OneSpan Q1 Revenue Up 4.1% to $65.9M, ARR Up 14.1% to $192.1M
OneSpan reported Q1 revenue of $65.9 million, up 4.1% year-over-year, with adjusted EBITDA of $21 million (31.9% margin) and ARR up 14.1% to $192.1 million. Subscription revenue was $52.7 million; cybersecurity ARR grew 16.5% to $124.6 million; the company approved a $0.13 dividend, repurchased 1.5 million shares for $18 million.
1. Q1 Revenue and Profitability
OneSpan generated revenue of $65.9 million in Q1 2026, marking a 4.1% increase year-over-year. Adjusted EBITDA reached $21 million, representing a 31.9% margin, while GAAP net income per share declined to $0.30 from $0.37 and non-GAAP EPS fell to $0.39 from $0.45.
2. Recurring Revenue Growth
Annual recurring revenue rose 14.1% to $192.1 million. Subscription revenue increased 8.2% to $52.7 million (80% of total sales), cybersecurity ARR grew 16.5% to $124.6 million, and digital agreements ARR climbed 9.9% to $67.5 million.
3. Shareholder Returns and Cash Flow
OneSpan generated $28.2 million in operating cash flow and held $49.8 million in cash and equivalents. The board approved a $0.13 quarterly dividend and repurchased 1.5 million shares for approximately $18 million over the past three quarters.
4. Headwinds and Outlook
Operating income declined due to higher costs, including a $3 million ARR headwind in Q2 from two contract non-renewals, and hardware revenue continued its long-term decline, falling 4.3% in the quarter.