OneSpan reports increased revenue in latest earnings results

OneSpan has reported its third-quarter financial results, delivering modest revenue growth and strong subscription/ARR gains, but operating income and net income declined. The company is investing in fraud prevention and returning capital to shareholders, while trimming its full-year revenue guidance.

Revenue for the quarter came in at $57.1 million, up one percent year-over-year, while subscription revenue rose 12 percent to $37.8 million, reflecting the company’s continued shift toward software, which now accounts for more than 80 percent of its business. Annual recurring revenue (ARR) climbed 10 percent to $180.2 million, with a net retention rate of 103 percent, underlining steady customer engagement.

“We reported another solid quarter of profitability and continue to make progress in building our foundation for growth,” CEO Limongelli said. “Our software business – now over 80 percent of the overall business – delivered double-digit subscription revenue and ARR growth, and is positioned for additional growth in 2026. We remain committed to driving efficient revenue growth while maintaining strong profitability and cash generation, and returning capital to shareholders.”

Operating income fell 27 percent to $8.2 million, and net income dropped to $6.5 million, or $0.17 per diluted share, compared with $8.3 million a year earlier. Adjusted EBITDA, however, edged up 3 percent to $17.5 million. Gross margins held steady at 74 percent. The company ended the quarter with $85.6 million in cash and repurchased about 450,000 shares for $6.3 million.

Recent moves include a strategic investment in ThreatFabric to expand fraud prevention capabilities, including mobile threat intelligence, malware risk detection and behavioral analytics. The board declared a quarterly dividend of $0.12 per share. Looking ahead, OneSpan trimmed its full-year revenue guidance to between $239 million and $241 million, down from its earlier forecast of $245 million to $251 million.

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biometrics  |  digital identity  |  financial results  |  OneSpan  |  stocks