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 authorizing a new $50 million share repurchase program, with net cash at $33 million.

• 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 revenue was $44.2 million, up 19% year-over-year, led by Fraud & Identity Solutions revenue of $25.5 million (up 30%) and Check Verification Solutions revenue of $18.8 million (up 6%).

• Adjusted EBITDA reached $13.3 million (30% margin), up 69% year-over-year; non-GAAP net income was $12.4 million, with adjusted EPS of $0.26, up ~80% 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.

• Free cash flow for Q1 was $6.6 million, with LTM free cash flow at $60.5 million, representing 102% conversion of LTM Adjusted EBITDA.

• Cash and investments totaled $191.8 million at quarter-end.

Outlook and guidance

• FY26 revenue guidance raised to $187M–$197M, reflecting strong Q1 and improved visibility, with Fraud & Identity Solutions revenue expected at $102M–$107M.

• FY26 Adjusted EBITDA margin guidance increased to 29%–32%.

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

• 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.