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Morgan Stanley lowered its price target on Figma (NYSE:FIG) to $38 from $44, maintaining an Equal Weight rating following the design software maker’s first-quarter results. The price target cut arrives despite a second straight quarter of accelerating revenue growth to 46% year over year, highlighting an unusual tension in the analyst community.

Piper Sandler analyst Billy Fitzsimmons also trimmed his target to $30 from $35 while keeping an Overweight rating. For investors in Figma stock, the message is nuanced: growth is excellent, yet the AI competition debate is compressing the multiple Wall Street will pay for it.

Ticker Company Firm Action Old Rating New Rating Old Target New Target FIG Figma Morgan Stanley Price Target Cut Equal Weight Equal Weight $44 $38 FIG Figma Piper Sandler Price Target Cut Overweight Overweight $35 $30 The Analyst’s Case Morgan Stanley credited the accelerating top line to seat expansion, paid customer conversion, and new credit monetization. The firm noted that while investor debates on competition and gross margins persist, the Q1 2026 results “provide a strong case for Figma’s positioning in AI.”

Piper Sandler’s data points were similarly strong: Figma’s 6% revenue beat, net dollar retention of 139%, and a Q2 revenue growth guidance midpoint of 40% year over year, a sizable nine points ahead of consensus. Management also raised the FY26 revenue growth midpoint to 35% year over year.

Company Snapshot Figma operates a collaborative design platform used by product teams across enterprises. The company carries a market capitalization of roughly $9.98 billion and generated trailing revenue of $1.06 billion, with gross margins around 85%.

FIG shares last traded at $23, well below the 52-week high of $142.92. The consensus analyst target sits at $40.25, with ratings skewing toward Hold.

Why the Move Matters Now The valuation reset reflects a structural concern about category disruption rather than any execution miss in the quarter. So-called “vibe coding” platforms and AI-generated user interface tools are increasingly capable of producing design assets without traditional workflows. That has investors questioning whether the design tool category itself faces disruption.

Figma’s defense is its enterprise footprint and AI feature velocity, evidenced by that 139% net dollar retention figure. Even so, Figma stock trades at a price-to-sales ratio of 9x, leaving little room for multiple compression if growth ever slows.

What It Means for Your Portfolio For prudent investors, the analyst downgrade signals less about Figma’s near-term fundamentals and more about the AI overhang on the entire design software category. A 46% growth rate at this scale remains rare, and management’s raised full-year outlook suggests momentum is durable.

Yet the bear case deserves weight. If AI-native tools commoditize design output, even exceptional results may not drive multiple expansion. Position sizing should reflect that asymmetric risk while leaving room to participate if the AI competition fear proves overstated.

Figma, Inc. delivered strong Q1 results, with 46% YoY revenue growth and notable customer expansion, but FIG valuation remains demanding. Operational advances, AI monetization, and high net dollar retention (139%) support the bullish thesis, yet margin compression raises caution. Stock-based compensation and a negative GAAP operating margin (-41%) present ongoing FIG shareholder dilution and profitability concerns.

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When Anthropic released Claude Design in April, one assumption spread quickly through design and tech circles: a prompt-to-interface tool would make interface design platform Figma redundant. Product teams would describe what they wanted and skip the canvas entirely.

Figma’s Q1 2026 results said otherwise.

Figma beat revenue expectations and raised its full-year outlook, Quartz reported on Friday (May 15). The signal underneath the numbers mattered more than the results themselves: Enterprise teams are not leaving Figma because just they have a faster way to generate a screen.

What Claude Design Actually Threatens Claude Design generates websites, landing pages and interfaces from natural language prompts, PYMNTS reported. No prior design experience is required. The tool does not augment an existing workflow. It replaces the starting point entirely.

That is a genuine shift for certain users. Solo builders, early-stage startups and non-designers who need something functional fast no longer need a designer to get there. The threat is real. It just does not describe most of what Figma’s customers actually do.

Large product organizations do not primarily use Figma to generate screens. They use it to maintain shared design systems, manage version control and manage collaborations across distributed teams. Developer handoff, prototyping and governance sit on top of that. A prompt-to-interface tool solves one upstream problem in a workflow with a dozen others downstream.

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Why Enterprise Teams Are Staying The clearest evidence came not from revenue but from behavior. After Figma began enforcing artificial intelligence (AI) usage limits in March, the vast majority of enterprise customers who hit their cap chose to buy more credits. They did not leave, Fast Company found. Teams inside Figma’s collaboration and handoff infrastructure did not treat a generative AI alternative as a viable exit.

CFO Praveer Melwani said the quarter was driven by seat expansion across entire organizations, not just individual power users. Figma is becoming more entrenched inside product teams, even as generative tools multiply around it. CEO Dylan Field put the thesis plainly: when code is a commodity, design judgment is the competitive edge.

What the Broader Industry Is Actually Sorting Out Figma’s quarter does not settle the competitive picture. It clarifies where the battle is actually being fought.

Adobe is facing the same structural question from a different position. Adobe Firefly is embedded across Photoshop, Illustrator and Premiere, assisting designers already inside those tools. It assumes a trained designer is in the loop. Claude Design does not. The pressure Adobe faces is not that its tools are being replaced. It is that the population of people who need professional design tools may stop growing if generative AI tools absorb the entry-level use cases first.

Google Stitch is pushing from another angle. It launched with Claude Code integration already built in, targeting developers who want to move directly from code to interface without switching contexts. Microsoft embedded AI design into Designer and has integrated Claude into PowerPoint. The design workflow is being approached from every adjacent layer simultaneously.

What Figma’s earnings results suggest is that the collaboration and governance layer—the part that sits across entire product organizations rather than inside a single creator’s session—is proving more durable than the generation layer. Generating a screen is getting cheaper and faster across every tool. Coordinating what happens to that screen across a product team of thirty people is still Figma’s problem to solve.

Shares of Figma (FIG 3.59%) jumped last Friday (May 15) after the collaborative design platform company reported that its first-quarter revenue surged. However, the stock is still down more than 35% on the year, as the company has been dragged down by the software-as-a-service (SaaS) sell-off.

Let's dig into the company's results and prospects to see if now is a good time to buy the stock.

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Strong revenue growth continues It's hard to fault Figma for its struggling stock price following its initial public offering (IPO) last year, as operationally the company has been hitting it out of the park. This continued in the first quarter, as the company's revenue growth accelerated, rising 46% to $333.4 million, up from the 40% growth it saw in Q4 and 38% growth in Q3. Adjusted earnings per share (EPS) rose from $0.03 to $0.10.

The growth was driven by both seat expansion and the continued adoption of the company's artificial intelligence (AI) products. Meanwhile, the company began enforcing AI credit limits on all seats in mid-March. It said the change has been positive, with 95% of users who were over the limits still active on the platform and 75% continuing to use credits, with many purchasing additional ones.

Figma continues to see growth from both new and existing customers. Its number of paid customers climbed 54% year over year to 690,000. Meanwhile, its net revenue retention (NRR) rate for customers with more than $10,000 in annual recurring revenue came in at an impressive 139%, its highest level in two years. This metric measures how much additional money, after any churn, existing customers of one year or longer spend.

Figma upped its full-year revenue forecast, predicting that its 2026 revenue would come in between $1.422 billion and $1.428 billion, representing about 35% year-over-year growth at the midpoint of its guidance. That's up from a prior outlook of between $1.366 billion and $1.374 billion. For Q2, it is looking for revenue between $348 million and $350 million, representing 40% year-over-year growth at the midpoint.

Image source: The Motley Fool.

Figma turned in an exceptional quarter of strong revenue growth. And while there remains a narrative that it will be an AI loser, it continues to demonstrate that AI is driving growth.

With its sell-off this year, the stock now trades at a forward price-to-sales (P/S) ratio of around 8.5 times 2026 analyst estimates and 7.2 times the 2027 consensus. That's attractive for a growth stock increasing its revenue at a 35%-plus clip. As such, I think investors can add shares of the stock at these levels.

The headlines belong to AI and semiconductors right now. Chips are soaring, data center buildout stocks are making new highs, and the momentum crowd is firmly in control. But underneath the surface of a market that looks healthy, something odd is happening. The new-low list has been outrunning the new-high list even as the S&P 500 pushes above 7,500. That's not a healthy market. That's a narrow one.

Jeff Clark of TradeSmith has seen this setup before. His read: when gains concentrate in a thin slice of the market, the rotation trade is coming. And when it does, the money that rushes out of the hot names has to land somewhere. He thinks it lands in stocks that have already been left behind—and he has three specific names in mind.

Get KTOS alerts:

The Setup: When Enthusiasm Gets Discounted to InfinityThe bull case for AI stocks isn't fiction. Real money is flowing into data centers, chips, and infrastructure. The question Clark is asking is a different one: for how long? Once a data center is built, you don't build another one next door. Memory chips are a cyclical commodity—yet the market has priced them as if the cycle has been suspended permanently. Clark's view is that the market is extrapolating today's spending to infinity, and that a correction is overdue. That doesn't mean the AI trade is over. It means the easy money in the hot names may already be made, and the opportunity is now sitting in the stocks no one is talking about.

Figma: A Software Survivor Priced Like a CasualtyFigma Today

$18.80 -0.99 (-4.99%)

As of 11:01 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$16.60▼

$142.92Price Target$38.63

Figma NYSE: FIG went public at $33 a share, shot to more than $140, and has since retraced nearly all of those gains—spending time near $20 before a recent earnings pop pushed it back above $22. The surface-level read is that software is under pressure from AI, and Figma is getting caught in that tide. Clark's read is almost the opposite.

Figma isn't being destroyed by AI. It's integrating it. The platform, used by designers and product teams to build digital products and prototypes, has leaned into AI tooling rather than ignoring it, and the results are showing up in the numbers. The company's user base is growing more than 50% year-over-year, and its most recent earnings report came in at 10 cents per share against an expected loss of 17 cents. Net dollar retention has climbed to 139%, meaning existing customers are spending more. Revenue growth is accelerating, not slowing.

For Clark, the thesis is simple: the stock was never worth $140, but it was also never worth being abandoned. Near $20, it's pricing in too much fear and not enough of what the business is actually doing. His target entry is around that level, and he sees it as a name worth holding for the long run.

Kratos Defense: A Drone Pure-Play That Got Ahead of ItselfKratos Defense & Security Solutions Today

KTOS

Kratos Defense & Security Solutions

$55.27 +0.45 (+0.83%)

As of 11:01 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$39.00▼

$134.00P/E Ratio326.82

Price Target$96.28

The defense budget expansion story is real, and Kratos Defense & Security Solutions NASDAQ: KTOS sits right at the center of it. The company's unmanned aerial systems—jet-powered drones, hypersonic vehicles, and related defense technology—have the Department of Defense as their primary customer, and that customer is spending aggressively. Kratos reported 22.6% revenue growth in its most recent quarter, with a record backlog and raised full-year guidance.

But the stock ran from roughly $35 a year ago to $120 at its peak, and then gave most of it back. It's trading near $53 today, which Clark acknowledges is not cheap on traditional metrics. This is not a value stock in the Graham-and-Dodd sense. What it is, he argues, is a growth stock with earnings expanding north of 45% annually, trading at a steep discount to where market enthusiasm put it just a few months ago.

Clark's preferred entry is closer to $45 to $50. The defense sector as a whole has pulled back from early-2026 highs as investors wait for the spending surge to show up more aggressively in earnings. Clark sees that patience as the setup. Drone technology spending isn't going away, and the pullback creates a better entry than anything available when KTOS was making headlines at the top.

SoundHound AI: Round-Trip Ticket, Better DestinationSoundHound AI Today

$6.66 -0.09 (-1.35%)

As of 11:01 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$5.83▼

$22.17Price Target$14.93

SoundHound AI NASDAQ: SOUN has put investors through a full round trip. A year ago, the stock was trading near $8, ran all the way to the low $20s on AI enthusiasm, and has since come back down to roughly $8. Anyone who bought near the top knows exactly how painful that ride has been.

But Clark's focus isn't on where the stock has been; it's on whether this entry price makes sense relative to what the company is building.

SoundHound's technology is the conversational AI voice layer embedded in cars, restaurant kiosks, and consumer devices—the software that responds when a driver asks for the nearest gas station or a customer places a voice order. The company is not yet profitable. What it is, Clark says, is doing the right things operationally: growing revenue, expanding into new verticals, and positioning itself as the leading pure-play on voice AI at a price point that reflects none of that potential. At $8, the stock is trading where it was before the original wave of AI enthusiasm, and the business is meaningfully larger now than it was then.

The risk is real, as profitability is still quarters away at minimum, and the stock has shown it can be volatile in both directions. But for investors who believe voice AI will become embedded infrastructure, Clark's argument is that the round trip back to $8 is exactly the kind of entry point that "buy low, sell high" was invented for.

The Bigger PictureThe three names share a common thread: each ran hard on genuine enthusiasm, pulled back further than the fundamentals justify, and now sits in the uncomfortable zone where patience is required. That discomfort is the point. The stocks generating today's headlines are priced for perfection. These aren't—and for investors willing to wait for the rotation Clark sees coming, that gap may be exactly where the opportunity lives.

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Figma has defied AI disruption fears, posting 46% YoY revenue growth and accelerating net dollar retention to 139%. Consensus estimates appear too conservative; I expect further upside as FIG transitions to a usage-based model and leverages AI tailwinds. FIG maintains a bulletproof balance sheet with $1.6 billion in cash and no debt, supporting continued investment and margin expansion.

Investment firm Goldman Sachs recently cut the price target on Figma (FIG 3.59%) to $30 per share, down from $35. In a sense, this should not come as a surprise, as the stock declined soon after its initial public offering (IPO) in July of last year and has traded in a range since March.

Nonetheless, investors should also remember that the software-as-a-service (SaaS) stock has fallen 80% since topping $120 shortly after the company went public. Instead of signaling further pain, history shows such actions sometimes signify a bottom following a sustained decline. That may be the case with Figma stock, signifying a buying opportunity that could become lucrative for investors.

Image source: Getty Images.

Putting the Figma price target cuts into perspective Figma has stood out for creating a design tool for interactive website and app design. It successfully combined artificial intelligence (AI) and human interaction into this process, making it so valuable that Adobe once attempted to buy the company.

That momentum helped make its IPO initially successful, though as mentioned before, the stock has sold off amid its high valuation and fears of competition from AI. That downtrend could have played a role in a series of price target cuts by Goldman Sachs, which originally set a $48-per-share price target on the stock during last summer's IPO.

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As strange as it may sound, this could signal beaten-down Figma stock has become a buy. Goldman Sachs target represents potential upside of more than 25%.

Additionally, price target cuts for Apple in 2019 and Netflix in 2022 preceded rapidly rising stock prices in the months after the stocks experienced significant declines. In Apple's case, the rapid growth of its services business and optimism regarding 5G helped rescue the stock after price target cuts based on weakening device sales. With Netflix (which also included downgrades), a valuation below 20 times earnings eased investor worries after subscriber numbers fell.

Figma's current conditions show parallels to both of those stocks. In the first quarter of 2026, the 46% year-over-year increase in revenue implies growth is not currently a challenge. While it is not yet profitable, it also reported free cash flow of $89 million for the quarter.

Furthermore, Figma now trades at a price-to-sales (P/S) ratio of around 10. This is down from its 66 sales multiple just after its IPO and is closer to the P/S ratios of other rapidly growing companies. Thus, instead of selling, now might be a time to take another look at Figma stock.

Investing in Figma stock after the price target cut Ultimately, Figma appears to have experienced a "bullish price target cut."

Admittedly, bulls do not like to witness falling price targets, and negative sentiment tends to beget more selling.

However, its current price target would still amount to significant growth, and downgrades aren't always followed by falling stock prices. In my view, the historical indicators imply that the sell-off in Figma stock could soon come to an end.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Apple, Figma, Goldman Sachs Group, and Netflix. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.

Shares of Figma (FIG 3.59%), the design software stock, were soaring last month as shares jumped on a strong earnings report and rode a broader recovery in the software sector.

Figma went public last July and jumped out of the gate before falling sharply from its peak. Eventually, the stock sank below its IPO price of $33, and it remains there today.

At first, Figma was dogged by concerns about its valuation, and later it became one of the software stocks that investors believed to be primed for AI disruption, especially after Anthropic launched its own competing design product, Claude Design.

Nonetheless, Figma has delivered strong results since it went public, and that was part of the reason that it finished last month up 44%, according to data from S&P Global Market Intelligence.

As you can see from the chart below, it wasn't a straight line up for Figma last month, but it was able to rack up some strong gains, especially after its earnings report in the middle of the month.

FIG data by YCharts

What happened with Figma Figma jumped 13% on May 15 after its first-quarter earnings report came out, following a rally the day before heading into the report.

Figma posted 46% revenue growth to $333.4 million, well ahead of estimates at $316 million, and accelerating from 40% growth in the previous quarter. Its net dollar retention rate reached 139%, showing existing customers over the last four quarters increased their spending by 39%, its fastest pace in two years.

New AI products like Figma Make and Figma Weave are helping to drive growth, and it's seeing strong conversion from free to paid users and to their paid tier.

On the bottom line, adjusted operating income improved from $40 million to $52.1 million, and adjusted earnings per share came in at $0.10, which beat estimates at $0.06.

After giving up some of those gains in the following week, it closed out the month strong, rising with other software stocks, and as activist investor Findell Capital Management complimented the company but also suggested changes.

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What's next for Figma Looking ahead, Figma raised its full-year revenue guidance to $1.422 billion-$1.428 billion, implying 35% year-over-year revenue growth, up $55 million from its previous range. It also called for adjusted operating income of $125 million-$135 million.

If Figma can execute on those goals, the stock looks like a good candidate to keep moving higher.

SAN FRANCISCO--(BUSINESS WIRE)--Figma, Inc. (NYSE: FIG), a leading design and product development platform, today announced it will host an Investor and Analyst Session at Config 2026 on Wednesday, June 24, 2026 at 2:00 p.m. Pacific Time, in San Francisco, California. Config is Figma's annual user conference, bringing together over ten thousand designers, developers, and product builders shaping the future of design and product building. A live webcast of the session will be available on Figma's.

Posted by Defense World Staff on Apr 14th, 2026

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

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

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

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

View Our Latest Stock Analysis on Onespan

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

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

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

Onespan Company Profile (Free Report)

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

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

Further Reading Five stocks we like better than Onespan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

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

What's Next for OneSpan?While OneSpan has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for OneSpan was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.29 on $60.45 million in revenues for the coming quarter and $1.25 on $246.46 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, 8x8 (EGHT - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 19.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

12 Month EPS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Mitek Systems, Inc. (NASDAQ: MITK - Get Free Report)'s share price passed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $10.74 and traded as high as $13.52. Mitek Systems shares last traded at $13.10, with a volume of 830,650 shares trading hands. Analyst Upgrades and Downgrades

On April 16, 2026, Mitek Systems Inc MITK shares fell 6.8% to a current price of $14.04. This decline comes amid a volatile trading environment, with the stock showing a 52-week range of $7.54 to $15.61.

GF Value™ verdict: Current price of $14.04 is 27.8% above the GF Value™ estimate of $10.99, indicating the stock is overvalued.GF Score™ is 82/100, which suggests a strong overall performance compared to peers.Notable signal: Insiders have sold $1.1M in stock over the last three months, with no insider buying reported. Is MITK Overvalued or Undervalued? According to the current evaluation, Mitek Systems Inc MITK is considered overvalued, with a current trading price of $14.04 compared to the GF Value™ estimate of $10.99. This represents a margin of safety of approximately 27.8% for potential investors. The GF Valuation label indicates that the stock is moderately overvalued, suggesting that it may not provide the same level of return on investment as similarly priced stocks or those priced closer to their intrinsic value. Investors should be cautious, as buying shares at overvalued levels can lead to lower future returns.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. With the current price surpassing the estimated intrinsic value, there is a risk that the stock may be subject to price corrections, particularly in a market influenced by broader economic conditions.

How Does MITK's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 40.1x 71.8x Forward P/E 12.3x N/A The current P/E ratio of 40.1x is significantly below its 5-year median of 71.8x, indicating that the stock is trading at a lower valuation relative to its historical average. The forward P/E of 12.3x also suggests a potentially more favorable outlook compared to the trailing metric. However, this P/E analysis aligns with the GF Value™ verdict, reinforcing the notion that while the stock is trading below historical averages, it is still considered overvalued based on the GF Value™ estimate.

What Does MITK's GF Score™ Tell Us? Metric Rating GF Score™ 82 Financial Strength 6/10 Profitability 7/10 Growth 9/10 Valuation 5/10 Momentum 3/10 Mitek Systems Inc MITK has a GF Score™ of 82/100, indicating a strong overall performance. The strongest area is its growth rank, rated at 9/10, suggesting robust potential for future expansion. However, the momentum rank of 3/10 indicates that the stock may be experiencing some challenges in maintaining upward price movement. Additionally, the financial strength and valuation ranks of 6/10 and 5/10, respectively, highlight moderate stability but also suggest that the stock may not be as financially solid as desired.

What Are Insiders Doing with MITK Stock? Recent insider activity shows that insiders have sold a total of $1.1 million in Mitek Systems Inc MITK stock over the last three months, with no reported purchases. This selling trend may signal a lack of confidence from insiders regarding the stock's short-term performance potential or could reflect personal financial decisions unrelated to the company’s forecast.

Such activity can be interpreted as a cautionary sign for potential investors, as insider selling may indicate that those closest to the company do not foresee immediate gains in the stock price.

What This Means for Investors Based on the current valuation assessment, Mitek Systems Inc MITK is considered overvalued with a GF Value™ estimate of $10.99 compared to its current trading price of $14.04. This suggests that investors may want to proceed with caution if considering an investment in MITK at this time.

For the complete analysis, visit the Mitek Systems Inc MITK stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is MITK's GF Score™?

MITK's GF Score™ is 82/100, indicating a strong overall performance compared to peers, suggesting the company has good growth potential and financial stability.

Is MITK overvalued or undervalued?

MITK is currently overvalued, as its current price of $14.04 exceeds the GF Value™ estimate of $10.99 by 27.8%.

What is MITK's P/E ratio?

MITK's P/E (TTM) is 40.1x, which is significantly lower than its 5-year median P/E of 71.8x, indicating that the stock is trading at a lower valuation relative to its historical norm.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

SAN DIEGO--(BUSINESS WIRE)--Mitek Systems, Inc. (NASDAQ: MITK), a global leader in digital identity verification and fraud prevention, today announced that it will release its financial results for the second quarter of fiscal year 2026, which ended March 31, 2026, after the U.S. market closes on Thursday, May 7, 2026. Mitek will host a conference call and live webcast to discuss the results at 2 p.m. PT (5 p.m. ET). Mitek CEO Ed West and CFO Dave Lyle will lead the call, followed by a Q&A.

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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