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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 performance was impacted by a decline in earnings, with Q3 earnings per share (EPS) of $0.22, down from $0.25 a year ago. Although the company beat revenue and EPS estimates, its guidance and certain key metrics may have disappointed investors. Additionally, the company's focus on combating AI-enabled fraud and deepfakes may not have been reflected in its recent earnings release. Mitek's participation in the Jefferies Fintech Conference and a recent industry award for digital identity verification may not have been enough to offset negative sentiment.

1.c. Company Highlights

2. Mitek's Q3 2025 Earnings: A Strong Performance

Mitek delivered a robust Q3 2025, with total revenue reaching $45.7 million, representing a 2% year-over-year increase. The growth was primarily driven by the Identity products, which saw a 24% year-over-year surge, fueled by a 19% growth in Identity SaaS and rising transaction volumes. Non-GAAP gross margin stood at 85%, slightly down from the prior year due to a shift away from higher-margin deposits products. The company's adjusted EBITDA reached $13.1 million, representing a 28.6% margin, and a 170 basis point improvement over the prior year. Earnings per share (EPS) came in at $0.22, beating estimates of $0.18.

Publication Date: Aug -31

📋 Highlights
  • Identity Revenue Growth:: Trailing 12-month Identity revenue reached $75M, nearing $80M fulcrum for profitability.
  • Fraud Solutions Expansion:: Check Fraud Defender ACV surged 56% YoY from organic growth and channel expansion.
  • SaaS Revenue Share:: SaaS now constitutes 41% of total trailing 12-month revenue, up from previous quarters.
  • Free Cash Flow Efficiency:: 99% free cash flow conversion rate (LTM), generating $55.8M over the past year.
  • EBITDA Margin Improvement:: Adjusted EBITDA margin guidance raised to 28–29%, up 170 bps YoY to $13.1M in Q3.

Revenue Growth and Mix

The revenue growth was driven by the Identity product portfolio, which is nearing profitability. Trailing 12-month Identity revenue reached $75 million, with the company indicating that the fulcrum point for durable profitability is below $80 million. SaaS revenue now represents 41% of total trailing 12-month revenue, up from the previous quarter. The company's Fraud solutions also saw significant growth, with Check Fraud Defender ACV growing 56% year-over-year.

Operational Efficiency and Cash Flow

Mitek achieved a 99% free cash flow conversion rate on an LTM basis, driven by cost controls and tighter execution. The company generated $55.8 million in free cash flow in the last year, driven by higher interest income and improved working capital efficiency. Mitek ended Q3 with $175 million in cash and investments and $155 million in convertible notes due in 2026.

Guidance and Outlook

Mitek expects continued growth in SaaS revenue and anticipates the Identity portfolio to reach durable profitability in fiscal 2026. The company has tightened its full-year fiscal 2025 revenue guidance to a range of $174 million to $177 million and raised its adjusted EBITDA margin guidance to 28% to 29%. The outlook for 2026 is positive, with the company expecting continued execution and setup for sustainable, scalable growth.

Valuation and Capital Allocation

With a P/E Ratio of 30.09, P/B Ratio of 1.96, and EV/EBITDA of 11.74, the market seems to be pricing in a certain level of growth. Mitek remains committed to balanced capital allocation, investing in the business while returning value to shareholders. The company has returned $29 million to shareholders through its current $50 million buyback program, leaving $21 million remaining. The Free Cash Flow Yield stands at 12.02%, indicating a potentially attractive return for investors.

3. NewsRoom

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More Industry Honors for Mitek Systems in Fight Against AI-Powered Fraud

Oct -13

Source: businesswire.com

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Mitek to Participate in the Jefferies Fintech Conference on September 3, 2025

Aug -21

Source: businesswire.com

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Mitek Systems Wins Industry Award for Advanced Protection Against AI-Enabled Fraud, Deepfakes and Injection Attacks

Aug -20

Source: businesswire.com

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Mitek Systems (MITK) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Aug -08

Source: zacks.com

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Mitek Systems, Inc. (MITK) Q3 2025 Earnings Call Transcript

Aug -08

Source: seekingalpha.com

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Mitek Systems (MITK) Tops Q3 Earnings and Revenue Estimates

Aug -07

Source: zacks.com

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Mitek to Report Fiscal 2025 Third Quarter Financial Results on Aug. 7, 2025

Jul -25

Source: businesswire.com

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Is the Options Market Predicting a Spike in Mitek Systems Stock?

Jun -02

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: 5.5/10

Value: 0.9

Growth: 8.7

Quality: 7.6

Yield: 1.0

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Mitek Systems

A-Score: 5.0/10

Value: 5.3

Growth: 6.8

Quality: 6.8

Yield: 0.0

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Dave

A-Score: 4.8/10

Value: 1.1

Growth: 8.0

Quality: 8.7

Yield: 0.0

Momentum: 10.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
ON24

A-Score: 4.6/10

Value: 6.2

Growth: 4.0

Quality: 4.2

Yield: 4.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Grindr

A-Score: 4.5/10

Value: 4.8

Growth: 5.4

Quality: 4.9

Yield: 0.0

Momentum: 8.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Semrush

A-Score: 3.7/10

Value: 3.8

Growth: 9.0

Quality: 5.8

Yield: 0.0

Momentum: 0.5

Volatility: 3.0

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

9.3$

Current Price

9.3$

Potential

-0.00%

Expected Cash-Flows