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Why Mitek Stock Jumped Today
Key Points
Mitek's cybersecurity solutions are in high demand.
The online sentinel is helping businesses address fraud holistically by integrating identity, biometrics, and authentication capabilities.
Shares of Mitek Systems (NASDAQ: MITK) popped on Friday after the identity verification and fraud prevention specialist's earnings exceeded investors' expectations.
By the close of trading, Mitek's stock price was up more than 8% after rising as much as 21% earlier in the day.
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Image source: Getty Images.
Mitek's SaaS growth is accelerating
Mitek's total revenue rose 4% year over year to $44.8 million in its fiscal fourth quarter ended Sept. 30. The gains were driven by a 19% increase in the cybersecurity company's software-as-a-service (SaaS) revenue to $21.3 million.
"When we help institutions open more accounts digitally, move more transactions through safer channels, and keep bad actors out, we then deepen our role in their core customer journeys and grow our SaaS revenue," CEO Ed West said during a conference call with analysts.
Still, Mitek's earnings before interest, taxes, depreciation, and amortization (EBITDA) declined 16% to 12.9 million, as its growth investments took a toll. However, the digital security provider's adjusted earnings per share of $0.24 topped Wall Street's estimates. Analysts had expected adjusted per-share profits of $0.18, according to Yahoo! Finance.
A bullish forecast for fiscal 2026
Management guided for total revenue of $185 million to $195 million with adjusted EBITDA margins of 27% to 30% in the year ahead.
"As we enter fiscal 2026, our focus is clear: 'Unify and Grow' -- bringing identity, authentication, and fraud solutions together to deepen SaaS adoption, expand customer value, and position the business for continued durable, profitable growth."
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mitek Systems. The Motley Fool has a disclosure policy.