Core Viewpoint - OneSpan (OSPN) has been experiencing a decline in stock performance, with a recent return of -6.2% over the past month, underperforming the Zacks S&P 500 composite's -2.2% change and the Zacks Internet - Software industry's -1.7% change [2] Earnings Estimate Revisions - OneSpan is expected to report earnings of $0.36 per share for the current quarter, reflecting a year-over-year decrease of -20%. The Zacks Consensus Estimate has increased by +9.9% over the last 30 days [5] - For the current fiscal year, the consensus earnings estimate is $1.26, indicating a -15.4% change from the previous year, with a recent decrease of -13.4% in the estimate [5] - The consensus earnings estimate for the next fiscal year is $1.34, showing a +6.6% increase from the prior year, although this estimate has decreased by -11.8% recently [6] - OneSpan holds a Zacks Rank of 4 (Sell) due to significant changes in earnings estimates and other related factors [7] Projected Revenue Growth - The consensus sales estimate for the current quarter is $60.94 million, representing a year-over-year decline of -3.8%. For the current and next fiscal years, sales estimates are $246.46 million and $256.7 million, indicating changes of +1.3% and +4.2%, respectively [11] Last Reported Results and Surprise History - In the last reported quarter, OneSpan achieved revenues of $62.92 million, a year-over-year increase of +2.9%. The EPS was $0.36, compared to $0.24 a year ago, with a revenue surprise of +5.08% and an EPS surprise of +20% [12] - The company has consistently beaten consensus EPS estimates in the last four quarters, while it has only surpassed consensus revenue estimates once during this period [13] Valuation - OneSpan is graded B in the Zacks Value Style Score, indicating that it is trading at a discount compared to its peers [17]

Core Insights - OneSpan has signed a definitive agreement to acquire Build38 to enhance its App Shielding capabilities in response to evolving cybersecurity threats [1][6] - The company is transitioning to a software-centric business model, expecting over 80% of its revenue to come from software by 2026, with hardware revenue declining significantly [3][6] - OneSpan reported a strong financial performance for Q4 2025, with revenue of $62.9 million, an 11.5% increase in annual recurring revenue (ARR), and record adjusted EBITDA of $77.6 million [5][10] Acquisition and Strategic Focus - The acquisition of Build38 aims to deepen integration with customer mobile applications and enhance detection methods, with expected closure in the current quarter [1][4] - OneSpan's acquisition strategy focuses on acquiring modern technology that addresses customer needs, particularly in authentication and App Shielding [7] Financial Performance - For Q4 2025, OneSpan's revenue was $62.9 million, reflecting a 3% year-over-year increase, with an annual ARR of $187 million [5][18] - The company reported full-year 2025 revenue of $243.2 million, flat compared to 2024, with a 12% growth in subscription revenue [10] - Adjusted EBITDA for 2025 reached $77.6 million, representing a margin of 31.9% [5][10] Business Segments - In the cybersecurity division, ARR grew 12% to $120 million, while revenue was flat year-over-year at $45.4 million [12] - The digital agreements segment saw a 10% increase in ARR to $67 million, with revenue growth of 11% in Q4 [13][14] Future Outlook - For 2026, OneSpan anticipates total revenue between $244 million and $249 million, with ARR projected to be between $192 million and $196 million [23] - The company plans to invest approximately $5.5 million in sales, marketing, and R&D, which may pressure near-term profitability [16] - The expected impact of the Build38 acquisition is a dilution of adjusted EBITDA by $3 million to $4 million in 2026 [6][16]

分组1 - OneSpan reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.30 per share, and up from $0.24 per share a year ago, representing an earnings surprise of +21.34% [1] - The company achieved revenues of $62.92 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 5.08%, compared to $61.17 million in the same quarter last year [2] - Over the last four quarters, OneSpan has surpassed consensus EPS estimates four times, but has only topped consensus revenue estimates once [2] 分组2 - OneSpan shares have declined approximately 13.2% since the beginning of the year, while the S&P 500 has gained 1.5% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.33 on revenues of $59.6 million, and for the current fiscal year, it is $1.44 on revenues of $245.44 million [7] 分组3 - The Zacks Industry Rank indicates that the Internet - Software sector is currently in the top 36% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - The estimate revisions trend for OneSpan was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

OneSpan (NasdaqCM:OSPN) Q4 2025 Earnings call February 26, 2026 04:30 PM ET Company ParticipantsJoe Maxa - VP of Investor RelationsJorge Martell - CFOTrevor Rambo - Software Equity Research AssociateVictor Limongelli - CEOConference Call ParticipantsAnja Soderstrom - Financial Analyst and Equity Research AnalystOperatorGood day. Thank you for standing by. Welcome to the Q4 2025 OneSpan Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there ...

Financial Data and Key Metrics Changes - In Q4 2025, adjusted EBITDA was $19 million, representing 31% of revenue, while for the full year, adjusted EBITDA was $78 million, or 32% of revenue [14][20] - Annual recurring revenue (ARR) reached $187 million, up 11.5% year-over-year, with Q4 software and services revenue growing 4% year-over-year [14][15] - Total revenue for Q4 was $63 million, a 3% increase year-over-year, while full year revenue was flat at $243.2 million due to a 17% decline in hardware revenue [15][20] Business Line Data and Key Metrics Changes - Cybersecurity revenue was flat year-over-year in Q4, while digital agreements revenue grew 11% [15][25] - For the full year 2025, cybersecurity revenue declined 2.5% to $177.7 million, but subscription revenue grew 13% [25] - Digital agreements ARR grew 10% to $67 million, with Q4 revenue increasing 11% to $17.5 million [26][27] Market Data and Key Metrics Changes - Revenue mix for 2025 was 42% from EMEA, 39% from the Americas, and 19% from Asia Pacific, reflecting shifts in digital agreements and cybersecurity software revenue [31] - The decline in hardware revenue was consistent with mobile-first trends in both Europe and Asia Pacific [31] Company Strategy and Development Direction - The company is focusing on software, expecting over 80% of revenue in 2026 to come from software, down from over 50% in 2019 [5] - Investments are being made in sales and marketing, including hiring a new Chief Revenue Officer, to enhance go-to-market capabilities [12][18] - The company plans to integrate AI-driven capabilities into its offerings to provide deeper insights and streamline decision-making [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment for 2026, with expectations for growth in software and services driven by digital agreements and moderate growth in cybersecurity [32][33] - The company anticipates a continued secular shift away from consumer banking hardware tokens, impacting hardware revenue [33] Other Important Information - The board approved an increase in the quarterly dividend from $0.12 to $0.13 per share, reflecting an annualized rate of $0.52 per share, an 8% increase [18] - The company generated $59.5 million in operating cash flow for the year and has no long-term debt [30] Q&A Session Summary Question: Demand environment at the start of the year - Management noted a reasonable start to the year with a strong finish in Q4, expecting benefits from new marketing investments in the second half of the year [39][40] Question: Hardware revenue performance and guidance - Management clarified that the $3 million revenue pull forward was on the software side, not hardware, and discussed the ongoing decline in hardware revenue due to shifts in consumer banking [41][46] Question: New CRO's impact on sales and marketing - Management highlighted the new CRO's focus on sales execution and pipeline development, expecting improvements over time [52][53] Question: Acquisition strategy and future M&A opportunities - Management emphasized the focus on acquiring valuable technology rather than revenue, aiming to solve customer problems with modern solutions [54][55] Question: AI as an opportunity and threat - Management acknowledged AI's potential to increase demand for authentication services while also noting the risks associated with rapidly evolving threats [57][58]

OneSpan (NasdaqCM:OSPN) Q4 2025 Earnings call February 26, 2026 04:30 PM ET Speaker3Good day. Thank you for standing by. Welcome to the Q4 2025 OneSpan Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will hear an automated message advising you your hand is raised. To withdraw your question, please p ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________ FORM 10-K FOR ANNUAL AND TRANSITION REPORTS PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission file ...

Investor Presentation – Q4 & FY 2025 February 26, 2026 Forward Looking Statements This presentation contains forward-looking statements within the meaning of applicable U.S. securities laws, including statements regarding our 2026 financial guidance and our general goals and expectations regarding our operational or financial performance in the future. Forward-looking statements may be identified by words such as "seek", "believe", "plan", "estimate", "anticipate", "expect", "intend", "continue", "outlook", ...

Market Sentiment in Technology - Market sentiment is shifting dramatically in the technology sector, particularly for Internet software and services companies [1] - While megacap companies are reaching record highs, familiar names are appearing among those hitting 52-week lows [1]

Company Overview - OneSpan (OSPN) shares increased by 5.2% to close at $11.25, supported by strong trading volume, despite a 17.9% decline over the past four weeks [1] - The company is experiencing optimism due to a rising software mix, double-digit subscription and Annual Recurring Revenue (ARR) growth, FIDO2 S3 adoption, expanding security offerings, strong cash generation, and disciplined capital returns [1] Earnings Expectations - OneSpan is expected to report quarterly earnings of $0.31 per share, reflecting a year-over-year increase of 29.2%, while revenues are projected to be $59.85 million, a decrease of 2.2% from the previous year [2] - The consensus EPS estimate for OneSpan has been revised 3.8% higher in the last 30 days, indicating a positive trend that typically correlates with price appreciation [3] Industry Context - OneSpan is part of the Zacks Internet - Software industry, which includes other companies like Samsara Inc. (IOT), which saw a 4.8% increase to $25.42, despite a 28.3% decline over the past month [4] - Samsara Inc. has an unchanged EPS estimate of $0.13 for the upcoming report, representing an 18.2% increase from the previous year, and also holds a Zacks Rank of 3 (Hold) [5]