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 driven by generative AI-fueled synthetic fraud.

• SaaS revenue now represents 43% of LTM revenue, improving revenue visibility and durability.

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

• The company paid off $155.3 million in convertible notes, announced a new $50 million share repurchase program, and ended the quarter with $33 million net cash.

• Check Verification remained stable, processing 1.2 billion annual transactions and generating high-margin cash flow.

Financial highlights

• Total Q1 revenue was $44.2 million, up 19% year-over-year, led by 30% growth in Fraud & Identity and 21% SaaS growth.

• 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 from $0.15 year-over-year.

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

• Ended the quarter with $192 million in cash and investments and $159 million in total debt, resulting in a net cash position of $33 million.

Outlook and guidance

• Full-year FY26 revenue guidance raised to $187–$197 million, representing approximately 7% year-over-year growth at the midpoint.

• FY26 Fraud & Identity Solutions revenue expected at $102–$107 million, up about 16% year-over-year at the midpoint.

• Adjusted EBITDA margin guidance increased to 29%–32% for the full year.

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

• Gross margins expected to remain in the low 80% range, with operating expenses stepping up sequentially as growth investments continue.