Onespan (NASDAQ:OSPN) releases earnings results, beats estimates by $0.11 EPS. October 29, 2026 Key points. * OneSpan beat quarterly expectations: EPS was $0.35 versus the $0.24 consensus, while revenue rose 12% to $63.9 million. Gross margin improved to 76.3%, and subscription revenue increased 16%. * The company raised its 2026 outlook for revenue to $254 million-$258 million, ARR to $197 million-$201 million, and adjusted EBITDA to $72 million-$76 million. It also generated $16.5 million in operating cash flow and approved a $0.13 quarterly dividend. * Growth is being driven by existing customers and new products, though management expects near-term headwinds from pulled-forward hardware shipments and declining overage revenue. Analysts remain cautious, with OneSpan carrying a consensus "Hold" rating and a $17 price target. * Five stocks to consider instead of Onespan. Onespan (NASDAQ:OSPN - Get Free Report) posted its earnings results on Thursday. The company reported $0.35 EPS for the quarter, beating the consensus estimate of $0.24 by $0.11, FiscalAI reports. Onespan had a return on equity of 16.91% and a net margin of 27.76%. The firm had revenue of $63.89 million during the quarter, compared to the consensus estimate of $57.43 million. 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%. Shares of NASDAQ:OSPN traded up $0.07 during mid-day trading on Thursday, hitting $20.15. 956,536 shares of the company traded hands, compared to its average volume of 556,595. The company has a current ratio of 1.33, a quick ratio of 1.23 and a debt-to-equity ratio of 0.02. The stock has a market cap of $742.53 million, a P/E ratio of 11.32, a P/E/G ratio of 1.75 and a beta of 1.59. The stock has a 50-day moving average price of $17.52 and a two-hundred day moving average price of $13.97. Onespan has a 12-month low of $10.07 and a 12-month high of $20.82. Onespan dividend announcement. The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 4th. Shareholders of record on Friday, August 14th were issued a dividend of $0.13 per share. The ex-dividend date was Friday, August 14th. This represents a $0.52 annualized dividend and a yield of 2.6%. Onespan's dividend payout ratio is presently 29.21%. Analyst upgrades and downgrades. A number of brokerages have weighed in on OSPN. Rosenblatt Securities downgraded Onespan from a "buy" rating to a "neutral" rating and set a $18.00 price target for the company. in a report on Tuesday. Weiss Ratings raised Onespan from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, September 14th. Finally, DA Davidson boosted their price objective on Onespan from $14.00 to $16.00 and gave the company a "neutral" rating in a research note on Wednesday, August 5th. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, Onespan presently has an average rating of "Hold" and a consensus target price of $17.00. Discover more MarketBeat All Access MarketBeat Research Tools Onespan company profile. 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. 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]. 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. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Onespan wasn't on the list. While Onespan currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys. Looking for higher dividend income in 2027? Discover seven high-yield dividend stocks with attractive payouts, proven dividend histories and growth potential. Continue following MarketBeat

What Onespan (OSPN) said on its Q3 earnings call. October 29, 2026 Key points. * OneSpan delivered strong Q3 growth: Revenue rose 12% to $63.9 million, driven by double-digit gains in Cybersecurity and Digital Agreements, while subscription revenue increased 16% and gross margin expanded to 76.3%. * Profitability and recurring metrics improved: ARR grew 8.5% to $195.5 million, net retention reached 105%, adjusted EBITDA increased to $19.3 million, and operating cash flow totaled $16.5 million. * The company raised its 2026 outlook: OneSpan now expects revenue of $254 million to $258 million, ARR of $197 million to $201 million, and adjusted EBITDA of $72 million to $76 million. Hardware revenue guidance was unchanged as some token deliveries shifted into Q3 from Q4. * Interested in Onespan? Here are five stocks we like better. Onespan NASDAQ: OSPN reported third-quarter 2026 revenue growth of 12%, supported by double-digit gains in both its Cybersecurity and Digital Agreements businesses, while raising its full-year revenue, annual recurring revenue and adjusted EBITDA outlook. Revenue for the quarter totaled $63.9 million, compared with the prior-year period. Subscription revenue increased 16% to $51.5 million and represented 81% of total revenue, up from 78% a year earlier. Hardware revenue rose 7%, while perpetual maintenance revenue declined as customers continued to transition to term licenses. Chief Executive Officer Victor Limongelli said the company delivered "an excellent third quarter," citing 14% growth in Digital Agreements revenue and 11% growth in Cybersecurity revenue. He also highlighted a companywide gross retention rate of 91% and gross margin expansion to 76.3% from 73.6% a year earlier. ARR, Profitability and cash flow. Annual recurring revenue, or ARR, rose 8.5% year over year to $195.5 million. Chief Financial Officer Jorge Martell said ARR growth was driven by expansions within existing customer contracts, new customer additions and the Build38 acquisition, which contributed about 1.5 percentage points to ARR growth. Net retention rate was 105%, compared with 103% in the previous quarter. GAAP operating income increased to $9.2 million from $8.2 million in the third quarter of 2025. GAAP earnings per share rose to $0.20 from $0.17, while non-GAAP earnings per share increased to $0.35 from $0.33. Adjusted EBITDA totaled $19.3 million, compared with $17.5 million a year earlier, although adjusted EBITDA margin narrowed slightly to 30.1% from 30.7%. The company generated $16.5 million in operating cash flow during the quarter and ended the period with $51.4 million in cash and cash equivalents. OneSpan had $5 million outstanding under its credit facility at quarter-end, which it repaid after the quarter closed. OneSpan's board approved a quarterly dividend of $0.13 per share. Limongelli said the company has returned $55 million to shareholders through dividends and stock repurchases since the beginning of 2025, or just under $1.50 per share. Cybersecurity revenue benefits from expansions. Cybersecurity revenue increased 11.3% to $44.9 million. Subscription revenue within the division grew 17.4% to $32.5 million, driven primarily by customer expansion agreements, multi-year term-license revenue, new customers, acquisitions and new products. Hardware revenue rose 7% to $10.5 million. Discover more MarketBeat All Access MarketBeat Research Tools Martell said certain customers requested earlier-than-expected Digipass token deliveries, shifting some hardware revenue that had been anticipated in the fourth quarter into the third quarter. As a result, OneSpan expects a lower hardware contribution in the fourth quarter, though its full-year hardware outlook remains unchanged. Cybersecurity ARR rose 10.1% to $127.2 million. The unit's gross margin increased to 77% from 74%, reflecting a greater mix of subscription revenue and more favorable hardware shipments, partly offset by amortization associated with Build38. Operating income for the division was $18.5 million, or 41% of revenue, compared with $16.7 million in the prior-year quarter. During the quarter, OneSpan launched its DigipassONE platform, which combines its authentication, mobile application protection, credential-verification and analytics offerings. Limongelli said the company plans to release DigipassONE Verify early next year and DigipassONE Insights afterward. Limongelli said the company expects its verification offering to be particularly relevant for European banks as the European Digital Identity Regulation requires banks to support digital identity wallets for customer onboarding and authentication by December 2027. In response to analyst questions, Limongelli said the company believes its hardware business has become more sustainable, with FIDO2 security keys expected to contribute increasingly in 2027 and later years. However, he said the hardware business through the first three quarters remained predominantly tied to older banking-related products. Digital Agreements margin expands. Digital Agreements revenue grew 13.5% to $19 million, driven by customer overages, expansion renewals and new customer additions. ARR for the unit increased 5.7% to $68.4 million. Martell said a major banking customer that had generated overage revenue signed a renewed contract during the quarter with a materially larger annual commitment. The customer's revenue will now be recognized ratably under the multi-year contract, resulting in lower overage revenue in the fourth quarter as overages return toward more typical levels. Digital Agreements gross margin rose to 74% from 72%, aided by higher revenue and improved cloud infrastructure efficiency. Operating income increased to $6.9 million, or 37% of revenue, from $4.2 million, or 25% of revenue, a year earlier. Limongelli said OneSpan is adding capabilities to OneSpan Sign aimed at improving agreement completion, strengthening identity and document assurance, and connecting completed agreements with customers' downstream systems and processes. The investments include a redesigned user experience, AI-assisted document validation, identity-verification features and broader integrations. He said the company has generally bundled these capabilities to date as part of its product differentiation strategy. Full-Year outlook raised. OneSpan raised its 2026 outlook following the third-quarter performance. The company now expects: * Total revenue of $254 million to $258 million, up from prior guidance of $248 million to $252 million. * Software and services revenue of $208 million to $210 million, compared with prior guidance of $202 million to $204 million. * Hardware revenue of $46 million to $48 million, unchanged from prior guidance. * ARR of $197 million to $201 million, up from $194 million to $198 million previously. * Adjusted EBITDA of $72 million to $76 million, compared with prior guidance of $67 million to $71 million. Martell said the revised outlook reflects higher expected fourth-quarter software and services revenue, partly offset by lower hardware revenue because of the earlier token shipments. The company expects full-year gross margin to be slightly above 74%. About Onespan (NASDAQ:OSPN). 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. 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]. 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. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Onespan wasn't on the list. While Onespan currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys. Discover the next wave of investment opportunities with our report, 7 Stocks That Will Be Magnificent in 2026. Explore companies poised to replicate the growth, innovation, and value creation of the tech giants dominating today's markets. Continue following MarketBeat

OneSpan shares have returned 31.4% over the past year, including dividends, and now trade at $20.19 against $15.8 at the start of the period. The digital security company's latest results were mixed. Second-quarter 2026 revenue rose to $60.466 million from $59.843 million a year earlier. Net income fell from $8.342 million to $6.781 million, and net margin slipped from 13.9% to 11.2%. Simply Wall St's bullish case puts fair value at $19.5, assuming revenue growth of 5.3% a year and a 9.3% profit margin. The cautious case sets it at $15, citing reliance on legacy financial clients. Subscription revenue made up about 77% of the total in the quarter. However, two non-financial customers that did not renew cost OneSpan $3 million in annual recurring revenue.