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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.

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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.

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NEW YORK--(BUSINESS WIRE)--Klarna, the global digital bank and flexible payments provider, today announced a partnership with Ulta Beauty, the largest specialty beauty retailer in the U.S., to bring flexible payments to millions of U.S. customers shopping on Ulta.com or through the Ulta Beauty app.

Ulta Beauty shoppers can now enjoy more flexibility when shopping for the beauty products they love, with Klarna payment options at checkout - pay in full, split purchases into four interest-free installments, or choose longer-term financing for larger purchases.

"Ulta Beauty is where millions of Americans turn for everything beauty and wellness has to offer, from emerging to established brands across all price points," said David Sykes, chief commercial officer at Klarna. "Whether a guest is checking out on Ulta.com or tapping through the Ulta Beauty app, they now have the power to pay in full, split their purchase into four interest-free installments, or select financing, giving them the freedom to choose what works best."

“Our digital channels play an increasingly important role in how guests discover, explore and shop beauty,” said Jodi Williams, vice president of ecommerce at Ulta Beauty. “Partnering with Klarna allows us to enhance that experience with more payment flexibility at checkout, supporting a seamless journey that gives guests more control over how they shop Ulta Beauty online and in our app.”

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 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.

Category: Partnerships

More News From Klarna Group plc

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Shares of Klarna (KLAR - Free Report) have gained 22.3% over the past four weeks to close the last trading session at $17.52, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $22 indicates a potential upside of 25.6%.

The mean estimate comprises 15 short-term price targets with a standard deviation of $7.2. While the lowest estimate of $17.00 indicates a 3% decline from the current price level, the most optimistic analyst expects the stock to surge 162.6% to reach $46.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

But, for KLAR, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why KLAR Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current year, four estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 133%.

Moreover, KLAR currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much KLAR could gain, the direction of price movement it implies does appear to be a good guide.

NEW YORK--(BUSINESS WIRE)--Klarna, the global digital bank and flexible payments provider, today announced the launch of Klarna Savings accounts in the U.S. - FDIC-insured accounts with no minimum deposit, no monthly fees, direct deposit, and interest rates above 3% APY¹, available directly in the Klarna app and provided and held by WebBank, member FDIC. Klarna already sits at the center of everyday spending for tens of millions of Americans, with a proven track record. Savings is a natural nex.

Gold prices are showing increased volatility, prompting renewed investor focus on cost discipline and margin resilience across the mining sector, according to analysts at Jefferies.

The price of gold fell more than 3% to trade just abot $4,400 per ounce on Monday.

The firm noted that bullion has pulled back significantly from earlier highs, with prices now up only about 1.4% year-to-date after gains of roughly 20% in January. At the same time, gold equities have lagged, with the GDX ETF down around 3.5%.

“This recent pullback in gold prices has brought operating margins back to the forefront for investors,” the analysts wrote, particularly after a period in which elevated prices had masked underlying cost pressures.

As prices ease, producers are facing greater scrutiny over their ability to sustain profitability. “Lower spot prices pressure top-line, making cost discipline the key differentiator among producers,” Jefferies wrote, adding that margin preservation is likely to outweigh production growth as the main driver of relative performance in the near term.

The shift comes after a period of rising cost guidance across the industry, driven by factors such as inflation, higher royalties and share-based compensation. While these increases were largely overlooked during the price rally, Jefferies said that dynamic is now reversing.

“At current levels, operating leverage is again working in reverse, exposing differences in underlying cost structures and balance sheet flexibility across the sector,” the frim wrote.

Higher-cost producers are particularly vulnerable in the current environment, given the relatively fixed nature of sustaining capital, labour and site-level overhead expenses. Although cost inflation has moderated from peak levels, risks remain. Jefferies pointed to the potential for renewed pressure “the longer the Iran war persists,” warning that elevated absolute costs leave thinner buffers if prices weaken further.

Against this backdrop, the firm highlighted several miners it believes are better positioned to maintain margins at current spot prices of around $4,350 per ounce, including Dundee Precious Metals Inc (TSX:DPM), Lundin Gold (TSX:LUG), Kinross Gold Corporation (TSX:K) and Pan American Silver Corp. (TSX:PAA, NASDAQ:PAAS).

Jefferies noted the differences between traditional miners and streaming and royalty companies, which it said are structurally less sensitive to price swings. “Unlike miners, streamers and royalty companies typically operate with largely fixed cash cost structures, with minimal exposure to operating or sustaining capital inflation,” the analysts wrote. This allows such companies to “preserve margin and cash flow more effectively than most producers” during periods of declining or volatile gold prices.

While these companies may sacrifice some upside in a rising price environment, Jefferies said their defensive characteristics become more valuable when prices reset lower and margin risk returns to focus. As such, the firm maintained ‘Buy’ ratings on Wheaton Precious Metals Corp (LSE:WPM, TSX:WPM, NYSE:WPM), Royal Gold, Inc. (TSX:RGL) and Triple Flag Precious Metals (TSX:TFPM).

Lundin Gold (TSX:LUG) has been given a ‘Buy’ rating and C$103 price target by Bank of America in its initial coverage, with analysts highlighting the company’s high-margin production profile, strong free cash flow generation and exploration upside at its flagship Fruta del Norte (FDN) mine in Ecuador.

Shares of Lundin traded up more than 5% at C$91 on Friday afternoon.

The analysts wrote in a note that Lundin Gold’s valuation premium is supported by what it described as a combination of “track record, returns and optionality,” highlighting stable annual free cash flow potential of about $1 billion at current gold prices and additional upside from exploration programs that UBS believes are not fully reflected in the stock.

UBS noted that FDN is considered a world-class underground gold asset with high grades, consistent operational execution and a long mine life supported by inventory growth. Lundin Gold’s three-year production guidance of 475,000 to 525,000 ounces annually could prove conservative, with potential upside tied to plant optimization initiatives, the firm added.

The bank also pointed to all-in sustaining costs below $1,200 per ounce, which it said support strong operating margins even in a more range-bound gold price environment.

While Lundin Gold remains a single-asset producer, UBS wrote that investors may be underestimating the value of ongoing exploration efforts around FDN and within a broader copper-gold porphyry corridor. The firm highlighted that approximately 3 million ounces of depletion since 2016 have been offset by roughly 4 million ounces of additions through exploration.

UBS wrote that exploration activity has accelerated significantly, including a planned 133-kilometre drilling program in 2026. According to the bank, the exploration work could support higher processing throughput at FDN, mine life extensions and potential grade improvements relative to current technical assumptions.

The bank’s analysts also outlined longer-term potential tied to regional copper-gold discoveries, estimating that nearby porphyry targets could represent billions of dollars in value under certain development scenarios.

Lundin Gold has delivered growing free cash flow since 2021 through consistent execution and currently maintains more than $700 million in net cash, allowing for continued shareholder returns and potential expansion investments, it added.

Lundin Gold shares have also underperformed the VanEck Gold Miners ETF (GDX) by roughly 40% over the past year as investors shifted toward higher-beta gold equities. UBS sees a more attractive risk-reward profile for the company if investor focus begins shifting from operational execution toward growth and exploration potential.

Issued on behalf of Salazar Resources Limited (TSXV: SRL)

, /PRNewswire/ -- USA News Group News Commentary — In mineral exploration, two things rarely show up on the same property: the bulk-tonnage scale of a copper porphyry, and the eye-popping per-tonne grades of a high-grade gold vein. One is a long-life, low-grade engine; the other is a smaller, richer prize. Salazar Resources Limited (TSXV: SRL) (OTCQB: SRLZF) (FSE: CCG) has just reported results suggesting it may have both on a single, wholly owned concession in one of the world's most prolific copper-gold belts.

On June 1, 2026, Salazar reported rock-chip sampling of up to 100 grams per tonne (g/t) gold and 1,000 g/t silver from the Yumi vein system at its 100%-owned Tarqui Concession in southeastern Ecuador — high-grade precious-metals results sitting right alongside a large, district-scale copper-molybdenum porphyry that was previously drilled under an earn-in by mining giant BHP. It is the kind of combination that gives a junior two distinct ways to win on one piece of ground.

The high-grade headline: Yumi

The numbers that grab attention come from the Yumi gold-silver epithermal vein system, where Salazar's own recent rock-chip sampling returned exceptional grades. One sample assayed 80.9 g/t gold and 824 g/t silver; a second came back at greater than 100 g/t gold and greater than 1,000 g/t silver, with over-limit analysis still pending — meaning the true values could be even higher once the lab re-runs them at a wider range. Beyond those two standouts, 13 additional samples returned between 1.0 and 17.9 g/t gold across a vein system roughly 100 metres in length.

Two caveats matter and Salazar discloses them plainly. First, these are rock-chip and grab samples taken at surface, which are selective by nature and are not necessarily representative of the grade of any mineralization at depth — they point to potential, not to a resource. Second, the highest result is an over-limit pending value, not a confirmed assay. What the sampling does establish is that a high-grade epithermal system is present and worth drilling. The company notes the mineralization is consistent with low- to intermediate-sulfidation epithermal systems similar to Lundin Gold's Fruta del Norte deposit, located about 48 kilometres to the south — a useful geological analogue, not a statement of equivalence.

The bulk-tonnage engine: a BHP-drilled porphyry

Underpinning the gold story is the larger copper-molybdenum porphyry system at Tarqui, defined by a 1.8-kilometre by 1.0-kilometre copper-molybdenum surface anomaly, with rock samples running up to 1.64% copper and soils up to 1.00% copper. The system has the kind of pedigree juniors rarely get to point to: it was drilled under a 2019–2022 earn-in agreement by BHP Billiton, following earlier work by Luminex Resources in 2018. That historical program included thirteen drill holes that confirmed porphyry mineralization.

Two of those historical holes frame the scale. TARQ1D returned 0.33% copper-equivalent over 186 metres, sitting within a much longer 682-metre interval grading 0.22% copper-equivalent. TARQ4D returned 0.34% copper-equivalent over 218 metres, with higher-grade sub-intervals up to 0.54% copper-equivalent. These are early-stage porphyry intercepts rather than a defined resource, but they confirm a real, drill-tested system that Salazar says remains open at depth and along its margins — leaving significant exploration upside. That a super-major spent the money to drill it is itself a form of validation that the target is district-scale.

Why the address matters

Tarqui and the nearby Quimi Concession together cover 7,547 hectares in Ecuador's Morona Santiago Province, roughly 15 kilometres from Gualaquiza, and sit within the Jurassic-aged Zamora Batholith — the same belt that hosts some of the region's marquee deposits. The concessions lie along the same regional structural corridor as the Panantza-San Carlos and Solaris Resources' Warintza porphyry systems, and the project sits about 48 kilometres north of Lundin Gold's Fruta del Norte. The two concessions are located roughly 20 and 5 kilometres, respectively, from Mirador Norte, the northern extension of the producing, Chinese-operated Mirador copper mine. In exploration, being on-trend with proven, large-scale systems does not guarantee success, but it materially improves the odds that the right geology is present.

CEO Fredy Salazar framed the opportunity as a rare pairing, pointing to "a large, well-defined copper-molybdenum porphyry system and high-grade gold-silver veins" at Tarqui, complemented by promising soil anomalies at the underexplored Quimi Concession. With the mineralized systems open in multiple directions and at depth, he said Salazar believes Tarqui and Quimi "could evolve into important discoveries" within one of the world's most prospective copper-gold belts. It is an exploration thesis, not a resource — but it is a well-located one with both bulk-tonnage and high-grade levers.

Four Ecuador-focused names investors watch alongside Salazar

Salazar is exploring in a jurisdiction that has gone from frontier to recognized producer in just a few years, drawing major and mid-tier mining capital to the same belt. The peer group below shows the range — from a high-grade producer to porphyry developers — that defines the Ecuadorian copper-gold story Salazar is now a part of.

Lundin Gold Inc. (TSX: LUG) (OTCQX: LUGDF) is the benchmark Salazar's own release points to. Its Fruta del Norte mine — the same epithermal gold-silver system geologically analogous to Salazar's Yumi target, 48 kilometres to the south — is among the highest-grade operating gold mines in the world. Lundin guided to 2026 production of 475,000 to 525,000 ounces of gold at an average head grade around 8.3 g/t, and launched its largest-ever exploration program at roughly US$85 million and 133,000 metres of drilling. Lundin shows what a world-class epithermal system in this belt can become once it is fully developed.

Solaris Resources Inc. (TSX: SLS) (NYSE: SLSR) is the porphyry analogue, advancing its Warintza copper project in the same Morona Santiago province as Tarqui. Solaris has reported an inferred resource on the order of 887 million tonnes grading about 0.39% copper, and signed an Investment Protection Agreement with the Ecuadorian government carrying tax incentives — a sign of how the country is courting large-scale copper development. Warintza illustrates the bulk-tonnage end of the spectrum that Salazar's own copper-molybdenum porphyry is chasing.

Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) represents the near-term builder in Ecuador. The company is advancing the El Domo deposit at the Curipamba project toward construction and first production later this decade, and — through its subsidiary Adventus — holds further exposure to the Zamora belt. Silvercorp shows the development-and-production stage of the Ecuadorian pipeline, several steps ahead of where Salazar sits today, and underscores that projects in the country are moving from discovery to construction.

Tincorp Metals Inc. (TSXV: TIN) is arguably the closest peer of all. In early 2026 Tincorp acquired the Santa Barbara gold-copper project — located in the same Zamora Copper-Gold Belt as Tarqui — from Silvercorp and its Adventus subsidiary, which retained a significant shareholding. Santa Barbara carries an updated resource of roughly 29.8 million tonnes grading 0.73 g/t gold and 0.10% copper. As a junior chasing a gold-copper porphyry in the very same belt, Tincorp is the most direct read on how the market values the kind of dual-metal exploration story Salazar is pursuing.

Across the group, the common thread is the one drawing capital to Salazar's ground: Ecuador's Zamora belt has proven it can host world-class copper porphyries and high-grade epithermal gold, and the market is rewarding companies that can credibly position themselves within it. Salazar sits at the early, high-risk exploration end — but on a wholly owned concession that offers exposure to both the bulk-tonnage and the high-grade sides of that story at once.

What to watch from here

For Salazar specifically, the near-term catalysts are clear. The first is the over-limit re-assay of that greater-than-100 g/t gold sample, which will put a firm number on the headline result. Beyond that, investors will watch for any move toward drilling the Yumi vein system — the logical next step to test whether the high-grade surface results carry to depth — as well as follow-up on the soil anomalies at the underexplored Quimi Concession and any further interpretation of the BHP-era porphyry data. Each would help convert surface promise into a drill-defined target.

None of this changes the fundamental reality that Salazar is an exploration-stage company working with surface samples and historical drill data, not a defined resource, and that grab samples are by their nature selective and unproven at depth. But the combination of a BHP-validated, district-scale copper-molybdenum porphyry and a freshly sampled high-grade gold-silver vein system — on one wholly owned property, in a tier-one copper-gold belt that is actively attracting major capital — is the kind of setup that draws exploration investors. The drill results to come will determine whether the promise becomes a discovery.

About Salazar Resources

Salazar Resources Limited (TSXV: SRL) (OTCQB: SRLZF) (FSE: CCG) is a Vancouver-based mineral exploration company focused on Ecuador. Its 100%-owned Tarqui and Quimi concessions cover 7,547 hectares in Morona Santiago Province within the Zamora Copper-Gold Belt, hosting a district-scale copper-molybdenum porphyry system — previously drilled under an earn-in by BHP Billiton — and the high-grade Yumi gold-silver epithermal vein system. Fredy Salazar serves as Chief Executive Officer.

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VANCOUVER, British Columbia, May 29, 2026 (GLOBE NEWSWIRE) -- K92 Mining Inc. (“K92” or the “Company”) (TSX: KNT; OTCQX: KNTNF) is pleased to announce the voting results of its 2026 annual general meeting (“AGM”) of shareholders that was held today as a hybrid virtual and in-person event. All of the resolutions proposed at the AGM were duly passed.

A total of 152,281,081 common shares, representing 62.136% of the Company’s issued and outstanding common shares as at the record date were voted. All of the Company’s seven director nominees were elected and detailed results of the votes on directors are shown below:

Name of NomineeVotes ForVotes WithheldNumber%Number%Michael Carew141,517,90199.9829,0230.02Mark Eaton138,640,79097.952,906,1342.05Anne Giardini138,553,94997.892,992,9752.11Saurabh Handa138,352,56797.743,194,3572.26Cyndi Laval141,198,28199.75348,6430.25Nan Lee141,502,99899.9743,9260.03John D. Lewins141,208,88199.76338,0430.24      All seven directors will serve on the Company's Board of Directors until the next annual meeting of shareholders or until their successors are elected or appointed.

Shareholders also voted in favour of the following matters:

Set the number of directors at seven (7);Re-appointed PricewaterhouseCoopers LLP as auditor of the Company for the ensuing year and authorized the directors to fix the auditor’s remuneration; andApproved the non-binding advisory resolution accepting the Company’s approach to executive compensation.
MatterVotes ForVotes AgainstNumber%Number%Number of Directors (7)151,946,16699.78334,9150.22Appointment of Auditor150,826,48299.041,454,5970.96Advisory Vote on Executive Compensation136,838,36896.674,708,5563.33      Further details on the above matters are set forth in the Company's meeting materials, including the Management Information Circular dated April 16, 2026, that are accessible on K92’s website at www.k92mining.com and under the Company's issuer profile on SEDAR+ at www.sedarplus.ca.

Final voting results on all matters voted on at the AGM are also contained in the Report on Voting Results filed under the Company’s profile on the SEDAR+ website.

About K92

K92 Mining Inc. is engaged in the production of gold, copper and silver at the Kainantu Gold Mine in the Eastern Highlands province of Papua New Guinea, as well as exploration and development of mineral deposits in the immediate vicinity of the mine. The Company declared commercial production from Kainantu in February 2018, is in a strong financial position, and is working to become a Tier 1 mid-tier producer through ongoing expansions. A maiden resource estimate on the Blue Lake copper-gold porphyry project was completed in August 2022. K92 is operated by a team of mining company professionals with extensive international mine-building and operational experience.

On Behalf of the Company,

John Lewins, Chief Executive Officer and Director

For further information, please contact David Medilek, P.Eng., CFA, President and Chief Operating Officer at +1-604-416-4445

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Such forward-looking statements include, without limitation: (i) statements regarding the expansion of the mine and development of any of the deposits; (ii) the Kainantu Stage 4 Expansion, operating two standalone process plants, larger surface infrastructure and mining throughputs; and (iv) the potential extended life of the Kainantu Mine.

All statements in this news release that address events or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as “expect”, “plan”, “anticipate”, “project”, “target”, “potential”, “schedule”, “forecast”, “budget”, “estimate”, “intend” or “believe” and similar expressions or their negative connotations, or that events or conditions “will”, “would”, “may”, “could”, “should” or “might” occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors, many of which are beyond our ability to control, that may cause our actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, without limitation, Public Health Crises, including the epidemic or pandemic viruses; changes in the price of gold, silver, copper and other metals in the world markets; fluctuations in the price and availability of infrastructure and energy and other commodities; fluctuations in foreign currency exchange rates; volatility in price of our common shares; inherent risks associated with the mining industry, including problems related to weather and climate in remote areas in which certain of the Company’s operations are located; failure to achieve production, cost and other estimates; risks and uncertainties associated with exploration and development; uncertainties relating to estimates of mineral resources including uncertainty that mineral resources may never be converted into mineral reserves; the Company’s ability to carry on current and future operations, including development and exploration activities at the Arakompa, Kora, Judd and other projects; the timing, extent, duration and economic viability of such operations, including any mineral resources or reserves identified thereby; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; the Company’s ability to meet or achieve estimates, projections and forecasts; the availability and cost of inputs; the availability and costs of achieving the Stage 4 Expansion; the ability of the Company to achieve the inputs the price and market for outputs, including gold, silver and copper; failures of information systems or information security threats; political, economic and other risks associated with the Company’s foreign operations; geopolitical events and other uncertainties, such as the conflicts in Ukraine, Israel, Palestine and the Middle East; compliance with various laws and regulatory requirements to which the Company is subject to, including taxation; the ability to obtain timely financing on reasonable terms when required; the current and future social, economic and political conditions, including relationship with the communities in Papua New Guinea and other jurisdictions it operates; other assumptions and factors generally associated with the mining industry; and the risks, uncertainties and other factors referred to in the Company’s Annual Information Form under the heading “Risk Factors”.

Estimates of mineral resources are also forward-looking statements because they constitute projections, based on certain estimates and assumptions, regarding the amount of minerals that may be encountered in the future and/or the anticipated economics of production. The estimation of mineral resources and mineral reserves is inherently uncertain and involves subjective judgments about many relevant factors. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, Forward-looking statements are not a guarantee of future performance, and actual results and future events could materially differ from those anticipated in such statements. Although we have attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other factors that cause actual results to differ materially from those that are anticipated, estimated, or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
.

Copa Holdings (CPA - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 13. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis holding company for Panama's national airline is expected to post quarterly earnings of $4.43 per share in its upcoming report, which represents a year-over-year change of +3.5%.

Revenues are expected to be $1.03 billion, up 15% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 47.82% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Copa Holdings?For Copa Holdings, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +6.17%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Copa Holdings will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Copa Holdings would post earnings of $4.44 per share when it actually produced earnings of $4.18, delivering a surprise of -5.86%.

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

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Copa Holdings appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAmong the stocks in the Zacks Transportation - Airline industry, Surf Air Mobility Inc. (SRFM - Free Report) , is soon expected to post loss of $0.44 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of +66.4%. This quarter's revenue is expected to be $25.27 million, up 7.5% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Surf Air Mobility Inc. has been revised 20.5% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Surf Air Mobility Inc. will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways CPA is expected to post 15% revenue growth in Q1, driven by stronger passenger demand. Copa Holdings beat earnings estimates in three of the past four quarters. CPA faces pressure from higher operating costs, supply-chain issues and geopolitical tensions. Copa Holdings (CPA - Free Report) is scheduled to report first-quarter 2026 results on May 13, after market close.

The Zacks Consensus Estimate for CPA’s first-quarter 2026 earnings per share has been revised downwards by 7.7% over the past 60 days to $4.43. The consensus mark for earnings implies a 3.5% increase from the year ago actuals. The Zacks Consensus Estimate for CPA’s first-quarter 2026 revenues is pegged at $1.03 billion, indicating 15% growth year over year.

CPA has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters (missing once in the remaining), with an average beat being 5.74%.

Let’s see how things have shaped up for CPA this earnings season.

Factors Likely to Have Influenced CPA’s Q1 PerformanceWe expect the CPA’stop line in the to-be-reported quarter to have been bolstered by an improvement in air-travel demand.

Passenger revenues, which account for the bulk of the top line, are likely to have increased in the to-be-reported quarter. The Zacks Consensus Estimate for passenger revenues is pegged at $987.3 million, up 15% from the first-quarter 2025 actuals. Meanwhile, the consensus mark for revenues from the cargo & mail segment and other operating revenues is pegged at $28.1 million and $16.4 million, indicating a year-over-year increase of 9.4% and 13.1%, respectively.

On the contrary, the company’s performance in the to-be-reported quarter is expected to have been significantly impacted by rising operating expenses. Ongoing geopolitical tensions in the Middle East and supply-chain disruptions are likely to have weighed on CPA’s bottom line.

What Our Model Says About CPAOur proven model predicts an earnings beat for Copa Holdings this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

CPA has an Earnings ESP of +6.17% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Highlights of CPA’s Q4 ResultsCopa Holdings reported fourth-quarter 2025 earnings per share of $4.18, which missed the Zacks Consensus Estimate of $4.44 but improved 4.7% year over year. Revenues of $962.9 million missed the Zacks Consensus Estimate of $967.6 million but inched up 9.7% year over year, driven by a 12.9% increase in onboard passengers.

Passenger revenues (which contributed 94.8% to the top line) grew 9.4% year over year to $913.62 million. The upside was driven by a 10.1% increase in revenue passenger miles (RPMs), partially offset by a 0.6% decrease in passenger yield.

Q1 Performances of Other Transportation CompaniesDelta Air Lines (DAL - Free Report)  reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis. Revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis. 

J.B. Hunt Transport Services (JBHT - Free Report) posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, reflecting a 2.8% surprise.

Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenues per load in select highway-related businesses.

Copa Holdings, S.A. (NYSE:CPA) will release earnings for its first quarter after the closing bell on Wednesday, May 13.

Analysts expect the Panama City, Panama-based company to report quarterly earnings of $4.42 per share, up from $4.28 per share in the year-ago period. The consensus estimate for Copa's quarterly revenue is $1.03 billion (it reported $899.18 million last year), according to Benzinga Pro.

On Tuesday, Copa Holdings posted 16.7% capacity and traffic growth in April.

Shares of Copa Holdings fell 0.9% to close at $115.96 on Tuesday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period.

Considering buying CPA stock? Here’s what analysts think:

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May 13, 2026 18:45 ET  | Source: Copa Holdings, S.A.

PANAMA CITY, May 13, 2026 (GLOBE NEWSWIRE) -- Copa Holdings1, S.A. (NYSE: CPA), today announced financial results for the first quarter of 2026 (1Q26), reflecting continued industry-leading profitability, disciplined execution, and the resilience of its business model amid a higher jet fuel price environment. Key highlights include:

Net profit of US$212.5 million or US$5.16 per share, a 20.5% year‑over‑year increase in earnings per share.Operating margin of 24.6% and net margin of 20.2%, increases of 0.8 and 0.5 percentage points, respectively, compared to 1Q25.Capacity, measured in available seat miles (ASMs), grew by 14.0% year over year, and passenger traffic in RPMs increased by 15.0%. As a result, load factor increased by 0.8 percentage points to 87.2%.Revenue per available seat mile (RASM) of 11.8 cents, an increase of 2.7% compared to 1Q25.Operating cost per available seat mile (CASM) increased 1.6% year over year to 8.9 cents, while CASM excluding fuel (Ex-fuel CASM) decreased 1.0% to 5.8 cents.The Company ended the quarter with approximately US$1.5 billion in cash, short-term and long-term investments, representing 40% of the last-twelve-months’ revenues.Adjusted Net Debt to EBITDA ratio ended 1Q26 at 0.7 times.The Company repurchased US$45 million worth of shares during the quarter under the Company’s current US$200 million repurchase authorization. This represents approximately 1% of total outstanding shares as of the end of the quarter.In 1Q26, the Company took delivery of 2 Boeing 737-MAX 8 aircraft to end the quarter with a total fleet of 127 aircraft.Copa Airlines had an on-time performance for the quarter of 91.6% and a flight completion factor of 99.7%, once again positioning itself among the very best in the industry. Subsequent events

On May 13, 2026, the Board of Directors of Copa Holdings ratified its second dividend payment for the year of US$1.71 per share, payable on June 15, 2026, to shareholders of record as of May 29, 2026.In April, at an event held in Panama, the Company publicly announced a Boeing 737 MAX aircraft order consisting of 40 firm orders and 20 purchase options. Deliveries are expected between 2030 and 2034, supporting long‑term capacity growth while preserving flexibility within the Company’s existing fleet plan.During the second quarter, the Company took delivery of two additional Boeing 737 MAX 8 aircraft, increasing its total fleet to 129 aircraft. ____________________
1 The terms “Copa Holdings” and the “Company” refer to the consolidated entity. The financial information presented in this release, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS). See the accompanying reconciliation of non-IFRS financial information to IFRS financial information included in the financial tables section of this earnings release. Unless otherwise stated, all comparisons with prior periods refer to the first quarter of 2025 (1Q25).

Full 1Q26 Earnings Release available for download at: 

ir.copaair.com/financial-information/quarterly-results

Conference Call and Webcast

The Company will hold its financial results conference call tomorrow at 11am ET (10am local). Details follow:

Date:May 14, 2026Time:11:00 AM US ET (10:00 AM Local Time)Join by phone:Click hereWebcast (listen-only):ir.copaair.com/events-and-presentations     About Copa Holdings

Copa Holdings is a leading Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides service to countries in North, Central, and South America and the Caribbean. For more information, visit: copaair.com.

Investor Relations
[email protected]

Cautionary statement regarding forward-looking statements

This release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans, estimates, and expectations, and are not guarantees of future performance. They are based on management’s expectations that involve several business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement. The risks and uncertainties relating to the forward-looking statements in this release are among those disclosed in Copa Holdings’ filed disclosure documents and are, therefore, subject to change without prior notice.

CPA-G

      Copa Holdings, S. A. and Subsidiaries
Consolidated Operating and Financial Statistics       1Q261Q25% Change4Q25% ChangeRevenue Passengers Carried (000s)4,096 3,512 16.6%3,935 4.1%Revenue Passengers OnBoard (000s)6,007 5,208 15.3%5,834 3.0%RPMs (millions)7,755 6,743 15.0%7,359 5.4%ASMs (millions)8,892 7,801 14.0%8,513 4.5%Load Factor87.2%86.4%0.8 p.p86.4%0.8 p.pYield (US$ Cents)12.9 12.7 1.6%12.4 4.3%PRASM (US$ Cents)11.3 11.0 2.6%10.7 5.2%RASM (US$ Cents)11.8 11.5 2.7%11.3 4.6%CASM (US$ Cents)8.9 8.8 1.6%8.8 0.9%CASM Excl. Fuel (US$ Cents)5.8 5.8 (1.0)%5.9 (2.9)%Fuel Gallons Consumed (millions)102.7 91.0 12.9%98.6 4.1%Avg. Price Per Fuel Gallon (US$)2.73 2.54 7.5%2.50 9.2%Average Length of Haul (miles)1,893 1,920 (1.4)%1,870 1.2%Average Stage Length (miles)1,260 1,260 —%1,236 1.9%Departures43,033 37,829 13.8%41,942 2.6%Block Hours138,479 121,611 13.9%133,488 3.7%Average Aircraft Utilization (hours)12.2 12.1 1.3%11.9 3.1%            Copa Holdings, S. A. and Subsidiaries
Consolidated statement of profit or loss
(In US$ thousands)            Unaudited Unaudited %Unaudited %  1Q26 1Q25 Change4Q25 ChangeOperating Revenues         Passenger revenue 1,004,173  859,025  16.9%913,623  9.9%Cargo and mail revenue 29,760  25,694  15.8%32,036  (7.1%)Other operating revenue 18,490  14,462  27.8%17,228  7.3%Total Operating Revenue 1,052,423  899,181  17.0%962,888  9.3%          Operating Expenses         Fuel 282,462  232,160  21.7%249,177  13.4%Wages, salaries, benefits and other employees' expenses 137,670  117,517  17.1%137,906  (0.2%)Passenger servicing 28,135  25,024  12.4%27,523  2.2%Airport facilities and handling charges 79,184  65,657  20.6%68,996  14.8%Sales and distribution 54,812  50,261  9.1%55,604  (1.4%)Maintenance, materials and repairs 46,612  39,434  18.2%46,075  1.2%Depreciation and amortization 100,726  86,284  16.7%97,385  3.4%Flight operations 41,104  33,749  21.8%38,413  7.0%Other operating and administrative expenses 23,083  35,274  (34.6%)32,221  (28.4%)Total Operating Expense 793,787  685,360  15.8%753,300  5.4%          Operating Profit/(Loss) 258,636  213,822  21.0%209,588  23.4%Operating Margin 24.6% 23.8% 0.8 p.p21.8% 2.8 p.p          Non-operating Income (Expense):         Finance cost (25,837) (23,233) 11.2%(27,478) (6.0%)Finance income 16,083  15,792  1.8%16,545  (2.8%)Gain (loss) on foreign currency fluctuations 1,518  1,370  10.8%(6,021) nmNet change in fair value of derivatives (1,066) (2,434) (56.2%)178  nmOther non-operating income (expense) (2,279) 1,428  nm(857) 166.0%Total Non-Operating Income/(Expense) (11,581) (7,077) 63.6%(17,633) (34.3%)          Profit before taxes 247,054  206,744  19.5%191,955  28.7%          Income tax expense (34,588) (29,978) 15.4%(19,332) 78.9%          Net Profit/(Loss) 212,467  176,766  20.2%172,623  23.1%Net Margin 20.2% 19.7% 0.5 p.p17.9% 2.3 p.p          EPS         Basic Earnings Per Share (EPS) 5.16  4.28  20.5%4.18  23.3%          Shares used for calculation:         Shares for calculation of Basic EPS (000s) 41,183  41,292  -0.3%41,248  -0.2%                Copa Holdings, S. A. and Subsidiaries
Consolidated statement of financial position
(In US$ thousands)     March 2026 December 2025ASSETS(Unaudited) (Audited)Cash and cash equivalents374,223  382,554 Short-term investments959,457  955,604 Total cash, cash equivalents and short-term investments1,333,680  1,338,159 Accounts receivable, net204,725  194,425 Accounts receivable from related parties3,019  3,217 Expendable parts and supplies, net152,247  148,127 Prepaid expenses89,588  55,209 Prepaid income tax4,836  6,172 Other current assets29,291  32,769  483,706  439,919 TOTAL CURRENT ASSETS1,817,386  1,778,078 Long-term investments190,157  248,579 Long-term prepaid expenses5,991  5,434 Property and equipment, net4,461,063  4,120,055 Right of use assets279,918  296,761 Intangible, net104,477  104,071 Net defined benefit assets3,157  3,220 Deferred tax assets20,308  19,873 Other Non-Current Assets12,060  6,952 TOTAL NON-CURRENT ASSETS5,077,131  4,804,946 TOTAL ASSETS6,894,517  6,583,024 LIABILITIES   Loans and borrowings218,254  172,885 Current portion of lease liability66,901  66,132 Accounts payable210,249  164,320 Accounts payable to related parties1,409  1,333 Air traffic liability750,546  737,616 Frequent flyer deferred revenue160,478  155,584 Taxes Payable81,360  62,931 Accrued expenses payable39,970  66,016 Income tax payable27,122  11,929 Other Current Liabilities9,111  1,361 TOTAL CURRENT LIABILITIES1,565,401  1,440,107     Loans and borrowings long-term1,890,520  1,807,556 Lease Liability241,670  258,383 Deferred tax Liabilities72,940  59,217 Other long-term liabilities250,445  242,337 TOTAL NON-CURRENT LIABILITIES2,455,575  2,367,494 TOTAL LIABILITIES4,020,976  3,807,600 EQUITY   Class A - 34,257,137 issued and 29,861,335 outstanding23,316  23,290 Class B - 10,938,1257,466  7,466 Additional Paid-In Capital221,661  220,190 Treasury Stock(345,147) (300,143)Retained Earnings2,769,716  2,168,911 Net profit212,467  671,648 Other comprehensive loss(15,939) (15,939)TOTAL EQUITY2,873,541  2,775,423 TOTAL EQUITY LIABILITIES6,894,517  6,583,024          Copa Holdings, S. A. and Subsidiaries
Consolidated statement of cash flows
For the three months ended
(In US$ thousands)          2026   2025  (Unaudited) (Unaudited)Net cash flow from operating activities 359,710   205,477 Investing activities   Net Acquisition of Investments 54,498   (340,191)Net cash flow related to advance payments on aircraft purchase contracts (245,026)  (115,130)Acquisition of property and equipment (163,486)  (56,216)Proceeds from sale of property and equipment 85   — Acquisition of intangible assets (5,559)  (6,515)Cash flow used in investing activities (359,488)  (518,052)Financing activities   Proceeds from new borrowings 154,605   — Payments on loans and borrowings (31,543)  (51,863)Payment of lease liability (16,033)  (14,007)Share repurchase (45,004)  (3,555)Dividends paid (70,578)  (66,493)Cash flow used in financing activities (8,553)  (135,918)Net (decrease) in cash and cash equivalents (8,331)  (448,493)Cash and cash equivalents as of January 1 382,554   613,313 Cash and cash equivalents as ofMarch 31,$374,223  $164,820     Short-term investments 959,457   751,525 Long-term investments 190,157   425,821 Total cash and cash equivalents and investments as ofMarch 31,$1,523,837  $1,342,166          Copa Holdings, S. A. and Subsidiaries
Non-IFRS Financial Measures Reconciliation

This press release includes the following non-IFRS financial measures: Operating CASM Excluding Fuel and Adjusted Net Debt to EBITDA. This supplemental information is presented because we believe it is a useful indicator of our operating performance and for comparing our performance with other companies in the airline industry. These measures should not be considered in isolation and should be considered together with comparable IFRS measures, in particular operating profit and net profit. The following is a reconciliation of these non-IFRS financial measures to the comparable IFRS measures:

Reconciliation of Operating Costs per ASM   Excluding Fuel (CASM Excl. Fuel)1Q261Q254Q25    Operating Costs per ASM as Reported (in US$ Cents)8.98.88.8Aircraft Fuel Cost per ASM (in US$ Cents)3.23.02.9Operating Costs per ASM excluding fuel (in US$ Cents)5.85.85.9     Reconciliation of Adjusted Net Debt to EBITDA1Q26 1Q25 4Q25      Net Debt$893,509 $592,934 $718,218      LTM Operating Profit/(Loss) (in US$ thousands)$863,774 $750,788 $818,960LTM Depreciation and amortization (in US$ thousands)$379,579 $333,628 $365,137LTM EBITDA (in US$ thousands)$1,243,353 $1,084,417 $1,184,096      Adjusted Net Debt to EBITDA 0.7  0.5  0.6         

ir.copaair.com copaair.com

For the quarter ended March 2026, Copa Holdings (CPA - Free Report) reported revenue of $1.05 billion, up 17% over the same period last year. EPS came in at $5.16, compared to $4.28 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $1.03 billion, representing a surprise of +1.8%. The company delivered an EPS surprise of +16.57%, with the consensus EPS estimate being $4.43.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Copa Holdings performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Load Factor: 87.2% versus the five-analyst average estimate of 86.9%.PRASM (Passenger revenue per ASM): 11.3 cents versus 11.08 cents estimated by four analysts on average.Yield: 12.9 cents compared to the 12.77 cents average estimate based on four analysts.Avg. Price Per Fuel Gallon: $2.73 compared to the $2.77 average estimate based on four analysts.ASMs (Available seat miles): 8.89 billion versus 8.89 billion estimated by four analysts on average.CASM Excl. Fuel: 5.8 cents versus the four-analyst average estimate of 5.78 cents.CASM: 8.9 cents versus 8.98 cents estimated by four analysts on average.RPMs (Revenue passengers miles): 7.76 billion compared to the 7.71 billion average estimate based on four analysts.RASM: 11.8 cents versus the four-analyst average estimate of 11.6 cents.Fuel Gallons Consumed: 102.70 Mgal versus the three-analyst average estimate of 102.34 Mgal.Total Number of Aircraft: 127 versus 129 estimated by two analysts on average.Operating Revenues- Passenger revenue: $1 billion versus $987.37 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +16.9% change.View all Key Company Metrics for Copa Holdings here>>>

Shares of Copa Holdings have returned -4.1% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.