OneSpan Reports Third Quarter 2026 Financial Results

By Business Wire | October 29, 2026, 4:01 PM

Revenue increased 12% year-over-year to $63.9 million
Subscription revenue increased 16% year-over-year to $51.5 million
Operating income increased 12% year-over-year to $9.2 million
Adjusted EBITDA increased 10% year-over-year to $19.3 million¹
Annual Recurring Revenue (ARR) increased 9% year-over-year to $195.5 million²
Net Retention Rate (NRR) of 105%³

BOSTON--(BUSINESS WIRE)--OneSpan Inc. (NASDAQ: OSPN) today reported financial results for the third quarter ended September 30, 2026.

“We delivered an excellent third quarter, highlighted by 16% subscription revenue growth and a 12% increase in operating income,” stated OneSpan CEO Victor Limongelli. “We have continued to improve our execution in both our Cybersecurity business and our Digital Agreements business; we are doing so while also investing to strengthen our competitive position and support longer-term growth.”

Third Quarter 2026 Financial Highlights

Total revenue was $63.9 million, an increase of 12% compared to $57.1 million for the same quarter of 2025. Cybersecurity revenue was $44.9 million, an increase of 11% year-over-year. Digital Agreements revenue was $19.0 million, an increase of 14% year-over-year.

ARR increased 9% year-over-year to $195.5 million.

Gross profit was $48.7 million, or 76% gross margin, compared to $42.0 million, or 74% gross margin, in the same period last year.

Operating income was $9.2 million, compared to operating income of $8.2 million in the same period last year.

Net income was $7.8 million, or $0.20 per diluted share, compared to net income of $6.5 million, or $0.17 per diluted share, in the same period last year. Non-GAAP net income was $13.6 million, or $0.35 per diluted share, compared to non-GAAP net income of $12.9 million, or $0.33 per diluted share in the same period last year.¹

Adjusted EBITDA was $19.3 million, compared to $17.5 million in the same period last year.

Cash and cash equivalents were $51.4 million at September 30, 2026 compared to $70.5 million at December 31, 2025.

Recent Business Highlights

OneSpan announced advances in DigipassONE, the unified platform it introduced in July, including an upcoming DigipassONE Authenticate Free Trial planned for November 2026, giving organizations that are evaluating where passkeys fit within their authentication strategy a practical way to experiment with them firsthand; and progress on DigipassONE Verify following its early access introduction, with general availability expected in early 2027.

The Company announced new and planned Digital Agreements innovations, including AI-assisted capabilities, automated document validation, advanced identity verification, and expanded integrated capabilities.

OneSpan’s Board of Directors has declared a quarterly cash dividend of $0.13 per share as part of the Company’s recurring quarterly dividend program. The dividend is payable on December 4, 2026 to shareholders of record as of the close of business on November 13, 2026.

Financial Outlook

OneSpan is updating its previously issued financial guidance to reflect increases in its software and services revenue, ARR, and Adjusted EBITDA expectations. For the Full Year 2026, the Company expects:

Total revenue to be in the range of $254 million to $258 million, as compared to its previous guidance range of $248 million to $252 million.

Software and services revenue to be in the range of $208 million to $210 million, as compared to its previous guidance range of $202 million to $204 million.

Hardware revenue to be in the range of $46 million to $48 million, unchanged from its previous guidance.

ARR to be in the range of $197 million to $201 million, as compared to its previous guidance range of $194 million to $198 million.

Adjusted EBITDA to be in the range of $72 million to $76 million, as compared to its previous guidance range of $67 million to $71 million.

Conference Call Details

In conjunction with this announcement, OneSpan Inc. will host a conference call today, October 29, 2026, at 4:30 p.m. ET. During the conference call, Mr. Victor Limongelli, CEO, and Mr. Jorge Martell, CFO, will discuss OneSpan’s results for the third quarter 2026.

A live webcast of the conference call will be accessible from the OneSpan investor relations website at investors.onespan.com. Shortly after the conclusion of the call, a replay of the webcast will be available on the same website.

Participants can pre-register for the webcast by clicking on this registration link.


1		An explanation of the use of Non-GAAP financial measures is included below under the heading “Non-GAAP Financial Measures.” A reconciliation of each Non-GAAP financial measure to the most directly comparable GAAP financial measure has also been provided in the tables below. We are not providing a reconciliation of Adjusted EBITDA guidance to GAAP net income, the most directly comparable GAAP measure, because we are unable to predict certain items included in GAAP net income without unreasonable efforts.

2		ARR is calculated as the approximate annualized value of our customer recurring contracts as of the measurement date. These include subscription, term-based license, and maintenance and support contracts and exclude one-time fees. To the extent that we are negotiating a renewal with a customer within 90 days after the expiration of a recurring contract, we continue to include that revenue in ARR if we are actively in discussion with the customer for a new recurring contract or renewal and the customer has not notified us of an intention to not renew. See our Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 for additional information describing how we define ARR, including how ARR differs from GAAP revenue.

3		NRR is defined as the approximate year-over-year growth in ARR from the same set of customers at the end of the prior year period.

About OneSpan

OneSpan helps organizations build secure, seamless, and trusted digital experiences through two solution portfolios: Cybersecurity and Digital Agreements. Our cybersecurity solutions protect identities, secure mobile apps, and safeguard access through advanced high-assurance authentication, threat intelligence, fraud prevention, and robust mobile app protection, defending users, devices, and applications against sophisticated attacks. Our digital agreement solutions streamline agreement workflows with secure e-signatures, identity verification, and smart digital forms, built to enable speed, compliance and exceptional customer experiences. Trusted by leading global enterprises, including more than 60% of the world’s 100 largest banks, OneSpan processes over 100 million digital agreements and billions of secure authentication transactions across more than 120 countries each year.

For more information, visit our website, explore our blog, or follow us on LinkedIn or YouTube.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable U.S. securities laws, including statements regarding our 2026 financial guidance; our planned availability dates for the DigipassONE Authenticate Free Trial and the general availability of DigipassONE Verify; expectations regarding our products and product innovations, including with respect to DigipassONE and our Digital Agreements business; and our general goals and expectations regarding our operational or financial performance in the future. Forward-looking statements may be identified by words such as "seek", "believe", "plan", "estimate", "anticipate", “expect", "intend", "continue", "outlook", "may", "will", "should", "could", or "might", and other similar expressions. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could materially affect our business and financial results include, but are not limited to: our ability to attract new customers and retain and expand sales to existing customers; our ability to successfully develop and market new product offerings and product enhancements; changes in customer requirements; the potential effects of technological changes; the loss of one or more large customers; difficulties enhancing and maintaining our brand recognition; competition; lengthy sales cycles; unintended costs and consequences of our cost reduction and restructuring actions, including higher than anticipated restructuring charges, disruption to our operations, litigation or regulatory actions, or employee turnover; challenges retaining key employees and successfully hiring and training qualified new employees; security breaches or cyber-attacks; real or perceived malfunctions or errors in our products; interruptions or delays in the performance of our products and solutions; reliance on third parties for certain products and data center services; our ability to effectively manage third party partnerships, acquisitions, divestitures, alliances, or joint ventures; economic recession, inflation, tariffs or trade disputes, and political instability; claims that we have infringed the intellectual property rights of others; changing laws, government regulations or policies; pressures on price levels; component shortages; delays and disruption in global transportation and supply chains; impairment of goodwill or amortizable intangible assets causing a significant charge to earnings; actions of activist stockholders; and exposure to increased economic and operational uncertainties from operating a global business, as well as other factors described in the “Risk Factors” section of our most recent Annual Report on Form 10-K, as updated by the “Risk Factors” section of our subsequent Quarterly Reports on Form 10-Q (if any). Our filings with the Securities and Exchange Commission and other important information can be found in the Investor Relations section of our website at investors.onespan.com. We do not have any intent, and disclaim any obligation, to update the forward-looking information to reflect events that occur, circumstances that exist or changes in our expectations after the date of this press release, except as required by law.

Unless otherwise noted, references in this press release to “OneSpan”, “Company”, “we”, “our”, and “us” refer to OneSpan Inc. and its subsidiaries.


OneSpan Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

	Three Months Ended September 30,							Nine Months Ended September 30,
	2026				2025			2026			2025
Revenue
Product and license	$	31,505			$	27,712		$	95,187		$	97,189
Services and other		32,380				29,344			95,111			83,076
Total revenue		63,885				57,056			190,298			180,265

Cost of goods sold
Product and license		6,114				7,030			21,505			24,044
Services and other		9,036				8,023			27,061			23,160
Total cost of goods sold		15,150				15,053			48,566			47,204

Gross profit		48,735				42,003			141,732			133,061

Operating costs
Sales and marketing		13,999				11,391			39,752			34,353
Research and development		9,907				8,796			28,891			26,168
General and administrative		14,811				12,152			37,725			33,478
Amortization of intangible assets		775				741			2,248			1,982
Write-off of assets		—				—			314			—
Restructuring and other related charges		—				696			—			1,165
Total operating costs		39,492				33,776			108,930			97,146
				—
Operating income		9,243				8,227			32,802			35,915

Interest (expense) income, net		(80	)			388			(253	)		1,812
Other income (expense), net		292				(208	)		(47	)		(886	)

Income before income taxes		9,455				8,407			32,502			36,841
Provision for income taxes		1,657				1,893			6,358			7,480

Net income	$	7,798			$	6,514		$	26,144		$	29,361

Net income per share
Basic	$	0.21			$	0.17		$	0.70		$	0.77
Diluted	$	0.20			$	0.17		$	0.68		$	0.76

Weighted average common shares outstanding
Basic		37,121				38,136			37,313			38,149
Diluted		39,039				38,768			38,399			38,845


OneSpan Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)

	September 30,			December 31,
	2026			2025
ASSETS
Current assets
Cash and cash equivalents	$	51,393		$	70,499
Accounts receivable, net of allowances of $990 at September 30, 2026 and $1,227 at December 31, 2025		41,842			55,999
Inventories, net		11,102			10,466
Prepaid expenses		7,176			7,044
Contract assets		15,636			18,269
Other current assets		11,446			9,936
Total current assets		138,595			172,213
Property and equipment, net		24,911			22,234
Operating lease right-of-use assets		7,641			7,356
Goodwill		127,687			103,840
Intangible assets, net of accumulated amortization		14,131			9,741
Deferred income taxes		58,902			54,733
Equity investment		11,834			11,834
Other assets		15,535			15,751
Total assets	$	399,236		$	397,702
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	11,556		$	13,726
Deferred revenue		57,439			71,641
Accrued wages and payroll taxes		16,489			13,553
Short-term income taxes payable		2,008			3,079
Dividend payable		1,402			671
Other accrued expenses		14,036			11,859
Deferred compensation		26			42
Total current liabilities		102,956			114,571
Long-term deferred revenue		1,802			2,539
Long-term lease liabilities		6,162			6,139
Deferred income taxes		898			988
Revolving credit facility		5,000			—
Other long-term liabilities		1,618			1,622
Total liabilities		118,436			125,859
Commitments and contingencies
Stockholders' equity
Preferred stock: 500 shares authorized, none issued and outstanding at September 30, 2026 and December 31, 2025		—			—
Common stock: $0.001 par value per share; 75,000 shares authorized; 42,288 and 42,091 shares issued; 36,819 and 37,361 shares outstanding at September 30, 2026 and December 31, 2025, respectively		37			37
Additional paid-in capital		137,844			128,651
Treasury stock, at cost: 5,469 and 4,730 shares at September 30, 2026 and December 31, 2025, respectively		(68,884	)		(60,521	)
Retained earnings		220,578			209,821
Accumulated other comprehensive loss		(8,775	)		(6,145	)
Total stockholders' equity		280,800			271,843
Total liabilities and stockholders' equity	$	399,236		$	397,702


OneSpan Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)

	Nine Months Ended September 30,
	2026			2025
Cash flows from operating activities:
Net income	$	26,144		$	29,361
Adjustments to reconcile net income from operations to net cash provided by operations:
Depreciation and amortization of intangible assets		9,937			7,152
Write-off of assets and restructuring related charges		314			709
Loss on disposal of asset		8			27
Deferred tax benefit		(32	)		(2,716	)
Stock-based compensation		10,802			9,601
Provision for (recovery of) credit losses		19			(303	)
Changes in operating assets and liabilities, net of the effects from acquisition:
Accounts receivable, net		15,126			32,702
Inventories, net		(953	)		909
Contract assets		2,546			(7,758	)
Accounts payable		(2,318	)		(3,935	)
Income taxes payable		(1,114	)		4,763
Accrued expenses		1,077			(2,198	)
Deferred compensation		(16	)		(166	)
Deferred revenue		(16,092	)		(22,030	)
Other assets and liabilities		(886	)		767
Net cash provided by operating activities		44,562			46,885

Cash flows from investing activities:
Additions to property and equipment		(9,526	)		(6,018	)
Additions to intangible assets		(177	)		(54	)
Cash paid for acquisition of business, net of cash acquired		(34,553	)		(13,943	)
Net cash used in investing activities		(44,256	)		(20,015	)

Cash flows from financing activities:
Dividends paid		(14,680	)		(13,878	)
Payment of debt issuance costs		—			(1,739	)
Borrowings from credit facility		5,000			—
Tax payments for restricted stock issuances		(1,608	)		(4,409	)
Repurchase of common stock		(8,297	)		(6,297	)
Net cash used in financing activities		(19,585	)		(26,323	)

Effect of exchange rate changes on cash		173			1,676

Net (decrease) increase in cash		(19,106	)		2,223
Cash, cash equivalents, and restricted cash, beginning of period		70,499			83,331
Cash, cash equivalents, and restricted cash, end of period	$	51,393		$	85,554

Operating Segments

We report our financial results under the following two lines of business, which are our reportable operating segments: Cybersecurity and Digital Agreements.

Cybersecurity. Cybersecurity, formerly Security Solutions, consists of our broad portfolio of software products, software development kits ("SDKs") and Digipass authenticator devices that are used to build applications designed to defend against attacks on digital transactions across online environments, devices, and applications. The software products and SDKs included in the Cybersecurity segment are delivered through on-premises and cloud-based deployment models and include standards-based authentication technologies such as Fast Identity Online ("FIDO") authentication and passkeys, multi-factor authentication, transaction signing solutions and mobile application security.

Digital Agreements. Digital Agreements consists of solutions that enable our clients to secure and automate business processes associated with their digital agreement and customer transaction lifecycles that require consent, non-repudiation and compliance. These solutions, which are cloud-based, include OneSpan Sign e-signature, OneSpan Notary, and Identity Verification.

Segment operating income (loss) consists of the revenues generated by a segment, less the direct costs of revenue, sales and marketing, research and development expenses, general and administrative expenses, restructuring and other related charges, and amortization of intangible assets expense that are incurred directly by a segment. Sales and marketing and research and development expenses were determined to be significant segment expenses. Unallocated corporate costs include costs related to administrative functions that are performed in a centralized manner that are not directly attributable to a particular segment.

Segment and consolidated operating results (unaudited):

	Three Months Ended September 30, 2026
(In thousands, except percentages)	Cybersecurity			Digital Agreements			Corporate and Other			Total
Revenue	$	44,886		$	18,999		$	—		$	63,885
Cost of goods sold		10,291			4,859			—			15,150
Gross profit		34,595			14,140			—			48,735

Gross margin		77	%		74	%	*				76	%

Sales and marketing		9,117			3,375			1,507			13,999
Research and development		6,174			2,815			918			9,907
Other segment items(1)(3)		768			1,015			13,803			15,586
Operating income (loss) (2)(4)		18,536			6,935			(16,228	)		9,243

Interest (expense) income, net											(80	)
Other income (expense), net											292
Income before income taxes										$	9,455

	Three Months Ended September 30, 2025
(In thousands, except percentages)	Cybersecurity			Digital Agreements			Corporate and Other			Total
Revenue	$	40,322		$	16,734		$	—		$	57,056
Cost of goods sold		10,325			4,728			—			15,053
Gross profit		29,997			12,006			—			42,003

Gross margin		74	%		72	%	*				74	%

Sales and marketing		7,202			3,443			746			11,391
Research and development		5,689			2,917			190			8,796
Other segment items(1)(3)		431			1,487			11,671			13,589
Operating income (loss) (2)(4)		16,675			4,159			(12,607	)		8,227

Interest (expense) income, net											388
Other income (expense), net											(208	)
Income before income taxes										$	8,407

	Nine Months Ended September 30, 2026
(In thousands, except percentages)	Cybersecurity			Digital Agreements			Corporate and Other			Total
Revenue	$	134,362		$	55,936		$	—		$	190,298
Cost of goods sold		33,969			14,597			—			48,566
Gross profit		100,393			41,339			—			141,732

Gross margin		75	%		74	%	*				74	%

Sales and marketing		26,503			10,125			3,124			39,752
Research and development		18,429			8,699			1,763			28,891
Other segment items (1)(3)		2,320			3,326			34,641			40,287
Operating income (loss) (2)(4)		53,141			19,189			(39,528	)		32,802

Interest (expense) income, net											(253	)
Other income (expense), net											(47	)
Income before income taxes										$	32,502

	Nine Months Ended September 30, 2025
(In thousands, except percentages)	Cybersecurity			Digital Agreements			Corporate and Other			Total
Revenue	$	132,270		$	47,995		$	—		$	180,265
Cost of goods sold		33,365			13,839			—			47,204
Gross profit		98,905			34,156			—			133,061

Gross margin		75	%		71	%	*				74	%

Sales and marketing		21,402			10,313			2,638			34,353
Research and development		15,966			9,510			692			26,168
Other segment items (1)(3)		902			3,930			31,793			36,625
Operating income (loss) (2)(4)		60,635			10,403			(35,123	)		35,915

Interest (expense) income, net											1,812
Other income (expense), net											(886	)
Income before income taxes										$	36,841

		*Percentage not meaningful.

(1)		Cybersecurity other segment items includes general and administrative expense and amortization of intangibles for the three months ended September 30, 2026, and general and administrative expense, write-off of assets, and amortization of intangibles for the nine months ended September 30, 2026. Cybersecurity other segment items includes general and administrative expense and restructuring and other related charges for the three and nine months ended September 30, 2025.

(2)		Cybersecurity operating income includes $1.1 million and $2.8 million of total amortization and depreciation expense for the three and nine months ended September 30, 2026, respectively. Cybersecurity operating income includes $0.4 million and $0.7 million of total amortization and depreciation expense for the three and nine months ended September 30, 2025, respectively.

		Cybersecurity operating income does not include any restructuring and other related charges for the three and nine months ended September 30, 2026. Cybersecurity operating income includes less than $0.1 million and $0.3 million of restructuring and other related charges for the three and nine months ended September 30, 2025, respectively.

(3)		Digital Agreements other segment items includes general and administrative expense and amortization of intangibles for the three and nine months ended September 30, 2026. Digital Agreements other segment items includes general and administrative expense and restructuring and other related charges for the three and nine months ended September 30, 2025.

(4)		Digital Agreements operating income includes $2.1 million and $6.4 million of total amortization and depreciation expense for the three and nine months ended September 30, 2026, respectively. Digital Agreements operating income includes $1.9 million and $5.5 million of total amortization and depreciation expense for the three and nine months ended September 30, 2025, respectively.

		Digital Agreements operating income does not include any restructuring and other related charges for the three and nine months ended September 30, 2026.

		Digital Agreements operating income includes less than $0.1 million and $0.2 million of restructuring and other related charges for the three and nine months ended September 30, 2025, respectively.

Contacts

Investor Contact:
Joe Maxa
Vice President of Investor Relations
+1-312-766-4009
joe.maxa@onespan.com

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