Mitek Systems, Inc.

Good afternoon, ladies and gentlemen, and welcome to the MiTech Reports Fiscal Second Quarter 2026 Financial Results. At this time, all lines are in listening mode, and 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 the operator. This call is being recorded on Thursday, May 7th, 2026. I would now like to turn the conference call over to Mr. Ryan Flanagan with IRC. Please go ahead.

Thank you, Operator. Good afternoon, and thank you for joining us today to discuss MITEC's fiscal second 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 May 7th, 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, affected improvements in growth 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 investor relations website for further information regarding forward-looking statements and reconciliations of GAAP to non-GAAP financial measures. And 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 protect customers and stop fraud across a broad digital lifecycle. Whether someone is opening an account, logging in, depositing in a check, approving a high-risk payment, our role is to help determine whether that person, session, document, check, or transaction can be trusted. By leveraging our data network, leading digital fraud detection solutions, expertise, and history in financial services, we believe that we are well aligned to how the market is evolving to fight increasingly sophisticated synthetic AI-assisted fraud. This quarter's progress is a good indicator of that alignment. The team delivered a strong fiscal second quarter, including record revenue and record adjusted EBITDA. With that as context, I'd like to walk through four key takeaways from this past quarter. First, fraud and identity remains our growth engine, with revenue up 28% year over year. Due to our data network, platform, and expertise, our customers are becoming more engaged with MyTech, both contractually and technologically. Second, our check verification solutions remain a durable, cash-generative foundation for the business. with longstanding relationships that support broader fraud and identity growth. Third, the quality of our revenue base continues to improve. Total SAS revenue grew 18% year-over-year and now represents approximately 44% of total last 12 months' revenue. And fourth, execution is showing up in the numbers. Record revenue and profitability, healthy cash flow, and a significantly stronger balance sheet. The consistent theme across all of this is that our unify and grow ethos is working. Fraud demand is increasing. Customers are expanding with us. Our platform is becoming more valuable as data and participation scale, and we're translating that progress into stronger financial performance. Underpinning that progress is a demand environment that continues to strengthen, and AI is exacerbating it, increasing the scale, speed, and unpredictability of attacks. AI is lowering the cost of and making it easier to create fake identities, manipulated documents, deep fake images, cloned voices, and coordinated attacks at high velocity and scale. That is making legacy tools less effective, particularly during periods of changing attack volume. This environment plays directly to my tech strengths. Customers increasingly need a trusted partner with flexible infrastructure that scales. combined with multiple fraud detection signals and proprietary network-based data to drive better trust decisions without adding unnecessary friction or cost. Just as importantly, fraud rarely stays isolated to one institution. Once vulnerabilities are identified, attacks often spread across multiple organizations, increasing the value of a broader network that can recognize patterns early and help customers benefit from shared intelligence that no single institution can generate alone. As fraud becomes more complex, more coordinated, and more expensive to manage, we believe the need for modern identity verification, authentication, and fraud decisioning solutions will continue to grow. Now back to our first key takeaway. As institutions confront this environment, they are gravitating toward a multilayered approach. that is showing up in our results, with fraud and identity revenue up 28% year-over-year. High-quality institutions are engaging more deeply with MyTech through stronger contractual commitments, broader platform adoption, and growing participation in our data network. Reflecting this, several relationships deepened during the quarter. A flagship customer, one of the largest banks in the United Kingdom, evolved from a predominantly variable pay-as-you-go model to a new multi-year, multi-million dollar committed structure, increasing annual spend. We saw a similar pattern with a leading European Information Services customer, which renewed into a larger committed relationship that included expansion. These examples reflect a broader trend. As customers scale with MyTech, they increasingly choose larger multi-year contractual commitments. a positive indicator of customer confidence that improves visibility, strengthens revenue quality, and supports long-term value creation. Customers are also expanding their use of MyTech beyond a single onboarding workflow to address the broader customer lifecycle, including account login, profile changes, account recovery, step-up authentication, and higher-risk transactions. We saw clear examples of this during the quarter. A major UK bank expanded fraud decisioning across customer journeys. A leading UK digital bank broadened its relationship into Germany while adding fraud capabilities, and a major European customer adopted MyPass at a part of a broader authentication strategy. Finally, participation in our data network continues to grow. Check Fraud Defender, ACV, now exceeds $19 million, up more than 50% year over year, with contributing data sets covering over 60% of U.S. checking accounts, and annualized volumes now measured in the billions. Checks remain a meaningful part of the U.S. financial system, and those workflows produce rich image and behavioral data that is highly valuable for fraud detection. As participation grows, the network strengthens, through greater volumes. More institutions contributing means a richer view of cross-institutional fraud patterns, better outcomes, and stronger customer ROI. During the quarter, we added another top 10 financial institution with another top 10 FI currently in pilot. This proprietary visibility is also where our broader fraud and identity strategy gains its edge. Few participants see U.S. check activity at this scale. And those signals translate into stronger decisioning across adjacent workloads. We saw that play out this quarter with the launch of the first phase of Positive Pay Plus, which strengthens controls at the point of presentment by comparing issued checks against presented items in real time and automating historically manual decisions. Because it leverages existing infrastructure with no new integration required for many customers, Adoption friction is low and time to value is fast. We added a new top U.S. regional bank for these capabilities and expanded within a large existing customer. It's a clear example of how our check verification footprint creates an expansion opportunity, one that drives broader F&I platform adoption and gives customers a stronger fraud detection signal than they could have built on their own. Importantly, this value is resonating beyond the largest institutions. Through partners such as Abrigo and our recently announced TAFON integration, we are broadening access to consortium-powered fraud intelligence for community and regional banks who face meaningful fraud losses and operational strain of their own. We also continue to extend the platform through strategic ecosystem partnerships that broaden reach and simplify deployment for customers. including our recently announced integration with Ping Identity to help customers embed identity verification more seamlessly across the customer journey and our partnership with Synectics Solutions, which brings MyTech's identity capabilities into the insurance market through its fraud orchestration platform. On to our second key takeaway. Check verification continues to operate as a durable and highly cash-generative part of MyTech. and represents trusted positions with many of the largest financial institutions in North America. During the quarter, we saw multiple meaningful renewals, extensions, and license wins across leading processors and financial institutions, including activity tied to key partners such as FIS, Jack Henry, and Candescent, as well as additional international wins. These relationships provide deep connectivity into the FI ecosystem and reinforce the critical role our solutions play in supporting high-volume, mission-critical workflows. Importantly, we're seeing these relationships evolve as customers look to address rising check fraud, exception handling, and workflow complexity. Many institutions that have historically relied on MyTech for mobile deposit are now expanding into adjacent fraud use cases. Now, to our third key takeaway, We continue to improve the quality and durability of our revenue base. This quarter, SAS revenue grew 18% year-over-year and represented approximately 44% of the total last 12-month revenue, up 40% from a year ago. We view this as a meaningful indicator of the continued evolution of our business model towards a larger, higher-quality recurring revenue base, and this mixed improvement is being driven by SAS growth. we now estimate that a substantial and growing portion of our SAS revenue is generated from committed contractual arrangements rather than variable pay-go or overage structures. This enhances visibility, improves durability, and reduces reliance on more volatile consumption patterns over time. Given our revenue is increasingly tied to transaction activity, usage volumes, and customer workflows, rather than seat-based pricing, our model is well aligned to where the market is going. As digital interactions grow and more decisions move into automated or machine-to-machine environments, we believe our model is well positioned to scale alongside that activity. Taken together, these shifts are helping create a business that is increasingly recurring, visible, scalable, and resilient. And on to our fourth and final takeaway. Consistent execution is translating into stronger profitability, healthy cash generation, and a significantly improved balance sheet. We delivered record revenue and record adjusted EBITDA quarter, reflecting the benefits of growth, improving mix, and continued operating discipline across the business. We're also seeing leverage in the model as we scale, supported by automation, tooling efficiencies, focused investment, and a disciplined cost structure. At the same time, we have taken meaningful steps to strengthen the balance sheet. Following the retirement of our convertible notes, we remain in a healthy net cash position with added flexibility, resilience, and a simplified capital structure. On capital allocation, we continue to take a balanced and disciplined approach, returning capital to shareholders through share repurchases while preserving strategic flexibility. While Dave will cover the financial details shortly, the takeaway is straightforward. Our Unify and Grow ethos is creating a more profitable and more resilient MyTech better position to generate and allocate capital from a position of strength. In closing, we remain confident in the direction of the business. The market continues to reinforce a simple reality. As AI makes fraud cheaper, faster, and more scalable, trust becomes more valuable. In an AI-driven fraud environment, we believe MyTech's relevance increases. we sit at the center of that shift by building a network-driven business that is designed to secure our customers' digital interactions, supported by deep integrations, proprietary data, and long-standing customer relationships. With that, I'd now like to turn the call over to Dave to walk through the financial results and our raised outlook in more detail.