A maker of software that lets people deposit checks by snapping a photo with their phone and helps banks and other businesses verify identities and block fraud, including AI-generated deepfakes. Founded in San Diego in 1986, it pioneered mobile check deposit in 2008, and its products like Mobile Deposit, MiVIP, and MiPass now serve financial institutions, fintechs, and telecoms worldwide. Its name is often confused with a construction firm, MiTek Inc., that shares a similar spelling.
SaaS revenue rose 27% to $33.3M, driving an 18% total revenue increase and a net income increase to $8.4M.
Mitek's SaaS business accelerated sharply this quarter. Total rose 18% to $54.0M and reached $8.4M, up from $2.4M a year ago, as a 27% increase in SaaS, maintenance, and other revenue more than offset a modest gain in software licenses. The company is now debt-free on its old convertible notes, but carries a new $49.4M variable-rate term loan.
Key takeaways
SaaS, maintenance, and other rose 27% to $33.3M, driven by higher adoption of the company's fraud and identity products, including Check Fraud Defender.
Software license increased 6% to $20.7M, helped by large check verification renewals but partly offset by customers shifting to the Check Fraud Defender SaaS offering.
reached $8.4M, up from $2.4M a year ago, aided by a 71% drop in to $0.7M after the repayment of the 2026 Notes and lower operating costs.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 revenue rose 18% to $54.0M driven by SaaS growth, while net income surged to $8.4M on lower interest and operating costs.
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Total grew 18% to $54.0M, with SaaS, maintenance, and other revenue up 27% to $33.3M on higher fraud and identity product adoption.
Software license increased 6% to $20.7M, helped by large check verification renewals but partly offset by customers shifting to the Check Fraud Defender SaaS offering.
Research and development expense fell 10% to $8.1M as the company capitalized $1.7M more in internal-use software costs, while selling and marketing expense also declined 10% to $10.0M on headcount reallocation.
Cash and equivalents rose 30% sequentially to $90.0M, but were down 29% , reflecting the $155.3M repayment of 2026 Notes, partially offset by a $50.0M term loan draw and $34.2M in over nine months.
The company's primary market risk is now interest-rate exposure on its $49.4M variable-rate Term Loan, where a 100 rate increase would raise annual by approximately $0.5M.
What changed
The Q2 FY2026 watch item for software license is resolved: the 3% decline did not deepen, as license revenue rose 6% to $20.7M this quarter, helped by large check verification renewals.
The Q2 FY2026 watch item for SaaS trajectory is resolved: growth accelerated from 15% in Q2 to 27% in Q3, reaching $33.3M on higher fraud and identity product adoption.
The Q2 FY2026 watch item for collection is partially resolved: nine-month operating cash flow reached $34.2M, up from $7.1M at the half-year mark, indicating collection of the large build.
The Q2 FY2026 watch item for further term loan draws is resolved: the company did not report additional draws beyond the initial $50M, with the outstanding balance at $49.4M after repayments.
What to watch
Q4 FY2026 software license to see if the 6% Q3 increase holds as customers continue shifting to the Check Fraud Defender SaaS offering.
Q4 FY2026 SaaS trajectory for Check Fraud Defender and other identity products after the 27% Q3 acceleration.
in Q4 FY2026 to quantify the full-quarter impact of the new $49.4M variable-rate term loan.
Any further stock repurchases under the $50M program after the $17.8M spent in the first half of the year.
jumped to $8.4M from $2.4M, aided by a 71% drop in to $0.7M after repaying the 2026 Notes and lower R&D and selling costs.
R&D expense fell 10% to $8.1M as $1.7M more internal-use software costs were capitalized, while selling and marketing expense declined 10% to $10.0M on headcount reallocation.
Cash and investments dropped 49% to $100.2M after repaying $155.3M of 2026 Notes, partially offset by a $50.0M Term Loan draw and $34.2M in .
Quantitative and Qualitative Disclosures About Market Risk
Interest-rate risk from a $49.4M variable-rate Term Loan is the primary market risk, with limited investment-portfolio sensitivity.
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A hypothetical 100 rate increase on the $49.4M Term Loan would raise annual by ~$0.5M, subject to any rate floor.
The $10.1M marketable-securities portfolio (3% of total assets) has maturities of 1–13 months, so a 100 rate move would not materially impact fair value.
The company does not use derivatives to hedge investment-portfolio interest-rate risk and holds securities as .
Foreign-currency exposure persists through operations in the UK, France, the Netherlands, and Spain, with no material change from the 2025 Annual Report.
Inflation did not materially affect the business, financial condition, or results of operations in the nine months ended June 30, 2026 or 2025.
The information in Note 9 of the notes to the condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q is incorporated herein by reference.
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The information in Note 9 of the notes to the condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q is incorporated herein by reference.
While we attempt to identify, manage, and mitigate risks and uncertainties associated with our business to the extent practical under the circumstances, some level of risk and uncertainty will always be present. Item 1A—“Risk Factors” in our 2025 Annual Report describes some of…
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While we attempt to identify, manage, and mitigate risks and uncertainties associated with our business to the extent practical under the circumstances, some level of risk and uncertainty will always be present. Item 1A—“Risk Factors” in our 2025 Annual Report describes some of the risks and uncertainties associated with our business, which we strongly encourage you to review. These risks and uncertainties have the potential to materially affect our business, financial condition, results of operations, cash flows, projected results, and future prospects. There have been no material changes in our risk factors from those disclosed in our 2025 Annual Report.