Mitek Systems (MITK) Q1 2026 earnings summary

Executive summary

• Fiscal Q1 2026 revenue grew 19% year-over-year to $44.2 million, with SaaS revenue up 21% and Fraud & Identity revenue up 30%, reflecting strong product adoption and platform momentum.

• Generative AI is accelerating synthetic fraud, driving increased demand for verification and fraud solutions, with Fraud & Identity now over half of LTM revenue.

• Net income reached $2.8 million, reversing a prior-year loss; non-GAAP net income was $12.4 million, up from $6.6 million year-over-year.

• Balance sheet strengthened by retiring $155M convertible notes, drawing a $50M term loan, and authorizing a new $50M share repurchase program.

• Cash provided by operating activities was $8.0 million, with total cash and investments at $191.8 million and net cash position of $33 million.

Financial highlights

• Q1 2026 total revenue was $44.2 million, up 19% year-over-year; Fraud & Identity Solutions revenue was $25.5 million, up 30%; Check Verification Solutions revenue was $18.8 million, up 6%.

• SaaS, maintenance, and other revenue grew 20% to $30.3 million; SaaS now represents 43% of LTM revenue.

• Adjusted EBITDA was $13.3 million (30% margin), up 69% year-over-year; non-GAAP net income per diluted share was $0.26, up from $0.15.

• Free cash flow for the quarter was $6.6 million, with LTM free cash flow at $61 million and 102% conversion of LTM Adjusted EBITDA.

• Gross margin was 81.7% (non-GAAP), down 280 bps year-over-year; GAAP gross margin was 74.3%.

Outlook and guidance

• FY26 revenue guidance raised to $187M–$197M, with Fraud & Identity Solutions expected at $102M–$107M and adjusted EBITDA margin at 29%–32%.

• Q2 FY26 revenue guidance is $50M–$55M, with variability due to timing of Check Verification renewals.

• Gross margins expected to remain in the low 80% range; operating expenses to rise sequentially as growth investments continue.

• Management expects current cash, credit agreement proceeds, and operating cash flow to meet material cash requirements for at least the next twelve months.