Onespan (NASDAQ:OSPN) Releases Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Onespan (NASDAQ:OSPN) posted its earnings results on Thursday. The company reported $0.36 EPS for the quarter, beating analysts’ consensus estimates of $0.31 by $0.05, FiscalAI reports. Onespan had a return on equity of 18.41% and a net margin of 24.08%.The firm had revenue of $62.92 million during the quarter, compared to the consensus estimate of $59.78 million.

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

• OneSpan is now a predominantly software business with ARR of $187 million (up 11.5% YoY) and software/services expected to be >80% of revenue in 2026, driven by subscription growth in both Cybersecurity and Digital Agreements.
• The company generated strong profitability and cash flow in 2025 — $77.6M adjusted EBITDA for the year and ~$59.5M operating cash flow — while returning ~$32M to shareholders and raising the quarterly dividend to $0.13.
• Management is pursuing targeted M&A to strengthen product lines, notably the planned acquisition of Build38 (to deepen App Shielding) and prior deals (Nok Nok, ThreatFabric) to broaden mobile protection and authentication capabilities.
• Near-term profitability will be modestly impacted by planned investments (~$5.5M incremental S&M and R&D in 2026) and the Build38 acquisition, which management expects to dilute adjusted EBITDA by about $3M–$4M in 2026.
• 2026 guidance calls for modest growth — ARR of $192M–$196M (3%–5%), software/services revenue $201M–$204M (4%–5%) and total revenue $244M–$249M (0%–2%) — with adjusted EBITDA guided to $64M–$68M.

Onespan Trading Up 2.1%

Shares of OSPN traded up $0.23 during trading hours on Thursday, reaching $11.37. 413,589 shares of the company traded hands, compared to its average volume of 716,319. The firm has a market cap of $432.40 million, a price-to-earnings ratio of 7.73, a PEG ratio of 0.87 and a beta of 1.53. Onespan has a 12-month low of $10.17 and a 12-month high of $18.13. The stock’s fifty day moving average price is $11.99 and its 200 day moving average price is $13.42.

Analyst Ratings Changes

A number of brokerages have commented on OSPN. Wall Street Zen cut shares of Onespan from a “buy” rating to a “hold” rating in a research note on Saturday, January 3rd. Rosenblatt Securities lowered their price target on shares of Onespan from $17.00 to $15.00 and set a “buy” rating for the company in a report on Friday, October 31st. Weiss Ratings reissued a “hold (c+)” rating on shares of Onespan in a research note on Monday, December 29th. Finally, DA Davidson decreased their price objective on Onespan from $15.00 to $13.00 and set a “neutral” rating on the stock in a research report on Friday, October 31st. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $17.00.

Institutional Investors Weigh In On Onespan

Several large investors have recently added to or reduced their stakes in the stock. Comerica Bank increased its position in shares of Onespan by 455.2% during the first quarter. Comerica Bank now owns 2,465 shares of the company’s stock worth $38,000 after acquiring an additional 2,021 shares during the period. Royal Bank of Canada raised its position in Onespan by 37.0% during the 1st quarter. Royal Bank of Canada now owns 67,916 shares of the company’s stock valued at $1,036,000 after purchasing an additional 18,328 shares in the last quarter. Rhumbline Advisers lifted its holdings in shares of Onespan by 7.4% in the 2nd quarter. Rhumbline Advisers now owns 58,546 shares of the company’s stock worth $977,000 after buying an additional 4,027 shares during the period. American Century Companies Inc. grew its position in shares of Onespan by 13.3% during the 2nd quarter. American Century Companies Inc. now owns 94,218 shares of the company’s stock worth $1,572,000 after buying an additional 11,032 shares in the last quarter. Finally, Russell Investments Group Ltd. grew its position in shares of Onespan by 85.9% during the 2nd quarter. Russell Investments Group Ltd. now owns 64,353 shares of the company’s stock worth $1,076,000 after buying an additional 29,738 shares in the last quarter. 95.52% of the stock is owned by hedge funds and other institutional investors.

About Onespan

OneSpan, formerly known as Vasco Data Security International, is a Chicago-based cybersecurity software company specializing in digital identity and anti-fraud solutions. Founded in 1991, the company provides a suite of authentication and transaction security products designed to help organizations protect critical applications and high-value transactions across online, mobile and in-branch channels.

The core OneSpan portfolio includes multi-factor authentication, risk-based authentication and transaction signing solutions.