Start here if you're new
what it is
Mitek sells software that lets banks and lenders read images, verify identities, and move money through your phone.
how it gets paid
Last year Mitek Systems made $180M in revenue. Mobile Deposit was the main engine at $72M, or 40% of sales.
why it's growing
Revenue grew 4.4% last year. The 19% revenue growth mattered most because annual revenue grew only 4.4%.
what just happened
Latest quarter revenue hit $44M, up 19% vs. prior year, while EPS reached $0.06.
At a glance
B balance sheet — gets the job done, barely
30/100 earnings predictability — expect surprises
42.1x trailing p/e — you're paying up for this one
5.6% return on capital — nothing to write home about
$0.19 fy2025 eps est
xvary composite: 60/100 — average
What they do
Mitek sells software that lets banks and lenders read images, verify identities, and move money through your phone.
Mitek's software sits inside everyday banking workflows at 7,900 organizations worldwide. Once your bank builds deposit capture and identity checks into its app, ripping that out creates risk, delay, and compliance headaches. That stickiness supports $180M in annual revenue with 595 employees.
How they make money
$180M
annual revenue · their business grew +4.4% last year
Mobile Deposit
$72M
Mobile Photo Account Opening
$45M
Mobile Photo Bill Pay
$27M
Mobile Balance Transfer
$18M
Mobile Photo Quoting and other imaging
$18M
The products that matter
check deposit software
Mobile Deposit
over 2B deposits processed in 2025
It sits inside the $108M Deposit Solutions segment, which is 60% of revenue but grew just 2%. Scale is real. Growth is not.
60% of revenue
fraud detection software
Check Fraud Defender
part of a $72M segment
It lives in Identity & Fraud, the $72M segment that grew 8% last year. Management flagged stronger contract wins in Q1 2026, but did not attach a revenue number. That's encouraging and incomplete.
growth bet
identity authentication
ID Verification
part of a $72M segment
This also sits inside the $72M Identity & Fraud bucket. If that segment keeps growing faster than the $108M deposit business, the business mix gets better from here.
mix shift
Key numbers
42.1x
trailing p/e
P/E → price-to-earnings → what you pay for each dollar of profit. You are paying 42.1 times earnings for a company with a 9.3% operating margin.
9.3%
operating margin
Operating margin → money left after running the business → only 9.3 cents on each sales dollar. That is thin for software.
5.6%
return on capital
Return on capital → profit generated from the money tied up in the business → 5.6% is low for a company priced like a quality compounder.
$6M
long-term debt
Long-term debt → money owed beyond one year → just $6M, or 1% of capital. The balance sheet is not the problem here.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 2 — safer than 80% of stocks
- price stability 30 / 100
- long-term debt $6M (1% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for MITK right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Latest quarter revenue hit $44M, up 19% vs. prior year, while EPS reached $0.06.
That was a clean quarter after a messy FY2024 EPS pattern. The problem is valuation still asks you to believe this quarter is the new normal.
$44M
revenue
$0.06
eps
n/a
n/a
the number that mattered
The 19% revenue growth mattered most because annual revenue grew only 4.4%, so you need to know whether this was a step-change or a one-quarter sugar rush.
source: company earnings report, 2026
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What could go wrong
the #1 risk is mobile deposit tied to a declining paper check market.
med
Legacy deposit growth stalls out
Deposit Solutions is $108M of revenue, or 60% of the business, and it grew just 2%. Paper check volume fell 7.2% annually from 2018 to 2021. You are relying on share retention in a shrinking pond.
If the larger segment flatlines or declines, the smaller $72M identity business has to run much faster just to keep consolidated growth respectable.
med
Customer concentration still matters
The top 10 customers generated 38% of revenue in 2025. For a company doing roughly $180M in annual sales, a single large-bank loss would be noticeable immediately.
Even a 3.8% hit to revenue would be painful when the whole company only grew 4.4% last year.
med
The pivot is still more narrative than proof
Identity & Fraud grew 8% versus 2% for deposit, and management cited better contract wins in Q1 2026. They did not quantify how much revenue those wins add.
At 42.1x trailing earnings and roughly 78x forward earnings, this stock is priced for a cleaner acceleration than the company has shown so far.
med
Capital allocation just got more complicated
Q1 2026 included both a $10M buyback and a $50M term loan draw. Those are not automatically bad moves, but they do make the financial story less straightforward.
If interest expense rises while revenue stays in the mid-single digits, the market may stop giving Mitek the benefit of the doubt.
When 60% of revenue grows 2% and the stock trades at 42.1x trailing earnings, the margin for disappointment is thin.
source: institutional data · regulatory filings · risk analysis
Pay attention to
segment mix
Identity & Fraud needs to keep outgrowing deposit
The smaller segment grew 8% last year versus 2% for Deposit Solutions. If that gap narrows, the transition story gets much harder to defend.
next catalyst
Q2 2026 earnings need more than another vague contract-win update
Listen for actual dollars tied to fraud and identity wins. At this valuation, qualitative optimism is not enough.
legacy business
Watch deposit volume and growth inside the $108M core segment
A business tied to paper checks does not need to collapse to hurt you. It just needs to stop offsetting the cost of the pivot.
capital allocation
Track the mix of buybacks, debt, and cash usage
The $10M repurchase and $50M term loan draw changed the texture of the story. Small caps do not get infinite chances to explain moving balance-sheet pieces.
Analyst rankings
earnings predictability
30 / 100
Low predictability means the reported numbers can move around more than you'd like. In human-speak, analysts do not think this is a smooth quarter-to-quarter story.
risk rank
2
Risk rank 2 translates to below-average balance-sheet danger. That's reassuring, but it does not fix valuation risk or execution risk.
source: institutional data
Institutional activity
institutional ownership data for MITK is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$15
current price
n/a
target midpoint · n/a from current
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