In its fiscal second quarter ended July 31, 2025, OneSpan delivered non-GAAP EPS of $0.34, a 9.7% increase from $0.31 a year earlier and ahead of analysts’ consensus of $0.29. GAAP revenue totaled $59.8 million, down 1.8% year-over-year but slightly above the $59.03 million estimate. Subscription revenue grew 22.3% to $36.2 million, reflecting continued progress in the SaaS transition, while overall Security Solutions revenue declined 3% due to lower hardware sales. Operating income climbed 38.2% to $10.5 million, and adjusted EBITDA rose 8.6% to $17.6 million. Annual recurring revenue reached $177.8 million, up 8% year-over-year, bolstered by the $8.1 million ARR contribution from the Nok Nok Labs acquisition. The board declared a quarterly dividend of $0.12 per share and reaffirmed full-year revenue and adjusted EBITDA guidance. OneSpan Inc. reported flat revenue in the first half of fiscal 2025, as growth in its subscription business was fully offset by declines in hardware sales and revenues from legacy products being phased out. Subscription revenue increased by approximately 15% year-over-year, but total top-line growth remained at 0%. Adjusted EBITDA rose modestly by 5%, driven largely by cost-reduction initiatives rather than organic earnings improvements. Share-based compensation and recurring operating expenses continued to weigh on true earnings power, leaving margins essentially unchanged. Management’s muted full-year outlook, reaffirming revenue guidance in the range of $245 million to $251 million and flat adjusted EBITDA targets, does not justify the stock’s current 14x forward earnings valuation, leading the analyst to maintain a Hold rating.
In its fiscal second quarter ended July 31, 2025, OneSpan delivered non-GAAP EPS of $0.34, a 9.7% increase from $0.31 a year earlier and ahead of analysts’ consensus of $0.29. GAAP revenue totaled $59.8 million, down 1.8% year-over-year but slightly above the $59.03 million estimate. Subscription revenue grew 22.3% to $36.2 million, reflecting continued progress in the SaaS transition, while overall Security Solutions revenue declined 3% due to lower hardware sales. Operating income climbed 38.2% to $10.5 million, and adjusted EBITDA rose 8.6% to $17.6 million. Annual recurring revenue reached $177.8 million, up 8% year-over-year, bolstered by the $8.1 million ARR contribution from the Nok Nok Labs acquisition. The board declared a quarterly dividend of $0.12 per share and reaffirmed full-year revenue and adjusted EBITDA guidance. OneSpan Inc. reported flat revenue in the first half of fiscal 2025, as growth in its subscription business was fully offset by declines in hardware sales and revenues from legacy products being phased out. Subscription revenue increased by approximately 15% year-over-year, but total top-line growth remained at 0%. Adjusted EBITDA rose modestly by 5%, driven largely by cost-reduction initiatives rather than organic earnings improvements. Share-based compensation and recurring operating expenses continued to weigh on true earnings power, leaving margins essentially unchanged. Management’s muted full-year outlook, reaffirming revenue guidance in the range of $245 million to $251 million and flat adjusted EBITDA targets, does not justify the stock’s current 14x forward earnings valuation, leading the analyst to maintain a Hold rating.