Mitek Systems (MITK) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 FY26 revenue of $54.8M–$55M, up 6% year-over-year, with adjusted EBITDA of $22.3M at a 40.7%–41% margin and net income of $9.5M.

• Fraud & Identity Solutions revenue grew 28% year-over-year to $25.7M–$26M, now representing 53% of total revenue, driven by SaaS and biometric software licensing.

• SaaS revenue rose 18% year-over-year to $21.2M, now 44% of total revenue, reflecting a shift to higher quality recurring revenue.

• Check Verification revenue was $29.1M in Q2, down 8% year-over-year, but remains profitable and cash-generative.

• Balance sheet strengthened by retiring $155M in convertible notes, drawing $50M on a term loan, and repurchasing $17.8M–$19M in shares.

Financial highlights

• Q2 FY26 total revenue: $54.8M–$55M (+6% YoY); LTM revenue: $190M (+7% YoY).

• Adjusted EBITDA: $22.3M (+10% YoY), margin 40.7%–41%; non-GAAP net income: $18.5M; adjusted diluted EPS: $0.38.

• Non-GAAP gross margin: 85% (down 270 bps YoY); GAAP gross margin: 78.8%.

• LTM free cash flow: $44.5M–$45M (72% EBITDA conversion); Q2 free cash flow: -$2.5M.

• Ended quarter with $77.6M–$78M in cash/investments and a net cash position of $23M.

Outlook and guidance

• FY26 revenue guidance raised to $189–$198M (approx. 8% YoY growth at midpoint).

• FY26 Fraud & Identity revenue guidance: $103–$108M (approx. 17% YoY growth at midpoint).

• Adjusted EBITDA margin guidance for FY26: 30%–33%.

• Q3 FY26 revenue guidance: $49–$53M; Q4: $41–$46M.

• Management expects liquidity to be sufficient for at least the next twelve months.