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)--May 07, 2026--
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 Six Months Ended March
March 31, 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
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