OneSpan Inc. reported third‑quarter 2025 financial results, posting total revenue of $57.1 million, operating income of $8.2 million, and net income of $6.5 million. The company earned $0.17 per share on a diluted basis, and its operating margin stood at 14.4%.
Software and subscription revenue accounted for more than 80% of total sales, with subscription revenue growing 12% year‑over‑year. The modest 1% overall revenue increase was driven by subscription growth, which offset a decline in hardware revenue.
Revenue from the Security Solutions segment totaled $40.3 million, with annual recurring revenue of $115.5 million, while the Digital Agreements segment generated $16.7 million in revenue and $65 million in ARR. Both segments showed year‑over‑year growth of 1% and 9%, respectively.
The company completed the acquisition of Nok Nok Labs on June 4 2025, adding $8.1 million to ARR in Q2 2025. Management expects the acquisition to be accretive to earnings in Q4 2025 and to strengthen OneSpan’s position in passwordless authentication.
Operating cash flow for the quarter was $11 million, and year‑to‑date operating cash flow reached $46.9 million. OneSpan held $85.6 million in cash and equivalents and secured a $100 million revolving credit facility in June 2025, reinforcing its liquidity position.
Full‑year 2025 revenue guidance was revised downward to $239‑$241 million, and ARR guidance was lowered to $183‑$187 million. Adjusted EBITDA guidance remained unchanged, reflecting confidence in profitability. Management cited hardware headwinds and slower net expansion in security as reasons for the guidance revision.
CEO Victor Limongelli highlighted the company’s progress in building a foundation for long‑term growth, emphasizing strong profitability, cash generation, and the performance of its software business. He noted that the shift to a software‑centric model is advancing and that the company remains focused on delivering value to customers and shareholders.
OneSpan plans to return approximately $25 million to shareholders through dividends and share repurchases by the end of 2025, underscoring its commitment to shareholder value.
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