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 as generative AI accelerates synthetic fraud and demand for verification solutions.

• GAAP net income reached $2.8 million, reversing a net loss of $4.6 million in the prior year; non-GAAP net income was $12.4 million, up from $6.6 million year-over-year.

• Balance sheet strengthened by retiring $155.3 million in convertible notes, drawing a $50 million term loan, and ending with $33 million net cash; a new $50 million share repurchase program was authorized.

• Check Verification remains a stable, high-margin cash flow generator, processing 1.2 billion annual transactions and $91 million LTM revenue.

• The company added new patents, bringing the total to 111 issued patents as of December 31, 2025.

Financial highlights

• Q1 2026 total revenue was $44.2 million, up 19% year-over-year, led by fraud and identity segment growth.

• Adjusted EBITDA reached $13.3 million (30% margin), up 69% year-over-year.

• Non-GAAP gross margin was 81.7%, down 280 bps year-over-year due to early-stage pilot costs and SaaS mix.

• Non-GAAP net income was $12.4 million; adjusted EPS was $0.26, up from $0.15 year-over-year.

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

Outlook and guidance

• Fiscal 2026 revenue guidance raised to $187M–$197M, up $2M from prior range, representing about 7% year-over-year growth at the midpoint.

• Fraud and identity annual revenue range increased to $102M–$107M, up about 16% year-over-year at the midpoint.

• Q2 2026 revenue expected between $50M–$55M, with variability due to Check Verification renewal timing.

• Adjusted EBITDA margin guidance increased to 29%–32%, up 200 bps.

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