Summary
Mitek Systems reported fiscal third quarter revenue of $54.0 million, up 18.2% from $45.7 million a year earlier. GAAP net income was $8.4 million, or $0.17 per diluted share, compared with $2.4 million and $0.05 in the prior-year quarter. Operating income rose 203.1% to $11.5 million from $3.8 million, and operating margin reached 21.4%, up 13.0 percentage points from 8.3%.
The mix keeps shifting toward subscription revenue. SaaS revenue grew 36% year over year, and Fraud and Identity SaaS revenue rose 37%. Management flagged a consortium milestone, with a top five US bank completing pilot testing and joining the full consortium network on Check Fraud Defender. The company also widened its partner and reseller channel, which it says puts the consortium within reach of thousands of additional financial institutions. Each new member both draws on and strengthens the network's shared intelligence.
Profitability improved on both a GAAP and non-GAAP basis. Adjusted EBITDA was $20.8 million, up 59% from $13.1 million, and adjusted EBITDA margin came in at 38.5% versus 28.6%. Non-GAAP net income was $16.8 million, or $0.34 per diluted share, compared with $10.2 million and $0.22. Non-GAAP gross margin was 85.5%, compared with 85.0% a year ago.
Cash generation was mixed. Operating cash flow for the nine months ended June 30, 2026 was $34.2 million, down 4.6% from $35.9 million, yet the third quarter alone produced $27.2 million, up 25.9% from $21.6 million. Capital expenditures for the nine months rose to $4.8 million from $0.9 million, reflecting capitalized internal-use software. On a last twelve months basis, free cash flow was $48.6 million, compared with $55.8 million.
Deferred revenue of $34.5 million was up 33.1% from $25.9 million, and remaining performance obligations reached $102.5 million, up 27% from $80.6 million. Cash and investments totaled $100.2 million at June 30, 2026, down $96.3 million from $196.5 million at September 30, 2025, largely because Mitek repaid $155.3 million of convertible notes in February 2026. That repayment was funded partly with a $50.0 million term loan, of which $49.4 million was outstanding at quarter end. Working capital was $106.7 million, up from $39.5 million.
Guidance moved higher. For the full fiscal year ending September 30, 2026, Mitek raised its revenue outlook to $195 million to $200 million, about 10% growth at the midpoint, with Fraud and Identity solutions revenue growth of roughly 19% at the midpoint, and an adjusted EBITDA margin of 32% to 34%. For the fiscal fourth quarter ending September 30, 2026, the company guided revenue to $42 million to $47 million and total non-GAAP operating expense to $26 million to $27 million.
Two leadership changes landed alongside the results. Aaron Seyler was named Chief Revenue Officer effective August 17, 2026, and Mark Rossi becomes non-executive Chairman of the Board effective October 1, 2026, succeeding Scott Carter, who stays on as a director. The disclosed risk list still includes global economic conditions, weak demand or market acceptance for products, product development timing, quarterly revenue variation, pending or threatened litigation, and the timing of customer implementations. Receivables used $15.9 million of cash in the nine months, against $8.9 million a year earlier, which the company attributes to the timing and concentration of billings. The term loan requires a net leverage ratio of no more than 2.50 to 1.00.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2026 | Q2 FY2026 | QoQ | Q3 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $54.0M | $54.8M | -1.5% | $45.7M | +18.2% |
| Research & development | $8.1M | $7.6M | +6.5% | $9.0M | -10.1% |
| Sales & marketing | $10.0M | $9.6M | +4.4% | $11.1M | -9.9% |
| General & administrative | $12.9M | $12.2M | +5.6% | $11.3M | +14.9% |
| Total operating expenses | $42.5M | $41.3M | +2.9% | $41.9M | +1.4% |
| Operating income (loss) | $11.5M | $13.5M | -14.8% | $3.8M | +203.1% |
| Operating margin | 21.4% | 24.7% | -3.4 pp | 8.3% | +13.0 pp |
| Net income (loss) | $8.4M | $9.5M | -12.3% | $2.4M | +249.2% |
| Net margin | 15.5% | 17.4% | -1.9 pp | 5.2% | +10.2 pp |
| Diluted EPS | $0.17 | $0.20 | -$0.03 | $0.05 | +$0.12 |
Risks
MD&A frames the core demand driver as increasingly complex and evolving fraud threats, including those driven by artificial intelligence, requiring continuous investment in AI, machine learning, biometric liveness and deepfake detection. Failure to keep pace with AI-enabled impersonation and manipulation techniques could erode the value of the identity verification platform that serves more than 7,000 organizations.
Customers are migrating from on-premise software licenses to the Check Fraud Defender SaaS offering, which the filing states reduced software license revenue even as total revenue rose. Software license revenue grew only 6% to $20.7 million in the quarter while SaaS, maintenance and other revenue grew 27% to $33.3 million, shifting revenue recognition timing and increasing cost of revenue, which rose 16% in the quarter and 29% year to date.
Accounts receivable used $15.9 million of operating cash in the nine months ended June 30, 2026 versus $8.9 million in the prior-year period, an unfavorable change of $7.0 million that the filing attributes to the timing and concentration of billings, including a significant volume of invoicing in the third fiscal quarter. This contributed to operating cash flow declining 4.6% year to date to $34.2 million.
Cash and cash equivalents and investments fell 49% to $100.2 million at June 30, 2026 from $196.5 million at September 30, 2025, driven by the $155.3 million repayment of the 2026 Notes and $19.8 million of share repurchases, partly offset by a $50.0 million Term Loan draw. The Amended Credit Agreement requires a net leverage ratio no greater than 2.50 to 1.00, with $49.4 million outstanding under the Term Loan and quarterly amortization payments that began April 1, 2026.
SaaS KPIs
All quarters →Adjusted EBITDA
Adjusted EBITDA margin
Free Cash Flow
Summary, forecast, risks and KPIs are extracted from MITEK SYSTEMS INC's SEC filings for Q3 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.