MITK

Interested in Mitek Systems, Inc.? Here are five stocks we like better. Strong third-quarter performance: Revenue rose 18% year over year to $54 million, exceeding guidance, while adjusted EBITDA margin reached approximately 38% and non-GAAP EPS increased 58% to about $0.34. Mitek raised its full-year revenue, fraud and identity, and adjusted EBITDA margin outlook. Fraud and identity momentum continues: Fraud and identity revenue grew 14%, with SaaS revenue up 37%, supported by identity transaction growth, new Check Fraud Defender customers, and a regulatory-driven surge in European age-verification demand. Check Fraud Defender annual contract value increased 73% to more than $22 million, with Fiserv now live as a reseller. Cash generation and operating leverage improved: Free cash flow totaled $25.3 million in the quarter, while operating expenses declined despite higher revenue. Mitek ended the quarter with approximately $46 million in net cash and expects modest fourth-quarter SaaS softness after the temporary age-verification boost. Mitek Systems (NASDAQ:MITK) reported fiscal third-quarter 2026 revenue growth of 18% year over year, supported by record fraud and identity revenue, higher SaaS sales and continued expansion of its Check Fraud Defender consortium network. Total revenue reached $54 million, exceeding the high end of the company’s prior guidance range. Adjusted EBITDA margin was approximately 38%, while non-GAAP diluted earnings per share rose 58% year over year to about $0.34. The company raised its full-year revenue and profitability outlook. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Fraud and identity revenue was $29 million, an increase of 14% from the prior-year quarter. Fraud and identity SaaS revenue grew 37%, driven by underlying identity transaction growth, new Check Fraud Defender customers and an unexpected surge in age-verification demand in Europe, the Middle East and Africa. Chief Financial Officer Dave Lyle said the age-verification volume increase stemmed from new regulations requiring one-time upfront age verification. He characterized the event as a specific regulatory-driven surge and said normalized fraud and identity SaaS growth was in the high teens to low 20% range, consistent with recent quarters. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Chief Executive Officer Ed West said Mitek is seeing increasing demand for identity verification, authentication and fraud-detection tools as AI-assisted, digital and synthetic fraud become more prevalent. He said customers are increasingly adopting broader “multi-signal” know-your-customer workflows rather than using isolated verification checks. The company also cited customer expansion across onboarding, verification and authentication. West said financial institutions are broadening deployments beyond account opening into authentication use cases, including biometric authentication tied to a verified identity. → Ulta's Growth Is Real, But So Are the Risks Mitek said approximately 80% of its revenue remains connected to financial services, although it is also serving customers in other markets through partners. Recent examples included an enterprise software customer using verification for employee screening and a U.K. football club using Mitek tools to verify and authenticate season-ticket holders. Mitek highlighted continued growth in its Check Fraud Defender, or CFD, data consortium, which uses shared intelligence and cloud-based fraud software to identify check fraud. The company said a top-five U.S. bank completed a pilot and is moving into the CFD consortium after Mitek demonstrated stronger results than the bank’s existing solution. Fiserv is now live as a reseller of Check Fraud Defender, according to West. The relationship extends access to the network across thousands of institutions served by Fiserv. Mitek also added dozens of logos during the quarter through partners including Abrigo, CSI and DataVisor. The company estimates that contributing data sets now cover approximately 70% of U.S. checking accounts, with annualized transaction volumes measured in billions. Check Fraud Defender annual contract value grew 73% year over year and exceeded $22 million. West said Mitek’s direct sales efforts have historically focused on the top 100 financial institutions, while its partner relationships provide access to a broader base of banks. He said the partner channel had begun contributing over the last several quarters and is expected to become an accelerating part of growth. The company also continued to build out Positive Pay+, a product designed to help stop fraudulent payments at the point of check presentment. Mitek expanded the product with an existing bank and signed its first non-bank design partner, a business-payments company, extending the offering into business-to-business payments and accounts payable. Check verification revenue totaled $25 million, up 24% year over year. Lyle said the increase was driven by two large renewals that did not occur in the comparable prior-year quarter, rather than underlying growth. Mitek continues to expect check verification revenue of approximately $90 million on a trailing 12-month basis for the full year. West said paper-check use continues to decline over the long term, citing a Federal Reserve payment study showing about 9.2 billion checks were written in the United States in 2024. However, he said Mitek’s check-verification revenue has remained range-bound as mobile-deposit penetration and pricing have offset volume declines. Mitek expects check-verification revenue to soften gradually over time but views the business as a cash-generating foundation and a source of financial-institution and channel-partner relationships. The company noted that its check-verification software also supports the Check Fraud Defender network. Total SaaS revenue represented about 46% of revenue over the last 12 months, compared with 41% a year earlier. Non-GAAP gross margin rose about 40 basis points year over year to 85.5%, aided by improved SaaS maintenance and other gross margins, as well as a heavier license-revenue mix from check-verification renewals. Non-GAAP operating expense declined about 1% year over year to $25.9 million despite the revenue increase, producing approximately 950 basis points of operating leverage. Lyle said cash-based research and development spending increased 17% year over year as Mitek continued to invest in AI-based decisioning, fraud intelligence and biometrics. Free cash flow was $25.3 million in the quarter. Trailing-12-month free cash flow was $48.6 million, representing a 70% conversion rate that was within Mitek’s long-term target range of 70% to 80%. The company ended the quarter with $100 million in cash and investments and $54 million in total debt, for net cash of approximately $46 million. Mitek repurchased about $2 million of shares during the quarter and had $48 million remaining under its current repurchase authorization. Full-year revenue guidance was raised to $195 million to $200 million, representing about 10% growth at the midpoint. Full-year fraud and identity revenue guidance was raised to $105 million to $109 million, or about 19% growth at the midpoint. Adjusted EBITDA margin guidance was raised to 32% to 34%. Fourth-quarter revenue is expected to be between $42 million and $47 million. Mitek expects fraud and identity SaaS revenue to decline modestly sequentially in the fourth quarter following the age-verification surge. The company also expects seasonal softness in the first and fourth fiscal quarters due to check-verification renewal timing. Separately, Mitek said Aaron Saylor will join the company as chief revenue officer effective Aug. 17. The company is consolidating direct and channel sales, customer success, sales engineering and professional services under a unified CRO organization. Mitek Systems, Inc (NASDAQ: MITK) is a software company specializing in mobile capture and digital identity verification solutions. Headquartered in San Diego, California, Mitek develops and licenses patented technology that enables organizations to securely capture, authenticate and process identity documents, checks and other physical media using smartphones and other digital devices. Its platforms leverage advanced image processing, machine learning and biometrics to streamline customer onboarding and prevent fraud in real time. The company's core offerings include mobile check deposit and deposit automation tools for financial institutions, as well as identity verification and authentication services for banks, fintechs, insurers and government agencies. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Mitek Systems Q3 Earnings Call Highlights" was originally published by MarketBeat. 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This article first appeared on GuruFocus. Total Revenue: $54 million, up 18% year-over-year. Fraud and Identity Revenue: $29 million, up 14% year-over-year. Check Verification Revenue: $25 million, up 24% year-over-year. Total SaaS Revenue: Record, up 36% year-over-year. Fraud and Identity SaaS Growth: 37% year-over-year. Non-GAAP Gross Margin: 85.5%, up approximately 40 basis points year-over-year. Non-GAAP Operating Expense: $25.9 million, down about 1% year-over-year. Non-GAAP Net Income: $16.8 million. Adjusted Diluted EPS: Approximately $0.34, up 58% year-over-year. Free Cash Flow: $25.3 million in the quarter; $48.6 million on a trailing 12-month basis. Adjusted EBITDA Margin: Approximately 38%. Check Fraud Defender ACV: Grew 73% year-over-year, now exceeds $22 million. Cash and Investments: $100 million at quarter end. Total Debt: $54 million. Net Cash Position: Approximately $46 million. Share Repurchases: Approximately $2 million in the quarter; $21 million over trailing 12 months. Warning! GuruFocus has detected 5 Warning Signs with MITK. Is MITK fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total revenue grew 18% year-over-year, exceeding expectations, with record fraud and identity revenue and record total SaaS revenue up 36%. Check Fraud Defender ACV grew 73% year-over-year, with a top five US bank moving into the consortium and Fiserv now live as a reseller, expanding the network to thousands of institutions. The consortium data network now covers approximately 70% of US checking accounts, enhancing its value and opening adjacent opportunities like Positive Pay Plus, which added its first non-bank design partner. Adjusted EBITDA margin expanded to approximately 38%, with non-GAAP operating expenses down 1% year-over-year, demonstrating strong operating leverage and efficient cash conversion (70% free cash flow). The company raised its full-year fiscal 2026 revenue guidance to $195-$200 million and fraud and identity revenue to $105-$109 million, reflecting confidence in continued growth. Identity transaction volumes surged due to unexpected age verification demand in EMEA, driving volumes well above prior quarters and showcasing the platform's scalability. The revenue base is becoming more durable, with SaaS now approximately 46% of trailing 12-month revenue, up from 41% a year ago, and a growing share from multi-year committed contracts. Fraud and identity revenue growth of 14% was near the low end of the targeted mid-to-high teens range, partly due to a one-quarter impact from converting a large on-premise license customer to a SaaS agreement. The unexpected age verification surge in Q3 is not expected to repeat, with fraud and identity SaaS expected to ease modestly sequentially in Q4, indicating potential volatility. Check verification revenue growth of 24% was driven by renewal timing rather than underlying growth, and the company expects this revenue to soften gradually over time due to secular decline in check usage. Free cash flow conversion declined to 70% from 99% a year ago, driven by working capital timing, higher cash taxes, lower net interest income, and increased capitalized development costs. The company faces potential pressure in 2027 from renewal timing and the continued secular decline in checks, which could impact check verification revenue. R&D expense reported a 3% decline year-over-year, but this is largely due to software capitalization; on a cash basis, R&D rose 17%, indicating higher investment that may pressure near-term profitability. Q: Could you talk a little bit more about the expanded partner and reseller channel and what's driving that growth?A: Ed West (CEO): The growth is driven by our Check Fraud Defender (CFD) data network. We are honored to announce that Fiserv is now live as a reseller, extending the network's availability to the thousands of institutions they serve. We added dozens of new logos this quarter through partners like Abrigo, CSI, and Data Advisor. As more institutions participate, the shared pool of data grows, making the network more valuable. We estimate we now have contributing data sets covering approximately 70% of US checking accounts, with annualized volumes in the billions. CFD ACV grew 73% year-over-year, with growth accelerating over recent quarters. Q: On an impressive quarter here, so first one for me on MiVIP when we think about some of the solutions there like biometrics, document verification, liveness detection. Where do you think general adoption of those solutions sits in the industry? I mean, you talked about kind of customers taking more and more of the portfolio from you. When you're winning business, curious how much of that is maybe a customer adopting that solution for the first time as compared to you dismissing somebody.A: Ed West (CEO): We believe we are in the early stages of continuing adoption of the breadth, need, and use of identity verification, authentication, and overall interaction. With the advent of AI and the acceleration of digital and synthetic fraud, use cases are continuing to grow. Our platform approach, layered with fraud detection and the data network, is seeing real acceleration. Dave Lyle (CFO) added that growth comes from both new logos, especially on the Check Fraud Defender side, and from expansion opportunities. The "land and expand" approach is key, where customers start with one part of the financial institution and expand over time. We are also seeing customers broaden from new account openings into new markets, products, and deeper into authentication with MiPass, as the market moves beyond passwords to biometric authentication. Q: I was hoping you could talk about Positive Pay Plus a little bit, I mean, is that something you're trying to attach to Check Fraud Defender deals or what does the sales effort look like, and maybe just anything you can give us in terms of how big you're thinking that opportunity is, or just even how pricing works there.A: Ed West (CEO): Positive Pay Plus is a great example of leveraging our assets and capabilities. As we built out the Check Fraud Defender network, we are broadening the use case to stop fraud at the point of presentment, before a fraudulent payment item enters the banking system. It's early on, as we just brought the product out last quarter. We expanded with an existing bank and added our first non-bank design partner, a leading business payments company, extending these capabilities into the B2B payments and accounts payable market for the first time. Q: I wanted to just follow-up from the last question and see if you could talk about, maybe how to expect how much growth is driven through the reseller and channel partnerships vers like internal sales team.A: Ed West (CEO): Growth through channel partners is picking up as we started with them in the last several quarters. On a direct basis, we typically focus on the top 100 financial institutions. The value of our four partners is their access to thousands of FIs. There is a clear value proposition for them as they are already integrated, so they can turn it on and join the network to fight fraud. We expect this to continue to be an accelerating part of growth. Separately, we closed a top five US bank this quarter, and there are other financial institutions we continue to talk to about joining. Q: I was wondering if you could also just -- maybe expand upon, I know earlier on the call you had mentioned, expanding with like an enterprise sales customer as well as like one of the top football clubs in the UK. I was wondering how you see the opportunity outside of your traditional bagging and FI customers, maybe like what that could represented the percent of identity revenue as you continue to scale.A: Ed West (CEO): Our core focus is in financial services, which is our heritage and expertise. We also focus on other markets through channel partners and technology platforms, such as healthcare, government, and insurance. That will grow over time, but today roughly 80% of our revenues are tied back into financial services. All customers want the same thing: bank-grade quality, high assurance, and a secure, reliable, scalable transaction. The surge in age verification demand this quarter, driven by a regulatory change, also came through our partner channel. Q: Could you provide some insight on the transition from fiscal '26 to '27?A: Dave Lyle (CFO): While we typically don't guide until our next earnings call, I can give a little color. Our growth engine is fraud and identity, which has been growing in the mid-to-high teens over the past couple of quarters. The SaaS line within fraud and identity has been growing in the high 10s to low 20s, which is a good starting point for 2027. On the other side, check verification revenue has been holding in the $90 million range for two years. There are two variables that could change that: potential pressure from renewal timing and the continued secular decline in checks. All in all, we're feeling really good about the business and the trajectory we're on. Q: Could you talk about the age verification surge and its impact on identity transaction volumes?A: Ed West (CEO): We saw a striking example this quarter in the use of age verification. Demand ran many millions of transactions beyond our expectations and drove identity transaction volumes well above any prior quarter. This unexpected surge was tied to a specific regulatory driver involving age assurance in our EMEA region, where new regulations required a one-time upfront age verification. Our expertise, reliability, and ability to scale served the situation well. Q: Can you elaborate on the financial results for the quarter and the updated guidance?A: Dave Lyle (CFO): Total revenue was $54 million, up 18% year-over-year, above the high end of our guidance. Fraud and identity revenue was $29 million, up 14%, with SaaS growth of 37%. Check verification revenue was $25 million, up 24%, driven by two large renewals. Non-GAAP gross margin was 85.5%, and adjusted EBITDA margin was approximately 38%. We are raising full-year revenue guidance to $195 million to $200 million, raising fraud and identity revenue to $105 million to $109 million, and raising adjusted EBITDA margin guidance to 32% to 34%. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Mitek Systems (MITK) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +30.77%. A quarter ago, it was expected that this mobile imaging software company would post earnings of $0.32 per share when it actually produced earnings of $0.38, delivering a surprise of +18.75%. 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 $54.04 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.44%. This compares to year-ago revenues of $45.73 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 62.4% since the beginning of the year versus the S&P 500's gain of 12.8%. 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 $0.18 on $43.79 million in revenues for the coming quarter and $1.08 on $193.65 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 44% 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, zSpace, Inc (ZSPC), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.13 per share in its upcoming report, which represents a year-over-year change of +98.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. zSpace, Inc's revenues are expected to be $7.9 million, up 5.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mitek Systems, Inc. (MITK) : Free Stock Analysis Report zSpace, Inc (ZSPC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Record Fraud & Identity SaaS revenue of $24.8 million, up 37% year-over-year Raised full-year fiscal 2026 revenue and adjusted EBITDA margin outlook SAN DIEGO, August 06, 2026--(BUSINESS WIRE)--Mitek Systems, Inc. (NASDAQ: MITK, www.miteksystems.com, "Mitek" or the "Company"), a global leader in digital identity verification and fraud prevention, today reported financial results for its third quarter ended June 30, 2026 and raised its revenue and adjusted EBITDA margin guidance range for the fiscal year ending September 30, 2026 ("fiscal 2026"). "The team delivered a strong fiscal third quarter driven by Fraud and Identity SaaS revenue growth, as more of the world's highest-assurance institutions rely on Mitek to counter AI-driven fraud across the digital life cycle," said Ed West, Chief Executive Officer of Mitek. "Our consortium data network reached an important milestone this quarter, as a top five US bank completed pilot testing and joined the full consortium network on Check Fraud Defender. We also materially expanded our partner and reseller channel, which puts the consortium within reach of thousands of additional financial institutions. As each one joins, it both draws on and strengthens the network's shared intelligence, so every member benefits as the network grows. Both our consortium data network and our identity platform are driving growth, and executing across both is our Unify and Grow ethos showing up in the results." Fiscal 2026 Third Quarter Financial Highlights GAAP Total revenue of $54.0 million was an 18% increase year-over-year, compared to $45.7 million a year ago. SaaS revenue of $26.2 million was a 36% increase year-over-year, compared to $19.3 million a year ago. Gross profit of $42.7 million, compared to $35.5 million a year ago. GAAP gross profit margin was 79.1%, compared to 77.7% a year ago. GAAP net income was $8.4 million, compared to $2.4 million a year ago. GAAP net income per diluted share was $0.17, compared to $0.05 a year ago. Total cash and investments of $100.2 million at June 30, 2026, was a decrease of $96.3 million from $196.5 million at September 30, 2025; the retirement of the $155 million Convertible Senior Notes was the primary contributor to the decrease. This cash and investments balance was an increase of $22.6 million from $77.6 million at March 31, 2026. LTM net cash provided by operating activities was $53.7 million, compared to $57.0 million for the corresponding period a year ago. Non-GAAP Non-GAAP gross profit of $46.2 million, compared to $38.9 million a year ago. Non-GAAP gross profit margin was 85.5%, compared to 85.0% a year ago. Adjusted EBITDA was $20.8 million, compared to $13.1 million a year ago, an increase of 59%. Adjusted EBITDA margin was 38.5%, compared to 28.6% a year ago. Non-GAAP net income was $16.8 million, compared to $10.2 million a year ago, an increase of 65%. Non-GAAP net income per diluted share was $0.34, compared to $0.22 a year ago, an increase of 58%. LTM free cash flow was $48.6 million, compared to $55.8 million for the corresponding period a year ago. Guidance Guidance includes non-GAAP financial measures. Mitek is raising its revenue and adjusted EBITDA margin guidance for the fiscal year, and providing guidance for its fiscal fourth quarter, ending September 30, 2026, as follows: Leadership Appointment: Chief Revenue Officer Mitek also announced the appointment of Aaron Seyler as Chief Revenue Officer, effective August 17, 2026. Seyler will lead Mitek's go-to-market organization bringing the Company's sales, channel partnerships, customer success and support, and sales engineering and professional services teams under a single leader signaling a natural next step in Mitek's Unify and Grow ethos and next phase of growth. Seyler joins Mitek from Vonage, an Ericsson company, where he led a global go-to-market organization across 17 countries. In his role as Chief Revenue Officer, he scaled an API-based enterprise software business through a global partner and channel ecosystem, a motion similar to Mitek’s delivery of its identity and fraud capabilities into customer onboarding, authentication, and transaction workflows. Prior to Vonage, he led the go-to-market function at Telesign, a digital fraud and identity protection company, where he helped scale revenue from approximately $200 million to more than $600 million and led its expansion into the international markets. "I have spent my career scaling enterprise revenue for software platform businesses, including in digital fraud and identity, and what stands out about Mitek is the trust it has earned with many of the world's largest institutions, the banks and enterprises where protecting identity and assets is mission critical. That trust and the technology, data, and services ecosystem beneath it, is difficult to build and difficult to replicate. I am excited to bring our go-to-market teams together and, alongside our partners, help more of these institutions put Mitek's capabilities to work against the growing threat of digital and AI-driven fraud," said Aaron Seyler, incoming Chief Revenue Officer of Mitek. Board Leadership Transition On August 5, 2026, Mark Rossi was elected to serve as non-executive Chairman of the Board, effective October 1, 2026. Mr. Rossi will succeed Scott Carter, who is stepping down as Chairman at the end of the current fiscal year, due to personal time constraints and will continue to serve as a director. "On behalf of the Board and the entire company, I would like to thank Scott for his commitment and steady leadership as Chairman through a period of significant change in Mitek's history," said Ed West, Chief Executive Officer of Mitek. "Mark brings a strong track record as an investor and decades of governance experience. Since joining our Board in March 2025, he has served on the Audit Committee and developed a deep understanding of our business, strategy, and financial profile, positioning him to lead with continuity as we look ahead into fiscal 2027 and beyond." Conference Call Information Mitek management will host a conference call and live webcast for analysts and investors today at 2 p.m. PT (5 p.m. ET) to discuss the Company’s financial results for the third quarter of fiscal 2026. To join the webcast, visit our Investor Relations website at https://investors.miteksystems.com. Participants may also dial +1 800-717-1738 (US and Canada) or +1 646-307-1865 (International) to access the call. A dial-in replay will be available for one week by dialing +1 844-512-2921 (U.S. and Canada) or +1 412-317-6671 (International) and entering the passcode 1141184. An archived webcast replay will remain accessible for one year on Mitek’s Investor Relations website. About Mitek Systems, Inc. Mitek Systems protects what’s real across digital interactions in a world of evolving threats. Mitek helps businesses verify identities, prevent fraud before it happens, and deliver secure, seamless digital experiences in the face of rapidly advancing AI-generated threats. From account opening to authentication and deposit, Mitek’s technology safeguards critical digital interactions. More than 7,000 organizations rely on Mitek to protect their most important customer connections and stay ahead of emerging risks. Learn more at www.miteksystems.com. [(MITK-F)] Follow Mitek on LinkedIn and YouTube, and read Mitek’s latest blog posts here. Notice Regarding Forward-Looking Statements Statements contained in this news release relating to the Company or its management’s intentions, hopes, beliefs, expectations or predictions of the future, including, but not limited to, statements relating to the Company’s fiscal 2026 guidance, are forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks related to the Company’s ability to withstand negative conditions in the global economy, a lack of demand for or market acceptance of the Company’s products, the Company’s ability to continue to develop, produce and introduce innovative new products in a timely manner, the Company’s ability to capitalize on a growing market, quarterly variations in revenue, the profitability of certain sectors of the Company, the performance of the Company’s growth initiatives, the outcome of any pending or threatened litigation or investigation, and the timing of the implementation and launch of the Company’s products by the Company’s signed customers. Additional risks and uncertainties faced by the Company are contained from time to time in the Company’s filings with the U.S. Securities and Exchange Commission (SEC), including, but not limited to, the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025, as filed with the SEC on December 11, 2025 and its quarterly reports on Form 10-Q and current reports on Form 8-K, which you may obtain for free on the SEC’s website at www.sec.gov. Collectively, these risks and uncertainties could cause the Company’s actual results to differ materially from those projected in its forward-looking statements and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company disclaims any intention or obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Note Regarding Use of Non-GAAP Financial Measures This news release contains non-U.S. generally accepted accounting principles ("GAAP") financial measures for adjusted EBITDA, adjusted EBITDA margin, non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP net income per basic share, non-GAAP net income per diluted share, non-GAAP free cash flow, and non-GAAP operating expense that excludes stock-based compensation expense, litigation and other legal costs, executive and other transition costs, non-recurring audit fees, enterprise risk, portfolio positioning and other related costs, and non-GAAP net income which additionally excludes amortization of acquisition-related intangibles, net changes in estimated fair value of acquisition-related contingent consideration, restructuring costs, amortization of debt discount and issuance costs, income tax effect of pre-tax adjustments, and cash tax difference. These financial measures are not calculated in accordance with GAAP and are not based on any comprehensive set of accounting rules or principles. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement financial statements prepared under GAAP. Management believes these non-GAAP financial measures provide a useful measure of the Company’s operating results, a meaningful comparison with historical results and with the results of other companies, and insight into the Company’s ongoing operating performance. Further, management and the Board of Directors of the Company utilize these non-GAAP financial measures to gain a better understanding of the Company’s comparative operating performance from period-to-period and as a basis for planning and forecasting future periods. Management believes these non-GAAP financial measures, when read in conjunction with the Company’s GAAP financial statements, are useful to investors because they provide a basis for meaningful period-to-period comparisons of the Company’s ongoing operating results, including results of operations against investor and analyst financial models, which helps identify trends in the Company’s underlying business and provides a better understanding of how management plans and measures the Company’s underlying business. The Company has not provided a reconciliation of its forward outlook for non-GAAP adjusted EBITDA margin or total non-GAAP operating expense with their most directly comparable forward-looking GAAP measures, GAAP net income margin and GAAP operating expense, respectively, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to quantify share-based compensation expense, which is excluded from these non-GAAP measures, as it requires additional inputs such as the number of shares granted and market prices that are not ascertainable due to the volatility of the Company’s share price. Additionally, a significant portion of the Company’s operations are in foreign countries and the transactional currencies are primarily Euros and British pound sterling and the Company is not able to predict fluctuations in those currencies without unreasonable efforts. These non-GAAP measures also exclude litigation and other legal costs, executive and other transition costs, non-recurring audit fees, restructuring costs, and acquisition and integration expenses. While certain of these additional items may be estimable for future periods, the Company is unable to provide a complete quantitative reconciliation of the forward-looking measures without unreasonable efforts, and expects the foregoing excluded items may have a potentially significant impact on future GAAP financial results. We define free cash flow as net cash provided by operating activities, less cash used for purchases of property and equipment. We define free cash flow margin as free cash flow as a percentage of revenue. In addition to the reasons stated above, we believe that free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment in order to enhance the strength of our balance sheet and further invest in our business and potential strategic initiatives. A limitation of the utility of free cash flow as a measure of our liquidity is that it does not represent the total increase or decrease in our cash balance for the period. We use free cash flow in conjunction with traditional U.S. GAAP measures as part of our overall assessment of our liquidity, including the preparation of our annual operating budget and quarterly forecasts and to evaluate the effectiveness of our business strategies. There are a number of limitations related to the use of free cash flow as compared to net cash provided by operating activities, including that free cash flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made. We may refer to certain financial metrics on a Last Twelve Months ("LTM") basis. LTM figures represent the sum of the most recently reported four fiscal quarters and are used to provide a view of the company's financial performance over the past year. Mitek encourages investors to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate Mitek’s business. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806087744/en/ Contacts Investor Contacts: Ryan FlanaganICR for Mitek [email protected] Michael HolderSVP, Finance and Investor [email protected]

SAN DIEGO, July 23, 2026--(BUSINESS WIRE)--Mitek Systems, Inc. (NASDAQ: MITK), a global leader in digital identity verification and fraud prevention, today announced that it will release its financial results for the third quarter of fiscal year 2026, which ended June 30, 2026, after the U.S. market closes on Thursday, August 6, 2026. Mitek will host a conference call and live webcast to discuss the results at 2 p.m. PT (5 p.m. ET). Mitek CEO Ed West and CFO Dave Lyle will lead the call, followed by a Q&A session. Conference Call and Webcast DetailsEvent: Mitek Fiscal 2026 Third Quarter Financial ResultsDate: Thursday, August 6, 2026Time: 2 p.m. PT (5 p.m. ET) Participants are encouraged to pre-register for the webcast by clicking here. Pre-registration is available before, during, and after the start time. Registered attendees will receive an online confirmation and a calendar invitation for the event. Those who are unable to pre-register can join the conference call/webcast by clicking the webcast link or using one of the dial-in numbers below: Webcast: Click Here U.S. Toll-Free: +1 800 717 1738International: +1 646 307 1865Participants can use the guest dial-in numbers above to speak with an operator or click here for instant telephone access to the event 15 minutes prior to the event start time. Following the call, a dial-in replay will be available for one week. A webcast replay will remain accessible for one year at the link below or by using the dial-in numbers provided. Archived Webcast: investors.miteksystems.com U.S. Toll-Free Replay: +1 844 512 2921International Replay: +1 412 317 6671Replay Passcode: [1107355] The press release will be available on the Mitek investor relations website before the event begins. About MitekMitek 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260723873238/en/ Contacts Investor Contacts Ryan FlanaganICR for Mitek [email protected] Michael HolderSVP, Finance and Investor [email protected]

The subdued stock price reaction suggests that Mitek Systems, Inc.'s (NASDAQ:MITK) strong earnings didn't offer any surprises. Investors are probably missing some underlying factors which are encouraging for the future of the company. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. This ratio tells us how much of a company's profit is not backed by free cashflow. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". For the year to March 2026, Mitek Systems had an accrual ratio of -0.12. That indicates that its free cash flow was a fair bit more than its statutory profit. In fact, it had free cash flow of US$45m in the last year, which was a lot more than its statutory profit of US$16.6m. Mitek Systems' free cash flow actually declined over the last year, which is disappointing, like non-biodegradable balloons. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. As we discussed above, Mitek Systems has perfectly satisfactory free cash flow relative to profit. Because of this, we think Mitek Systems' earnings potential is at least as good as it seems, and maybe even better! And the EPS is up 25% over the last twelve months. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. Ultimately, this article has formed an opinion based on historical data. However, it can also be great to think about what analysts are forecasting for the future. At Simply Wall St, we have analyst estimates which you can view by clicking here. Today we've zoomed in on a single data point to better understand the nature of Mitek Systems' profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Image source: The Motley Fool. Thursday, May 7, 2026, at 5 p.m. ET Chief Executive Officer — Edward H. West Chief Financial Officer — David Lyle Need a quote from a Motley Fool analyst? Email [email protected] Edward H. West and chief financial officer, David Lyle. Please note that today's call will include forward-looking statements. And because these statements are based on the company's current intent, expectations, and projections, they are not guarantees of future performance. And a variety of factors could cause actual results to differ materially. A description of these risks and uncertainties can be found in our 10-Q filing dated May 7, 2026, and our other SEC filings. These forward looking statements include but are not limited to, our expectations around customer demand for our products and services, expansion of our check fraud defender or CFD, data consortium, the ongoing stability of our check verification business, our growth and investment plans, expected improvements in gross profits, and unit economics, improvement to operating leverage and scale, expected free cash flow conversion rates, and our FY 2026 financial outlook and guidance. Except as required by law, we do not undertake any obligation to update these forward-looking statements. This call will also include references to non-GAAP adjusted results. Please reference this afternoon’s press release and our Investor Relations website for further information regarding forward-looking statements and reconciliations of GAAP to non-GAAP financial measures. And with that, I would like to turn the call over to Edward. Edward H. West: Thanks, Ryan. Good afternoon, everyone, and thank you for joining us today. Those less familiar with Mitek, we provide the verification, authentication, and fraud decisioning infrastructure that high assurance institutions rely on to protect customers and stop fraud across a broad digital life cycle. Whether someone is opening an account, logging in, depositing a check, approving a high risk payment, our role is to help determine whether that person, session, document, check, or transaction can be trusted. By leveraging our data network, leading digital fraud detection solutions, expertise, and history and financial services we believe that we are well aligned to how the market is evolving to fight increasingly sophisticated synthetic AI assisted fraud. This quarter's progress is a good indicator of that alignment. The team delivered a strong fiscal second quarter, including record revenue and record adjusted EBITDA. With that as context, I would like to walk through 4 key takeaways from this past quarter. First, fraud and identity remains our growth engine with revenue up 28% year over year. Due to our data network, platform, and expertise, our customers are becoming more engaged with Mitek, both contractually and technologically. Second, our check verification solutions remain a durable, cash generative foundation for the business. With long standing relationships that support broader fraud and identity growth. Third, the quality of our revenue base continues to improve. Total SaaS revenue grew 18% year over year and now represents approximately 44% of total last 12 months revenue. And fourth, execution is showing up in the numbers. Record revenue and profitability, healthy cash flow, and a significantly stronger balance sheet. The consistent theme across all of this is that our unify and grow ethos is working. Fraud demand is increasing. Customers are expanding with us. Our platform is becoming more valuable as data and participation scale. And we are translating that progress into stronger financial performance. Underpinning that progress is a demand environment that continues to strengthen and AI is exacerbating it. Increasing the scale, speed, and unpredictability of attacks. AI is lowering the cost of and making it easier to create fake identities, manipulated documents, deep fake images, cloned voices, and coordinated attacks at high velocity and scale. That is making legacy tools less effective. Particularly during periods of changing attack volume. This environment plays directly to Mike's strengths. Customers increasingly need a trusted partner with flexible infrastructure that scales. Combined with multiple fraud detection signals and proprietary network based data to drive better trust decisions. Without adding unnecessary friction or cost. Just as importantly, fraud rarely stays isolated to 1 institution. Once vulnerabilities are identified, attacks often spread across multiple organizations. Increasing the value of a broader network that can recognize patterns early and help customers benefit from shared intelligence that no single instance institution can generate alone. As fraud becomes more complex, more coordinated, and more expensive to manage, we believe the need for modern identity verification, authentication, fraud decisioning solutions will continue to grow. Now back to our first key takeaway. As institutions confront this environment, they are gravitating toward a multilayered approach. That is showing up in our results with fraud and identity revenue up 28% year over year. High quality institutions are engaging more deeply with Mike through stronger contractual commitments, broader platform adoption, and growing participation in our data network. Reflecting this, several relationships deepened during the quarter. A flagship customer, 1 of the largest banks in The United Kingdom, evolved from a predominantly variable pay as you go model to a new multiyear, multimillion dollar committed structure, increasing annual spend. We saw a similar pattern with a leading European information services customer, which renewed into a larger committed relationship that included expansion. These examples reflect a broader trend. As customers scale with Mitek, they increasingly choose larger multiyear contractual commitments. A positive indicator of customer confidence that improves visibility strengthens revenue quality, and supports long term value creation. Customers are also expanding their use of Mitek beyond a single onboarding workflow to address the broader customer life cycle. Including account login. Profile changes, account recovery, step up authentication, and higher risk transactions. We saw clear examples of this during the quarter. A major UK bank expanded fraud decisioning across customer journeys. A leading UK digital bank broadens relationship into Germany while adding fraud capabilities in a major European customer adopted myPass as a part of a broader authentication strategy. Finally, participation in our data network continues to grow. Check Fraud Defender ACV now exceeds $19 million up more than 50% year over year, with contributing data sets covering over 60% of US checking accounts, and annualized volumes now measured in the billions. Checks remain a meaningful part of the US financial system, and those workflows produce rich image and behavioral data that is highly valuable for fraud detection. As participation grows, the network strengthens through greater volumes. More institutions contributing means a richer view of cross institutional fraud patterns. Better outcomes, and stronger customer ROI. During the quarter, we added another top 10 financial institution with another top-10 FI is currently in pilot. This proprietary visibility is also where our broader fraud and identity strategy gains its edge. Few participants see US check activity at this scale. And those signals translate into stronger decisioning across adjacent workflows. We saw that play out this quarter with the launch of the first phase of Positive Pay Plus, which strengthens controls at the point of presentment by comparing issued checks against presented items in real time and automating historically manual decisions. Because it leverages existing infrastructure with no new integration required for many customers adoption friction is low and time to value is fast. We added a new top US regional bank for these capabilities and expanded within a large existing customer. it is a clear example of how our check verification footprint creates an expansion opportunity, 1 that drives broader F and I platform adoption and gives customers a stronger fraud detection signal than they could have built on their own. Importantly, this value is resonating beyond the largest institutions. Through partners such as Abrigo and our recently announced Tiphone integration, we are broadening access to consortium powered fraud intelligence for community and regional banks. Who face meaningful fraud losses and operational strain of their own. We also continue to extend the platform through ecosystem partnerships that broaden reach and simplify deployment for customers. Including our recently announced integration with Ping Identity to help customers embed identity verification more seamlessly across the customer journey and our partnership with Synectics Solutions which brings Mike's identity capabilities into the insurance market through its fraud orchestration platform. On to our second key takeaway. Check verification continues to operate as a durable and highly cash generative part of Mitek. And represents trusted positions with many of the largest financial institutions in North America. During the quarter, we saw multiple meaningful renewals extensions, and license wins across leading processors and financial institutions. Including activity tied to key partners such as FIS, Jack Henry, and CSI, as well as additional international wins. These relationships provide deep connectivity into the FI ecosystem and reinforce the critical role our solutions play in supporting high volume, mission critical workloads. Importantly, we are seeing these relationships evolve as customers look to address rising check fraud. Exception handling, and workflow complexity. Many institutions that have historically relied on Mike for mobile deposit are now expanding into adjacent fraud use cases. Now to our third key takeaway, we continue to improve the quality and durability of our revenue base. This quarter, SaaS revenue grew 18% year-over-year and represented approximately 44% of the total last 12 month revenue. up 40% from a year ago. We view this as a meaningful indicator of the continued evolution of our business model towards a larger, higher quality recurring revenue base and this mix improvement is being driven by SaaS growth. We now estimate that a substantial and growing portion of our SaaS revenue is generated from committed contractual arrangements rather than variable pay-as-you-go or overage structures. This enhances visibility, improves durability, and reduces reliance on more volatile consumption patterns over time. Given our revenue is increasingly tied to transaction activity, usage volumes and customer workflows, rather than seat based pricing our model is well aligned with where the market is going. As digital interactions grow and more decisions move into automated or machine to machine environments, we believe our model is well positioned to scale alongside that activity. Taken together, these shifts are helping create a business that is increasingly recurring, visible, scalable, and resilient. And on to our fourth and final takeaway. Consistent execution is translating into stronger profitability healthy cash generation, and a significantly improved balance sheet. Delivered record revenue and record adjusted EBITDA quarter, reflecting the benefits of growth, improving mix continued operating discipline across the business. We are also seeing leverage in the model as we scale. Supported by automation, tooling efficiencies, focused investment, and a disciplined cost structure. At the same time, we have taken meaningful steps to strengthen the balance sheet. Following the retirement of our convertible notes, we remain in a healthy net cash position with added flexibility, resilience, and a simplified capital structure. On capital allocation, we continue to take a balanced and disciplined approach returning capital to shareholders through share repurchases while preserving strategic flexibility. While Dave will cover the financial details shortly, the takeaway is straightforward. Our unify and grow ethos is creating more profitable and more resilient Mitek, better positioned to generate and allocate capital from a position of strength. In closing, we remain confident in the direction of the business. The market continues to reinforce a simple reality. As AI makes fraud cheaper, faster, and more scalable, trust becomes more valuable. In an AI driven fraud environment, we believe Mitek's relevance increases. We sit at the center of that shift by building a network driven business that is designed to secure our customers' digital interactions. Supported by deep integrations, proprietary data, and long standing customer relationships. With that, I would now like to turn the call over to David to walk through the financial results and our raised outlook in more detail. David Lyle: Thanks, Edward. I will review our second quarter results and then walk through our updated outlook for the rest of the year. Second quarter fiscal 26 was a record revenue quarter for Mitek, with total revenue of $54.8 million, up 6% year-over-year. Fraud and Identity grew 28%, and check verification declined 8% on renewal timing against a strong prior year comparison. Total SaaS revenue grew 18%, bringing SaaS to approximately 44% of last 12 months revenue. Up from 40% a year ago and improving the overall mix. Adjusted EBITDA set a Mitek record at $22.3 million, a margin of approximately 41%. Revenue scale, favorable mix, higher capitalized costs and strong drop through from check verification and our seasonally strongest renewal quarter. All contributed. Looking at revenue by portfolio, fraud and identity revenue grew 28% year-over-year, reflecting continued demand for identity verification, authentication, and fraud prevention across the customer life cycle. Fraud and identity SaaS revenue again led the way at 19% growth. Driven by healthy transaction volumes, adoption of higher value workflows, and momentum in Check Fraud Defender. The bridge between 19% fraud and identity SaaS growth and 28% total fraud and identity growth reflects another strong quarter of biometric software licensing, making a second consecutive quarter where license activity contributed meaningfully. Customers are deepening relationships through multiyear commitments, and expanded deployments, which can drive higher up front license revenue recognition. Biometrics license activity is lumpy by nature, and we expect it to step down sequentially from these first half highs as we move through the back half of the year. With SaaS being the substantial majority of fraud and identity revenue, we expect portfolio growth to track SaaS growth more closely over time. Turning to check verification, revenue for the quarter was $29.1 million, driven by seasonally strong renewals and customer upgrades from legacy check reader to our modernized check intelligence solutions. On a trailing 12 month basis, check verification revenue was $88.2 million, consistent with the range we have seen previously. Overall, check verification remains a durable, highly profitable, and cash generative portfolio. The trusted relationships it anchors also create a strategic foundation for broader growth in fraud and identity. Non GAAP gross profit for the quarter was $46.6 million, and non-GAAP gross margin was 85%, a decline of approximately 270 basis points year over year. Roughly half of the change was mix shift towards faster growing SaaS and services which carry lower gross margins and software license revenue at close to 100%. The remainder was implementation activity in early stage pilots where costs are incurred ahead of revenue. We expect this to moderate over the next few quarters as those customers move into production and we have already factored that trajectory into our gross margin outlook for the balance of the year. Beneath the headline, CFD SaaS margins actually expanded this quarter, as a re architecture of how CFD transactional data is stored materially reduced the compute cost of moving it through our analytics pipeline. We expect these efficiencies to compound as transaction volumes scale. Taken together, the underlying margin profile remains strong with attractive unit economics across the platform, with gross profit dollars per customer journey expanding as adoption deepens. Total non GAAP operating expense was $24.8 million, improving 4% year-over-year. As a percentage of revenue, operating expense improved approximately 440 basis points to 45% driven by revenue growth, cost discipline, and prioritized investment in our highest return growth opportunities. Non GAAP sales and marketing expense was $8.5 million, down from $9.5 million last year, As a percentage of revenue, sales and marketing improved by approximately 290 basis points to 15%. This reflects a more focused go to market model tighter marketing spending, and growing ability to sell the broader portfolio through a unified commercial approach. Non GAAP R and D expense was $7.1 million, down from $8.4 million last year. As a percentage of revenue, R&D declined by approximately 330 basis points to 13%. The reported reduction reflects capitalized development activity and higher revenue. On a cash basis, R and D investment is actually up approximately 8.5% year to date. in AI-based decisioning, fraud intelligence, and biometrics innovation. And finally, non GAAP G and A expense was $9.2 million, up from $7.8 million last year, As a percentage of revenue, G&A increased by approximately 170 basis points to 17%. This year over year increase is amplified by an unusually low prior year comparison, which benefited from a bad debt expense reversal. This quarter's G&A reflects a more normalized base going forward. We continue to drive discipline, automation, and efficiency across our corporate functions, and we expect to see those actions deliver leverage over the coming years. As I mentioned, adjusted EBITDA was a record $22.3 million, up 10% year-over-year, at a margin of approximately 41%. Non GAAP income tax expense was approximately 15% of pretax income, resulting in non GAAP net income of $18.5 million and adjusted diluted earnings per share of $0.38. Free cash flow for the quarter was negative $2.5 million, while trailing 12 month free cash flow was approximately $45 million, representing approximately 72% conversion of adjusted EBITDA. Quarterly free cash flow was driven by timing related working capital most notably higher accounts receivable from late quarter billings which we substantially collected in April. This is typical of our fiscal second quarter when a concentration of verification annual renewals closes late in the quarter temporarily increasing receivables and reducing cash conversion. On a trailing 12 months basis, free cash flow remains healthy and within our 70% to 80% long-term conversion range. Our capital allocation priorities are unchanged, investing in high return growth, maintaining balance sheet strength and returning excess capital to shareholders. We ended the quarter with $78 million of cash and investments, and $54.5 million of total debt, resulting in a net cash position of $23.1 million. As we discussed in our last call, during the quarter, we fully retired our $155 million convertible notes and drew $50 million on our term loan facility reducing total debt by approximately $105 million versus the prior quarter and extending our nearest debt maturity to 2030, simplifying the capital structure, and adding flexibility and resilience. We also returned $8 million to shareholders through share repurchases, As a reminder, we previously announced a new $50 million share repurchase program which provides ongoing flexibility to return capital opportunistically. Turning to our updated fiscal 26 outlook. We are raising full year revenue guidance to $189 million to $198 million, which now represents 8% year-over-year growth at the midpoint. The raise reflects stronger first half execution and improved visibility, particularly within fraud and identity where SaaS continues to lead growth. We are also raising our full year fraud and identity revenue outlook to $103 million to $108 million, representing approximately 17% growth at the midpoint. For the fiscal third quarter, we expect revenue in the range of $49 million to $53 million. This implies fiscal fourth quarter revenue in the range of $41 million to $46 million, broadly in line with last year's fiscal fourth quarter. Reflecting check verification, renewal timing, and the step down in biometrics license from a strong first half. Importantly, we anticipate fraud and identity SaaS will continue to step up sequentially through the balance of the year, which is a better proxy for the underlying growth trajectory of the business. We expect non GAAP operating expense in fiscal Q3 to be in the range of $25 million to $26 million, up modestly from fiscal Q2 reflecting our continued investment in R and D. Turning to profitability, we are raising our fiscal 2026 adjusted EBITDA margin rate guidance range to 30% to 33%. Reflecting stronger first half revenue, operating discipline and an increasingly favorable SaaS mix. From a modeling perspective, we expect non GAAP gross margin to remain in the low-80s range for the rest of the year. We continue to expect capital expenditures of approximately 3.5% of revenue, and depreciation and amortization of approximately 1% of revenue for the full year. Overall, our results reflect our Unify and Grow ethos. A more focused and scalable Mitek delivering stronger growth, expanding profitability, and durable cash generation with the flexibility to allocate capital from a position of strength. With that, operator, we are ready to take questions. Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the * followed by the 1 on your touch tone phone. You will hear a prompt that your hand has been raised. If you are using a speakerphone, please lift the handset before pressing any keys. If you wish to decline, please press the * followed by the 2. 1 moment, please, for your first question. Your first question comes from Mike Grondahl from Northland Capital Markets. Please go ahead. Analyst (Logan Hennen): Hey. This is Logan on for Mike. Thanks for taking our question. With the rise in Gen AI fraud, can you give some color around how customer urgency has changed over the last 6 to 12 months, especially with the larger banks? Thanks. Edward H. West: Sure. Hello, Logan. Thanks for the question. We have seen a increase in interest and demand because of the increase in attacks. As I mentioned in my comments, just with the cost and speed, cost going down, the speed, the ubiquity of access to very sophisticated models for fraudsters to use around the world. They are obviously attacking. Locations where they want to steal or have an attack or go into an account takeover. And so we are seeing increasing issues, which is also increasing outreach and interest and working with them, partnering with them. Very importantly, we use a highly layered approach bringing forth our knowledge, our expertise, working with financial institutions in a highly regulated environment, model governance controls, and bringing in our capabilities, not just on the verification, but also the biometrics and seeking for various types of attacks that a fraudster might utilize, whether manipulating the documents or whether an injection attack, a deepfake, or another presentation. And so we will use a layered approach and also bring in other third parties to work with our customers to help prevent detect and prevent the fraud. So demands have been increasing in that, and I think that is gonna continue to do so. The attacks have been morphing and changing. So it is a high focus of interest and not just in financial institutions. We have actually been seeing more recently increasing demand from other sectors which were predominantly approaching through partners, to approach other high risk digital interactions. Analyst (Logan Hennen): Could you double click on that? What other verticals are you exploring for GenAI fraud to combat that? Edward H. West: Well, in terms of vertical from our customer standpoint where someone who might be utilizing AI for fraud, is insurance. I mentioned a partnership with Synectics, who has a fraud orchestration platform working with insurance industries. Have a close partnership with them, and that is a very large vertical. it is, related to financial services, and that is supporting Another 1 is with the government, like in the United Kingdom. Working through other channel partners who have relationships with various ministries in the United Kingdom or other governments in Europe, working through them for support. Government. We also have health care. Of interest because of the records, the access, and health care is seeing an approach. So that is several beyond just financial services. Clearly, our expertise has been centered for a long time on financial services and understanding the regulatory the approach, the expertise, the knowledge, but then working through these partners who have a lot of expertise in some of these other verticals, utilizing our tools and capability. Got it. Appreciate the color, and congrats on another great quarter. Hey. Thanks, Logan. Operator: Thank you. Your next question comes from Derek Greenberg from Mac Group. Please go ahead. Analyst (Derek Greenberg): Congrats on the quarter. I wanted to talk about the fraud and identity segment in terms of just the overall economics of that business. Know historically, the deposits have been the cash cow. David Lyle: I was wondering when you expect this segment to turn profitable, the fraudulent identity that is We have not talked about fraud and identity as a segment with or without profitability. We did if you remember a year ago before we changed the, the way we categorized our product portfolio, we had talked about getting identity profitability, which we had done a year ago. And then we then shuffled some products around to make more sense, into different product groups fraud and identity and check verification. That being said, historically, check has been a very profitable heritage business for us. It not only generates a lot of cash for us, but it is pretty important strategically as we have merged Mitek into 1 Mitek, and it is helping our fraud and identity products. Grow. But in terms of specific profitability metrics, we have not put those out at this point. Analyst (Derek Greenberg): Good. Got it. Thank you. that is helpful color. I guess I was just curious how to think about I mean, the margins this quarter, 41% adjusted EBITDA margins. I was wondering as identity eventually matures and scales, how much upside you see from what we saw this quarter in terms of margin? David Lyle: Yeah. First of all, I think we are at the very early innings given how fast the market is growing and how large it already is, I think the opportunity is there for us. And I think we have leading edge products to be able to compete. You will see in the and if you look at our adjusted EBITDA guidance for the entire year, 30% to 33%, we have been raising that 2 quarters in a row. We feel pretty confident in that range. The adjusted EBITDA in Q2 is typically our highest quarter for adjusted EBITDA, but that is mostly driven by Check verification is seasonally strongest in Q2. Typically, Q3 is second, and then Q1 and Q4 are typically weaker, so you see a little more pressure on pressure on adjusted EBITDA margins. All in all, if you kind of look at the core of what is driving our growth, it is fraud and identity SaaS. Fraud and identity SaaS has pretty consistently been in kind of the call it, 20% range. You know, fluctuates a little bit quarter to quarter depending on overages. there is certain seasonality in Q1 and Q3. But otherwise, I think we feel pretty good about those kinds of growth rates in that core part of the business. And when I say that, I really mean product portfolio that includes Mobile Verify, MyVIP, Check Fraud Defender, MyPass, those kinds of products. Edward H. West: And, Derek, I would just add on to what David is saying there. You know, it is a mindset that we have had since working together for the last year and a half in the organization and across the company. it is just that mindset of continuous improvement, continuing to drive scale, efficiency, as we are seeing now with such a strong focus and growth. And as David talked about, how even going through the remainder of the year with the growth within SaaS and F and I SaaS, the scale, you know, each quarter progresses. More and more scale, more volume, better unit economics across the business. We have been implementing with new tooling, new capabilities, more efficiency. You know, how we are utilizing various tools across the business. So we are we are actually very encouraged year to date progress, how we see that going and seeing improved unit economics over time. That said, we are highly focused on growth. And continuing to capitalize on the opportunity that is ahead of us. Analyst (Derek Greenberg): Yeah. Got it. 1 last question. I was wondering just maybe if you could talk about in terms of the growth if you are seeing more from current customers on the platform expanding workflows and transactions, or if it is more driven by new customer sign ups on the platform or if it is kind of broad-based. it is-- I would say it is broad where a large part of the growth has come from is relationships that have continued to expand. Edward H. West: As I mentioned and as you know, in particular on the fraud and identity side, we work with numerous large financial institutions and other large high assurance businesses. That have multiple divisions, operate in multiple countries, multiple products, And what we find is even though the sales cycle, is long, and working with them and starting to roll out and the implementation of the systems, But over time, as the relationships grow, we find we expand to different markets. Or different markets, different product uses, capabilities. Other step up functions. And so that is where a lot of the growth has come. In addition to signing up several new relationships over the last several quarters. Some of the largest financial institutions in North America as well as Europe and through other partners but we are early on through that. Last I would just say 1 last comment. I think you have also noticed, on part of the business on fraud where we are amping up more of a focus on our partners. We have announced several new partner channel partner relationships, and now having them out bringing on additional institutions like onto our fraud platform, and that is really been accelerating over the last, several months. And we see there is more to go on that front too. Hey. Got it. Thanks for taking my questions. Thanks, Eric. Operator: And your last question comes from George Sutton from Craig Hallum. Please go ahead. Analyst (Logan Hennen): Hey, guys. Logan on for George. Thanks for taking the questions. Edward, I wanted to follow-up on kind of the comments you were just making there. I mean, you talked quite a bit today about expanding with existing customers and kind of that upsell motion. So hoping you could just shed some light on what is enabling the success there. I mean, does that just have to do with the better market environment, or is some of that drawn to the changes in the go to market that you have been making over the last year? Edward H. West: I mean, I would not say there is any 1 thing. it is just having a full focus with these organizations. what is important is, you know, establishing and building trust. Trust does not happen overnight. it is earned over time and credibility and having the results and the team. We have terrific people working with these organizations and working in partnering with them, in particular, when there is a fraud attack. And where they may be the subject of fraud coming on and about how we can work with them, having our people and bringing in the expertise associated with that. And then many of these institutions, as you know, they are highly regulated. You know, the regulatory knowledge and expertise, model governance, is very important. You know, that is our language. that we speak with them. And then from a go to market standpoint, is in dialogue. In conversations, in trying to, you know, broaden with them. And so support them in many other ways. That said, we, you know, continue to bring on new relationships too, but we may be early on, and then they just expand over time. with them. So there is also the benefit, like, within SaaS. it is a layered approach where you continue to add on additional contracts, and we see that layering on benefit over time as we bring on expansions and new relationships, and it all just adds up incremental. David Lyle: Yeah. You will see expanded geographies, expanded use cases, That gives us more journeys. We get more transactions per journeys with more journeys. So some nice unit economics and expanded revenue expansion. And gross profit expansion also. Analyst (Logan Hennen): So 1 of the key focuses kind of in the industry seems to be the idea of having more kind of layers of protection on each engagement or session, if you will. Which I think you have touched on a bit today. So wondering if you could just talk about sort of how that changes the scope of your monetization opportunity on the fraud and identity side. Edward H. West: Well, I think it is what David just mentioned, where you are bringing in a multilayered approach, bringing in additional signals beyond just doing the verification or authentication, bringing in digital signals with the biometrics, you know, seeking for either deep fake or an injection attack or some sort of other layered data that comes in for that particular journey. We could also be bringing in other third party data as well. Maybe looking at a geo or device. The utilization of that particular transaction. So think of a journey within multiple transactions The more volume, the more throughput, better unit economics for each transaction. Or journey. Analyst (Logan Hennen): Got it. Thanks, guys. Thank you. Operator: Thank you. Your next question comes from Jonathan Ho from William Blair. Please go ahead. Analyst: Hi. Good afternoon. I wanted to maybe try to better understand with all the concerns out there with check kiting, have your discussions changed at all with banks, or has prioritization potentially risen, for fraud and identity solutions, just given what is potentially coming down the pipe? And how do you think about maybe exploiting some of that increased concern over time? Edward H. West: Well, good afternoon, Jonathan. The answer-- the simple answer is yes in terms of that the dialogue has increased but I would say that is not just from mythos or changes with kiting, just really AI in general and the proliferation of fraud attacks and the sophisticated nature of that. Obviously, thinking about with Mythos coming out and what that does from a cyber standpoint and looking for vulnerabilities. All of this comes back to the same key point. Which is around how are we protecting our franchise, how are we protecting our interactions with our customers, that is where we come in. And having the conversation on that digital interaction and making sure we are protecting the greatest extent possible, continuing to bring in new solutions, ideas, thoughts, around that based on our technologies and capabilities and experience. So the trend clearly is continuing to go up. Over time. The relevance of Mitek has gone up significantly. Within the conversations. I would tell you when I first started, you know, at the company a year and a half ago, just the profile, who we are having in dialogue with, the importance across the organization is at the highest levels. Of many of these institutions and the high assurance businesses that we work with. Because of the concern and the fraud and the sophisticated nature of the fraud that is now prevalent. in the world. Thank you. Operator: Thank you. Ladies and gentlemen, this does conclude your conference call for today. We thank you very much for your participation, and you may now disconnect. Have a great day, everybody. Thank you. Before you buy stock in Mitek Systems, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Mitek Systems wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Mitek Systems. The Motley Fool has a disclosure policy. Mitek (MITK) Q2 2026 Earnings Transcript was originally published by The Motley Fool

As you might know, Mitek Systems, Inc. (NASDAQ:MITK) just kicked off its latest second-quarter results with some very strong numbers. The company beat forecasts, with revenue of US$55m, some 4.2% above estimates, and statutory earnings per share (EPS) coming in at US$0.20, 33% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. After the latest results, the five analysts covering Mitek Systems are now predicting revenues of US$194.3m in 2026. If met, this would reflect a reasonable 2.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 12% to US$0.41. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$193.0m and earnings per share (EPS) of US$0.34 in 2026. Although the revenue estimates have not really changed, we can see there's been a sizeable expansion in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result. Check out our latest analysis for Mitek Systems The consensus price target rose 13% to US$17.75, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Mitek Systems analyst has a price target of US$20.00 per share, while the most pessimistic values it at US$15.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Mitek Systems' revenue growth is expected to slow, with the forecast 5.0% annualised growth rate until the end of 2026 being well below the historical 9.3% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 17% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Mitek Systems. The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Mitek Systems' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Mitek Systems going out to 2028, and you can see them free on our platform here. You can also see our analysis of Mitek Systems' Board and CEO remuneration and experience, and whether company insiders have been buying stock. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Fraud and Identity revenue grew 28% year-over-year, driven by a strengthening demand environment where AI is increasing the scale and speed of sophisticated attacks. Management is successfully transitioning the business model toward higher-quality revenue, with SaaS now representing approximately 44% of total last 12-month revenue. The 'Unify and Grow' strategy is facilitating deeper customer engagement, evidenced by flagship clients moving from variable pay-as-you-go models to multiyear committed contracts. Check verification remains a durable, cash-generative foundation that provides deep connectivity into the financial institution ecosystem and supports broader identity growth. The Check Fraud Defender (CFD) data consortium now covers over 60% of U.S. checking accounts, creating a network effect that improves fraud detection outcomes as participation scales. Operational discipline and automation are driving record adjusted EBITDA, with margins reaching approximately 41% in the current quarter. Full-year fiscal 2026 revenue guidance was raised to $189 million to $198 million, reflecting stronger first-half execution and improved visibility in Fraud and Identity. Management expects Fraud and Identity SaaS to continue stepping up sequentially through the balance of the year, serving as the primary proxy for underlying growth. Biometrics license revenue is expected to step down sequentially in the second half of the year following two consecutive quarters of meaningful contribution. The adjusted EBITDA margin guidance for fiscal 2026 was raised to a range of 30% to 33%, supported by a favorable SaaS mix and continued operating discipline. Capital allocation will remain balanced, focusing on high-return growth investments and share repurchases under a new $50 million program. The company fully retired $155 million in convertible notes, simplifying the capital structure and extending the nearest debt maturity to 2030. Non-GAAP gross margin declined approximately 270 basis points year-over-year, primarily due to a mix shift toward SaaS and implementation costs for early-stage pilots. CFD SaaS margins expanded due to a re-architecture of transactional data storage that materially reduced compute costs for analytics. Quarterly free cash flow was negative $2.5 million due to timing-related working capital and late-quarter billings, though trailing 12-month conversion remains healthy at 72%. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted a significant increase in demand as AI lowers the cost and increases the speed of attacks like deepfakes and injection attacks. Customers are gravitating toward a multilayered approach that combines Mitek's proprietary data with third-party signals to combat evolving threats. Mitek is seeing increased demand in sectors such as insurance, healthcare, and government services. The company is primarily approaching these new verticals through strategic partnerships, such as the Synectics orchestration platform for the insurance market. Growth is broad-based but heavily driven by existing large financial institutions expanding into new geographies and additional use cases. The 'land and expand' motion is supported by the long sales cycles required to establish trust in highly regulated environments. As the platform scales, Mitek is seeing improved unit economics and gross profit expansion per 'customer journey.' Management highlighted that increased transaction volumes and automated decisioning allow the model to scale efficiently without proportional cost increases.