# Mitek Systems (MITK.US)

Canonical: https://gigainvestors.com/s/MITK

Analysis as of: 2026-10-16T07:30:13.733Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $16.88 per share; close as of 2026-10-15.

Estimated value: low $8.28 per share, central $9.13 per share, high $10.27 per share. Buy at or below the central value $9.13 per share. Valuation as of 2026-10-16T07:30:13.733Z; scenarios are not confidence intervals.

Expected annual return: 6.3% at the stated quote. About 6.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 2

- Operating margin variation: 1.50×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.06×

- FY2018: -0.12×

- FY2019: -0.05×

- FY2020: 0.09×

- FY2021: 0.11×

- FY2022: 0.10×

- FY2023: 0.09×

- FY2024: 0.01×

- FY2025: 0.09×

- LTM to Jun 2026: 0.18×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 14.1%

- ROIC, second-lowest year: -8.6%

- Typical minus recent gross margin: 2.6 pp

- Typical gross margin (annual median): 86.3%

- Recent gross margin (lower of latest and 3-year median): 83.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.0%

- ROIC including acquisitions, ten-year median: 11.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 14.2%

- FY2018: -13.9%

- FY2019: -8.6%

- FY2020: 16.9%

- FY2021: 15.1%

- FY2022: 14.1%

- FY2023: 13.7%

- FY2024: 1.7%

- FY2025: 18.4%

- LTM to Jun 2026: 35.3%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 3.17×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $101M

- Net income, five-year total: $32M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 1.5 pp

- Working capital / revenue, change between three-year averages: 10.7 pp

- Working capital / revenue, final three-year average: 24.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.95×

- FY2022: 4.74×

- FY2023: 3.20×

- FY2024: 5.72×

- FY2025: 2.63×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 14.2% vs 13.7%

- Per-share earnings: 0.08 to 0.17 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.1%

- Ordinary dilution, 5-year annual growth: 2.0%

- Market cap gain: $125M

- Cumulative retained earnings: -$8.8M

- Diluted shares, 10-year annual growth: 4.1%

- Diluted shares, 5-year annual growth: 2.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 10.1%

- Per-share value change: $0.09

- Per-share value, starting three-year median: $0.08

- Per-share value, ending three-year median: $0.17

- Buybacks concentrated in cheaper years (correlation): -0.49

- Average buyback yield: 2.4%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: $165M

- Cumulative net income, 10 years: $43M

- ROIC, first three-year median: 14.2%

- ROIC, last three-year median: 13.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.06

- FY2017: $0.40

- FY2018: -$0.33

- FY2019: -$0.02

- FY2020: $0.18

- FY2021: $0.18

- FY2022: $0.08

- FY2023: $0.17

- FY2024: $0.07

- FY2025: $0.19

### accounting: fail

- restructuring or one-time charges in at least three of five years

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -10.1%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 30.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 6.29×

- Accounting red flags: 2

- Goodwill and intangibles / equity: 0.72×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -12.2%

- FY2017: 5.1%

- FY2018: -13.7%

- FY2019: -11.0%

- FY2020: -9.6%

- FY2021: -7.0%

- FY2022: -6.3%

- FY2023: -5.8%

- FY2024: -6.9%

- FY2025: -10.1%

## Holders

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 10.3% a year for ten years · "Mitek's sales are up as customers fight AI-driven fraud." (finance.yahoo.com, Aug 2026) · sales +10.1%

Story as of 2026-10-16T09:59:09.914Z; price observation 2026-10-15.

Price needs cash profits to grow 10.3% a year for ten years

### Sales · FY2025–2026

sales +10.1%; source https://www.sec.gov/Archives/edgar/data/807863/000162828025056520/mitk-20250930.htm; observed 2025-12-11.

- FY2017: $45M 

- FY2018: $64M 

- FY2019: $85M 

- FY2020: $101M 

- FY2021: $120M 

- FY2022: $145M 

- FY2023: $173M 

- FY2024: $172M 

- FY2025: $180M 

- FY2026: $198M 

### Gross margin · FY2026

gross margin 83.6%; source https://www.sec.gov/Archives/edgar/data/807863/000162828025056520/mitk-20250930.htm; observed 2025-12-11.

- FY2017: 91.1% 

- FY2018: 86.3% 

- FY2019: 85.5% 

- FY2020: 87.0% 

- FY2021: 87.9% 

- FY2022: 86.2% 

- FY2023: 86.7% 

- FY2024: 85.8% 

- FY2025: 85.1% 

- FY2026: 83.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are USD 179.7 million.

- Source: https://www.sec.gov/Archives/edgar/data/807863/000162828025056520/mitk-20250930.htm (filed 2025-12-11); FY2025: revenue 179691000; grossProfit 152904000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); MITK.US: Mitek Systems, Inc. provides digital identity verification and fraud prevention solutions worldwide. The company offers Mobile Deposit, a mobile remote deposit capture solution for retail financial institutions, brokerages, and prepaid card providers; Check Fraud Defender, a cloud-hosted fraud mitigation service; Mitek Verified Identity Platform, an end-to-end identity verification solution; Mobile Verify, an omnichannel identity document verification engine; MiSnap, a software development kit that replaces manual image capture with auto-capture; CheckReader, which enables financial institutions to automatically extract data from checks once they have been scanned or photographed by the application; and Check Intelligence, a check fraud solution. It also provides IDLive Face, a passive face liveness detection; IDLive Doc, a document liveness detection; and IDLive Voice, an anti-spoofing voice liveness. The company was incorporated in 1986 and is based in San Diego, California.

### Why customers stay

Margins ranged from 85.1% to 86.7% during 2023–25; it earns 14.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-11); FY2023: grossProfit / revenue = 86.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-11); FY2024: grossProfit / revenue = 85.8%.

- Source: https://www.sec.gov/Archives/edgar/data/807863/000162828025056520/mitk-20250930.htm (filed 2025-12-11); FY2025: grossProfit / revenue = 85.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-11); 10-year return on capital observations [[2017,0.14174558484770924],[2018,-0.1391695064430954],[2019,-0.08623920850476847],[2020,0.168532678858222],[2021,0.1507764613166421],[2022,0.14112049674414853],[2023,0.13680193069207144],[2024,0.017360499591225632],[2025,0.1844348981032581],[2026,0.3529973926784296]]; median 0.1414330407959289. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 86% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/807863/000162828025056520/mitk-20250930.htm (filed 2025-12-11); Gross margin observations: [[2021,0.8786280123876224],[2022,0.8618270213530013],[2023,0.8669908201585609]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 2 of 10 years; bought back USD 4.7 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-11); FY2016: growth capex 0; upkeep 250000; cash acquisitions 0; owner earnings 3097000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-11); FY2017: growth capex 0; upkeep 488000; cash acquisitions 0; owner earnings 14517000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-11); FY2019: growth capex 0; upkeep 1063000; cash acquisitions 0; owner earnings 6625000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-11); FY2020: growth capex 0; upkeep 803000; cash acquisitions 0; owner earnings 14954000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-11); FY2021: growth capex 0; upkeep 1387000; cash acquisitions 12549000; owner earnings 15535000. Growth capex plus acquisitions / owner earnings = 0.8077888638558095.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-11); FY2022: growth capex 0; upkeep 1126000; cash acquisitions 122672000; owner earnings 17516000. Growth capex plus acquisitions / owner earnings = 7.0034254395980815.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-11); FY2023: growth capex 0; upkeep 1034000; cash acquisitions 267000; owner earnings 25712000. Growth capex plus acquisitions / owner earnings = 0.010384256378344742.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-11); FY2024: growth capex 0; upkeep 1438000; cash acquisitions 0; owner earnings 18751000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/807863/000162828025056520/mitk-20250930.htm (filed 2025-12-11); FY2025: growth capex 0; upkeep 1155000; cash acquisitions 0; owner earnings 23099000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-11); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,217000],[2021,4035000],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/807863/000162828025056520/mitk-20250930.htm (filed 2025-12-11); FY2025: cash repurchases 4738000 USD.

### Are managers owners

Insiders own 3.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); MITK.US SharesStats.PercentInsiders = 3.515 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits grow 10.3% yearly over ten years; actual growth was 17.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-11); Ten-year compound average after fade. Initial solved rate 0.1346415408112046. Price 16.88; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.09714104193138501 → FY2025 0.4922431061671568. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $6.75 per share

- 2016-11: $5.60 per share

- 2016-12: $6.15 per share

- 2017-01: $6.60 per share

- 2017-02: $6.25 per share

- 2017-03: $6.65 per share

- 2017-04: $8.75 per share

- 2017-05: $7.80 per share

- 2017-06: $8.40 per share

- 2017-07: $9.50 per share

- 2017-08: $10.15 per share

- 2017-09: $9.50 per share

- 2017-10: $8.90 per share

- 2017-11: $9.00 per share

- 2017-12: $8.95 per share

- 2018-01: $7.80 per share

- 2018-02: $7.65 per share

- 2018-03: $7.40 per share

- 2018-04: $7.75 per share

- 2018-05: $8.65 per share

- 2018-06: $8.90 per share

- 2018-07: $8.45 per share

- 2018-08: $7.25 per share

- 2018-09: $7.05 per share

- 2018-10: $9.17 per share

- 2018-11: $9.57 per share

- 2018-12: $10.81 per share

- 2019-01: $11.03 per share

- 2019-02: $10.81 per share

- 2019-03: $12.24 per share

- 2019-04: $11.90 per share

- 2019-05: $10.20 per share

- 2019-06: $9.94 per share

- 2019-07: $10.04 per share

- 2019-08: $10.14 per share

- 2019-09: $9.65 per share

- 2019-10: $9.64 per share

- 2019-11: $7.13 per share

- 2019-12: $7.65 per share

- 2020-01: $9.76 per share

- 2020-02: $8.71 per share

- 2020-03: $7.88 per share

- 2020-04: $9.33 per share

- 2020-05: $9.33 per share

- 2020-06: $9.61 per share

- 2020-07: $10.26 per share

- 2020-08: $12.69 per share

- 2020-09: $12.74 per share

- 2020-10: $12.45 per share

- 2020-11: $11.78 per share

- 2020-12: $17.78 per share

- 2021-01: $16.15 per share

- 2021-02: $15.28 per share

- 2021-03: $14.58 per share

- 2021-04: $16.21 per share

- 2021-05: $16.96 per share

- 2021-06: $19.26 per share

- 2021-07: $22.11 per share

- 2021-08: $22.37 per share

- 2021-09: $18.50 per share

- 2021-10: $18.83 per share

- 2021-11: $17.13 per share

- 2021-12: $17.75 per share

- 2022-01: $16.37 per share

- 2022-02: $14.86 per share

- 2022-03: $14.67 per share

- 2022-04: $11.17 per share

- 2022-05: $9.02 per share

- 2022-06: $9.24 per share

- 2022-07: $10.88 per share

- 2022-08: $10.22 per share

- 2022-09: $9.16 per share

- 2022-10: $11.31 per share

- 2022-11: $10.23 per share

- 2022-12: $9.69 per share

- 2023-01: $9.86 per share

- 2023-02: $9.30 per share

- 2023-03: $9.59 per share

- 2023-04: $9.02 per share

- 2023-05: $10.42 per share

- 2023-06: $10.84 per share

- 2023-07: $10.21 per share

- 2023-08: $11.17 per share

- 2023-09: $10.72 per share

- 2023-10: $10.68 per share

- 2023-11: $11.29 per share

- 2023-12: $13.04 per share

- 2024-01: $12.60 per share

- 2024-02: $11.61 per share

- 2024-03: $14.10 per share

- 2024-04: $12.63 per share

- 2024-05: $12.55 per share

- 2024-06: $11.18 per share

- 2024-07: $13.31 per share

- 2024-08: $9.32 per share

- 2024-09: $8.67 per share

- 2024-10: $8.59 per share

- 2024-11: $9.32 per share

- 2024-12: $11.13 per share

- 2025-01: $10.20 per share

- 2025-02: $9.37 per share

- 2025-03: $8.25 per share

- 2025-04: $8.28 per share

- 2025-05: $9.39 per share

- 2025-06: $9.90 per share

- 2025-07: $9.02 per share

- 2025-08: $10.17 per share

- 2025-09: $9.77 per share

- 2025-10: $9.21 per share

- 2025-11: $8.86 per share

- 2025-12: $10.55 per share

- 2026-01: $10.02 per share

- 2026-02: $14.58 per share

- 2026-03: $13.50 per share

- 2026-04: $13.96 per share

- 2026-05: $17.18 per share

- 2026-06: $20.13 per share

- 2026-07: $16.70 per share

- 2026-08: $18.46 per share

- 2026-09: $17.05 per share

- 2026-10: $16.88 per share

## Annual estimated value (USD per share)

- FY2017: low $2.72 per share, central $3.39 per share, high $3.77 per share

- FY2018: low $2.61 per share, central $3.53 per share, high $4.07 per share

- FY2019: low $3.41 per share, central $4.53 per share, high $5.18 per share

- FY2020: low $4.25 per share, central $5.49 per share, high $6.21 per share

- FY2021: low $8.61 per share, central $10.62 per share, high $11.79 per share

- FY2022: low $6.09 per share, central $6.67 per share, high $7.44 per share

- FY2023: low $8.07 per share, central $8.79 per share, high $9.76 per share

- FY2024: low $7.81 per share, central $8.52 per share, high $9.46 per share

- FY2025: low $9.42 per share, central $10.16 per share, high $11.15 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/807863/000162828025056520/mitk-20250930.htm); period 2025-09-30, filed 2025-12-11.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.