10 Best Cybersecurity Stocks to Invest in Under $20

3. Mitek Systems, Inc. (NASDAQ:MITK)

Share Price: $8.30

Number of Hedge Fund Holders: 26

Mitek Systems, Inc. (NASDAQ:MITK) is emerging as one of the finest cybersecurity companies under $20 due to its strong position in the rapidly growing digital identity verification and fraud prevention areas. Mitek, headquartered in San Diego, California, provides a comprehensive portfolio of mobile image capture and digital identity products, including Mobile Deposit, Mobile Verify, MiSnap, Check Fraud Defender, MiVIP, and MiPass. Its cutting-edge tools enable secure transactions in the banking, finance, and corporate sectors worldwide.

Mitek Systems, Inc. (NASDAQ:MITK) reported positive results for its fiscal first quarter ending December 31, 2025. Total revenue increased marginally to $37.3 million, despite timing-related slowness in mobile deposit renewals. Notably, Identity product revenue increased 13% year-over-year, and the company maintained a good non-GAAP gross margin of 84%. Adjusted EBITDA increased 32% to $7.8 million, representing a respectable 21% margin. Mitek’s free cash flow generation remained high, reaching $40.2 million over the last year, offering it flexibility as it prepares to meet the maturity of its 2026 convertible note.

Mitek’s Check Fraud Defender product continues to grow significantly, with an annual contract value (ACV) approaching $12 million. Management reiterated its fiscal 2025 revenue projection, estimating $170-$180 million and improving the adjusted EBITDA margin outlook to 25%-28%.

Changes in strategic leadership contributed to increased optimism. Garrett Gafke, an industry veteran, was appointed Chief Operating Officer by Mitek Systems, Inc. (NASDAQ:MITK) on April 28, 2025. Gafke is a renowned pioneer in digital identity and fraud prevention. His hiring strengthens Mitek’s strategic focus on expanding growth, especially as financial institutions and organizations throughout the world prioritize digital security and fraud prevention.

As digital fraud concerns increase and institutions need more secure, automated identity verification solutions, Mitek’s specialized services and rising SaaS revenue streams position it for long-term, sustainable growth. Mitek Systems, Inc. (NASDAQ:MITK) is one of the best cybersecurity stocks with a strong balance sheet, recurrent revenue momentum, and new leadership.