920
122,590
122,812
Operating income
11,544
3,809
30,533
12,100
Interest expense
721
2,469
4,713
7,274
Other income, net
347
1,805
2,484
3,478
Income before income taxes
11,170
3,145
28,304
8,304
Income tax provision
(2,803
)
(749
)
(7,629
)
(1,368
)
Net income
$
8,367
$
2,396
$
20,675
$
6,936
Net income per share—basic
$
0.19
$
0.05
$
0.46
$
0.15
Net income per share—diluted
$
0.17
$
0.05
$
0.43
$
0.15
Shares used in calculating net income per share—basic
45,175
45,894
45,311
45,632
Shares used in calculating net income per share—diluted
48,709
46,848
48,576
46,790
Comprehensive income
Net income
$
8,367
$
2,396
$
20,675
$
6,936
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment
(215
)
10,300
(3,284
)
4,734
Unrealized loss on investments, net of tax benefit of $8, $3, $22, and $29
(2
)
(8
)
(50
)
(92
)
Other comprehensive income (loss), net of tax
(217
)
10,292
(3,334
)
4,642
Comprehensive income
$
8,150
$
12,688
$
17,341
$
11,578
MITEK SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(amounts in thousands except share data)
June 30, 2026
(Unaudited)
September 30,
2025
ASSETS
Current assets:
Cash and cash equivalents
$
90,045
$
154,153
Short-term investments
9,666
38,858
Accounts receivable, net
52,306
36,811
Contract assets, current portion
8,763
12,687
Prepaid expenses
3,395
3,050
Other current assets
3,690
2,935
Total current assets
167,865
248,494
Long-term investments
450
3,464
Property and equipment, net
5,816
2,314
Right-of-use assets
1,969
2,624
Intangible assets, net
29,453
39,799
Goodwill
131,349
133,457
Deferred income tax assets
25,292
25,334
Contract assets, non-current portion
2,062
1,405
Other non-current assets
3,799
2,218
Total assets
$
368,055
$
459,109
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
3,968
$
3,874
Accrued payroll and related taxes
14,630
16,837
Income tax payables
3,063
2,683
Deferred revenue, current portion
34,501
29,061
Lease liabilities, current portion
913
890
Convertible senior notes
—
152,216
Current portion of term loan
2,813
—
Other current liabilities
1,295
3,473
Total current liabilities
61,183
209,034
Deferred revenue, non-current portion
1,615
1,085
Long-term portion of term loan
46,562
—
Lease liabilities, non-current portion
1,387
2,080
Deferred income tax liabilities
291
295
Other non-current liabilities
6,494
6,357
Total liabilities
117,532
218,851
Stockholders’ equity:
Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding
—
—
Common stock, $0.001 par value, 120,000,000 shares authorized, 45,234,573 issued and 45,110,617 outstanding as of June 30, 2026, and 45,636,531 issued and outstanding as of September 30, 2025
45
46
Additional paid-in capital
278,549
265,835
Accumulated other comprehensive income (loss)
(2,748
)
586
Accumulated deficit
(23,322
)
(26,209
)
Treasury stock, at cost, 123,956 shares and 0 shares as of June 30, 2026 and September 30, 2025, respectively
(2,001
)
—
Total stockholders’ equity
250,523
240,258
Total liabilities and stockholders’ equity
$
368,055
$
459,109
MITEK SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(amounts in thousands)
Nine Months Ended June 30,
2026
2025
Operating activities:
Net income
$
20,675
$
6,936
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense
12,582
13,239
Loss on extinguishment of revolving credit line
—
309
Amortization of acquired intangible assets
9,913
10,817
Amortization of costs capitalized to obtain revenue contracts
2,229
1,394
Depreciation and amortization expense
1,285
1,171
Bad debt expense
228
520
Amortization of investment premiums & other
(343
)
(764
)
Accretion and amortization on convertible senior notes
3,034
6,403
Deferred taxes
(28
)
(7,942
)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable
(15,878
)
(8,852
)
Contract assets
3,190
5,997
Other assets
(5,015
)
(755
)
Accounts payable
108
(3,691
)
Accrued payroll and related taxes
(2,119
)
3,947
Income taxes payable
416
1,990
Deferred revenue
6,104
4,584
Other liabilities
(2,152
)
576
Net cash provided by operating activities
34,229
35,879
Investing activities:
Purchases of investments
(8,179
)
(34,192
)
Maturities of investments
34,621
34,900
Sales of investments
6,035
—
Purchases of property and equipment, net
(4,818
)
(896
)
Net cash provided by (used in) investing activities
27,659
(188
)
Financing activities:
Proceeds from term loan
50,000
—
Repayments of term loan
(625
)
—
Repayments of senior convertible notes
(155,250
)
—
Payment of debt issuance costs
—
(224
)
Proceeds from the issuance of equity plan common stock
2,263
530
Repurchases and retirements of common stock
(19,790
)
(3,259
)
Payment of tax withholding obligations related to net share settlements of equity awards
(2,131
)
—
Proceeds from other borrowings
442
—
Principal payments on other borrowings
(172
)
(142
)
Net cash used in financing activities
(125,263
)
(3,095
)
Foreign currency effect on cash and cash equivalents
(733
)
1,072
Net increase (decrease) in cash and cash equivalents
(64,108
)
33,668
Cash and cash equivalents at beginning of period
154,153
93,456
Cash and cash equivalents at end of period
$
90,045
$
127,124
Supplemental disclosures of cash flow information:
Cash paid for interest
$
1,562
$
582
Cash paid for income taxes
$
7,648
$
7,065
Supplemental disclosures of non-cash investing and financing activities:
Unrealized holding loss on available-for-sale investments
$
(50
)
$
(92
)
MITEK SYSTEMS, INC.
DISAGGREGATION OF REVENUE BY PRODUCT AND TYPE
(Unaudited)
(amounts in thousands)
Three Months Ended June 30,
Nine Months Ended June 30,
2026
2025
2026
2025
Fraud and Identity Solutions
SaaS
$
24,833
$
18,100
$
65,728
$
52,183
Software license and support
3,612
6,944
12,609
11,509
Professional services and other
586
491
1,864
1,531
Total fraud and identity solutions revenue
$
29,031
$
25,535
$
80,201
$
65,223
Check Verification Solutions
SaaS
$
1,319
$
1,161
$
3,881
$
3,500
Software license and support
23,408
18,846
67,927
65,454
Professional services and other
280
187
1,114
735
Total check verification solutions revenue
$
25,007
$
20,194
$
72,922
$
69,689
Consolidated Revenue
SaaS
$
26,152
$
19,261
$
69,609
$
55,683
Software license and support
27,020
25,790
80,536
76,963
Professional services and other
866
678
2,978
2,266
Consolidated revenue
$
54,038
$
45,729
$
153,123
$
134,912
MITEK SYSTEMS, INC.
GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION
(Unaudited)
(amounts in thousands)
Three Months Ended June 30,
Nine Months Ended June 30,
2026
2025
2026
2025
GAAP net income (loss)
$
8,367
$
2,396
$
20,675
$
6,936
Add:
Income tax (benefit) provision
2,803
749
7,629
1,368
Other (income) expense, net
(347
)
(1,805
)
(2,484
)
(3,478
)
Interest expense
721
2,469
4,713
7,274
GAAP operating income (loss)
$
11,544
$
3,809
$
30,533
$
12,100
Non-GAAP Adjustments
Depreciation and amortization expense
$
504
$
432
$
1,285
$
1,171
Amortization of acquired intangible assets
3,304
3,560
9,913
10,817
Litigation and other legal costs
380
37
408
457
Executive and other transition costs
158
—
420
521
Stock-based compensation expense
4,890
4,422
12,582
13,239
Non-recurring audit fees
—
807
719
1,937
Restructuring costs(1)
—
—
515
837
Adjusted EBITDA
$
20,780
$
13,067
$
56,375
$
41,079
Total revenue
$
54,038
$
45,729
$
153,123
$
134,912
Adjusted EBITDA margin
38.5
%
28.6
%
36.8
%
30.4
%
MITEK SYSTEMS, INC.
NON-GAAP NET INCOME RECONCILIATION
(Unaudited)
(amounts in thousands except per share data)
Three Months Ended June 30,
Nine Months Ended June 30,
2026
2025
2026
2025
Net income (loss)
$
8,367
$
2,396
$
20,675
$
6,936
Non-GAAP adjustments:
Amortization of acquired intangible assets
3,304
3,560
9,913
10,817
Litigation and other legal costs
380
37
408
457
Executive and other transition costs
158
—
420
521
Stock-based compensation expense
4,890
4,422
12,582
13,239
Non-recurring audit fees
—
807
719
1,937
Restructuring costs(1)
—
—
515
837
Amortization of debt discount and issuance costs
—
2,487
3,034
6,796
Income tax effect of pre-tax adjustments
(2,284
)
(2,304
)
(7,134
)
(7,663
)
Cash tax difference(2)
1,941
(1,228
)
6,535
(321
)
Non-GAAP net income
$
16,756
$
10,177
$
47,667
$
33,556
Non-GAAP net income per share—basic
$
0.37
$
0.22
$
1.05
$
0.74
Non-GAAP net income per share—diluted
$
0.34
$
0.22
$
0.98
$
0.72
Shares used in calculating non-GAAP net income per share—basic
45,175
45,894
45,311
45,632
Shares used in calculating non-GAAP net income per share—diluted
48,709
46,848
48,576
46,790
MITEK SYSTEMS, INC.
NON-GAAP FREE CASH FLOW RECONCILIATION
(Unaudited)
(amounts in thousands)
Three months ended
Twelve months
ended June 30,
2026
September
30, 2025
December
31, 2025
March 31,
2026
June 30,
2026
Net cash provided by (used in) operating activities
$
19,461
$
8,018
$
(945
)
$
27,156
$
53,690
Less:
Purchases of property and equipment, net
(259
)
(1,426
)
(1,552
)
(1,840
)
(5,077
)
Free Cash Flow
$
19,202
$
6,592
$
(2,497
)
$
25,316
$
48,613
Three months ended
Twelve months
ended June 30,
2025
September
30, 2024
December
31, 2024
March 31,
2025
June 30,
2025
Net cash provided by (used in) operating activities
$
21,102
$
565
$
13,743
$
21,571
$
56,981
Less:
Purchases of property and equipment, net
(283
)
(335
)
(232
)
(329
)
(1,179
)
Free Cash Flow
$
20,819
$
230
$
13,511
$
21,242
$
55,802
MITEK SYSTEMS, INC.
STOCK-BASED COMPENSATION EXPENSE
(Unaudited)
(amounts in thousands)
Three Months Ended June 30,
Nine Months Ended June 30,
2026
2025
2026
2025
Cost of revenue
$
327
$
181
$
990
$
504
Selling and marketing
976
950
2,167
2,959
Research and development
604
1,287
851
3,749
General and administrative
2,983
2,004
8,574
6,027
Total stock-based compensation expense
$
4,890
$
4,422
$
12,582
$
13,239
MITEK SYSTEMS, INC.
NON-GAAP GROSS PROFIT RECONCILIATION
(Unaudited)
(amounts in thousands)
Three Months Ended June 30,
Nine Months Ended June 30,
2026
2025
2026
2025
Software license
Software license revenue
$
20,714
$
19,507
$
60,565
$
58,192
Cost of revenue (exclusive of depreciation and amortization expense)
(60
)
(53
)
(126
)
(136
)
Depreciation and amortization expense
(162
)
(185
)
(529
)
(697
)
Amortization of acquired completed technology assets
(501
)
(763
)
(1,503
)
(2,605
)
GAAP gross profit for software license and hardware
19,991
18,506
58,407
54,754
Depreciation and amortization expense
162
185
529
697
Amortization of acquired completed technology assets
501
763
1,503
2,605
Non-GAAP gross profit for software license
$
20,654
$
19,454
$
60,439
$
58,056
GAAP gross margin for software license
96.5
%
94.9
%
96.4
%
94.1
%
Non-GAAP gross margin for software license
99.7
%
99.7
%
99.8
%
99.8
%
SaaS, maintenance, and other
SaaS, maintenance, and other revenue
$
33,324
$
26,222
$
92,558
$
76,720
Cost of revenue (exclusive of depreciation and amortization expense)
(8,119
)
(6,969
)
(25,018
)
(19,361
)
Depreciation and amortization expense
(229
)
(3
)
(444
)
(9
)
Amortization of acquired completed technology assets
(2,228
)
(2,218
)
(6,674
)
(6,436
)
GAAP gross profit for SaaS, maintenance, and other
22,748
17,032
60,422
50,914
Depreciation and amortization expense
229
3
444
9
Amortization of acquired completed technology assets
2,228
2,218
6,674
6,436
Stock-based compensation expense
327
181
990
504
Non-GAAP gross profit for SaaS, maintenance, and other
$
25,532
$
19,434
$
68,530
$
57,863
GAAP gross margin for SaaS, maintenance, and other
68.3
%
65.0
%
65.3
%
66.4
%
Non-GAAP gross margin for SaaS, maintenance, and other
76.6
%
74.1
%
74.0
%
75.4
%
Consolidated results
Total revenue
$
54,038
$
45,729
$
153,123
$
134,912
Cost of revenue (exclusive of depreciation and amortization expense)
(8,179
)
(7,022
)
(25,144
)
(19,497
)
Depreciation and amortization expense
(391
)
(188
)
(973
)
(706
)
Amortization of acquired completed technology assets
(2,729
)
(2,981
)
(8,177
)
(9,041
)
GAAP gross profit
42,739
35,538
118,829
105,668
Depreciation and amortization expense
391
188
973
706
Amortization of acquired completed technology assets
SAN DIEGO--(BUSINESS WIRE)--Mitek Systems, Inc. (NASDAQ: MITK), a global leader in digital identity verification and fraud prevention, today announced that it will release its financial results for the third quarter of fiscal year 2026, which ended June 30, 2026, after the U.S. market closes on Thursday, August 6, 2026. Mitek will host a conference call and live webcast to discuss the results at 2 p.m. PT (5 p.m. ET). Mitek CEO Ed West and CFO Dave Lyle will lead the call, followed by a Q&A.
SAN DIEGO--(BUSINESS WIRE)--Mitek Systems, Inc. (NASDAQ: MITK), a global leader in digital identity verification and fraud prevention, today announced a new integration with Ping Identity, a leader in securing digital identities for the world's largest enterprises, leveraging PingOne DaVinciTM, a no-code identity orchestration service. The DaVinci connector enables organizations to configure advanced identity verification capabilities, including liveness detection and face comparison, into Ping.
Mitek Systems, Inc. (NASDAQ: MITK - Get Free Report)'s share price passed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $10.74 and traded as high as $13.52. Mitek Systems shares last traded at $13.10, with a volume of 830,650 shares trading hands. Analyst Upgrades and Downgrades
Real-time identity verification and consortium fraud intelligence combined to improve onboarding risk decisions
LONDON--(BUSINESS WIRE)--Mitek (NASDAQ: MITK) and Synectics Solutions have partnered to help UK insurers detect fraud earlier in digital insurance applications while improving access to coverage for genuine customers.
The collaboration combines Mitek’s identity verification and anti-spoofing technology with Synectics’ fraud orchestration platform, and National SIRA, the largest cross-sector risk intelligence consortium of its kind. Together, the technologies enable insurers to verify applicant identities with greater confidence and identify potential fraud risks earlier in the onboarding and quote processes.
The partnership comes as insurers face increasing pressure to tackle rising fraud losses while ensuring fair treatment of customers under the UK Financial Conduct Authority’s Consumer Duty, which requires firms to deliver good outcomes and avoid unfairly excluding legitimate applicants.
Insurance fraud remains a major challenge across the UK. According to the Association of British Insurers (ABI), insurers detect more than £1 billion in fraudulent claims each year, while digital insurance channels are increasingly targeted by criminals using synthetic identities, stolen credentials and AI-generated identity documents.
By combining verified identity signals from Mitek with Synectics’ shared fraud intelligence network, insurers can better identify suspicious applications while confidently approving more legitimate customers — including applicants with limited financial histories, often referred to as “thin-file” customers.
“Fraud is moving faster than traditional controls can respond. Insurers shouldn’t have to choose between strong fraud controls and fair customer outcomes,” said Tim Barber, Vice President, EMEA Sales at Mitek. “Together with Synectics, we’re helping UK insurers strengthen identity certainty so they can grow responsibly without increasing fraud.”
“Cross-institution intelligence and data sharing are essential in the fight against fraud,” said Chris Lewis, Director Strategic Solutions and Analytics at Synectics Solutions. “Only by pooling information can we uncover the hidden links and patterns that no single institution can detect alone. Combining verified identity with shared intelligence means that insurers can act faster on new risks while allowing genuine customers to access cover with greater confidence.”
The integration enables insurers to incorporate Mitek’s identity verification directly into Synectics’ fraud intelligence platform, giving insurers a clearer view of applicant risk while maintaining a seamless digital customer journey.
About Mitek Systems, Inc.
Mitek protects what’s real across digital interactions in a world of evolving threats. Mitek helps businesses verify identities, prevent fraud before it happens, and deliver secure, seamless digital experiences in the face of rapidly advancing AI-generated threats. From account opening to authentication and deposit, Mitek’s technology safeguards critical digital interactions. More than 7,000 organizations rely on Mitek to protect their most important customer connections and stay ahead of emerging risks. Learn more at www.miteksystems.com.
Follow Mitek on LinkedIn and YouTube, and read Mitek’s latest blog posts here.
About Synectics
Synectics Solutions is the UK leader in cross-sector risk intelligence and a trusted ally to the fraud-fighting community. Our risk intelligence consortium of confirmed and suspected fraud is the largest of its kind – enabling earlier threat detection and richer insight into criminal activity. We combine this intelligence with AI-powered analytics, real-time decisioning and sub-second analysis to fast-track genuine applicants and disrupt fraud at scale. Learn more www.synectics-solutions.com
Follow Synectics on LinkedIn and catch up on our latest cross-sector fraud insights here
On April 16, 2026, Mitek Systems Inc MITK shares fell 6.8% to a current price of $14.04. This decline comes amid a volatile trading environment, with the stock showing a 52-week range of $7.54 to $15.61.
GF Value™ verdict: Current price of $14.04 is 27.8% above the GF Value™ estimate of $10.99, indicating the stock is overvalued.GF Score™ is 82/100, which suggests a strong overall performance compared to peers.Notable signal: Insiders have sold $1.1M in stock over the last three months, with no insider buying reported. Is MITK Overvalued or Undervalued? According to the current evaluation, Mitek Systems Inc MITK is considered overvalued, with a current trading price of $14.04 compared to the GF Value™ estimate of $10.99. This represents a margin of safety of approximately 27.8% for potential investors. The GF Valuation label indicates that the stock is moderately overvalued, suggesting that it may not provide the same level of return on investment as similarly priced stocks or those priced closer to their intrinsic value. Investors should be cautious, as buying shares at overvalued levels can lead to lower future returns.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. With the current price surpassing the estimated intrinsic value, there is a risk that the stock may be subject to price corrections, particularly in a market influenced by broader economic conditions.
How Does MITK's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 40.1x 71.8x Forward P/E 12.3x N/A The current P/E ratio of 40.1x is significantly below its 5-year median of 71.8x, indicating that the stock is trading at a lower valuation relative to its historical average. The forward P/E of 12.3x also suggests a potentially more favorable outlook compared to the trailing metric. However, this P/E analysis aligns with the GF Value™ verdict, reinforcing the notion that while the stock is trading below historical averages, it is still considered overvalued based on the GF Value™ estimate.
What Does MITK's GF Score™ Tell Us? Metric Rating GF Score™ 82 Financial Strength 6/10 Profitability 7/10 Growth 9/10 Valuation 5/10 Momentum 3/10 Mitek Systems Inc MITK has a GF Score™ of 82/100, indicating a strong overall performance. The strongest area is its growth rank, rated at 9/10, suggesting robust potential for future expansion. However, the momentum rank of 3/10 indicates that the stock may be experiencing some challenges in maintaining upward price movement. Additionally, the financial strength and valuation ranks of 6/10 and 5/10, respectively, highlight moderate stability but also suggest that the stock may not be as financially solid as desired.
What Are Insiders Doing with MITK Stock? Recent insider activity shows that insiders have sold a total of $1.1 million in Mitek Systems Inc MITK stock over the last three months, with no reported purchases. This selling trend may signal a lack of confidence from insiders regarding the stock's short-term performance potential or could reflect personal financial decisions unrelated to the company’s forecast.
Such activity can be interpreted as a cautionary sign for potential investors, as insider selling may indicate that those closest to the company do not foresee immediate gains in the stock price.
What This Means for Investors Based on the current valuation assessment, Mitek Systems Inc MITK is considered overvalued with a GF Value™ estimate of $10.99 compared to its current trading price of $14.04. This suggests that investors may want to proceed with caution if considering an investment in MITK at this time.
For the complete analysis, visit the Mitek Systems Inc MITK stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is MITK's GF Score™?
MITK's GF Score™ is 82/100, indicating a strong overall performance compared to peers, suggesting the company has good growth potential and financial stability.
Is MITK overvalued or undervalued?
MITK is currently overvalued, as its current price of $14.04 exceeds the GF Value™ estimate of $10.99 by 27.8%.
What is MITK's P/E ratio?
MITK's P/E (TTM) is 40.1x, which is significantly lower than its 5-year median P/E of 71.8x, indicating that the stock is trading at a lower valuation relative to its historical norm.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
On April 22, 2026, Mitek Systems Inc MITK shares fell 4.1% to $14.61. The stock has experienced significant volatility over the past year, with a 52-week high of $15.80 and a low of $7.64. This movement adds context to the current price as investors assess the company's valuation in a fluctuating market.
GF Value™ verdict: Current price $14.61 is 32.9% above GF Value™ of $10.99.GF Score™: 82/100 (Strong), indicating robust potential for long-term returns.Notable signal: Insiders have sold $1.1M worth of shares in the last three months with no buying activity. Is MITK Overvalued or Undervalued? Mitek Systems Inc MITK is currently trading at $14.61, which is significantly above its GF Value™ of $10.99, indicating that the stock is 32.9% overvalued. The GF Valuation label categorizes the stock as significantly overvalued, suggesting that there may be a lack of margin of safety for potential investors. When a stock is overvalued, it carries the risk of a price correction, which could adversely affect investors who buy at these elevated levels.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current valuation discrepancies, potential investors should approach with caution, as the risk of a price decline exists if the market corrects its valuation of MITK.
How Does MITK's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)41.7x71.1x (5-Year Median) Forward P/E12.7xN/A Mitek's current P/E (TTM) of 41.7x is significantly below its 5-year median P/E of 71.1x, suggesting that the stock is trading at a lower valuation compared to its historical norms. However, the forward P/E of 12.7x indicates a more favorable outlook for future earnings. This P/E analysis aligns with the GF Value™ verdict, reinforcing the notion that MITK may be overvalued at its current price.
What Does MITK's GF Score™ Tell Us? MetricRating GF Score™82/100 Financial Strength6/10 Profitability7/10 Growth9/10 Valuation5/10 Momentum3/10 The GF Score™ of 82/100 indicates a strong overall assessment of Mitek's potential for long-term returns. The strongest area is its Growth score of 9/10, suggesting robust growth prospects. However, the weakest aspect is the Momentum score of 3/10, reflecting recent trends and market performance. The Financial Strength and Profitability scores are moderate, indicating that while Mitek is financially stable, there may be room for improvement in these areas.
What Are Insiders Doing with MITK Stock? Recent insider activity has shown that insiders sold $1.1 million worth of Mitek shares over the last three months, with no recent purchases. This pattern of selling may imply a lack of confidence among insiders regarding the stock's short-term prospects or its current valuation. Such activity can often be a signal for potential investors to exercise caution, as it suggests that those closest to the company may not believe the current price reflects its intrinsic value.
What This Means for Investors Based on the GF Value™ assessment, Mitek Systems Inc MITK is currently overvalued at $14.61 compared to its intrinsic GF Value™ of $10.99. Potential investors should exercise caution, considering the significant overvaluation and insider selling activity.
For the complete analysis, visit the Mitek Systems Inc MITK stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is MITK's GF Score™?
The GF Score™ for Mitek Systems Inc is 82/100, indicating a strong potential for long-term returns based on various key aspects.
Is MITK overvalued or undervalued?
Mitek Systems Inc is considered overvalued, with a current price of $14.61 that is 32.9% above its GF Value™ of $10.99.
What is MITK's P/E ratio?
The P/E ratio for Mitek Systems Inc (TTM) is 41.7x, which is significantly below its 5-year median P/E of 71.1x, indicating a lower historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
SAN DIEGO--(BUSINESS WIRE)--Mitek Systems, Inc. (NASDAQ: MITK), a global leader in digital identity verification and fraud prevention, today announced that it will release its financial results for the second quarter of fiscal year 2026, which ended March 31, 2026, after the U.S. market closes on Thursday, May 7, 2026. Mitek will host a conference call and live webcast to discuss the results at 2 p.m. PT (5 p.m. ET). Mitek CEO Ed West and CFO Dave Lyle will lead the call, followed by a Q&A.
~Integration brings Mitek’s consortium-powered check image intelligence into Tyfone’s nFinia® Digital Banking platform for real-time fraud detection~
PORTLAND, Ore.--(BUSINESS WIRE)--Tyfone, a leading provider of digital banking solutions for community financial institutions (CFIs), today announced an expansion of its fraud protection capabilities with the integration of check image consortium technology from Mitek Systems, Inc. (NASDAQ: MITK), a global leader in digital identity verification and fraud prevention.
Tyfone expands its nFinia® Digital Banking platform's Check Fraud Protection Capabilities with Mitek Systems’ Check Fraud Defender
Share Through this integration, Tyfone’s nFinia Digital Banking platform now provides CFIs with access to real-time check fraud detection, enabling faster decisioning, reduced fraud losses, and improved operational efficiency – all within a single digital banking experience.
Mitek’s Check Fraud Defender® leverages patented imaging science, machine learning, and artificial intelligence to analyze check images across channels and identify potentially fraudulent activity. The solution also incorporates a consortium-based approach, allowing participating institutions to proactively flag suspicious checks tied to known fraud patterns, helping CFIs stay ahead of emerging threats.
Siva Narendra, CEO of Tyfone, said, “Fraudsters are evolving their tactics and leveraging sophisticated methods such as AI that make it more challenging when examining check images individually in isolation. There is an urgent need for more robust detection capabilities and real-time verification. We are proud to partner with Mitek to provide our customers access to an advanced check fraud detection solution that safeguards their operations, while maintaining the seamless and easy to navigate, user-friendly experience to which they are accustomed.”
“Fraud continues to evolve across channels, and financial institutions need smarter, more connected ways to assess risk and protect trust,” said Kerry Cantley, VP Of Digital Banking Strategy at Mitek Systems. “By integrating fraud detection capabilities into Tyfone’s digital banking platform, institutions gain greater visibility and faster decisioning to help prevent losses and deliver more secure digital experiences.”
Tyfone’s nFinia Digital Banking platform delivers an intuitive, AI-powered banking experience, including smarter tools, instant payments and secure transactions. The platform's configurable, open, API-driven infrastructure enables CFIs to easily integrate with third-party applications, providing account holders access to financial wellness tools and advanced features all within one app.
About Tyfone Inc.
Based in Portland, Ore., Tyfone is a leading provider of consumer and commercial digital banking services for community financial institutions throughout the U.S. We understand that an elegant, engaging, intuitive user experience is the minimum requirement for any digital banking provider. What differentiates Tyfone is our unwavering commitment to continuous innovation, exceptional collaboration, and superior execution. We consider each customer a true partner and place the highest value on every relationship. To learn more about Tyfone, visit Tyfone.com and connect on LinkedIn.
Reported revenue of $54.8M, the highest quarterly revenue in Mitek history
Fraud and Identity revenue grew 28% year over year; SaaS revenue grew 18%
Raises full-year fiscal 2026 revenue and adjusted EBITDA margin outlook
SAN DIEGO--(BUSINESS WIRE)--Mitek Systems, Inc. (NASDAQ: MITK, www.miteksystems.com, “Mitek” or the “Company”), a global leader in digital identity verification and fraud prevention, today reported financial results for its second quarter ended March 31, 2026 and raised its revenue and adjusted EBITDA margin guidance range for the fiscal year ending September 30, 2026 (“fiscal 2026”).
“The team’s execution on our Unify and Grow ethos resulted in a record revenue and profitability quarter, led by 18% year-over-year SaaS growth as customers route more transactions through Mitek to counter AI-driven fraud,” said Ed West, Chief Executive Officer of Mitek. “Our recent growth has been driven by deepening and broadening relationships with some of the world’s leading financial institutions and adding new high-assurance customers in multiple markets. Based on this momentum, we have again raised our full-year outlook, and our focus remains on disciplined execution, continued innovation, and scaling our business model to drive durable, long-term value.”
Fiscal 2026 Second Quarter Financial Highlights
GAAP
Total revenue of $54.8 million was a 6% increase year-over-year, compared to $51.9 million a year ago. SaaS revenue of $21.2 million was an 18% increase year-over-year, compared to $18.0 million a year ago. Gross profit of $43.2 million, compared to $42.1 million a year ago. GAAP gross profit margin was 78.8%, compared to 81.2% a year ago. GAAP net income was $9.5 million, compared to $9.2 million a year ago. GAAP net income per diluted share was $0.20, compared to $0.20 a year ago. Total cash and investments of $77.6 million at March 31, 2026, was a decrease of $118.9 million from $196.5 million at September 30, 2025; the retirement of the $155 million Convertible Senior Notes was the primary contributor to the decrease. LTM net cash provided by operating activities was $48.1 million, compared to $48.4 million for the corresponding period a year ago. Non-GAAP
Non-GAAP gross profit of $46.6 million, compared to $45.6 million a year ago. Non-GAAP gross profit margin was 85.0%, compared to 87.7% a year ago. Adjusted EBITDA was $22.3 million, compared to $20.3 million a year ago. Adjusted EBITDA margin was 40.7%, compared to 39.0% a year ago. Non-GAAP net income was $18.5 million, compared to $16.7 million a year ago. Non-GAAP net income per diluted share was $0.38, compared to $0.36 a year ago. LTM free cash flow was $44.5 million, compared to $47.1 million for the corresponding period a year ago. Guidance
Guidance includes non-GAAP financial measures. Mitek is raising its revenue and adjusted EBITDA margin guidance for the fiscal year, and providing guidance for its fiscal third quarter, ending June 30, 2026, as follows:
Full Year FY26
Q3 FY26
Guidance
Guidance
Total revenue
$189 - $198 million
$49 - $53 million
Y/Y growth (midpoint)
Approximately 8%
Fraud & Identity solutions revenue(1)
$103 - $108 million
Y/Y growth (midpoint)
Approximately 17%
Adjusted EBITDA margin %(2)
30% - 33%
Total Non-GAAP operating expense(2)
$25 - $26 million
(1) See revenue categorizations as presented in the “Disaggregation of Revenue by Product and Type” below.
(2) See “GAAP to Non-GAAP” Reconciliations below.
Conference Call Information
Mitek management will host a conference call and live webcast for analysts and investors today at 2 p.m. PT (5 p.m. ET) to discuss the Company’s financial results for the second quarter of fiscal 2026. To join the webcast, visit our Investor Relations website at https://investors.miteksystems.com.
Participants may also dial +1 800-717-1738 (US and Canada) or +1 646-307-1865 (International) to access the call. A dial-in replay will be available for one week by dialing +1 844-512-2921 (U.S. and Canada) or +1 412-317-6671 (International) and entering the passcode 1141184. An archived webcast replay will remain accessible for one year on Mitek’s Investor Relations website.
About Mitek Systems, Inc.
Mitek Systems protects what’s real across digital interactions in a world of evolving threats. Mitek helps businesses verify identities, prevent fraud before it happens, and deliver secure, seamless digital experiences in the face of rapidly advancing AI-generated threats. From account opening to authentication and deposit, Mitek’s technology safeguards critical digital interactions. More than 7,000 organizations rely on Mitek to protect their most important customer connections and stay ahead of emerging risks. Learn more at www.miteksystems.com. [(MITK-F)]
Follow Mitek on LinkedIn and YouTube, and read Mitek’s latest blog posts here.
Notice Regarding Forward-Looking Statements
Statements contained in this news release relating to the Company or its management’s intentions, hopes, beliefs, expectations or predictions of the future, including, but not limited to, statements relating to the Company’s fiscal 2026 guidance, are forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks related to the Company’s ability to withstand negative conditions in the global economy, a lack of demand for or market acceptance of the Company’s products, the Company’s ability to continue to develop, produce and introduce innovative new products in a timely manner, the Company’s ability to capitalize on a growing market, quarterly variations in revenue, the profitability of certain sectors of the Company, the performance of the Company’s growth initiatives, the outcome of any pending or threatened litigation or investigation, and the timing of the implementation and launch of the Company’s products by the Company’s signed customers.
Additional risks and uncertainties faced by the Company are contained from time to time in the Company’s filings with the U.S. Securities and Exchange Commission (SEC), including, but not limited to, the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025, as filed with the SEC on December 11, 2025 and its quarterly reports on Form 10-Q and current reports on Form 8-K, which you may obtain for free on the SEC’s website at www.sec.gov. Collectively, these risks and uncertainties could cause the Company’s actual results to differ materially from those projected in its forward-looking statements and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company disclaims any intention or obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Note Regarding Use of Non-GAAP Financial Measures
This news release contains non-U.S. generally accepted accounting principles (“GAAP”) financial measures for adjusted EBITDA, adjusted EBITDA margin, non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP net income per basic share, non-GAAP net income per diluted share, non-GAAP free cash flow, and non-GAAP operating expense that excludes stock-based compensation expense, litigation and other legal costs, executive and other transition costs, non-recurring audit fees, enterprise risk, portfolio positioning and other related costs, and non-GAAP net income which additionally excludes amortization of acquisition-related intangibles, net changes in estimated fair value of acquisition-related contingent consideration, restructuring costs, amortization of debt discount and issuance costs, income tax effect of pre-tax adjustments, and cash tax difference. These financial measures are not calculated in accordance with GAAP and are not based on any comprehensive set of accounting rules or principles. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement financial statements prepared under GAAP. Management believes these non-GAAP financial measures provide a useful measure of the Company’s operating results, a meaningful comparison with historical results and with the results of other companies, and insight into the Company’s ongoing operating performance. Further, management and the Board of Directors of the Company utilize these non-GAAP financial measures to gain a better understanding of the Company’s comparative operating performance from period-to-period and as a basis for planning and forecasting future periods. Management believes these non-GAAP financial measures, when read in conjunction with the Company’s GAAP financial statements, are useful to investors because they provide a basis for meaningful period-to-period comparisons of the Company’s ongoing operating results, including results of operations against investor and analyst financial models, which helps identify trends in the Company’s underlying business and provides a better understanding of how management plans and measures the Company’s underlying business.
The Company has not provided a reconciliation of its forward outlook for non-GAAP adjusted EBITDA margin with its forward-looking GAAP net income margin in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to quantify share-based compensation expense, which is excluded from our non-GAAP adjusted EBITDA margin, as it requires additional inputs such as the number of shares granted and market prices that are not ascertainable due to the volatility of the Company’s share price. Additionally, a significant portion of the Company’s operations are in foreign countries and the transactional currencies are primarily Euros and British pound sterling and the Company is not able to predict fluctuations in those currencies without unreasonable efforts. The Company expects these items may have a potentially significant impact on future GAAP financial results.
We define free cash flow as net cash provided by operating activities, less cash used for purchases of property and equipment. We define free cash flow margin as free cash flow as a percentage of revenue. In addition to the reasons stated above, we believe that free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment in order to enhance the strength of our balance sheet and further invest in our business and potential strategic initiatives. A limitation of the utility of free cash flow as a measure of our liquidity is that it does not represent the total increase or decrease in our cash balance for the period. We use free cash flow in conjunction with traditional U.S. GAAP measures as part of our overall assessment of our liquidity, including the preparation of our annual operating budget and quarterly forecasts and to evaluate the effectiveness of our business strategies. There are a number of limitations related to the use of free cash flow as compared to net cash provided by operating activities, including that free cash flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made. We may refer to certain financial metrics on a Last Twelve Months (“LTM”) basis. LTM figures represent the sum of the most recently reported four fiscal quarters and are used to provide a view of the company's financial performance over the past year.
Mitek encourages investors to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate Mitek’s business.
MITEK SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(amounts in thousands except per share data)
Three Months Ended March 31,
Six Months Ended March 31,
2026
2025
2026
2025
Revenue
Software license
$
25,950
$
26,700
$
39,851
$
38,685
SaaS, maintenance, and other
28,891
25,229
59,234
50,498
Total revenue
54,841
51,929
99,085
89,183
Operating costs and expenses
Cost of revenue—software license (exclusive of depreciation & amortization)
33
16
66
83
Cost of revenue—SaaS, maintenance, and other (exclusive of depreciation & amortization)
8,525
6,515
16,899
12,392
Selling and marketing
9,601
10,540
17,749
20,235
Research and development
7,566
9,766
14,940
18,089
General and administrative
12,244
10,098
23,318
21,999
Amortization of acquired intangibles and acquisition-related costs
3,323
3,600
6,609
7,257
Restructuring costs
—
29
515
837
Total operating costs and expenses
41,292
40,564
80,096
80,892
Operating income (loss)
13,549
11,365
18,989
8,291
Interest expense
1,450
2,407
3,992
4,805
Other income (expense), net
637
1,110
2,137
1,673
Income (loss) before income taxes
12,736
10,068
17,134
5,159
Income tax benefit (provision)
(3,200
)
(916
)
(4,826
)
(619
)
Net income (loss)
$
9,536
$
9,152
$
12,308
$
4,540
Net income (loss) per share—basic
$
0.21
$
0.20
$
0.27
$
0.10
Net income (loss) per share—diluted
$
0.20
$
0.20
$
0.25
$
0.10
Shares used in calculating net income (loss) per share—basic
45,050
45,651
45,380
45,501
Shares used in calculating net income (loss) per share—diluted
48,535
46,610
48,470
46,599
Comprehensive income (loss)
Net income (loss)
$
9,536
$
9,152
$
12,308
$
4,540
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment
(2,980
)
4,944
(3,069
)
(5,566
)
Unrealized gain (loss) on investments, net of tax benefit/(expense) of $7, $(8), $14, and $34
(25
)
54
(48
)
(84
)
Other comprehensive income (loss), net of tax
(3,005
)
4,998
(3,117
)
(5,650
)
Comprehensive income (loss)
$
6,531
$
14,150
$
9,191
$
(1,110
)
MITEK SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(amounts in thousands except share data)
March 31, 2026 (Unaudited)
September 30, 2025
ASSETS
Current assets:
Cash and cash equivalents
$
69,187
$
154,153
Short-term investments
8,400
38,858
Accounts receivable, net
63,308
36,811
Contract assets, current portion
8,626
12,687
Prepaid expenses
2,942
3,050
Other current assets
4,038
2,935
Total current assets
156,501
248,494
Long-term investments
—
3,464
Property and equipment, net
4,500
2,314
Right-of-use assets
2,167
2,624
Intangible assets, net
32,672
39,799
Goodwill
131,439
133,457
Deferred income tax assets
24,437
25,334
Contract assets, non-current portion
1,447
1,405
Other non-current assets
3,775
2,218
Total assets
$
356,938
$
459,109
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
3,976
$
3,874
Accrued payroll and related taxes
11,850
16,837
Accrued liabilities
627
343
Income tax payables
3,000
2,683
Deferred revenue, current portion
36,056
29,061
Lease liabilities, current portion
894
890
Convertible senior notes
—
152,216
Current portion of term loan
2,500
—
Other current liabilities
1,035
3,130
Total current liabilities
59,938
209,034
Deferred revenue, non-current portion
1,501
1,085
Long-term portion of term loan
47,500
—
Lease liabilities, non-current portion
1,623
2,080
Deferred income tax liabilities
290
295
Other non-current liabilities
6,619
6,357
Total liabilities
117,471
218,851
Stockholders’ equity:
Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding
—
—
Common stock, $0.001 par value, 120,000,000 shares authorized, 44,864,835 and 45,636,531 issued and outstanding, as of March 31, 2026 and September 30, 2025, respectively
45
46
Additional paid-in capital
273,642
265,835
Accumulated other comprehensive income (loss)
(2,531
)
586
Accumulated deficit
(31,689
)
(26,209
)
Total stockholders’ equity
239,467
240,258
Total liabilities and stockholders’ equity
$
356,938
$
459,109
MITEK SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(amounts in thousands)
Six Months Ended March 31,
2026
2025
Operating activities:
Net income (loss)
$
12,308
$
4,540
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Stock-based compensation expense
7,692
8,817
Amortization of acquired intangible assets
6,609
7,257
Amortization of costs capitalized to obtain revenue contracts
1,354
878
Depreciation and amortization expense
781
739
Bad debt expense
293
411
Amortization of investment premiums & other
(262
)
(1,146
)
Accretion and amortization on convertible senior notes
3,034
4,224
Deferred taxes
822
(5,423
)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable
(26,939
)
(18,898
)
Contract assets
3,967
5,649
Other assets
(3,998
)
578
Accounts payable
123
(3,674
)
Accrued payroll and related taxes
(4,908
)
1,157
Income taxes payable
351
837
Deferred revenue
7,550
7,922
Other liabilities
(1,704
)
440
Net cash provided by (used in) operating activities
7,073
14,308
Investing activities:
Purchases of investments
(2,218
)
(21,973
)
Maturities of investments
30,321
23,000
Sales of investments
6,035
—
Purchases of property and equipment, net
(2,978
)
(567
)
Net cash provided by (used in) investing activities
31,160
460
Financing activities:
Proceeds from term loan
50,000
—
Repayments of senior convertible notes
(155,250
)
—
Proceeds from the issuance of equity plan common stock
2,246
261
Repurchases and retirements of common stock
(17,789
)
(3,258
)
Payment of tax withholding obligations related to net share settlements of equity awards
(2,131
)
—
Proceeds from other borrowings
304
—
Principal payments on other borrowings
—
(96
)
Net cash provided by (used in) financing activities
(122,620
)
(3,093
)
Foreign currency effect on cash and cash equivalents
(579
)
(432
)
Net increase (decrease) in cash and cash equivalents
(84,966
)
11,243
Cash and cash equivalents at beginning of period
154,153
93,456
Cash and cash equivalents at end of period
$
69,187
$
104,699
Supplemental disclosures of cash flow information:
Cash paid for interest
$
1,042
$
582
Cash paid for income taxes
$
4,349
$
4,952
Supplemental disclosures of non-cash investing and financing activities:
Unrealized holding gain (loss) on available-for-sale investments
$
(48
)
$
(84
)
MITEK SYSTEMS, INC.
DISAGGREGATION OF REVENUE BY PRODUCT AND TYPE
(Unaudited)
(amounts in thousands)
Three Months Ended March 31,
Six Months Ended March 31,
2026
2025
2026
2025
Fraud and Identity Solutions
SaaS
$
19,979
$
16,790
$
40,895
$
34,083
Software license and support
5,089
2,843
8,997
4,565
Professional services and other
632
486
1,278
1,040
Total fraud and identity solutions revenue
$
25,700
$
20,119
$
51,170
$
39,688
Check Verification Solutions
SaaS
$
1,241
$
1,205
$
2,562
$
2,339
Software license and support
27,612
30,234
44,519
46,608
Professional services and other
288
371
834
548
Total check verification solutions revenue
$
29,141
$
31,810
$
47,915
$
49,495
Consolidated Revenue
SaaS
$
21,220
$
17,995
$
43,457
$
36,422
Software license and support
32,701
33,077
53,516
51,173
Professional services and other
920
857
2,112
1,588
Consolidated revenue
$
54,841
$
51,929
$
99,085
$
89,183
MITEK SYSTEMS, INC.
GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION
(Unaudited)
(amounts in thousands)
Three Months Ended March 31,
Six Months Ended March 31,
2026
2025
2026
2025
GAAP net income (loss)
$
9,536
$
9,152
$
12,308
$
4,540
Add:
Income tax (benefit) provision
3,200
916
4,826
619
Other (income) expense, net
(637
)
(1,110
)
(2,137
)
(1,673
)
Interest expense
1,450
2,407
3,992
4,805
GAAP operating income (loss)
$
13,549
$
11,365
$
18,989
$
8,291
Non-GAAP Adjustments
Depreciation and amortization expense
$
428
$
395
$
781
$
739
Amortization of acquired intangible assets
3,323
3,657
6,609
7,257
Litigation and other legal costs
5
187
28
420
Executive and other transition costs
—
27
262
521
Stock-based compensation expense
5,001
4,352
7,692
8,817
Non-recurring audit fees
—
263
719
1,130
Restructuring costs(1)
—
29
515
837
Adjusted EBITDA
$
22,306
$
20,275
$
35,595
$
28,012
Total revenue
$
54,841
$
51,929
$
99,085
$
89,183
Adjusted EBITDA margin
40.7
%
39.0
%
35.9
%
31.4
%
MITEK SYSTEMS, INC.
NON-GAAP NET INCOME RECONCILIATION
(Unaudited)
(amounts in thousands except per share data)
Three Months Ended March 31,
Six Months Ended March 31,
2026
2025
2026
2025
Net income (loss)
$
9,536
$
9,152
$
12,308
$
4,540
Non-GAAP adjustments:
Amortization of acquired intangible assets
3,323
3,600
6,609
7,257
Litigation and other legal costs
5
187
28
420
Executive and other transition costs
—
27
262
521
Stock-based compensation expense
5,001
4,352
7,692
8,817
Non-recurring audit fees
—
263
719
1,130
Restructuring costs(1)
—
29
515
837
Amortization of debt discount and issuance costs
785
2,162
3,034
4,309
Income tax effect of pre-tax adjustments
(1,802
)
(3,440
)
(4,850
)
(5,359
)
Cash tax difference(2)
1,629
414
4,594
907
Non-GAAP net income
$
18,477
$
16,746
$
30,911
$
23,379
Non-GAAP net income per share—basic
$
0.41
$
0.37
$
0.68
$
0.51
Non-GAAP net income per share—diluted
$
0.38
$
0.36
$
0.64
$
0.50
Shares used in calculating non-GAAP net income per share—basic
45,050
45,651
45,380
45,501
Shares used in calculating non-GAAP net income per share—diluted
48,535
46,610
48,470
46,599
MITEK SYSTEMS, INC.
NON-GAAP FREE CASH FLOW RECONCILIATION
(Unaudited)
(amounts in thousands)
Three months ended
Twelve months ended March 31, 2026
June 30, 2025
September 30, 2025
December 31, 2025
March 31, 2026
Net cash provided by (used in) operating activities
$
21,571
$
19,461
$
8,018
$
(945
)
$
48,105
Less:
Purchases of property and equipment, net
(329
)
(259
)
(1,426
)
(1,552
)
(3,566
)
Free Cash Flow
$
21,242
$
19,202
$
6,592
$
(2,497
)
$
44,539
Three months ended
Twelve months ended March 31, 2025
June 30, 2024
September 30, 2024
December 31, 2024
March 31, 2025
Net cash provided by (used in) operating activities
$
12,985
$
21,102
$
565
$
13,743
$
48,395
Less:
Purchases of property and equipment, net
(431
)
(283
)
(335
)
(232
)
(1,281
)
Free Cash Flow
$
12,554
$
20,819
$
230
$
13,511
$
47,114
MITEK SYSTEMS, INC.
STOCK-BASED COMPENSATION EXPENSE
(Unaudited)
(amounts in thousands)
Three Months Ended March 31,
Six Months Ended March 31,
2026
2025
2026
2025
Cost of revenue
$
355
$
162
$
663
$
323
Selling and marketing
1,135
1,035
1,191
2,009
Research and development
466
1,338
247
2,462
General and administrative
3,045
1,817
5,591
4,023
Total stock-based compensation expense
$
5,001
$
4,352
$
7,692
$
8,817
MITEK SYSTEMS, INC.
NON-GAAP GROSS PROFIT RECONCILIATION
(Unaudited)
(amounts in thousands)
Three Months Ended March 31,
Six Months Ended March 31,
2026
2025
2026
2025
Software license
Software license revenue
$
25,950
$
26,700
$
39,851
$
38,685
Cost of revenue (exclusive of depreciation and amortization expense)
(33
)
(16
)
(66
)
(83
)
Depreciation and amortization expense
(177
)
(246
)
(367
)
(512
)
Amortization of acquired completed technology assets
(501
)
(918
)
(1,002
)
(1,842
)
GAAP gross profit for software license and hardware
25,239
25,520
38,416
36,248
Depreciation and amortization expense
177
246
367
512
Amortization of acquired completed technology assets
501
918
1,002
1,842
Non-GAAP gross profit for software license
$
25,917
$
26,684
$
39,785
$
38,602
GAAP gross margin for software license
97.3
%
95.6
%
96.4
%
93.7
%
Non-GAAP gross margin for software license
99.9
%
99.9
%
99.8
%
99.8
%
SaaS, maintenance, and other
SaaS, maintenance and other revenue
$
28,891
$
25,229
$
59,234
$
50,498
Cost of revenue (exclusive of depreciation and amortization expense)
(8,525
)
(6,515
)
(16,899
)
(12,392
)
Depreciation and amortization expense
(150
)
(3
)
(215
)
(6
)
Amortization of acquired completed technology assets
(2,238
)
(2,090
)
(4,446
)
(4,218
)
GAAP gross profit for SaaS, maintenance, and other
17,978
16,621
37,674
33,882
Depreciation and amortization expense
150
3
215
6
Amortization of acquired completed technology assets
2,238
2,090
4,446
4,218
Stock-based compensation expense
355
162
663
323
Non-GAAP gross profit for SaaS, maintenance, and other
$
20,721
$
18,876
$
42,998
$
38,429
GAAP gross margin for SaaS, maintenance, and other
62.2
%
65.9
%
63.6
%
67.1
%
Non-GAAP gross margin for SaaS, maintenance, and other
71.7
%
74.8
%
72.6
%
76.1
%
Consolidated results
Total revenue
$
54,841
$
51,929
$
99,085
$
89,183
Cost of revenue (exclusive of depreciation and amortization expense)
(8,558
)
(6,531
)
(16,965
)
(12,475
)
Depreciation and amortization expense
(327
)
(249
)
(582
)
(518
)
Amortization of acquired completed technology assets
(2,739
)
(3,008
)
(5,448
)
(6,060
)
GAAP gross profit
43,217
42,141
76,090
70,130
Depreciation and amortization expense
327
249
582
518
Amortization of acquired completed technology assets
Mitek Systems (MITK - Free Report) reported $54.84 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 5.6%. EPS of $0.38 for the same period compares to $0.36 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $52.52 million, representing a surprise of +4.43%. The company delivered an EPS surprise of +20.64%, with the consensus EPS estimate being $0.32.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Mitek Systems performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Software license: $25.95 million versus $23.39 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -2.8% change.Revenue- SaaS, maintenance, and other: $28.89 million versus the two-analyst average estimate of $29.13 million. The reported number represents a year-over-year change of +14.5%.Non-GAAP gross profit for SaaS, maintenance, and other: $20.72 million versus the two-analyst average estimate of $21.49 million.Non-GAAP gross profit for software license: $25.92 million versus the two-analyst average estimate of $23.16 million.View all Key Company Metrics for Mitek Systems here>>>
Shares of Mitek Systems have returned +8.1% over the past month versus the Zacks S&P 500 composite's +11.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Mitek Systems (MITK - Free Report) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +20.64%. A quarter ago, it was expected that this mobile imaging software company would post earnings of $0.2 per share when it actually produced earnings of $0.26, delivering a surprise of +30%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Mitek Systems, which belongs to the Zacks Computer - Optical Imaging industry, posted revenues of $54.84 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 4.43%. This compares to year-ago revenues of $51.93 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Mitek Systems shares have added about 44.4% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Mitek Systems?While Mitek Systems has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Mitek Systems was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.26 on $48.44 million in revenues for the coming quarter and $1.08 on $192.36 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Optical Imaging is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Computer and Technology sector, MultiSensor AI Holdings, Inc. (MSAI - Free Report) , has yet to report results for the quarter ended March 2026.
This company is expected to post quarterly loss of $1.60 per share in its upcoming report, which represents a year-over-year change of +71.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
MultiSensor AI Holdings, Inc.'s revenues are expected to be $1.7 million, up 45.3% from the year-ago quarter.
Intel (NASDAQ:INTC) Upgraded by BofA to "Buy" RatingBofA raised shares of Intel from an "underperform" rating to a "buy" rating and boosted their target price for the stock from $96.00 to $135.00 in a research report on Thursday.
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SAN DIEGO--(BUSINESS WIRE)--Mitek Systems, Inc. (NASDAQ: MITK), a global leader in digital identity verification and fraud prevention, announced today that its Mitek Verified Identity Platform® (MiVIP) is now available on FICO® Marketplace, the industry's first marketplace for composable enterprise decisioning offerings. The listing empowers enterprises to operationalize AI and drive better outcomes by easily discovering, accessing, and deploying a wide range of pre-built offerings, including A.
Mitek Systems, Inc. (NASDAQ: MITK), a global leader in digital identity verification and fraud prevention, announced today that its Mitek Verified Identity Platform® (MiVIP) is now available on FICO® Marketplace, the industry’s first marketplace for composable enterprise decisioning offerings. The listing empowers enterprises to operationalize AI and drive better outcomes by easily discovering, accessing, and deploying a wide range of pre-built offerings, including AI models, data services and analytics. This addresses a critical need in the industry for organizations to leverage cutting edge technology while preserving their ability to work across their organization to bring together teams and differentiate their business with their own unique intellectual property and customer experiences.
As fraud tactics grow increasingly sophisticated, including AI-generated deepfakes, biometric spoofing and synthetic identity attacks, enterprises are under pressure to make faster, more confident risk decisions. Mitek’s availability in FICO Marketplace enables joint clients to bring trusted identity intelligence directly into decisioning and workflows, enabling organizations to detect fraud earlier while minimizing friction for legitimate users.
“Bringing the Mitek platform into the FICO Marketplace enables enterprises to deploy high-assurance identity verification faster and integrate trusted identity signals directly into business critical decisioning,” said Garrett Gafke, chief operating officer at Mitek Systems. “As fraud threats evolve, organizations need real-time fraud and identity intelligence built into their risk workflows, not bolted on after the fact.”
This integration enables enterprises using FICO® Platform to deploy advanced identity verification capabilities across critical moments in the customer lifecycle, such as digital onboarding, account recovery and ongoing authentication. By combining identity assurance with intelligent decisioning, organizations can improve fraud detection accuracy and deliver more secure digital experiences.
“Identity verification and fraud decisioning too often operate independently, and enterprises absorb the cost,” said Jason Andrew, chief revenue officer at FICO. “This partnership connects Mitek's identity intelligence directly into FICO's decisioning layer through FICO Marketplace, giving enterprises the ability to translate identity assurance into faster, more confident decisions that drive better outcomes across the customer lifecycle.”
FICO Marketplace is accessible directly within FICO Platform and enables customers to leverage a catalog of offerings from trusted and pre-vetted providers. The marketplace reshapes how organizations gain value from AI by enabling rapid discovery and deployment of data, analytics and decisioning assets that fuel intelligent decisioning and drive better business outcomes.
To learn more, visit FICO® Marketplace.
About Mitek
Mitek Systems protects what’s real across digital interactions in a world of evolving threats. Mitek helps businesses verify identities, prevent fraud before it happens, and deliver secure, seamless digital experiences in the face of rapidly advancing AI-generated threats. From account opening to authentication and deposit, Mitek’s technology safeguards critical digital interactions. More than 7,000 organizations rely on Mitek to protect their most important customer connections and stay ahead of emerging risks. Learn more at www.miteksystems.com.
Follow Mitek on LinkedIn and YouTube, and read Mitek’s latest blog posts here.
About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency.
Learn more at https://www.fico.com/en
Join the conversation at https://x.com/FICO_corp & https://www.fico.com/blogs/
For FICO news and media resources, visit https://www.fico.com/en/newsroom.
FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260513777159/en/
Mitek Systems (MITK) earns a Buy rating as it transitions from legacy mobile deposit to fraud prevention and identity verification, capitalizing on rising digital security needs. Fraud and identity solutions revenue grew 28% YoY in Q2 FY2026, with SaaS revenue up 18%, demonstrating momentum in MITK's modern business segments. Strong profitability is evident with Q2 adjusted EBITDA margin at 40.7% and LTM free cash flow of $44.5 million, supported by disciplined cost control.
Listen to the audio version of this article (generated by AI).
Why Jonathan Rose is bearish on PLTR… triple-digit “Super Signal” wins with Jonathan and Marc Chaikin… Huang’s roaring AI endorsement… the AI stock Luke Lango just upgraded to “Buy” … a new agentic AI pick from Brian Hunt In our May 4 Digest, we highlighted research from Jonathan Rose that flagged market darling Palantir (PLTR) as a stock to be cautious about, as insiders were quietly selling.
Later that very same day, Palantir reported blowout Q1 2026 earnings, delivering its fastest quarterly sales growth since its 2020 IPO.
That sounds like a setup for an “egg on your face” back-peddling from us.
Not so much.
Despite the massive revenue and earnings beat, PLTR’s stock is down 7% from when we flagged it in the Digest.
Is that a coincidence? Or just Jonathan’s framework working?
In that Digest, we introduced Jonathan’s “Four Tells” framework He created them after studying the companies that AI was already destroying, beginning with how these stocks appeared before their falls – when they still looked fine.
Four traits kept repeating – the “Four Tells”:
Coordinated insider sales Senior talent defecting to AI-native competitors A pivot away from per-seat pricing toward consumption models And CEO language that matches every prior disruption cycle – the “AI augments, don’t replace” playbook. Jonathan applied that framework forward and flagged 12 names he believed would face substantial downside risk over the next 24 months. Palantirwas one of them.
Its “tell” was insider sales. CEO Alex Karp and four senior officers filed sales on the same day at the same reference price – $205 million in coordinated insider intent.
When the people closest to the business are positioning for the exit in a coordinated way, Jonathan takes it seriously:
I’m not saying that all these companies will collapse tomorrow. I’m saying the smart money is repositioning out of them — and historically, price follows positioning.
These are names I’m watching carefully, not holding.
I’ll point out that even if PLTR doesn’t crash, there’s still the risk of a hefty opportunity cost. Case in point – since our May 4 Digest, while PLTR has fallen 7%, the Nasdaq has jumped roughly 6.5%.
What makes the framework genuinely useful beyond the sell side… The same signals that show Jonathan where money is leaving also reveal where it’s arriving. As he points out, institutional capital doesn’t sit in cash – it rotates.
And one name that Jonthan says is on the receiving end of that money is Quantum Computing Inc. (QUBT) – a small-cap working on quantum hardware, photonics and cybersecurity applications.
While it’s speculative, here’s Jonathan’s reasoning:
What’s catching my attention in QUBT isn’t the quantum narrative — it’s the activity.
Unusual, concentrated positioning building around this ticker at a time when money is rotating hard out of legacy software and into the infrastructure layer underneath it.
He saw similar activity in Rigetti Computing Inc. (RGTI) before his trade on it ran 234% in five days. Same thing with MP Materials Corp. (MP) before a 700%-plus gain.
QUBT is also one of five stocks where Jonathan and Marc Chaikin’s new “Convergence Trigger” is currently flashing.
If Marc is a new name, he’s spent 60 years in markets and created the Money Flow indicator now embedded in every Bloomberg terminal on the planet. He’s also built research tools for market legends Paul Tudor Jones and George Soros.
While Marc’s system can tell you where institutional money is flowing, Jonathan’s can tell you where the highest-conviction positioning is building.
When they realized the complementary nature of their trading approaches, they combined them to see how both lenses would affect a trading portfolio.
Backtested across nearly 200 real trades, the combined signal produced an 81%-win rate and 147% average gain – and filtered out two of every three losing trades.
This Thursday at 8 p.m. Eastern time, Jonathan and Marc are holding their Convergence Trigger event to dive deeper and give away four additional stocks that their combined system is flagging.
Back to Jonathan:
I’ve now partnered with Marc to add his institutional “Money Flow” as a second layer of confirmation. We call the combination our “Super-Signal.”
It has never been shared with anyone, anywhere in the world before. Not even the hedge funds… brokerage houses… and billionaires that Marc and I both had as clients in our former careers.
On May 28, you can be among the first anywhere to see and use it.
To reserve your seat, just click here, and we’ll see you on Thursday.
Speaking of tracking where the money is flowing… Nvidia (NVDA) CEO Jensen Huang just gave the AI bull case its most definitive endorsement yet.
As we covered last week in the Digest, Nvidia just posted another phenomenal quarter of earnings:
$81.6 billion in revenue, up 85% year over year Q2 guidance of $91 billion that blew past Wall Street’s expectations And the authorized $80 billion in new buybacks – one of the largest in corporate history. Here’s Huang on the earnings calls, providing color on the performance:
This was an extraordinary quarter. Demand has gone parabolic.
The reason is simple: agentic AI has arrived.
AI can now do productive and valuable work. Tokens are now profitable, so model makers are in a race to produce more.
In the AI era, compute capacity is revenue and profits.
But here’s the number that didn’t make as many headlines – and the one to position for in the second wave of the AI buildout…
Nvidia broke its Data Center segment into two buckets this quarter. “Hyperscale” – think, the massive Mag 7 AI companies – grew 12% quarter over quarter.
Meanwhile, the second bucket, what Jensen calls “ACIE” (AI Clouds, Industrial and Enterprise) – the neoclouds, sovereign governments, enterprises building their own AI infrastructure – grew 31% quarter over quarter.
Nearly three times faster.
The AI buildout isn’t narrowing, contained to a handful of hyperscalers. It’s broadening. And our tech investing expert Luke Lango, editor of Innovation Investor, just walked through exactly what that means for his portfolio.
His conclusion: the bull thesis behind the related positions just got even stronger. He reviewed 12 names in light of the NVDA print and reaffirmed their bull cases across the board – with one upgrade…
CoreWeave Inc. (CRWV) – one of the most prominent neocloud stocks – moved from Hold to Buy To make sure we’re all on the same page, a “neocloud” is a specialized cloud provider focused on training and running AI models.
While traditional “hyperscalers” (like AWS, Microsoft Azure, and Google Cloud) offer a massive variety of general-purpose web services, neoclouds act as nimble, specialty providers dedicated solely to massive computing power.
I’m flagging CRWV because Jensen himself named it during Nvidia’s earnings call.
Nvidia holds a $2 billion equity stake in the company. And Anthropic’s compute expansion – one of the largest demand vectors Huang discussed – flows through CoreWeave specifically. Best of all, it trades below Luke’s buy-up-to price of $150 as I write.
Here’s Luke:
That combination — a named Jensen endorsement, a direct Anthropic revenue pipeline, and a stock below its buy price — is the setup I’d want to own into the next leg of this trade.
If you’re an Innovation Investor subscriber, log in to get Luke’s analysis on the rest of the portfolio.
And to join Luke in Innovation Investor, click here to learn more. Right now, he’s zeroing in on what he believes could be Elon Musk’s most ambitious project yet (it has nothing to do with Tesla or SpaceX). You can get those details and learn more about Innovation Investor here.
Want yet another way to play the arrival of agentic AI? Brian Hunt, editor of his free daily e-letter, Money & Megatrends, has been urging investors to position themselves for the “Agent Supernova.”
Here’s Brian on the scale of what’s coming:
Within the next two years, the number of AI agents operating in the American economy isn’t poised to increase by 10X… or 50X… or even by 1,000X.
Try at least 100,000X.
This is the coming Agent Supernova. Agents working with people. Agents working with other agents. Agents running businesses. Agents negotiating and haggling with other agents.
To bring this to life, Brian offers a simple illustration. A single restaurant could soon run five specialized agents simultaneously – one managing cooking schedules, one handling accounting, one overseeing staff, one tracking supply orders and one general-purpose agent coordinating all the others.
Now, multiply that model across every business in the economy, and you start to grasp what 100,000X growth in AI agents actually looks like in the real world.
So, how do we invest?
Brian has a new idea that I haven’t seen covered by other analysts…
Fraud.
The dark side of agentic AI The AI-related technologies that will benefit society through many forms of innovation are the same technologies that will simultaneously hand criminals the most powerful toolkit they’ve ever had.
Here’s Brian with examples:
Today, a fraudster can generate a realistic fake ID in seconds and clone someone’s voice from three seconds of audio. The fraudster can also use AI to create a deepfake video that blinks, turns, and smiles on command.
These nefarious products can allow them to bypass security checks that banks and financial institutions rely on to verify identity…
As the number of agents multiplies, the number of potentially harmful interactions they have with humans multiplies as well.
You see, when an AI agent books a trip on your behalf, or buys you a shirt, it needs to authenticate you. But every interaction is a potential weak spot for a cyberattack.
That’s the problem Mitek Systems (MITK) was built to solve.
Back to Brian:
Mitek is a $640 million company with a 25-year head start on this challenge.
Its legacy business – processing over one billion mobile deposits annually – has made it the trusted identity backbone for many North American financial institutions.
Major customers include JPMorgan Chase, Bank of America, PayPal, and Capital One…
Its Verified Identity Platform brings together identity document authentication, biometric liveness detection, deepfake and voice-clone scoring, and real-time fraud analytics.
We’re running long, so I won’t go deeper into Brian’s analysis, but I encourage you to. You can sign up for his free Money & Megatrends newsletter right here. Every day the market is open, Brian delivers actionable insights, loaded with specific stock tickers.
Wrapping up Jonathan is tracking 12 stocks where the smart money is quietly heading for the exit, while his “Super-Signal” scanner is flagging where that money is headed…
Huang just confirmed that the same smart money is pouring into AI infrastructure at a pace that has, in his words, “gone parabolic.” Luke just walked through which companies sit in the middle of that buildout…
And Brian is flagging the uncomfortable reality that every new AI agent entering the economy creates a new vulnerability that someone, somewhere, will try to exploit…
These aren’t unrelated stories. They are four angles on the same shift – the largest reallocation of capital in a generation, playing out in real time across every layer of the economy.
Where the money is leaving… where the money is going…
That’s what we’ll be tracking alongside our experts here in the Digest.
New findings show AI proliferation, organized criminal networks, and synthetic identities are accelerating fraud losses across financial services
SAN DIEGO--(BUSINESS WIRE)--Mitek Systems, Inc. (NASDAQ: MITK), a global leader in digital identity verification and fraud prevention, today announced new research findings developed in collaboration with Datos Insights that reveal synthetic identity fraud is rapidly becoming one of the most significant systemic threats facing financial institutions. The convergence of generative AI, organized fraud rings, and scalable synthetic identity creation is reshaping fraud risk, forcing financial institutions to reassess how they combat a new era of AI-driven fraud.
Drawing on survey data from North American fraud executives and interviews with fraud prevention leaders, the research examines how synthetic identity fraud has evolved beyond traditional application fraud into a broader enabler of financial crime across credit, deposit, and check fraud channels. Findings also explore how advances in AI are increasing fraudsters’ ability to create, scale, and operationalize synthetic identities more efficiently, while highlighting the growing pressure on financial institutions to modernize identity assurance and fraud prevention strategies in response.
Key findings from the research include:
Synthetic identity fraud is widely recognized as a systemic threat, with 84% of fraud executives identifying it as a high or moderate risk to application processes. Financial impact continues to grow significantly, with U.S. unsecured credit losses reaching ~$2.94 billion in 2025, up from $1.8 billion in 2020. These losses represent only part of the total cost, as synthetic identities increasingly enable downstream fraud across deposits, checks, and mule activity. Synthetic identity fraud is expanding at a baseline growth rate of roughly 16% annually, driven by low-cost access to stolen or fabricated identity data and increasing fraudster efficiency. 55% of fraud executives still reported increases in first-party check fraud losses in 2025, underscoring its persistence. The rise of generative AI is accelerating both scale and sophistication, with 40% of financial institutions already observing increased attack rates tied to AI, and most expecting continued growth. “These findings reinforce what fraud and risk teams are already seeing firsthand: synthetic identity fraud has become an industrialized threat,” said Garrett Gafke, Chief Operating Officer at Mitek. “AI-enabled tactics, organized criminal operations, and scalable identity manipulation are changing the economics of fraud. Financial institutions need identity authentication and fraud prevention strategies that can detect risk earlier, adapt faster, and disrupt coordinated attacks before losses compound.”
The research also points to a larger shift in how fraud operates across the financial ecosystem. Rather than isolated incidents, synthetic identities are increasingly being used to establish long-term fraudulent accounts that can be leveraged across multiple products and channels over time. This evolution creates compounding financial and operational risks for institutions that rely on fragmented fraud detection approaches.
“Synthetic identity fraud is a strategic control point for financial institutions because it increasingly serves as the foundation for a wide range of downstream fraud activity,” said Trace Fooshée, Strategic Advisor at Datos Insights. “As generative AI lowers the cost and difficulty of creating convincing synthetic identities, institutions are being forced to rethink how they approach identity verification at enrollment. Organizations that invest early in modern verification, behavioral analysis, and lifecycle monitoring capabilities will be significantly better positioned to disrupt fraud before it scales across the broader financial ecosystem.”
To read the full report “The Synthetic Identity Crisis: Detection, Prevention, and the AI Arms Race"* visit here.
To learn more about Mitek Systems’ identity verification and fraud prevention solutions, visit Mitek Systems website.
* “The Synthetic Identity Crisis: Detection, Prevention, and the AI Arms Race” is based on quantitative survey data collected by Datos Insights from fraud-prevention leaders across U.S. and global financial institutions throughout 2025, including responses from 114 fraud executives across North America, Europe, Latin America, the Middle East, and Asia-Pacific, as well as qualitative interviews with fraud management leaders focused on emerging fraud trends and strategic priorities.
About Mitek Systems, Inc.
Mitek Systems protects what’s real across digital interactions in a world of evolving threats. Mitek helps businesses verify identities, prevent fraud before it happens, and deliver secure, seamless digital experiences in the face of rapidly advancing AI-generated threats. From account opening to authentication and deposit, Mitek’s technology safeguards critical digital interactions. More than 7,000 organizations rely on Mitek to protect their most important customer connections and stay ahead of emerging risks. Learn more at www.miteksystems.com.
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About Datos Insights
Datos Insights is the leading research and advisory partner to the banking, insurance, and securities industries—both the financial services firms and the technology providers who serve them. In an era of rapid change, we empower firms across the financial services ecosystem to make high-stakes decisions with confidence and speed. Our distinctive combination of proprietary data, analytics, and deep practitioner expertise provides actionable insights that enable clients to accelerate critical initiatives, inspire decisive action, and de-risk strategic investments to achieve faster, bolder transformation
