Onespan (NASDAQ:OSPN) Releases Earnings Results, Beats Estimates By $0.11 EPS

Key Points

• OneSpan beat quarterly expectations: EPS was $0.35 versus the $0.24 consensus, while revenue rose 12% to $63.9 million. Gross margin improved to 76.3%, and subscription revenue increased 16%.
• The company raised its 2026 outlook for revenue to $254 million–$258 million, ARR to $197 million–$201 million, and adjusted EBITDA to $72 million–$76 million. It also generated $16.5 million in operating cash flow and approved a $0.13 quarterly dividend.
• Growth is being driven by existing customers and new products, though management expects near-term headwinds from pulled-forward hardware shipments and declining overage revenue. Analysts remain cautious, with OneSpan carrying a consensus “Hold” rating and a $17 price target.

Onespan (NASDAQ:OSPN - Get Free Report) posted its earnings results on Thursday. The company reported $0.35 EPS for the quarter, beating the consensus estimate of $0.24 by $0.11, FiscalAI reports. Onespan had a return on equity of 16.91% and a net margin of 27.76%. The firm had revenue of $63.89 million during the quarter, compared to the consensus estimate of $57.43 million.

Here are the key takeaways from Onespan's conference call:

• Q3 results exceeded expectations, with revenue up 12% to $63.9 million, subscription revenue up 16%, operating income up 12%, and gross margin improving to 76.3% from 73.6%.
• OneSpan raised its full-year 2026 outlook, including revenue to $254 million-$258 million, ARR to $197 million-$201 million, and adjusted EBITDA to $72 million-$76 million. The company also generated $16.5 million in operating cash flow and approved a quarterly dividend of $0.13 per share.
• Both business units delivered double-digit growth, while net retention improved to 105% and gross retention reached 91%. Management highlighted expansion from existing customers, including a major multi-year Digital Agreements contract, as the primary growth driver.
• OneSpan launched the DigipassONE platform and expects to release its Verify and Insights products in stages, with Verify aimed at the European digital identity wallet opportunity. Management sees these offerings as potential long-term growth drivers, although bank sales cycles mean revenue benefits may take time to materialize.
• Hardware shipments were pulled forward into Q3, so hardware revenue is expected to contribute less in Q4 even though the full-year outlook is unchanged. Digital Agreements overage revenue is also expected to decline further sequentially as a large customer transitions to a larger ratable multi-year contract.

Onespan Stock Up 0.3%

Shares of NASDAQ:OSPN traded up $0.07 during mid-day trading on Thursday, hitting $20.15. 956,536 shares of the company traded hands, compared to its average volume of 556,595. The company has a current ratio of 1.33, a quick ratio of 1.23 and a debt-to-equity ratio of 0.02. The stock has a market cap of $742.53 million, a P/E ratio of 11.32, a P/E/G ratio of 1.75 and a beta of 1.59. The stock has a 50-day moving average price of $17.52 and a two-hundred day moving average price of $13.97. Onespan has a 12-month low of $10.07 and a 12-month high of $20.82.

Onespan Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 4th. Shareholders of record on Friday, August 14th were issued a dividend of $0.13 per share. The ex-dividend date was Friday, August 14th. This represents a $0.52 annualized dividend and a yield of 2.6%. Onespan's dividend payout ratio is presently 29.21%.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on OSPN. Rosenblatt Securities downgraded Onespan from a "buy" rating to a "neutral" rating and set a $18.00 price target for the company. in a report on Tuesday. Weiss Ratings raised Onespan from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, September 14th. Finally, DA Davidson boosted their price objective on Onespan from $14.00 to $16.00 and gave the company a "neutral" rating in a research note on Wednesday, August 5th. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, Onespan presently has an average rating of "Hold" and a consensus target price of $17.00.

Onespan Company Profile

OneSpan Inc NASDAQ: OSPN provides digital identity, authentication and electronic signature solutions for organizations that need to secure online transactions and interactions. Its technology is designed to help businesses verify users, protect accounts and transactions, and meet security and compliance requirements across digital channels.

The company's offerings include DIGIPASS authentication products, mobile and hardware authenticators, transaction-signing tools, adaptive authentication and identity verification capabilities.

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