Mitek Systems (MITK) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 FY26 revenue of $54.8M–$55M, up 6% year-over-year, with adjusted EBITDA of $22.3M at a 40.7%–41% margin and net income of $9.5M.

• Fraud & Identity Solutions revenue grew 28% year-over-year to $25.7M–$26M, now representing 53% of total revenue, driven by SaaS and strong customer engagement.

• SaaS revenue increased 18% year-over-year to $21.2M, now 44% of total revenue, reflecting a shift to higher quality recurring revenue.

• Retired $155M in convertible notes, drew $50M on a new term loan, and repurchased $17.8M–$19M in shares, maintaining a net cash position of $23M.

• Raised full-year FY26 revenue and adjusted EBITDA margin guidance, reflecting continued business momentum and strong liquidity.

Financial highlights

• Q2 FY26 total revenue: $54.8M–$55M (+6% YoY); LTM revenue: $190M (+7% YoY).

• Adjusted EBITDA: $22.3M (40.7%–41% margin), up 10% YoY; LTM adjusted EBITDA: $61M.

• Non-GAAP gross margin: 85% (down 270 bps YoY); GAAP gross margin: 78.8%.

• Non-GAAP net income: $18.5M; GAAP net income: $9.5M–$10M; adjusted diluted EPS: $0.38.

• LTM free cash flow: $44.5M–$45M (72% EBITDA conversion); cash and investments: $77.6M.

Outlook and guidance

• FY26 revenue guidance raised to $189–$198M (approx. 8% YoY growth at midpoint).

• FY26 Fraud & Identity revenue guidance: $103–$108M (approx. 17% YoY growth at midpoint).

• Adjusted EBITDA margin guidance for FY26: 30%–33%.

• Q3 FY26 revenue guidance: $49–$53M; Q4: $41–$46M; Fraud & Identity Q3: $25–$26M.

• Non-GAAP gross margin expected to remain in the low 80s for the rest of the year.