OSPN · OneSpan Inc.

OneSpan's first quarter 2026 results reflect steady revenue growth driven by its subscription and Digital Agreements segments, though profitability metrics declined year-over-year due to higher operating costs. Total revenue increased 4% to $65.9 million, with Digital Agreements revenue up 11% to $17.4 million, while Cybersecurity revenue grew 2% to $48.5 million. Subscription revenue rose 8% to $52.7 million, contributing to a 14% increase in ARR to $192.1 million and a net retention rate of 105%, indicating strong customer retention and expansion. Gross margin remained stable at 74%. However, operating income fell 14% to $14.8 million, and net income decreased 20% to $11.6 million ($0.30 diluted EPS), as operating costs rose 13% due to higher sales and marketing, R&D, and G&A expenses, along with asset write-offs and acquisition-related amortization. Adjusted EBITDA declined 9% to $21.0 million. Management highlighted the acquisition of Build38 to enhance mobile app protection and reiterated a focus on efficient growth, profitability, and capital returns. The company raised its full-year ARR guidance to $194-$198 million, while maintaining revenue and Adjusted EBITDA guidance. Cash and equivalents stood at $49.8 million at quarter-end, down from $70.5 million due to the Build38 acquisition and share repurchases. The board declared a $0.13 quarterly dividend.