Mitek Systems (MITK) Q3 2026 earnings summary

Executive summary

• Q3 2026 revenue reached $54 million, up 18% year-over-year, with SaaS revenue up 36% and record Fraud & Identity SaaS growth.

• Net income rose to $8.4 million, up from $2.4 million in Q3 2025; adjusted EBITDA margin expanded to 38.5%.

• SaaS revenue now represents 46% of total revenue, reflecting a shift to recurring, higher-quality streams.

• Major consortium data network milestone achieved with a top five US bank joining; expanded partner and reseller channels.

• Raised full-year fiscal 2026 revenue and adjusted EBITDA margin guidance.

Financial highlights

• Non-GAAP gross margin was 85.5%, up from 85.0% year-over-year; GAAP gross margin was 79.1%.

• Adjusted EBITDA margin reached 38.5% in Q3 2026, up from 28.6% year-over-year.

• Non-GAAP net income was $16.8 million ($0.34 per diluted share), up 65% year-over-year.

• Free cash flow for the quarter was $25.3 million; LTM free cash flow was $48.6 million (70% conversion).

• Cash and investments at quarter-end were $100.2 million, reflecting debt retirement.

Outlook and guidance

• FY 2026 revenue guidance raised to $195–$200 million (approx. 10% YoY growth).

• Fraud & Identity solutions revenue guidance: $105–$109 million (approx. 19% YoY growth).

• Adjusted EBITDA margin guidance increased to 32–34%.

• Q4 revenue guidance: $42–$47 million, with typical seasonal softness.

• Management expects current cash, credit, and operating cash flow to meet all material requirements for at least the next twelve months.