Mitek Systems (NASDAQ:MITK) reported fiscal first-quarter 2026 results that management characterized as a strong start to the year, citing accelerating demand tied to generative AI-driven synthetic fraud, solid growth in the fraud and identity portfolio, and continued stability in its Check Verification business. The company also raised its fiscal 2026 guidance ranges for revenue and adjusted EBITDA margin and announced a new $50 million share repurchase authorization after retiring its convertible senior notes.
Generative AI and synthetic fraud highlighted as demand catalysts
Chief Executive Officer Ed West said generative AI is “accelerating synthetic fraud globally,” which he described as driving a growing need for Mitek’s verification, authentication, and fraud decisioning infrastructure. He said customers are moving away from “siloed, point-in-time verification” toward “more continuous, signal-rich decisioning,” and that Mitek is responding by unifying workflows that combine documents, biometrics, liveness, and data insights into a single platform experience.
Quarterly financial results show revenue growth and higher profitability
Chief Financial Officer Dave Lyle said total revenue for the fiscal first quarter was $44.2 million, up 19% year-over-year, driven by strength “across the portfolio.” Fraud and identity revenue grew to $25.5 million, up 30% year-over-year, while Check Verification revenue was $18.8 million, up 6%.
Adjusted EBITDA increased to $13.3 million, up 69% year-over-year, representing a 30% margin. Lyle said the quarter benefited from revenue scale and mix as well as incremental capitalized R&D. The company reported non-GAAP net income of $12.4 million and adjusted EPS of $0.26 per diluted share, which management said was approximately 80% growth year-over-year. Non-GAAP income tax expense was approximately 12% of pre-tax income.
Non-GAAP gross margin was 82%, down about 280 basis points year-over-year. Lyle attributed most of the decline to early-stage Check Fraud Defender pilot deployments that incurred costs in the quarter ahead of associated revenue, which the company expects to moderate as pilots convert to production. He also cited pressure from SaaS and services delivery economics as Mitek supported higher volumes and onboarding activity, as well as the impact of revenue mix as SaaS and services represent a higher proportion of revenue.
On expenses, total non-GAAP operating expense was $23.2 million, improving 3% from last year, and operating expense as a percentage of revenue improved by about 1,200 basis points to 52%. Sales and marketing expense declined to $7.9 million from $8.7 million, which management tied to a more focused, platform-led go-to-market model. Non-GAAP R&D increased to $7.6 million from $7.2 million, while non-GAAP G&A decreased to $7.7 million from $8.1 million.
Check Verification described as stable; fraud and identity growth tied to more “journeys” and transactions
Management said Check Verification remained durable despite the “gradual, secular decline” in the broader check market. West said the business sustained an annual run rate of roughly 1.2 billion Mobile Deposit transactions, while last twelve months revenue was approximately $91 million, which he said remained stable. Lyle added that quarterly performance was driven by renewals, strong services activity, and ongoing conversions from check reader to Check Intelligence.
In fraud and identity, West said transaction volumes grew as customers routed more activity through Mitek’s solutions to detect and mitigate risk in real time. He described two “structural dynamics” supporting growth:
- More journeys across more use cases, with customers extending beyond onboarding into authentication and other in-life workflows.
- More transactions per journey, as Mitek adds capabilities, data sources, and third-party checks alongside proprietary technologies.
West said momentum was “broad-based across geographies and customer segments.” He pointed to large enterprise renewals and expansions in North America, including what he described as a new platform entry point at a top-five financial institution with expansion potential. In EMEA, he highlighted progress migrating legacy customers onto MiVIP in Spain and supporting digital channel use cases across additional industries such as telecommunications, insurance, mobility, and payments.
Check Fraud Defender consortium expands; capital allocation includes new buyback
Mitek also highlighted growth in its Check Fraud Defender product, which uses consortium-based intelligence to help prevent payment fraud. West said annualized contract value for Check Fraud Defender reached approximately $17 million, up 44% year-over-year. He added that consortium datasets now cover more than 50% of U.S. checking accounts, including institutions in production and active pilots, representing “billions in transactions annually.”
Lyle said the company ended the quarter with $192 million of cash and investments and about $159 million of total debt, resulting in a $33 million net cash position. Subsequent to quarter end, Mitek retired its $155 million convertible senior notes in full and drew $50 million on its term loan, which management said simplified the balance sheet and extended debt maturities to 2030.
On capital returns, the company repurchased about $10 million of shares during the quarter and another $7 million through February 4, leaving just over $4 million remaining under the existing authorization. Management announced a new two-year, $50 million share repurchase authorization that will become effective upon completion of the current program.
Guidance raised for fiscal 2026; Q2 outlook reflects renewal timing
For fiscal 2026, Mitek raised its revenue guidance range by $2 million to $187 million to $197 million. Lyle said the update reflects improved visibility in Check Verification renewals and stronger momentum and deal timing in fraud and identity. The company’s fraud and identity annual revenue range was updated to $102 million to $107 million.
For the fiscal second quarter, Mitek expects revenue of $50 million to $55 million, with variability primarily tied to the timing of Check Verification license renewals, which can shift between quarters.
Mitek also raised its fiscal 2026 adjusted EBITDA margin guidance to 29% to 32% from 27% to 30%, driven primarily by a higher level of capitalized software development than previously assumed. Lyle emphasized that on a cash basis, total R&D spend is higher year-over-year and that these costs are reflected in free cash flow. The company said it expects capital expenditures to be about 3% of revenue and depreciation and amortization to be about 1% of revenue.
About Mitek Systems (NASDAQ:MITK)
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.
