Mitek Systems Maintains Buy Rating from Northland Securities with $13 Price Target

Northland Securities maintains a Buy rating on Mitek Systems with a price target of $13.00. Analyst Michael Grondahl has a 5-star rating with a 17.1% average return and 48.15% success rate. The company reported Q1 revenue of $51.93 million and a net profit of $9.15 million, compared to $46.97 million and $282 thousand in the same period last year.

Mitek Systems (MITK) reported its Q3 2025 earnings, showcasing a robust performance with significant growth in revenue and profitability. The company's quarterly revenue increased by 1.7% to $45.73 million, driven by contributions across its business segments, including software and hardware, and services and other revenue. This performance indicates steady demand across its core and service offerings.

The company's net income surged by 1009.3% to $2.4 million, a notable improvement from the previous year's $216,000. Despite maintaining an EPS of $0.05, the surge in net income underscores enhanced operational efficiency and margin expansion. This strong execution of strategic initiatives highlights the company's ability to deliver solid financial results.

CEO Ed West highlighted a 23% year-over-year growth in SaaS revenue, driven by rising demand for identity and fraud solutions. He emphasized the stability of the core Deposits software, strong transaction volumes, and free cash flow generation. The company also raised its full-year revenue guidance to $174 million to $177 million and adjusted EBITDA margin targets to 28% to 29%, reflecting its commitment to operational efficiency and margin expansion.

Despite positive fundamentals, the stock price of MITK underperformed post-earnings benchmarks, declining 11.36% month-to-date. This underperformance has been a trend over the past three years, with a total return of -8.40% when following a strategy of buying shares on the report date and holding for 30 days. The stock trades at a P/E ratio of 31.58, with a notably low PEG ratio of 0.12, indicating potential undervaluation relative to growth prospects.

Analysts at Northland Securities maintain a Buy rating on Mitek Systems with a price target of $13.00. Analyst Michael Grondahl, who has a 5-star rating with a 17.1% average return and 48.15% success rate, expects the company to continue its growth trajectory. The company reported Q1 revenue of $51.93 million and a net profit of $9.15 million, compared to $46.97 million and $282 thousand in the same period last year.

References:
[1] https://www.ainvest.com/news/mitek-systems-2025-q3-earnings-strong-net-income-growth-1009-3-2508/
[2] https://finance.yahoo.com/news/mitek-systems-mitk-tops-q3-225002553.html
[3] https://ca.investing.com/news/transcripts/earnings-call-transcript-mitek-systems-q3-2025-beats-eps-forecasts-93CH-4146906