Mitek Systems Q3 EPS Beats Consensus, SaaS Revenue Up 23% YoY

Mitek Systems reported Q3 EPS of 22 cents, beating consensus estimates of 19 cents. Revenue was $45.7 million, surpassing consensus estimates of $43.68 million. The company's SaaS revenue growth accelerated to 23% YoY, driven by growing demand for its identity and fraud solutions. Mitek is shifting to SaaS, streamlining operations, and aligning product investments and go-to-market strategy. The company is laying the groundwork for durable, profitable growth.

Mitek Systems, Inc. (MITK) reported its third-quarter (Q3) earnings, which exceeded analyst expectations. The company's revenue grew by 2% year-over-year (YoY) to $45.7 million, surpassing consensus estimates of $44 million [1]. This growth was primarily driven by the company's Software as a Service (SaaS) segment, which saw a 23% YoY increase, reflecting strong demand for identity and fraud solutions [2].

Mitek's earnings per share (EPS) for Q3 was $0.05, beating the consensus estimate of $0.04 [1]. The company's full-year revenue guidance was also adjusted downward to $174 million to $177 million, reflecting the strategic shift towards SaaS and the streamlining of operations [2]. Additionally, the full-year adjusted EBITDA margin was narrowed to 28% to 29%, indicating a focus on profitability.

Key drivers of Mitek's performance include the growth in SaaS revenue, stability in core deposits software products, and a strategic shift to SaaS. The company's SaaS revenue growth is a testament to the increasing demand for identity and fraud solutions. The core deposits software products provided stability with resilient transaction volumes, contributing to strong free cash flow [2].

Analysts remain bullish on Mitek, with an average rating of "buy" and a breakdown of recommendations of 5 "strong buy" or "buy" and 1 "hold" [1]. Wall Street's median 12-month price target for Mitek Systems, Inc. is $13.00, about 29.8% above its August 6 closing price of $9.12 [2]. The stock recently traded at 9 times the next 12-month earnings, compared to a P/E of 8 three months ago.

Mitek Systems is laying the groundwork for durable, profitable growth by shifting to SaaS, streamlining operations, and aligning product investments and go-to-market strategies. The company's focus on identity and fraud solutions positions it well to capitalize on growing market demand.

References:
[1] https://www.marketscreener.com/news/mitek-systems-q3-revenue-beats-estimates-on-saas-strength-ce7c5edcdb88f621
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX39B932:0-mitek-systems-q3-revenue-beats-estimates-on-saas-strength/