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1. Company Snapshot

1.a. Company Description

Mitek Systems, Inc.develops, markets, and sells mobile image capture and digital identity verification solutions in the United States, Europe, Latin America, and internationally.The company's solutions are embedded in native mobile apps and web browsers to facilitate digital consumer experiences.


It offers Mobile Deposit that enables individuals and businesses to remotely deposit checks using their camera-equipped smartphone or tablet; and Mobile Verify, an identity verification solution that is integrated into mobile apps, mobile websites, and desktop applications.The company also provides Mobile Fill, which includes automatic image capture, minimizes the numbers of clicks, and expedites form fill completion; and MiSnap, a mobile-capture software development kit that enables an intuitive user experience and instant capture of quality images of identity documents and checks.In addition, it offers CheckReader that enables financial institutions to automatically extract data from checks; Check Fraud Defender, an AI-powered and cloud-hosted model for fighting check fraud; and Check Intelligence that enables financial institutions to automatically extract data from a check image received across any deposit channel, including branch, ATM, remote deposit capture, and mobile.


Further, the company provides ID_CLOUD, an automated identity verification solution that is integrated into a customers' application to read and validate identity documents; IDLive Face, a passive facial liveness detection product; IDVoice, a robust AI-driven voice biometric engine; IDLive Voice that helps stop spoofing attacks on voice biometric systems; and IDLive Doc that works to fight fraud related to digitally displayed document images.Mitek Systems, Inc.was incorporated in 1986 and is based in San Diego, California.

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1.b. Last Insights on MITK

Mitek Systems' recent momentum is driven by its robust Q1 earnings, where it surpassed estimates with $0.26 per share, outpacing the Zacks Consensus Estimate of $0.2 per share. The company's enhanced unassisted video verification solution for the Spanish market, designed to combat AI-driven identity fraud, is a notable development. Additionally, its shift towards SaaS growth has accelerated, with a strong finish to fiscal 2025, driven by organic growth and a decent underlying market.

1.c. Company Highlights

2. Mitek's Strong Q4 Results Drive Growth Expectations

Mitek reported a strong fourth quarter with total revenue of $44.8 million, up 4% year-over-year, and SaaS revenue growth of 19%. The company's non-GAAP gross margin was 84%, down approximately 200 basis points year-over-year, driven by higher investment in SaaS services delivery. Adjusted EBITDA was $12.9 million in the quarter, or a 28.7% margin. Earnings per share (EPS) came in at $0.24, beating estimates of $0.18.

Publication Date: Dec -20

📋 Highlights
  • Fiscal 2025 Revenue Growth:: Total Q4 revenue reached $44.8M (4% YoY increase), with SaaS revenue up 19% YoY.
  • Identity Portfolio Performance:: Identity revenue hit $77M (12% YoY growth), driven by automation and higher-verification workflows.
  • Operational Efficiency:: Non-GAAP operating expenses declined 2% while revenue grew 5%, boosting revenue per employee by 11%.
  • Adjusted EBITDA:: Q4 adjusted EBITDA was $12.9M (28.7% margin), despite 200-basis-point gross margin contraction to 84%.
  • 2026 Guidance:: Revenue projected at $185–195M (6% growth midpoint), with fraud/identity revenue targeting $101–105M (15% growth). Check Fraud Defender now covers 25% of U.S. checking accounts.

Revenue Growth Drivers

The identity portfolio was a major driver of performance, with identity revenue growing 12% year-over-year to $77 million. The company's focus on higher assurance identity journeys and automation is enabling scale while expanding margins. As Ed West noted, "We see a clear shift towards higher assurance identity journeys that require more verification steps." This shift is driving growth in Mitek's identity verification business.

Outlook and Guidance

Mitek expects to drive growth through expanding its SaaS base, increasing fraud and identity revenue, and extending the reach and value of its consortium. The company expects fiscal 2026 revenue of $185 million to $195 million, implying a 6% growth rate at the midpoint. Analysts estimate next year's revenue growth at 8.6%, indicating a positive outlook for the company's future performance.

Valuation Metrics

Using the current valuation metrics, Mitek's P/S Ratio is 2.66, and EV/EBITDA is 12.49. These metrics indicate that the company's stock may be fairly valued, considering its growth prospects. The P/E Ratio is 54.71, which is relatively high, but justified by the company's expected growth rate. The company's return on invested capital (ROIC) is 3.16%, and return on equity (ROE) is 3.91%, indicating a decent return on investment.

Synthetic Fraud and Check Fraud Defender

Mitek is seeing an increasing interest in synthetic fraud, particularly injection attacks, presentation attacks, and deepfakes. The company's layered approach to detection, using biometric and liveness capabilities combined with other signals, is helping to combat this growing threat. Check Fraud Defender, a key product, has seen 50% growth in overall ACV, and is now used by over 25% of all checking accounts in the U.S. This growth is driving the company's consortium and ultimately, its franchise.

3. NewsRoom

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Principal Financial Group Inc. Raises Stock Holdings in Mitek Systems, Inc. $MITK

Feb -19

Source: defenseworld.net

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Mitek Strengthens Its Unassisted Video Verification Solution for the Spanish Market as AI-Driven Identity Fraud Accelerates

Feb -12

Source: businesswire.com

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Mitek Systems, Inc. (MITK) Soars to 52-Week High, Time to Cash Out?

Feb -09

Source: zacks.com

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Mitek Systems, Inc. (MITK) Q1 2026 Earnings Call Transcript

Feb -06

Source: seekingalpha.com

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Mitek Systems (MITK) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

Feb -06

Source: zacks.com

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Mitek Systems (MITK) Beats Q1 Earnings and Revenue Estimates

Feb -05

Source: zacks.com

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Mitek Recognized as a Leader in Fraud and Identity Verification by Datos Insights

Jan -12

Source: businesswire.com

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Wall Street Analysts Think Mitek Systems (MITK) Could Surge 32.9%: Read This Before Placing a Bet

Jan -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.36%)

6. Segments

Deposits Software and Hardware

Expected Growth: 10%

Mitek Systems' Deposits Software and Hardware growth is driven by increasing adoption of digital banking, rising demand for mobile deposit and remote check capture, growing need for fraud detection and prevention, and expanding partnerships with financial institutions and fintech companies, resulting in 10% growth.

Identity Verification Services and Other

Expected Growth: 11%

Mitek Systems' Identity Verification Services and Other segment growth of 11% is driven by increasing demand for digital onboarding, rising adoption of mobile deposit and online lending, growing need for fraud prevention and compliance, and expansion into new markets and geographies.

Deposits Services and Other

Expected Growth: 9%

Mitek Systems, Inc.'s 9% growth in Deposits Services and Other is driven by increasing adoption of digital banking solutions, rising demand for mobile deposit and identity verification services, expansion into new markets, and strategic partnerships with financial institutions to enhance customer experience and reduce fraud.

Identity Verification Software and Hardware

Expected Growth: 13%

Mitek Systems' 13% growth in Identity Verification Software and Hardware is driven by increasing demand for secure digital onboarding, rising adoption of mobile banking and digital payments, and stringent regulations such as KYC and AML. Additionally, advancements in AI-powered verification technology and growing need for fraud prevention solutions also contribute to this growth.

7. Detailed Products

Mobile Deposit

A mobile deposit capture solution that enables users to deposit checks remotely using their mobile devices

Mobile Verify

An identity verification solution that uses AI-powered facial recognition and machine learning to verify identities

MiSnap

A mobile image capture solution that uses AI-powered image processing to extract data from documents

Mobile Fill

A mobile data pre-fill solution that uses AI-powered data extraction to pre-fill forms and applications

Identity Verification

A comprehensive identity verification solution that uses multiple verification methods to verify identities

8. Mitek Systems, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Mitek Systems, Inc. operates in the financial technology industry, which is characterized by a moderate threat of substitutes. While there are alternative payment methods, Mitek's mobile deposit and identity verification solutions are highly specialized, reducing the threat of substitutes.

Bargaining Power Of Customers

Mitek Systems, Inc. has a diverse customer base, including financial institutions, fintech companies, and government agencies. The company's solutions are often integrated into customers' systems, making it difficult for customers to switch to alternative providers, thereby reducing their bargaining power.

Bargaining Power Of Suppliers

Mitek Systems, Inc. has a diversified supplier base, and the company is not heavily dependent on a single supplier. The company's suppliers are primarily technology and service providers, and there are many alternative suppliers available, reducing their bargaining power.

Threat Of New Entrants

The financial technology industry is characterized by a moderate threat of new entrants. While there are barriers to entry, such as regulatory requirements and the need for significant investment in technology and infrastructure, new entrants can still disrupt the market with innovative solutions.

Intensity Of Rivalry

The financial technology industry is highly competitive, with many established players and new entrants vying for market share. Mitek Systems, Inc. faces intense competition from companies such as Fiserv, FIS, and Jack Henry, which can lead to pricing pressure and increased marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.61%
Debt Cost 8.32%
Equity Weight 59.39%
Equity Cost 9.55%
WACC 9.05%
Leverage 68.37%

11. Quality Control: Mitek Systems, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Red Violet

A-Score: 5.3/10

Value: 1.0

Growth: 8.7

Quality: 7.6

Yield: 1.0

Momentum: 8.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Dave

A-Score: 5.1/10

Value: 2.5

Growth: 8.0

Quality: 9.5

Yield: 0.0

Momentum: 9.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Mitek Systems

A-Score: 4.7/10

Value: 4.4

Growth: 7.2

Quality: 6.4

Yield: 0.0

Momentum: 5.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
ON24

A-Score: 4.4/10

Value: 6.3

Growth: 4.1

Quality: 4.2

Yield: 4.0

Momentum: 2.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Semrush

A-Score: 3.9/10

Value: 2.9

Growth: 9.0

Quality: 5.8

Yield: 0.0

Momentum: 4.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Grindr

A-Score: 3.8/10

Value: 5.1

Growth: 5.4

Quality: 5.8

Yield: 0.0

Momentum: 3.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.03$

Current Price

13.03$

Potential

-0.00%

Expected Cash-Flows