Track market-moving stories before they get noisy

Posted by Defense World Staff on Apr 14th, 2026

Deprince Race & Zollo Inc. lifted its stake in Onespan Inc (NASDAQ:OSPN – Free Report) by 101.4% during the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 383,925 shares of the company’s stock after acquiring an additional 193,304 shares during the quarter. Deprince Race & Zollo Inc. owned 1.01% of Onespan worth $4,930,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. Topline Capital Management LLC acquired a new position in shares of Onespan in the 3rd quarter worth approximately $5,549,000. Clark Estates Inc. NY acquired a new position in shares of Onespan in the 3rd quarter worth approximately $2,479,000. Jupiter Asset Management Ltd. lifted its holdings in shares of Onespan by 43.8% in the 3rd quarter. Jupiter Asset Management Ltd. now owns 366,143 shares of the company’s stock worth $5,818,000 after acquiring an additional 111,544 shares during the last quarter. Simcoe Capital Management LLC lifted its holdings in shares of Onespan by 167.5% in the 3rd quarter. Simcoe Capital Management LLC now owns 1,193,858 shares of the company’s stock worth $18,970,000 after acquiring an additional 747,578 shares during the last quarter. Finally, First Trust Advisors LP lifted its holdings in shares of Onespan by 25.1% in the 3rd quarter. First Trust Advisors LP now owns 2,141,141 shares of the company’s stock worth $34,023,000 after acquiring an additional 428,983 shares during the last quarter. 95.52% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Onespan In other Onespan news, CFO Jorge Garcia Martell sold 15,000 shares of the stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $10.33, for a total transaction of $154,950.00. Following the sale, the chief financial officer directly owned 110,218 shares in the company, valued at $1,138,551.94. This represents a 11.98% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 1.30% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades Several equities analysts have recently commented on the stock. DA Davidson decreased their price objective on shares of Onespan from $13.00 to $12.00 and set a “neutral” rating on the stock in a report on Friday, February 27th. Wall Street Zen upgraded shares of Onespan from a “hold” rating to a “buy” rating in a report on Saturday, March 28th. Zacks Research lowered shares of Onespan from a “hold” rating to a “strong sell” rating in a report on Tuesday, March 3rd. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Onespan in a report on Friday. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $16.67.

View Our Latest Stock Analysis on Onespan

Onespan Stock Up 3.2% Onespan stock opened at $10.94 on Tuesday. The firm has a market cap of $409.89 million, a PE ratio of 5.82, a price-to-earnings-growth ratio of 0.96 and a beta of 1.51. Onespan Inc has a 52-week low of $10.07 and a 52-week high of $18.13. The company’s 50 day moving average is $10.83 and its two-hundred day moving average is $12.44.

Onespan (NASDAQ:OSPN – Get Free Report) last released its earnings results on Thursday, February 26th. The company reported $0.36 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.31 by $0.05. The company had revenue of $62.92 million for the quarter, compared to analyst estimates of $59.78 million. Onespan had a net margin of 29.98% and a return on equity of 19.58%. On average, equities research analysts anticipate that Onespan Inc will post 1.11 earnings per share for the current fiscal year.

Onespan Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Friday, March 27th. Shareholders of record on Friday, March 13th were issued a dividend of $0.13 per share. This is a boost from Onespan’s previous quarterly dividend of $0.12. The ex-dividend date was Friday, March 13th. This represents a $0.52 dividend on an annualized basis and a yield of 4.8%. Onespan’s dividend payout ratio (DPR) is currently 27.66%.

Onespan Company Profile (Free Report)

OneSpan, formerly known as Vasco Data Security International, is a Chicago-based cybersecurity software company specializing in digital identity and anti-fraud solutions. Founded in 1991, the company provides a suite of authentication and transaction security products designed to help organizations protect critical applications and high-value transactions across online, mobile and in-branch channels.

The core OneSpan portfolio includes multi-factor authentication, risk-based authentication and transaction signing solutions.

Further Reading Five stocks we like better than Onespan

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OneSpan (OSPN - Free Report) ended the recent trading session at $11.49, demonstrating a +1.41% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 1.2% for the day. Elsewhere, the Dow saw an upswing of 1.79%, while the tech-heavy Nasdaq appreciated by 1.52%.

Prior to today's trading, shares of the internet security company had gained 8.42% outpaced the Computer and Technology sector's gain of 8.24% and the S&P 500's gain of 5.15%.

Investors will be eagerly watching for the performance of OneSpan in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 30, 2026. The company's upcoming EPS is projected at $0.36, signifying a 20.00% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $60.94 million, down 3.83% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.26 per share and revenue of $246.46 million, which would represent changes of -15.44% and +1.35%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for OneSpan. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. OneSpan currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that OneSpan has a Forward P/E ratio of 9.02 right now. Its industry sports an average Forward P/E of 19.02, so one might conclude that OneSpan is trading at a discount comparatively.

We can additionally observe that OSPN currently boasts a PEG ratio of 0.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.08.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 38% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

In the latest trading session, OneSpan (OSPN - Free Report) closed at $11.18, marking a -4.53% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.41%. Elsewhere, the Dow saw a downswing of 0.36%, while the tech-heavy Nasdaq depreciated by 0.89%.

The stock of internet security company has risen by 9.54% in the past month, lagging the Computer and Technology sector's gain of 14.93% and the S&P 500's gain of 9.71%.

The investment community will be paying close attention to the earnings performance of OneSpan in its upcoming release. The company is slated to reveal its earnings on April 30, 2026. On that day, OneSpan is projected to report earnings of $0.36 per share, which would represent a year-over-year decline of 20%. Simultaneously, our latest consensus estimate expects the revenue to be $60.94 million, showing a 3.83% drop compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.26 per share and a revenue of $246.46 million, signifying shifts of -15.44% and +1.35%, respectively, from the last year.

Any recent changes to analyst estimates for OneSpan should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. OneSpan is holding a Zacks Rank of #4 (Sell) right now.

With respect to valuation, OneSpan is currently being traded at a Forward P/E ratio of 9.32. This valuation marks a discount compared to its industry average Forward P/E of 19.47.

We can also see that OSPN currently has a PEG ratio of 0.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 1.14 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 88, this industry ranks in the top 37% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

In the latest trading session, OneSpan (OSPN - Free Report) closed at $11.35, marking a +1.48% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.8%. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq appreciated by 1.63%.

Shares of the internet security company have appreciated by 5.08% over the course of the past month, underperforming the Computer and Technology sector's gain of 12.05%, and the S&P 500's gain of 8.11%.

Market participants will be closely following the financial results of OneSpan in its upcoming release. The company plans to announce its earnings on April 30, 2026. The company is forecasted to report an EPS of $0.36, showcasing a 20% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $60.94 million, down 3.83% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.26 per share and a revenue of $246.46 million, representing changes of -15.44% and +1.35%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for OneSpan. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, OneSpan holds a Zacks Rank of #4 (Sell).

Looking at its valuation, OneSpan is holding a Forward P/E ratio of 8.9. This valuation marks a discount compared to its industry average Forward P/E of 18.57.

One should further note that OSPN currently holds a PEG ratio of 0.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OSPN's industry had an average PEG ratio of 1.08 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 37% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

OneSpan (OSPN - Free Report) came out with quarterly earnings of $0.39 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +8.33%. A quarter ago, it was expected that this internet security company would post earnings of $0.3 per share when it actually produced earnings of $0.36, delivering a surprise of +20%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

OneSpan, which belongs to the Zacks Internet - Software industry, posted revenues of $65.95 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 8.22%. This compares to year-ago revenues of $63.37 million. The company has topped consensus revenue estimates two 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.

OneSpan shares have lost about 10.5% since the beginning of the year versus the S&P 500's gain of 4.2%.

What's Next for OneSpan?While OneSpan has underperformed 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 OneSpan was unfavorable. 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 #4 (Sell) for the stock. So, the shares are expected to underperform 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 $0.29 on $60.45 million in revenues for the coming quarter and $1.25 on $246.46 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, Internet - Software is currently in the top 30% 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 same industry, 8x8 (EGHT - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 19.

This telecommunications services company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of -12.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

8x8's revenues are expected to be $180.97 million, up 2.2% from the year-ago quarter.

OneSpan maintains a 'Hold' rating as growth remains elusive despite strong Digital Agreements performance and margin expansion. Digital Agreements delivered 10%+ YoY revenue growth and 9 pp margin expansion, reinforcing its status as OSPN's star business. Cybersecurity segment growth is largely acquisition-driven, with organic ARR growth stalling and margins deteriorating by 8 percentage points.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is ONESPAN (OSPN - Free Report) . OSPN is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.62, which compares to its industry's average of 26.98. Over the past 52 weeks, OSPN's Forward P/E has been as high as 14.05 and as low as 8.73, with a median of 11.50.

Another notable valuation metric for OSPN is its P/B ratio of 2.48. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.84. OSPN's P/B has been as high as 3.78 and as low as 2.01, with a median of 2.84, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OSPN has a P/S ratio of 1.78. This compares to its industry's average P/S of 2.83.

Finally, our model also underscores that OSPN has a P/CF ratio of 8.92. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.11. Over the past 52 weeks, OSPN's P/CF has been as high as 26.28 and as low as 7.22, with a median of 9.86.

These figures are just a handful of the metrics value investors tend to look at, but they help show that ONESPAN is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OSPN feels like a great value stock at the moment.

OneSpan (OSPN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this internet security company have returned +10%, compared to the Zacks S&P 500 composite's +4.6% change. During this period, the Zacks Internet - Software industry, which OneSpan falls in, has lost 4.8%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, OneSpan is expected to post earnings of $0.25 per share, indicating a change of -26.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -19.7% over the last 30 days.

The consensus earnings estimate of $1.21 for the current fiscal year indicates a year-over-year change of -18.8%. This estimate has changed -0.5% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $1.33 indicates a change of +10.3% from what OneSpan is expected to report a year ago. Over the past month, the estimate has changed -0.8%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for OneSpan.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of OneSpan, the consensus sales estimate of $57.75 million for the current quarter points to a year-over-year change of -3.5%. The $246.53 million and $256.09 million estimates for the current and next fiscal years indicate changes of +1.4% and +3.9%, respectively.

Last Reported Results and Surprise HistoryOneSpan reported revenues of $65.95 million in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $0.39 for the same period compares with $0.45 a year ago.

Compared to the Zacks Consensus Estimate of $60.94 million, the reported revenues represent a surprise of +8.22%. The EPS surprise was +8.33%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

OneSpan is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about OneSpan. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

Investors interested in Internet - Software stocks are likely familiar with OneSpan (OSPN) and Zoom Communications (ZM). But which of these two companies is the best option for those looking for undervalued stocks?

In the latest trading session, OneSpan (OSPN - Free Report) closed at $14.14, marking a +1.22% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 1.62%. Elsewhere, the Dow saw a downswing of 1.87%, while the tech-heavy Nasdaq depreciated by 1.98%.

Prior to today's trading, shares of the internet security company had gained 16.9% outpaced the Computer and Technology sector's loss of 0.74% and the S&P 500's loss of 0.03%.

Investors will be eagerly watching for the performance of OneSpan in its upcoming earnings disclosure. On that day, OneSpan is projected to report earnings of $0.25 per share, which would represent a year-over-year decline of 26.47%. In the meantime, our current consensus estimate forecasts the revenue to be $57.75 million, indicating a 3.49% decline compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.23 per share and a revenue of $246.53 million, representing changes of -17.45% and +1.38%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for OneSpan. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.51% increase. OneSpan is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, OneSpan is currently exchanging hands at a Forward P/E ratio of 11.36. This valuation marks a discount compared to its industry average Forward P/E of 18.47.

It is also worth noting that OSPN currently has a PEG ratio of 1.03. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry had an average PEG ratio of 1.03 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 84, positioning it in the top 35% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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

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].

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.

-

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

2,739

3,008

5,448

6,060

Stock-based compensation expense

355

162

663

323

Non-GAAP gross profit

$

46,638

$

45,560

$

82,783

$

77,031

GAAP gross profit margin

78.8

%

81.2

%

76.8

%

78.6

%

Non-GAAP gross profit margin

85.0

%

87.7

%

83.5

%

86.4

%

MITEK SYSTEMS, INC.

NON-GAAP OPERATING EXPENSE RECONCILIATION

(Unaudited)

(amounts in thousands)

Three Months Ended March 31,

Six Months Ended March 31,

2026

2025

2026

2025

Selling and marketing

$

9,601

$

10,540

$

17,749

$

20,235

Non-GAAP adjustments:

Stock-based compensation expense

1,135

1,035

1,191

2,009

Executive and other transition costs

—

—

170

—

Non-GAAP selling and marketing

$

8,466

$

9,505

$

16,388

$

18,226

Research and development

$

7,566

$

9,766

$

14,940

$

18,089

Non-GAAP adjustments:

Stock-based compensation expense

466

1,338

247

2,462

Non-GAAP research and development

$

7,100

$

8,428

$

14,693

$

15,627

General and administrative

$

12,244

$

10,098

$

23,318

$

21,999

Non-GAAP adjustments:

Stock-based compensation expense

3,045

1,817

5,591

4,023

Litigation and other legal costs

5

187

28

420

Executive and other transition costs

—

27

92

521

Non-recurring audit fees

—

263

719

1,130

Non-GAAP general and administrative

$

9,194

$

7,804

$

16,888

$

15,905

Total Non-GAAP operating expense

$

24,760

$

25,737

$

47,969

$

49,758

More News From Mitek Systems, Inc.

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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.

Mitek Systems, Inc. (MITK) Q2 2026 Earnings Call Transcript

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/

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.

Have a good evening,

Jeff Remsburg

Key Takeaways Klarna will integrate its BNPL and flexible payments into Worldline's online and in-store systems this year.The partnership could boost Klarna's transaction volume, fee income, and strengthen merchant relationships.Klarna's merchant count rose 49% year over year in Q1 2026 to above 1 million, aiding distribution growth. Klarna Group plc (KLAR - Free Report) recently agreed to a broad partnership with Worldline, one of Europe’s largest payment processors, to make its full suite of flexible payment options widely available to merchants on Worldline’s platforms. Instead of being a niche add-on, Klarna’s buy now, pay later (BNPL) and other flexible checkout methods will be integrated directly into Worldline’s online and in-store payment systems this year.

This means businesses using Worldline’s Global Collect, GoPay, and point-of-sale terminals can offer Klarna’s options with easier onboarding and Worldline handling transactions on the backend. The phased rollout starts online and then expands to physical stores.

This partnership pushes BNPL out of isolated checkouts and into mainstream commerce. It simplifies adoption for merchants, big and small, and gives shoppers more payment choices at checkout. For Klarna, deeper distribution means more transaction volume, potentially higher fee income and stronger merchant relationships. It has more than 119 million global active users and processes 3.4 million transactions every day.

Klarna also recently partnered with EZContacts, which will enable customers to pay for sunglasses, contact lenses, and prescription eyewear using Klarna's full suite of payment options at checkout.In the first quarter of 2026, Klarna's merchant number jumped 49% year over year to above 1 million.

For Worldline, which had more than 1.2 million customersin 2025, offering popular flexible payments can attract and retain merchants, boosting processing revenue and competitiveness in payments.

Price PerformanceShares of KLAR have gained 23.3% in the past three months, outperforming the industry’s decline of 6.7%.

Image Source: Zacks Investment Research

Zacks Rank & Key PicksKLAR currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Business Services space are Figure Technology Solutions, Inc. (FIGR - Free Report) , GigaCloud Technology Inc. (GCT - Free Report) and Miami International Holdings, Inc. (MIAX - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Figure Technology’s current-year earnings of 94 cents per share indicates 113.6% year-over-year improvement. It has witnessed one upward revision in the past month against no movement in the opposite direction. The consensus estimate for FIGR’s current-year revenues is pegged at $766.47 million, implying 51.2% year-over-year growth.

The Zacks Consensus Estimate for GigaCloud’s current-year earnings indicates 19.2% year-over-year growth. GCT beat earnings estimates in each of the trailing four quarters, with the average surprise being 57.4%. The consensus estimate for current-year revenues implies a 17.3% year-over-year increase.

The Zacks Consensus Estimate for Miami International’s current-year earnings of $1.53 per share has witnessed three upward revisions in the past month against no movement in the opposite direction. The consensus estimate for MIAX’s current-year revenues is pegged at $519.78 million.

A pullback in crude prices is sending the broader market surging this afternoon, the S&P 500 Index (SPX), Nasdaq Composite (IXIC), and Dow Jones Industrial Average (DJI) all sporting healthy gains midday. West Texas Intermediate (WTI) crude is off 4.5%, back below $100 per barrel. Investors are also shifting focus to Nvidia's (NVDA) highly anticipated earnings report, which is due out after today's close. April's Federal Reserve meeting minutes are also expected to release at 2 p.m. ET. Bond yields are cooling from this week's impressive run higher, while eyes remain on developing U.S.-Iran tensions.

Continue reading for more on today's market, including:

Lowe's stock shakes off quarterly beat. Another retailer eyeing a grim post-earnings move. Plus, put Macy's stock options pop; fintech name surging; RDDT reels in more losses.

Macy's Inc (NYSE:M) stock is up 3.7% to trade at $19.74, headed for a fourth-straight win. M has shed 11.5% in 2026, but still remain a ways off its June annual low of $10.54. Options traders are circling the retailer today, with 24,000 calls across the tape so far. This is seven times the average daily rate, with the May 20 call and weekly 5/29 19-strike call taking up the most attention, with opening activity detected at the former.

Near the top of the New York Stock Exchange (NYSE) is Klarna Group PLC (NYSE:KLAR), up 8.3% at $16.39 after the "buy now, pay later" fintech launched a shopping search app within ChatGPT. KLAR has been on a long-term downtrend, off 46% in 2026, though new support emerged at its 50-day moving average.

Online chat forum Reddit Inc (NYSE:RDDT) is near the bottom of the NYSE, last seen down 5.5% to trade at $146.44, pushing aside news the company is expanding its availability for its AI ad suite, Max Campaigns. Despite a significant amount of underperformance in 2026, RDDT remains 39% higher year-over-year. The 60-day moving average and $140 area look to have captured recent pullbacks.

 | 

Highlights

Memorial Day promotions are meeting a consumer who is still buying, but who wields a shorter list and a sharper pencil.

Retail winners are capturing frequency, convenience and value rather than relying on broad discretionary demand.

Payment choice is becoming a signal for retailers.

It’s a solemn holiday. But within commerce, Memorial Day weekend has long served as a period when inboxes fill with discount codes, storefront banners multiply and merchants try to turn seasonal urgency into sales.

This year, the holiday has arrived, and the sales linger with another question in the background: After months of earnings calls, retail sales releases and consumer surveys, what condition is the consumer actually in as the second half of 2026 approaches?

The state of retail may be less straightforward than many would like, especially the retailers.

A May PYMNTS Intelligence report, “Inside the Cutback Economy: How Age, Behavior and Financial Pressure Shape Consumer Spending,” indicated that financial pressure is shaping purchasing decisions in ways that are becoming harder to capture through broad retail averages alone. More than one-third of adults in the United States were in active financial retreat as of April, while spending adjustments increasingly centered on cutting everyday expenses, delaying larger purchases and redirecting budgets toward recurring obligations rather than discretionary categories.

The largest differences are not necessarily between generations but within them. Consumers of similar ages are arriving at different outcomes depending on savings cushions, income stability and the financial tools available to them. Among financially pressured consumers, cutting everyday spending became the dominant response, while avoiding large purchases remained widespread.

Walmart’s latest quarter indicated that digital channels are not only resilient but are serving as growth engines. The retailing behemoth logged another quarter of double-digit eCommerce growth and highlighted stronger engagement through stores, delivery and membership ecosystems, which gives the nod to the connected experience that has been surfacing in PYMNTS Intelligence reports.

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Walmart executives also drew a distinction between customer groups. Management said high-income consumers remained comparatively confident across categories, while low-income households continued to show greater budget discipline and signs of financial strain.

Consumers are continuing to transact, but more dollars are flowing toward essentials and recurring obligations, while furniture, apparel and other discretionary areas face uneven demand.

Retail sales data showed uneven demand. Card network earnings help explain where the money is actually going. Visa and Mastercard results pointed to growth in both debit and credit volumes. American Express added another layer, as metrics were supported by young consumer cohorts and continued spending in goods and services.

Card networks showed that consumers are still transacting. Buy now, pay later (BNPL) providers offer a closer look at how households are deciding which purchases survive budget pressure.

Affirm’s most recent earnings report suggested that installment usage continues to move deeper into everyday commerce while remaining strongest in categories tied to larger purchase decisions. Affirm’s gross merchandise volume rose 35% year over year to $11.6 billion, while transaction growth reached 45%. Management pointed to continued momentum in travel, platform partnerships and repeat usage.

In Klarna’s case, the company highlighted apparel and fashion, beauty, home goods, consumer electronics and travel as important transaction categories.

Memorial Day promotions will still move inventory. The broader question is whether retailers can convert short-term promotional demand into sustained engagement with shoppers who are becoming more selective about every dollar they commit.

Looking ahead to the remainder of 2026, the changing dynamic could herald a greater emphasis on loyalty programs, targeted promotions and payment flexibility rather than broad discounting. Retailers that can reduce purchase friction without sacrificing margin may be better positioned than those relying on traffic alone.

As the digital payments landscape evolves, choosing between established giants and rising stars is difficult. You might wonder whether Klarna Group (KLAR 0.57%) or Sezzle (SEZL +3.01%) is the better investment today.

Klarna functions as a massive international fintech powerhouse focusing on global scale and bank-like services. Sezzle operates as a leaner, highly profitable niche player primarily serving the North American market. Both companies dominate the buy now,  pay later space, yet they offer vastly different financial profiles and growth trajectories.

The case for KlarnaKlarna Group operates as a global digital bank and flexible payments provider offering online, in-store, and app-based options. It serves nearly 119 million active consumers and 1 million merchants across 26 countries. As a major player among tech stocks, it focuses on major markets throughout the United States and Europe.

In fiscal year 2025, revenue reached nearly $3.5 billion, which was a 31.6% increase over the previous year. Despite this growth, the company reported a net loss of $294 million and a net margin of -8.4%. This represents a shift from the small net income reported in the prior fiscal year.

As of its December 2025 balance sheet, the debt-to-equity ratio, which compares total debt to shareholder equity, was approximately 0.5. The current ratio, measuring current assets against current liabilities, stood at roughly 1. Free cash flow, or cash from operations minus capital expenditures, was a loss of nearly $1 billion for the year.

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The case for SezzleSezzle is a digital payments platform that lets consumers split purchases into installment plans. It reported nearly 887,000 monthly active subscribers across the United States and Canada as of March 31. While no single partner accounts for over 10% of revenue, the business relies on a limited number of large e-commerce platforms.

For fiscal year 2025, the company generated revenue of approximately $450.3 million, marking a 66.1% increase year over year. Net income reached close to $133.1 million, resulting in a net margin of 29.6%. This performance represents significant growth and profitability relative to previous fiscal periods.

As of the December 2025 balance sheet, the current ratio was roughly 3.9, showing a high level of short-term liquidity. The debt-to-equity ratio was approximately 0.8, and free cash flow for the year reached nearly $208.4 million. These figures highlight a stable financial position with positive cash generation from operations.

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Risk profile comparisonKlarna faces intense competition from established banks and fintech providers like PayPal as it expands its banking services. Regulatory changes across 26 different countries could increase compliance costs or restrict specific payment products. Additionally, technology disruption and potential litigation are persistent risks for a company of this scale.

Sezzle operates under scrutiny from the CFPB, which could impose new regulations on the buy now, pay later industry. It competes directly with giants like PayPal, Affirm, Block, and Apple. Furthermore, the company depends on WebBank for loan origination and remains sensitive to macroeconomic shifts that impact consumer spending.

Valuation comparisonSezzle presents a lower valuation based on future earnings estimates, whereas Klarna carries a higher forward P/E but a significantly lower P/S ratio.

MetricKlarnaSezzleSector BenchmarkForward P/E82.52038.2P/S ratio1.77.3n/aSector benchmark uses the SPDR XLK sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

With more and more of the household budget going toward essentials, many consumers may be turning to flexible payments providers like Klarna and Sezzle to help ease the sting of their monthly bills. This relevant use case makes both stocks worthy of investor interest. But which stock is the more compelling buy? Sezzle is much smaller, with $4.2 billion in gross merchandise volume over the last 12 months, compared to Klarna’s $136 billion, and 3.1 million active consumers compared to Klarna’s 119 million. Finally, Sezzle is used by 40,000 merchants, compared to Klarna’s 1 million or more.

Klarna’s wider reach may lend it some stability through diversification, but it also opens the company up to the complexities of foreign currencies, banking regulations, and the risks associated with operating a global business. Sezzle offers a more stripped-down approach to buy now, pay later services, and while it does emphasize its mission of “financially empowering the next generation,” it doesn’t offer the same range of bank-like features as Klarna. However, rather than a weakness, this may be working to its advantage. Sezzle’s stock is up 26% over the last three years as of May 27, while Klarna has returned -57%. The results are similar over the last year.

As BNPL services become more widely used, Sezzle, Klarna, and their competitors may face increased scrutiny. But Klarna’s wider range of banking services also exposes it to additional regulatory risks, as well as competition from both established financial giants and fintech companies. Sezzle’s smaller scale and simpler business model may be an advantage for now.

Klarna, the global digital bank and flexible payments provider, has partnered with Arrive, a leading global mobility platform, to bring seamless and flexible payment options to millions of consumers across 15 markets.

Through the partnership, drivers will be able to pay for parking using Klarna’s Pay in Full, which will be available directly in Arrive’s EasyPark app, ensuring payments can be made instantly. This provides consumers with more flexibility and control over their everyday spending, and builds on Klarna's growing presence in everyday spending and saving, where consumers increasingly use Klarna for recurring, low-friction purchases alongside savings products like Klarna Balance.

Arrive, formerly EasyPark Group, operates one of the world’s largest digital parking networks, facilitating high frequency payments across millions of spots in more than 20,000 cities and 90 countries. By providing the digital infrastructure that helps individuals and decision-makers make smarter urban travel choices, the company is uniquely positioned to become the leading software provider across every mode of transportation, including cars, trains and buses.

“Arrive is a leader in digital parking and a great example of the kind of everyday, high-frequency use case where Klarna adds value,” said Björn Bryngelson, Head of Nordics at Klarna. “By bringing Klarna to Arrive’s EasyPark app across 15 markets, we’re making parking payments simpler, more flexible, and easier to manage.”

Debbie Guerra, General Manager of Payments at Arrive, said of the partnerships, “The integration of Klarna ensures that the payment process for our EasyPark app users remains as effortless as the rest of the traveler's journey. By offering Klarna’s flexible and trusted user experience across its markets, Arrive reinforces its commitment to convenience, providing a seamless financial option that perfectly aligns with the high-frequency, everyday needs of its customers.”

The first markets are expected to go live already in Q2 2026, with a phased rollout to follow across Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden and Switzerland. The parties are looking to expand the services into other countries after the initial rollout.

About Klarna

Klarna is a global digital bank and flexible payments provider. With over 118 million global active Klarna users and 3.4 million transactions per day, Klarna’s AI-powered payments and commerce network is empowering people to pay smarter with a mission to be available everywhere for everything. Consumers can pay with Klarna online, in-store and through Apple Pay & Google Pay. More than one million retailers trust Klarna’s innovative solutions to drive growth and loyalty, including Uber, H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, Nike and Airbnb. Klarna is listed on the New York Stock Exchange (NYSE: KLAR). For more information, visit Klarna.com.

About Arrive

Arrive is a leading global mobility platform with the mission to ease movement in cities. Through its family of brands, including EasyPark, Flowbird, RingGo, ParkMobile and Parkopedia, the company is present in more than 20,000 cities across 90 countries, helping people and decision-makers make smarter choices about urban travel. Arrive makes cities more livable through delivering core competencies such as autonomous vehicle management solutions, smart payments and optimizing parking solutions, to data-driven traffic reduction measures and refining public transport networks. For more information and news, visit arrive.com

About EasyPark, part of the global mobility platform Arrive

EasyPark, part of the global mobility platform Arrive, is the leading provider of smart parking and mobility solutions in Europe. Present in over 4,000 cities across more than 20 countries, EasyPark simplifies parking, charging and mobility worldwide. In close collaboration with cities, EasyPark is driving digitalization, using data-driven insights and smart solutions to make cities more livable. For Arrive news, visit arrive.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements regarding our future financial performance, business strategy, growth objectives, market opportunities, operational plans, including the implementation of peer-to-peer payments, the timing of their availability to our consumers and their anticipated features and benefits. Words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “will,” “may,” “could,” “estimate,” and similar expressions identify forward-looking statements.

These forward-looking statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those expressed or implied, including risks related to:

Our ability to retain and grow consumer and merchant relationships; Competition and technological developments; Regulatory compliance and licensing requirements; Our ability to achieve expected benefits from our funding arrangements; Credit risk management and funding availability; General economic conditions and market volatility; and Our ability to expand into new markets and products. Forward-looking statements reflect our views as of the date of this release and are based on information currently available to us. We undertake no obligation to update any forward-looking statements, except as required by law. Actual results may differ materially from those anticipated. Investors should not place undue reliance on these forward-looking statements and should review the risk factors in our filings with the SEC for a more complete discussion of risks.

Category: Partnership News

View source version on businesswire.com: https://www.businesswire.com/news/home/20260528404780/en/

When Klarna rang the opening bell on the New York Stock Exchange on September 10, 2025, its shares opened at 52, a 30% jump on the 40 IPO price set the night before. The stock now trades below that $40 mark.

STOCKHOLM--(BUSINESS WIRE)--Klarna Group plc (NYSE: KLAR) wishes to update investors that the Patent and Market Court in Stockholm, Sweden (Patent- och marknadsdomstolen) has postponed publication of its judgment in the antitrust damages proceedings brought by PriceRunner, a Klarna subsidiary, against Google.

The Court has rescheduled publication of its judgment from 10 June to 26 June, 2026 at 11:00 CET.

Important Notice

The outcome of the proceedings is inherently uncertain. No assurance can be given that PriceRunner will succeed on liability or quantum. Any award would be subject to appeal by Google, to sharing arrangements with former PriceRunner shareholders and Klarna’s litigation funder, and to applicable taxation. The dollar amount of the claim should not be taken as an indication of any likely recovery. This announcement does not constitute a profit forecast.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements regarding our future financial performance, business strategy, growth objectives, market opportunities, operational plans, including the outcome of legal cases. Words such as "believe," "expect," "anticipate," "intend," "plan," "will," "may," "could," "estimate," and similar expressions identify forward-looking statements.

These forward-looking statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those expressed or implied, including risks related to:

Our ability to retain and grow consumer and merchant relationships; Competition and technological developments; Regulatory compliance and licensing requirements; Our ability to achieve expected benefits from our funding arrangements; Credit risk management and funding availability; General economic conditions and market volatility; and Our ability to expand into new markets and products. Forward-looking statements reflect our views as of the date of this release and are based on information currently available to us. We undertake no obligation to update any forward-looking statements, except as required by law. Actual results may differ materially from those anticipated. Investors should not place undue reliance on these forward-looking statements and should review the risk factors in our filings with the SEC for a more complete discussion of risks.

About Klarna

Klarna is a global digital bank and flexible payments provider. With over 119 million global active Klarna users and 3.4 million transactions per day, Klarna’s AI-powered payments and commerce network is empowering people to pay smarter with a mission to be available everywhere for everything. Consumers can pay with Klarna online, in-store and through Apple Pay & Google Pay. More than 1 million retailers trust Klarna’s innovative solutions to drive growth and loyalty, including Uber, H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, Nike and Airbnb. Klarna is listed on the New York Stock Exchange (NYSE: KLAR). For more information, visit Klarna.com.