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

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

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%

OSPN stock traded up $0.07 on Thursday, reaching $20.15. 956,536 shares of the company traded hands, compared to its average volume of 556,595. Onespan has a one year low of $10.07 and a one year high of $20.82. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.33 and a quick ratio of 1.23. The company has a market cap of $742.53 million, a P/E ratio of 11.32, a price-to-earnings-growth ratio of 1.75 and a beta of 1.59. The firm has a fifty day simple moving average of $17.52 and a 200-day simple moving average of $13.97.

Onespan Dividend Announcement

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

Analyst Ratings Changes

Several brokerages have recently commented on OSPN. DA Davidson upped their price objective on shares of Onespan from $14.00 to $16.00 and gave the company a “neutral” rating in a research note on Wednesday, August 5th. Weiss Ratings raised Onespan from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday, September 14th. Finally, Rosenblatt Securities cut Onespan from a “buy” rating to a “neutral” rating and set a $18.00 target price on the stock. in a research note on Tuesday. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Onespan has a consensus rating of “Hold” and a consensus target price of $17.00.

About Onespan

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.