Mitek Systems, Inc.

Good afternoon, ladies and gentlemen, and welcome to MyTechReport's fiscal first quarter, 2026 financial results. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for an operator. This call is being recorded on Thursday, February 5th, 2026. I would now like to turn the conference over to Ryan Flanagan with ICR. Please go ahead.

Thank you, Operator. Good afternoon, and thank you for joining us today to discuss MyTech's fiscal first quarter 2026 financial results. Joining me today are Chief Executive Officer Ed West and Chief Financial Officer Dave Lyle. Please note that today's call will include forward-looking statements, and because these statements are based on the company's current intent, expectations, and projections, They are not guarantees of future performance, and a variety of factors could cause actual results to differ materially. A description of these risks and uncertainties can be found in our 10Q filing dated February 5, 2026, and our other SEC filings. These forward-looking statements include, but are not limited to, our expectations around customer demand for our products and services, expansion of our Check Fraud Defender, or CFD, data consortium, the ongoing stability of our check verification business, our growth and investment plans, expected improvements in gross profits and unit economics, improvement to operating leverage and scale, expected free cash flow conversion rates, and our FY26 financial outlook and guidance. Except as required by law, we do not undertake any obligation to update these forward-looking statements. This call will also include references to non-GAAP-adjusted results. Please reference this afternoon's press release and our Investors Relations website, for further information regarding forward-looking statements and reconciliation of GAAP to non-GAAP financial measures. With that, I'd like to turn the call over to Ed.

Thanks, Ryan. Good afternoon, everyone, and thank you for joining us today. For those less familiar with MyTech, we provide the verification, authentication, and fraud decisioning infrastructure that high-assurance institutions rely on to onboard customers, authenticate users and transactions, and in essence, to protect what's real across digital interactions. Turning to our results, we delivered a strong fiscal first quarter and are raising our outlook as early execution against our Unify and Grow ethos continues to take hold in fiscal 26. And with that as context, there are several key takeaways from this past quarter. First, Generative AI is accelerating synthetic fraud globally, driving a growing need for our solutions. Second, fraud and identity revenue grew 30% year over year. Third, SaaS revenue grew 21% year over year, representing 43% of last 12 months revenue. Fourth, check verification continues to be stable with 1.2 billion transactions annually. Fifth, we simplified the balance sheet by paying off our convertible notes and today announced a new $50 million share repurchase program. And finally, our Unify and Grow ethos is taking hold. One MyTech is working. The last quarter I outlined our Unify and Grow operating ethos for 2026. The key elements of this plan are to fortify and unify our business and invest in key areas to accelerate growth. I'll touch briefly on how we're executing against each of the four pillars that I outlined last quarter, starting with fortifying check verification. Our check verification portfolio continues to serve as a critical and convenient infrastructure for our customers. During the quarter, we sustained an annual run rate of approximately 1.2 billion mobile deposit transactions, while last 12 months' revenue remained stable at approximately $91 million. Even though the broader check market continues its gradual secular decline, mobile deposit volumes have remained resilient, reflecting deeper penetration as well as the embedded mission-critical role these workflows play across financial institutions. Check verification renewal activity and expansions were solid and came in at the high end of our expectations for the quarter. Overall, we are encouraged by the outperformance in check verification, in its continued role as a durable cash generative foundation for the business. The longstanding relationships in this portfolio continue to open doors for broader senior level fraud and identity conversations with partners and processors that historically engaged with my tech, primarily through check verification. Now turning to our second pillar, which is unifying and scaling our fraud and identity portfolio. which now represents a majority of the business. As fraud accelerates its march towards being democratized as a result of generative AI and attackers become more sophisticated, customers are moving away from siloed point-in-time verification towards more continuous, signal-rich decisioning. In response, we are going to market as one MyTech with unified workflows that combine documents, biometrics, likeness, and data insights into a single platform experience. Our first quarter results reflect solid progress in executing against that strategy. During the quarter, transaction volumes experienced attractive growth levels as customers responded to the increase in fraud and activity. As fraud becomes more democratized and easier to execute at scale, customers are routing more transactions through our solutions to detect, assess, and mitigate risk in real time. This reflects two structural dynamics taking hold across our platform. First, customers are running more journeys across more use cases. Existing customers are extending beyond onboarding into authentication and other in-life workflows, while new customers are coming to MyTech specifically for those journeys. Because authentication and in-life verification are persistent needs rather than one-time events, they apply across a much broader set of industries than onboarding alone, expanding the relevance of our platform beyond traditional financial services. Second, we're seeing more transactions per journey. As we continue to add additional capabilities, data sources, and third-party checks alongside our proprietary technologies, each journey becomes richer, more secure, and more valuable to the customer. That increased richness drives higher value capture per journey for us, as customers rely on MyTech for more of the decisioning within a single workload. Importantly, the momentum we're seeing is broad-based across geographies and customer segments, reflecting platform-led adoption rather than reliance on any single customer, product, or use case. In North America, performance is driven by large enterprise renewals and targeted expansions, including a new platform entry point at a top five financial institution with clear expansion potential. In EMEA, we made tangible progress migrating several legacy customers onto MyVIP in Spain, enabling new digital channel use cases and supporting expansion across various industries beyond core banking use cases, including telecommunications. insurance, mobility, and payments. Taken together, these wins reinforce two important themes. First, growth is increasingly being driven by more journeys and more transactions per journey rather than isolated point solutions or pricing changes. Second, my VIP-led journeys are continuing to deliver higher gross profit per journey as richer, more secure workflows create greater value for our customers. and improved economics as the platform scales. Now, alongside this momentum, Check Fraud Defender continued to scale as a core component of our broader fraud and identity portfolio. While our identity solutions focus on verifying and reverifying who a customer is across the lifecycle, Check Fraud Defender addresses a complementary problem, preventing payment fraud through consortium-based network intelligence. During the quarter, we continued to expand participation across the consortium, with new institutions joining and existing participants deepening their engagement. As a result, annualized contract value across Checkflow Defender now stands at approximately $17 million, up 44% year-over-year, reflecting continued momentum and growing confidence in the value of the network. Data sets compiled in the consortium now cover in excess of 50% of U.S. checking accounts, including institutions in production and active pilots, representing billions in transactions annually. As coverage expands, detection accuracy and loss prevention outcomes continue to improve, reinforcing the network effects that underpin the model and strengthening the value proposition for all participants. Each transaction contributes behavioral and payment-related signals that enhance the intelligence of the platform over time, allowing risk models to continuously improve as scale increases. We believe this growing data asset will represent a durable competitive advantage that is extremely difficult to replicate through point solutions or isolated on-premise deployments. Taken together, our Checked Fraud Defender product continues to scale as intended. expanding coverage, strengthening network effects, and delivering increasingly differentiated fraud prevention outcomes as participation grows. Now, progress across fraud and identity would not be possible without deliberate, targeted investment, which brings me to our third pillar, which is investing where we believe we can lead and differentiate. Our investments continue to be focused on innovation and strengthening the core of the platform, and extending its capabilities in areas that matter most to customers and can create competitive advantages. During the quarter, investments included targeted work to improve platform infrastructure, automation, and model performance, as well as continued expansion of capabilities within MyVIP and our fraud solutions. The objective is to deliver more accurate insights and decisions while improving scalability and operating leverage over time. Equally important, we're investing in the organization itself. During the quarter, we reallocated resources towards higher value initiatives, upgraded key skill sets across product, engineering, and go-to-market, and sharpened accountability to improve execution, speed, and consistency. I feel good about the team's progress, and we all recognize that we must continue to execute to capitalize on the growing opportunity in front of us. I want to turn now to our fourth and final pillar, which is discipline capital allocation. Execution and investment discipline ultimately show up in how capital is deployed. As we scale the platform and advance, unify, and grow, we are focused on ensuring that operational progress is matched by a strong balance sheet and deliberate capital deployment. At a high level, our approach is simple. We protect financial flexibility. We invest in high ROI organic opportunities aligned with our roadmap, and we return excess capital to shareholders, all with an eye towards maximizing shareholder value. We've also taken deliberate actions to strengthen flexibility and simplify the balance sheet, including the retirement of our convertible senior notes. With that behind us, today we also announced a new $50 million share repurchase authorization. This quarter reflects the operating cadence that we've been building towards, which is discipline execution, hitting singles and doubles, and compounding progress as data, participation, and customer engagement reinforce one another across the platform, essentially creating a durable flywheel or network effect grounded in trust, longstanding customer relationships, improving performance, and highly regulated mission-critical environments. As AI lowers the cost of writing code and accelerates the pace and sophistication of fraud, these attributes become more valuable for us. Our customers are not simply buying software features. They're buying real-time risk mitigation and reduction, regulatory confidence, and a trusted intermediary with a long track record in regulated industries across multiple geographies. MyTech is uniquely positioned to aggregate signals, govern models, and continuously improve outcomes in ways that a single institution or point solution approach simply cannot. We believe this will lead to a strong competitive differentiation in business durability and ultimately translates into long-term shareholder value. Now, with all that as context, I'd like to turn the call over to Dave to walk through our financial performance for the quarter and and review our updated guidance.