Onespan Q2 earnings call highlights. August 4, 2026 Key points. * OneSpan raised its 2026 outlook after reporting second-quarter revenue of $60.5 million, adjusted EBITDA of $16.9 million and stronger e-signature and expected hardware demand. Full-year revenue guidance increased to $248 million-$252 million, while adjusted EBITDA guidance rose to $67 million-$71 million. * Subscription revenue grew 11% to $47 million, reaching 77% of total revenue, while ARR increased 6.7% to $189.7 million. Digital agreements revenue rose 25.2%, offsetting a 7.5% decline in cybersecurity revenue and contributing to improved segment profitability. * OneSpan launched the DigipassONE integrated authentication platform, combining passkeys, digital wallets, mobile protection and analytics. The company expects cross-selling opportunities with existing bank customers and is conducting customer proofs of concept for its Verify capability in the second half of 2026. * MarketBeat previews the top five stocks to own by September 1st. Onespan NASDAQ: OSPN reported second-quarter 2026 revenue of $60.5 million, up 1% from a year earlier, as growth in subscription revenue and digital agreements partly offset lower hardware and perpetual-maintenance revenue. The company raised its full-year revenue and adjusted EBITDA outlook, citing stronger e-signature consumption and higher expected hardware revenue in the second half. Subscription revenue increased 11% year over year to $47 million and represented 77% of total revenue, compared with 70% in the prior-year quarter. Annual recurring revenue rose 6.7% to $189.7 million, while net retention was 103%. Chief Executive Officer Victor Limongelli said the quarter included "solid profitability," with adjusted EBITDA of $16.9 million, or 27.9% of revenue. The company also returned nearly $8 million to shareholders during the quarter through dividends and share repurchases, and its board approved a quarterly dividend of $0.13 per share. DigipassONE platform launch. OneSpan highlighted the recent launch of DigipassONE, an integrated authentication and security platform incorporating technologies acquired through Nok Nok Labs and Build38 along with OneSpan's existing offerings. Limongelli said the platform includes four components: DigipassONE Authenticate, DigipassONE Verify, DigipassONE Protect and DigipassONE Insights. The offering combines authentication methods including passkeys, FIDO2 security keys, hardware tokens, mobile authenticators and software authenticators. It also includes verifiable credentials and digital-wallet capabilities, mobile application protection, and analytics from authentication and application-protection signals. The company said it sees future opportunities in agent-driven banking interactions, alongside existing branch, website and mobile-app channels. Limongelli said OneSpan expects banks will need tools to authenticate customers, verify intent and protect transactions as such interactions emerge. During the question-and-answer session, Limongelli said DigipassONE Protect and the newer DigipassONE Verify capability create cross-selling opportunities within the company's established bank customer base. He said OneSpan released an early version of DigipassONE Verify in June and is conducting proof-of-concept work with customers during the second half of 2026. Limongelli also pointed to European digital-identity regulations, saying countries must complete wallet specifications by year-end and banks will need to accept such wallets by the end of 2027. He said the company does not yet have a clear read on customer budgets for 2027 because sales efforts remain focused on closing 2026 business. Segment performance. Cybersecurity revenue declined 7.5% to $40.9 million. Subscription revenue in the unit rose 2.5% to $27.2 million, supported by customer expansions, new customer wins, and contributions from the Nok Nok and Build38 acquisitions. The increase was partly offset by lower multiyear term-license revenue and lower pass-through renewal catch-up revenue than in the prior-year quarter. Discover more Dividend Screener Tool American Consumer News Cybersecurity ARR increased 7.4% to $123 million, including the Build38 acquisition and a previously disclosed $3 million headwind. Operating income in the division was $13.8 million, or 34% of revenue, down from $19.8 million, or 45% of revenue, a year earlier. Chief Financial Officer Jorge Martell attributed the decline to revenue and gross-margin factors, expenses associated with acquired companies, and increased organic investments. Digital agreements revenue climbed 25.2% to $19.5 million, driven by overage revenue, renewal-contract expansions and new customers. ARR in the segment grew 5.3% to $66.7 million. Operating income rose to $7 million, or 35.7% of revenue, from $2.9 million, or 18.4% of revenue, in the prior-year period. Martell said overage revenue was primarily generated by a couple of customers exceeding committed transaction volumes. He said overages are not included in ARR or net retention metrics but can indicate higher platform activity that may lead to future expansion contracts. The company expects further overages in the third quarter, though at a lower level than in the second quarter. Profitability, cash and outlook. Companywide gross margin was 73.6%, compared with 73.5% a year earlier. GAAP operating income was $8.7 million, down from $10.5 million, while GAAP earnings per share were $0.18, compared with $0.21. Non-GAAP earnings per share were $0.30, down from $0.34 in the prior-year quarter. At quarter-end, OneSpan had $43.3 million in cash and cash equivalents and $5 million outstanding under its credit facility, compared with $49.8 million in cash and no debt at the end of the first quarter. Quarterly cash uses included $4.8 million for dividends, $2.9 million for repurchasing about 230,000 shares, and $3 million for capitalized software development. Operating cash flow was an outflow of $0.1 million, which Martell attributed primarily to working-capital fluctuations. For full-year 2026, OneSpan raised its total revenue outlook to $248 million to $252 million from its prior range of $244 million to $249 million. The company now expects: * Software and services revenue of $202 million to $204 million. * Hardware revenue of $46 million to $48 million, up from prior guidance of $43 million to $45 million. * ARR of $194 million to $198 million. * Adjusted EBITDA of $67 million to $71 million, compared with previous guidance of $64 million to $68 million. Martell said the updated outlook reflects expected incremental e-signature contract overages and stronger hardware revenue, particularly in the fourth quarter. He said approximately one-third of expected second-half hardware revenue is forecast for the third quarter, with a stronger fourth quarter anticipated. About Onespan (NASDAQ:OSPN). 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Continue following MarketBeat Before you consider Onespan, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. 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OneSpan introduces DigipassONE, bringing a unified platform approach to authentication modernization. A new authentication platform helps financial institutions support diverse customer authentication preferences while modernizing at their own pace BOSTON-(BUSINESS WIRE)- Organizations are under increasing pressure to modernize authentication while supporting existing infrastructure, meeting evolving regulatory requirements, deploying emerging technologies, and reducing operational complexity. For financial institutions in particular, authentication modernization must balance security, compliance, and operational efficiency while meeting the evolving expectations and preferences of their customers. Yet the journey to modern authentication is rarely a single technology transition. Organizations must continue supporting multiple authentication methods while gradually adopting new technologies, making it essential to modernize without disrupting existing environments, user experiences, or business operations. To help organizations navigate this transition, OneSpan Inc. (NASDAQ: OSPN) today announced DigipassONE(TM), its unified platform for authentication, transaction security, in-app protection, analytics and digital credential innovation. DigipassONE introduces a common platform architecture that simplifies how organizations deploy, manage, and expand authentication capabilities while enabling them to support evolving customer authentication preferences through technologies such as passkeys and digital credentials. By bringing together authentication, transaction signing, digital credentials, analytics, and in-application protection through shared platform services, DigipassONE provides a practical path for organizations looking to modernize authentication without unnecessary operational disruption. This launch marks an important step in OneSpan's platform strategy and reflects how authentication is evolving across the industry. Financial institutions worldwide are modernizing authentication while preparing for emerging identity technologies, evolving regulations, and new digital trust models. Initiatives such as the European Digital Identity Wallet rollout, targeting 80% citizen adoption by 2030, and regulations including PSD3 illustrate this broader shift, reinforcing the need for flexible authentication platforms that can adapt to changing requirements. At the same time, enterprises are not standardizing on a single authentication approach. Instead, financial institutions and other high-value trust organizations require the flexibility to support multiple forms of strong customer authentication across diverse environments, use cases, and regulatory requirements. DigipassONE is designed to create that bridge by unifying OneSpan's trusted authentication technologies - including OTP, FIDO2, Digipass, and Cronto transaction-signing capabilities - within a single platform. Whether deployed on-premises or in the cloud, in software or hardware form factors, DigipassONE provides these organizations with the freedom to modernize at their own pace while meeting evolving demands for security, compliance, and customer experience. The new platform helps organizations evolve from today's authentication environments toward tomorrow's technologies - from traditional authentication to FIDO2 passwordless experiences, from standalone authentication products toward a shared platform architecture, and from today's identity requirements toward emerging digital credential ecosystems. Rather than requiring organizations to replace existing authentication investments, DigipassONE enables them to modernize in line with their business priorities and adoption timelines while supporting the diverse authentication preferences, security needs, and digital experiences their customers expect. As part of this evolution, OneSpan recently introduced an early-access release of its digital credentials solution, enabling organizations to issue and verify credentials within authentication and transaction workflows. This reflects OneSpan's continued investment in digital credentials while establishing a foundation for future platform innovation. "Authentication modernization is not a rip-and-replace exercise," said Guillaume Teixeron, senior analyst at KuppingerCole. "Financial institutions in particular will run hardware tokens, mobile authenticators, and passkeys side by side for years, and the real differentiator is no longer any single method but the ability to manage that coexistence without abandoning existing investments." "Authentication isn't evolving in a straight line," said Ashish Jain, Chief Technology Officer at OneSpan. "Organizations will support multiple authentication technologies for years to come while balancing security, user experience, regulatory expectations, and operational complexity. DigipassONE reflects our belief that modernization should happen progressively, giving customers a practical path to adopt what's next without abandoning what already works." With DigipassONE, organizations benefit from a modular platform approach built around four strategic areas: * Modernize without disruption by supporting emerging authentication technologies while preserving existing authentication investments and accommodating diverse customer authentication preferences. * Strengthen security through high-assurance authentication and transaction signing that help protect customer accounts and digital interactions. * Simplify authentication management through shared administration, policies, reporting, and monitoring. * Expand over time through a modular platform that supports progressive adoption of new authentication technologies as customer expectations, business needs and regulatory requirements evolve. Built on more than 30 years of authentication experience and one of the industry's broadest authentication portfolios, DigipassONE reflects OneSpan's continued investment in helping organizations navigate the authentication modernization journey. Today, more than 60% of the world's 100 largest banks rely on OneSpan authentication technologies to help secure critical digital interactions. The company's longstanding leadership within the FIDO ecosystem and recognition as an Overall Leader in KuppingerCole Analysts' Leadership Compass for Passwordless Authentication further reinforce its leadership in the evolving authentication market. Today's announcement represents the first step in OneSpan's platform strategy, building on recent investments and innovations across its authentication portfolio. As authentication technologies, regulations, and customer requirements continue to evolve, DigipassONE is designed to provide a flexible foundation that helps organizations modernize authentication through a practical, progressive approach. About OneSpan OneSpan helps organizations build secure, seamless, and trusted digital experiences through two solution portfolios: Cybersecurity and Digital Agreements. Its 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. Its digital agreements 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. Forward-Looking Statements This press release contains forward-looking statements within the meaning of applicable U.S. securities laws, including statements regarding the expected capabilities, future development and continued evolution of its DigipassONE solution, including expanded support for digital credentials and identity frameworks. Forward-looking statements may be identified by words or phrases 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 the factors described in the "Risk Factors" section of our Annual Report on Form 10-K, as updated by the "Risk Factors" section of our Quarterly Reports on Form 10-Q. Our filings with the Securities and Exchange Commission (the "SEC") and other important information can be found in the Investor Relations section of its website at investors.onespan.com. Novumpr 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 its 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. Media contact: Nicole Bosgraaf Director, Brand & Communications +1-401-219-2131 [email protected] Investor contact: Joe Maxa Vice President of Investor Relations +1-312-766-4009 [email protected]