OneSpan Inc. (NASDAQ:OSPN) is one of the best cybersecurity stocks to buy right now. On August 26, analysts at B.Riley initiated coverage of the stock with a ‘Buy’ rating and a $23 price target. B.Riley Initiates ‘Buy’ rating on OneSpan Inc. (OSPN) on Strong Solutions Demand In its research note, B.Riley notes that the company’s competitive edge in the cybersecurity space stems from its robust blue-chip customer base. Additionally, OneSpan is experiencing strong demand for its authentication services, wh ...

Group 1 - The analysis of OneSpan Inc. (NASDAQ: OSPN) has not been conducted since Q4 2024, when the stock experienced a nearly 30% decline in earnings [1] - The investment approach focuses on operational aspects and long-term earnings potential rather than market-driven dynamics [1] - The strategy emphasizes holding companies for the long term, with most recommendations being holds rather than buys, reflecting a cautious market outlook [1] Group 2 - The article does not disclose any current stock positions or plans to initiate positions in the mentioned companies within the next 72 hours [2] - The opinions expressed in the article are solely those of the author and do not represent any business relationship with the companies mentioned [2]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $18 million, representing 29.5% of revenue for Q2 2025, and a record adjusted EBITDA of $41 million for the first half of the year, which is 33% of revenue, the highest first half performance to date [10][11] - Total revenue for Q2 2025 was $59.8 million, down 2% year over year, primarily due to a decline in security hardware revenue [20][30] - GAAP net income per share increased to $0.21 from $0.17 in the same period last year, while non-GAAP earnings per share rose to $0.34 from $0.31 [21][22] Business Line Data and Key Metrics Changes - Subscription revenue grew by 22% in Q2 2025, with security revenue increasing by 39% and digital agreements growing by 5% [12][23] - The security solutions business had an ARR of $114.5 million, up 9% year over year, while the digital agreement business saw an ARR growth of 4.5% to $63 million [22][24] - Security revenue declined by 3% to $44.2 million, with strong subscription growth offset by declines in hardware and maintenance revenues [23] Market Data and Key Metrics Changes - The geographical revenue mix showed 39% from EMEA, 40% from The Americas, and 21% from APAC, compared to 41%, 35%, and 24% respectively in the same quarter last year [29] - The company noted strong bookings performance in Latin America and a dedicated sales effort in North America, which is expected to continue performing well [14] Company Strategy and Development Direction - The company is focused on enhancing profitability and growth, with a strategy that includes targeted M&A to accelerate product delivery [7][8] - The acquisition of Knock Knock Labs is aimed at expanding the product portfolio and enhancing the company's authentication capabilities [9][10] - The company aims to achieve a "Rule of 40" performance, balancing growth and profitability while returning cash to shareholders [7][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and highlighted the importance of innovation in response to emerging threats in the authentication market [16][18] - The company anticipates a return to positive revenue growth in the second half of the year, with expectations of double-digit subscription revenue growth for the full year 2025 [30][31] - Management acknowledged challenges in hardware revenue but expects gradual improvement in the fourth quarter [30] Other Important Information - The company generated $36 million in cash from operations in the first half of the year and ended Q2 with $93 million in cash on hand [15][28] - The Board approved a quarterly dividend of $0.12 per share, totaling close to $10 million returned to shareholders in the first half of the year [15][16] Q&A Session Summary Question: Can you provide more detail on the competitive positioning after acquiring Knock Knock? - Management emphasized that the acquisition complements existing solutions and enhances the company's technology profile, particularly in the security software space [35][36] Question: How does the acquisition impact existing customers versus new customer acquisition? - The acquisition is seen as an opportunity for cross-selling to existing customers rather than primarily for revenue generation [38][39] Question: Can you clarify the ARR guidance increase and its components? - The increase in ARR guidance includes $8 million from Knock Knock but is offset by contractions from a couple of customers, leading to a net increase of $6 million [44][45] Question: How is the pipeline shaping up for the second half of the year? - Management reported a strong first half in bookings and expressed optimism for the second half, despite anticipated challenges in hardware sales [50] Question: What impact did macroeconomic factors have on customer behavior? - The tariff situation had a minimal impact, and while there were some contractions, overall performance remained solid [52][53] Question: Can you elaborate on the go-to-market strategy evolution? - The company is investing in dedicated sales teams for different product lines and refining its approach to new customer acquisition [56][57]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________ FORM 10-Q _____________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 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 number 000-24389 _____________________ ...

Financial Performance - The company's market capitalization is $560 million[5] - Total revenue reached $241 million[5, 9], with Security Solutions contributing $178 million (74%) and Digital Agreements $62 million (26%)[9] - The company's ARR is $178 million[5], with a Net Retention Rate (NRR) of 101%[5] - The company holds $93 million in cash and equivalents[5] - Q2 2025 revenue was $60 million, a decrease of 2%[26] - Q2 2025 subscription revenue grew by 22% to $36 million[26] - Q2 2025 ARR grew by 8% to $178 million[28] - The company paid a quarterly cash dividend of $0.12 per share in Q2 2025[29] Guidance - The company reaffirmed its revenue guidance for FY 2025 at $245 million to $251 million[40] - The company reaffirmed its Adjusted EBITDA guidance for FY 2025 at $72 million to $76 million[40] - The company increased its ARR guidance for FY 2025 to $186 million to $192 million[40] Business Segments - Security Solutions saw a 6% revenue growth, with 9% growth in Software & Services and 27% growth in Subscription revenue[17] - Digital Agreements experienced a 9% revenue growth and 14% Subscription revenue growth[22]

[Company Overview and Q2 2025 Highlights](index=1&type=section&id=1.%20Company%20Overview%20and%20Q2%202025%20Highlights) OneSpan achieved strong Q2 2025 profitability, strengthened its product portfolio with the Nok Nok Labs acquisition, and provided updated financial guidance [CEO Statement and Strategic Focus](index=1&type=section&id=1.1.%20CEO%20Statement%20and%20Strategic%20Focus) CEO Victor Limongelli reported a strong quarter, enhancing the product portfolio with Nok Nok Labs' FIDO2 authentication and pursuing profitable growth through performance improvement and strategic acquisitions - CEO Victor Limongelli reported a **strong quarter of profitability** and strengthened the product portfolio by acquiring **Nok Nok Labs**, adding **FIDO2 passwordless authentication software**[3](index=3&type=chunk) - OneSpan will continue to focus on **improving performance** and evaluating targeted inorganic opportunities to drive **profitable, efficient revenue growth**[3](index=3&type=chunk) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=1.2.%20Second%20Quarter%202025%20Financial%20Highlights) OneSpan reported a 38% year-over-year increase in operating income to $10.5 million, despite a 2% decrease in total revenue to $59.8 million, with subscription revenue growing 22% YoY and ARR increasing 8% YoY to $177.8 million Q2 2025 Key Financial Metrics | Metric | Q2 2025 | YoY Change | | :----------------------- | :---------- | :--------- | | Operating Income | $10.5 million | +38% | | Total Revenue | $59.8 million | -2% | | Subscription Revenue | $36.2 million | +22% | | Annual Recurring Revenue (ARR) | $177.8 million | +8% | | Net Retention Rate (NRR) | 101% | N/A | Q2 2025 and Q2 2024 Comparative Financials | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----------------------- | :---------- | :---------- | :--------- | | Total Revenue | $59.8 million | $60.9 million | -2% | | Security Solutions Revenue | $44.2 million | N/A | -3% | | Digital Agreements Revenue | $15.6 million | N/A | +1% | | Gross Profit | $44.0 million | $40.3 million | +9.2% | | Gross Margin | 73% | 66% | +7 pp | | Operating Income | $10.5 million | $7.6 million | +38.2% | | Net Income | $8.3 million | $6.6 million | +25.8% | | Diluted EPS | $0.21 | $0.17 | +23.5% | | Non-GAAP Net Income | $13.3 million | $12.2 million | +9.0% | | Non-GAAP Diluted EPS | $0.34 | $0.31 | +9.7% | | Adjusted EBITDA | $17.6 million | $16.2 million | +8.6% | [Recent Business Highlights](index=1&type=section&id=1.3.%20Recent%20Business%20Highlights) Key business developments include the acquisition of Nok Nok Labs to enhance FIDO passwordless authentication, securing a new $100.0 million five-year syndicated revolving credit facility for general corporate purposes and strategic growth, and the declaration of a quarterly cash dividend of $0.12 per share - Acquired **Nok Nok Labs**, a leading provider of **FIDO passwordless software authentication solutions**, to broaden the multi-factor authentication portfolio[7](index=7&type=chunk) - Entered into a **$100.0 million, five-year syndicated revolving credit facility** for general corporate purposes, including strategic growth priorities[7](index=7&type=chunk) - Declared a quarterly cash dividend of **$0.12 per share**, payable September 5, 2025, to shareholders of record as of August 15, 2025[7](index=7&type=chunk) [About OneSpan](index=3&type=section&id=1.4.%20About%20OneSpan) OneSpan specializes in security authentication, identity, electronic signature, and digital workflow solutions, serving global blue-chip enterprises, including over 60% of the world's largest 100 banks, across 100+ countries - OneSpan provides **security authentication, identity, electronic signature, and digital workflow solutions** to protect and facilitate digital transactions and agreements[18](index=18&type=chunk) - The company serves **global blue-chip enterprises**, including **over 60% of the world's largest 100 banks**, processing millions of digital agreements and billions of multi-factor authentication transactions annually in **100+ countries**[18](index=18&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=2.%20Condensed%20Consolidated%20Financial%20Statements) This section provides OneSpan's condensed consolidated statements of operations, balance sheets, and cash flows for the second quarter and six months ended June 30, 2025 [Condensed Consolidated Statements of Operations](index=4&type=section&id=2.1.%20Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, total revenue decreased 2% YoY to $59.8 million, while gross profit increased to $44.0 million (73% gross margin), operating income rose 38% to $10.5 million, and net income increased 27% to $8.3 million, resulting in diluted EPS of $0.21, with six-month totals of $123.2 million revenue, $22.8 million net income, and $0.59 diluted EPS Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------- | :-------- | :-------- | :-------- | :-------- | | Total Revenue | $59,843 | $60,924 | $123,209 | $125,767 | | Cost of goods sold | $15,876 | $20,583 | $32,151 | $38,031 | | Gross profit | $43,967 | $40,341 | $91,058 | $87,736 | | Operating income | $10,506 | $7,637 | $27,688 | $21,747 | | Net income | $8,342 | $6,553 | $22,847 | $20,021 | | Diluted EPS | $0.21 | $0.17 | $0.59 | $0.52 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=2.2.%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $357.1 million from $338.7 million at December 31, 2024, with cash and cash equivalents rising to $92.9 million from $83.2 million, while total liabilities decreased to $114.6 million from $126.2 million, and total stockholders' equity increased to $242.5 million from $212.5 million Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | June 30, 2025 | Dec 31, 2024 | | :-------------------- | :-------------- | :------------- | | Total Assets | $357,099 | $338,734 | | Cash and cash equivalents | $92,886 | $83,160 | | Accounts receivable, net | $35,064 | $56,229 | | Goodwill | $103,262 | $92,365 | | Total Liabilities | $114,592 | $126,204 | | Deferred revenue (current) | $54,460 | $67,465 | | Total Stockholders' Equity | $242,507 | $212,530 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=2.3.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities increased to $35.6 million from $29.3 million in the prior year, while net cash used in investing activities significantly increased to $15.5 million, primarily due to $12.1 million cash paid for an acquisition, and net cash used in financing activities also increased to $12.2 million, mainly due to dividends paid Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | 6M 2025 | 6M 2024 | | :-------------------------------- | :-------- | :-------- | | Net cash provided by operating activities | $35,583 | $29,262 | | Net cash used in investing activities | $(15,540) | $(5,360) | | Cash paid for acquisition of business, net | $(12,052) | $0 | | Net cash used in financing activities | $(12,167) | $(2,031) | | Dividends paid | $(9,196) | $0 | | Net increase in cash | $9,555 | $20,773 | | Cash, cash equivalents, end of period | $92,886 | $64,303 | [Segment Performance Analysis](index=7&type=section&id=3.%20Segment%20Performance%20Analysis) This section analyzes the financial performance of OneSpan's Security Solutions and Digital Agreements operating segments, detailing revenue, gross margin, and operating income trends [Operating Segments Overview](index=7&type=section&id=3.1.%20Operating%20Segments%20Overview) OneSpan operates two reportable segments: Security Solutions and Digital Agreements, with Security Solutions focusing on multi-factor authentication and mobile application security, and Digital Agreements providing cloud-based e-signature, notary, and identity verification solutions - OneSpan reports financial results under two operating segments: **Security Solutions** and **Digital Agreements**[28](index=28&type=chunk) - **Security Solutions** offers software products, SDKs, and Digipass authenticator devices for **multi-factor authentication**, transaction signing, and **mobile application security**, primarily on-premises[31](index=31&type=chunk) - **Digital Agreements** provides largely **cloud-based solutions** including OneSpan Sign **e-signature, OneSpan Notary, and Identity Verification**, enabling secure and automated digital agreement and customer transaction lifecycles[31](index=31&type=chunk) [Security Solutions Segment Performance](index=7&type=section&id=3.2.%20Security%20Solutions%20Segment%20Performance) In Q2 2025, Security Solutions revenue decreased 3% YoY to $44.2 million, but its gross margin improved to 74% from 67% in Q2 2024, with operating income at $19.8 million, and six-month revenue reaching $91.9 million with a 75% gross margin Security Solutions Segment Performance (in thousands) | Metric (in thousands) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------- | :-------- | :-------- | :-------- | :-------- | | Revenue | $44,235 | $45,461 | $91,948 | $95,891 | | Gross profit | $32,822 | $30,600 | $68,907 | $68,103 | | Gross margin | 74% | 67% | 75% | 71% | | Operating income (loss) | $19,799 | $20,692 | $43,958 | $46,571 | - Security Solutions operating income includes **$0.1 million** and **$0.2 million** of restructuring and other related charges for the three and six months ended June 30, 2025, respectively, a decrease from **$0.3 million** and **$1.4 million** in the prior year periods[34](index=34&type=chunk) [Digital Agreements Segment Performance](index=7&type=section&id=3.3.%20Digital%20Agreements%20Segment%20Performance) Digital Agreements revenue increased 1% YoY to $15.6 million in Q2 2025, with a significant improvement in gross margin to 71% from 63% in Q2 2024, reporting an operating income of $2.9 million, a substantial turnaround from an operating loss of $0.2 million in Q2 2024, and six-month revenue of $31.3 million with a 71% gross margin Digital Agreements Segment Performance (in thousands) | Metric (in thousands) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------- | :-------- | :-------- | :-------- | :-------- | | Revenue | $15,608 | $15,463 | $31,261 | $29,876 | | Gross profit | $11,145 | $9,741 | $22,151 | $19,633 | | Gross margin | 71% | 63% | 71% | 66% | | Operating income (loss) | $2,879 | $(155) | $6,245 | $(420) | - Digital Agreements operating income includes **$0.1 million** and **$0.2 million** of restructuring and other related charges for the three and six months ended June 30, 2025, respectively, a significant decrease from **$1.2 million** and **$1.3 million** in the prior year periods[35](index=35&type=chunk) [Revenue by Major Products and Services](index=9&type=section&id=3.4.%20Revenue%20by%20Major%20Products%20and%20Services) For Q2 2025, Security Solutions' hardware products revenue decreased significantly to $14.0 million from $19.7 million YoY, while its subscription revenue increased to $20.6 million from $14.9 million, and Digital Agreements' subscription revenue slightly increased to $15.6 million from $14.8 million, with similar growth trends for the six months ended June 30, 2025 Q2 2025 and Q2 2024 Revenue by Type (in thousands) | Revenue Type (in thousands) | Q2 2025 (Security Solutions) | Q2 2024 (Security Solutions) | Q2 2025 (Digital Agreements) | Q2 2024 (Digital Agreements) | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Subscription | $20,602 | $14,857 | $15,574 | $14,785 | | Maintenance and support | $8,666 | $9,742 | $25 | $490 | | Professional services & other | $951 | $1,123 | $9 | $188 | | Hardware products | $14,016 | $19,739 | — | — | | **Total Revenue** | **$44,235** | **$45,461** | **$15,608** | **$15,463** | 6M 2025 and 6M 2024 Revenue by Type (in thousands) | Revenue Type (in thousands) | 6M 2025 (Security Solutions) | 6M 2024 (Security Solutions) | 6M 2025 (Digital Agreements) | 6M 2024 (Digital Agreements) | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Subscription | $48,674 | $41,039 | $31,119 | $28,597 | | Maintenance and support | $16,650 | $19,808 | $49 | $994 | | Professional services & other | $1,545 | $2,728 | $93 | $285 | | Hardware products | $25,079 | $32,316 | — | — | | **Total Revenue** | **$91,948** | **$95,891** | **$31,261** | **$29,876** | [Financial Outlook](index=2&type=section&id=4.%20Financial%20Outlook) This section presents OneSpan's updated full-year 2025 financial guidance, including projections for revenue, Annual Recurring Revenue (ARR), and Adjusted EBITDA [Full Year 2025 Guidance](index=2&type=section&id=4.1.%20Full%20Year%202025%20Guidance) OneSpan updated its full-year 2025 financial guidance, expecting revenue in the range of $245 million to $251 million, raising Annual Recurring Revenue (ARR) guidance to $186 million to $192 million, and projecting Adjusted EBITDA between $72 million and $76 million Full Year 2025 Financial Guidance | Metric | Full Year 2025 Guidance | Previous Guidance | | :---------------- | :---------------------- | :---------------- | | Revenue | $245 million - $251 million | N/A | | ARR | $186 million - $192 million | $180 million - $186 million | | Adjusted EBITDA | $72 million - $76 million | N/A | [Non-GAAP Financial Measures](index=2&type=section&id=5.%20Non-GAAP%20Financial%20Measures) This section outlines OneSpan's non-GAAP financial measures, including recent changes in presentation and detailed reconciliations for Adjusted EBITDA and Non-GAAP Net Income [Changes in Presentation of Non-GAAP Measures](index=2&type=section&id=5.1.%20Changes%20in%20Presentation%20of%20Non-GAAP%20Measures) Effective January 1, 2025, OneSpan began excluding employer payroll taxes related to employee stock-based awards from non-GAAP results and now uses a 20% long-term projected non-GAAP tax rate for Non-GAAP Net Income calculations, with prior periods adjusted to reflect these changes - Effective **January 1, 2025**, **employer payroll taxes** related to employee stock-based award transactions are now **excluded from non-GAAP results** (Adjusted EBITDA, Non-GAAP Net Income, Non-GAAP Net Income Per Diluted Share)[8](index=8&type=chunk) - A long-term projected non-GAAP tax rate of **20%** is now used for **Non-GAAP Net Income** and **Non-GAAP Net Income Per Diluted Share**, providing better consistency across interim reporting periods, with prior period amounts adjusted[9](index=9&type=chunk)[10](index=10&type=chunk) Employer Payroll Taxes Related to Stock-Based Awards (in millions) | Item | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :------------------------------------------------ | :-------- | :-------- | :-------- | :-------- | | Employer payroll taxes related to stock-based awards | $0.2 million | < $0.1 million | $0.7 million | $0.4 million | [Adjusted EBITDA Reconciliation](index=10&type=section&id=5.2.%20Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA for Q2 2025 was $17.6 million, up from $16.2 million in Q2 2024, and $40.7 million for the six months ended June 30, 2025, compared to $36.4 million in the prior year, with this non-GAAP measure excluding specific items to provide a clearer view of operational performance Adjusted EBITDA Reconciliation (in thousands) | Metric (in thousands) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------- | :-------- | :-------- | :-------- | :-------- | | Net income | $8,342 | $6,553 | $22,847 | $20,021 | | Provision for income taxes | $2,227 | $1,936 | $5,587 | $2,970 | | Depreciation and amortization | $2,456 | $2,063 | $4,585 | $4,145 | | Long-term incentive compensation and related payroll tax expense | $3,678 | $2,017 | $6,926 | $4,063 | | Restructuring and other related charges | $88 | $3,218 | $534 | $4,734 | | Other non-recurring items | $1,579 | $906 | $1,618 | $1,077 | | **Adjusted EBITDA** | **$17,638** | **$16,172** | **$40,673** | **$36,388** | - Adjusted EBITDA is defined as **net income before interest, taxes, depreciation, amortization, long-term incentive compensation and related payroll tax expense, restructuring and other related charges, and certain non-recurring items**[41](index=41&type=chunk) [Non-GAAP Net Income and Per Diluted Share Reconciliation](index=12&type=section&id=5.3.%20Non-GAAP%20Net%20Income%20and%20Per%20Diluted%20Share%20Reconciliation) Non-GAAP Net Income for Q2 2025 was $13.3 million, up from $12.2 million in Q2 2024, with Non-GAAP diluted EPS of $0.34, and for the six months ended June 30, 2025, Non-GAAP Net Income was $31.0 million, compared to $27.4 million in the prior year, with Non-GAAP diluted EPS of $0.79, excluding specific items and applying a 20% non-GAAP tax rate Non-GAAP Net Income and Per Diluted Share Reconciliation (in thousands, except per share) | Metric (in thousands, except per share) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------------- | :-------- | :-------- | :-------- | :-------- | | Net income | $8,342 | $6,553 | $22,847 | $20,021 | | Long-term incentive compensation and related payroll tax expense | $3,678 | $2,017 | $6,926 | $4,063 | | Amortization of intangible assets | $685 | $666 | $1,241 | $1,381 | | Restructuring and other related charges | $88 | $3,218 | $534 | $4,734 | | Other non-recurring items | $1,579 | $906 | $1,618 | $1,077 | | Non-GAAP provision for income taxes (20%) | $(3,320) | $(3,059) | $(7,751) | $(6,849) | | **Non-GAAP net income** | **$13,279** | **$12,237** | **$31,002** | **$27,397** | | **Non-GAAP net income per share, diluted** | **$0.34** | **$0.31** | **$0.79** | **$0.71** | - Non-GAAP Net Income and Per Diluted Share exclude **long-term incentive compensation, amortization of intangible assets, restructuring costs, and certain other non-recurring items**, using a **20% long-term projected non-GAAP tax rate**[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) [Additional Information](index=2&type=section&id=6.%20Additional%20Information) This section provides details regarding the Q2 2025 conference call and important disclosures concerning forward-looking statements [Conference Call Details](index=2&type=section&id=6.1.%20Conference%20Call%20Details) OneSpan hosted a conference call on August 5, 2025, at 4:30 p.m. EDT, with CEO Victor Limongelli and CFO Jorge Martell, to discuss the Q2 2025 results, with access details available on the investor relations website - OneSpan hosted a conference call on **August 5, 2025**, at **4:30 p.m. EDT**, with CEO Victor Limongelli and CFO Jorge Martell, to discuss Q2 2025 results[12](index=12&type=chunk) - Conference call details and webcast replay are available on the OneSpan investor relations website at **investors.onespan.com**[13](index=13&type=chunk) [Forward-Looking Statements](index=3&type=section&id=6.2.%20Forward-Looking%20Statements) The press release contains forward-looking statements regarding 2025 financial guidance, the impact of the Nok Nok acquisition, plans for inorganic opportunities, and future operational/financial performance, which involve risks and uncertainties detailed in the company's SEC filings - This press release contains **forward-looking statements** regarding **2025 financial guidance**, the impact of the **Nok Nok acquisition**, plans for evaluating inorganic opportunities, and general operational/financial performance[20](index=20&type=chunk) - Forward-looking statements involve **risks and uncertainties**, such as ability to attract/retain customers, product development, technological changes, competition, and economic conditions, as detailed in Form 10-K and 10-Q filings[20](index=20&type=chunk)

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on OneSpan (OSPN), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][10]. Group 1: Brokerage Recommendations - OneSpan has an average brokerage recommendation (ABR) of 2.00, indicating a "Buy" on a scale from 1 (Strong Buy) to 5 (Strong Sell) [2]. - Of the four recommendations contributing to the ABR, two are classified as "Strong Buy," accounting for 50% of the total recommendations [2]. Group 2: Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations have limited success in guiding investors toward stocks with the highest price increase potential [5]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, often issuing five "Strong Buy" recommendations for every "Strong Sell" [6][10]. Group 3: Zacks Rank vs. ABR - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, making it a more effective indicator of near-term stock price performance [8][11]. - Unlike the ABR, which is based solely on brokerage recommendations and may not be up-to-date, the Zacks Rank reflects timely changes in earnings estimates [12]. Group 4: OneSpan's Current Position - The Zacks Consensus Estimate for OneSpan remains unchanged at $1.45 for the current year, suggesting steady analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, OneSpan holds a Zacks Rank of 3 (Hold), indicating caution despite the Buy-equivalent ABR [14].

Company Performance - OneSpan (OSPN) stock decreased by 2.11% to $15.07, underperforming the S&P 500 which gained 0.07% [1] - Over the last month, OneSpan shares fell by 5%, while the Computer and Technology sector rose by 8.22% and the S&P 500 increased by 5.71% [1] Upcoming Earnings - OneSpan is set to release its earnings report on August 5, 2025, with an expected EPS of $0.27, reflecting a 12.9% decline from the previous year [2] - For the fiscal year, Zacks Consensus Estimates project earnings of $1.45 per share and revenue of $0 million, indicating a 9.85% increase in earnings but no change in revenue from the prior year [2] Analyst Estimates - Changes in analyst estimates for OneSpan are crucial as they indicate shifting business trends, with positive revisions suggesting analyst confidence in performance and profit potential [3] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown a strong track record, with 1 stocks averaging a 25% annual return since 1988 [5] - OneSpan currently holds a Zacks Rank of 3 (Hold), with no changes in the consensus EPS estimate over the past month [5] Valuation Metrics - OneSpan is trading at a Forward P/E ratio of 10.61, which is a discount compared to the industry average Forward P/E of 29.49 [6] - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 73, placing it in the top 30% of over 250 industries [6] Industry Performance - The Zacks Industry Rank evaluates the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [7]

Company Performance - OneSpan (OSPN) closed at $15.77, down 10.14% from the previous trading session, underperforming the S&P 500's loss of 0.33% [1] - Over the past month, OneSpan's shares gained 8%, outperforming the Computer and Technology sector's gain of 5.24% and the S&P 500's gain of 4.07% [1] Earnings Forecast - OneSpan's upcoming earnings report is scheduled for August 5, 2025, with projected earnings per share (EPS) of $0.27, indicating a 12.9% decrease from the same quarter last year [2] - For the fiscal year, Zacks Consensus Estimates project earnings of $1.45 per share and revenue of $0 million, reflecting changes of +9.85% and 0% from the prior year [2] Analyst Estimates - Recent modifications to analyst estimates for OneSpan are crucial, as they reflect the shifting dynamics of short-term business patterns [3] - Upward revisions in estimates indicate analysts' positive outlook on the company's operations and profit generation capabilities [3] Valuation Metrics - OneSpan is currently trading with a Forward P/E ratio of 12.1, which is a discount compared to the industry average Forward P/E of 28.6 [6] - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 67, placing it in the top 28% of over 250 industries [6] Zacks Rank System - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell), with 1 stocks historically returning an average of +25% annually since 1988 [5] - OneSpan currently holds a Zacks Rank of 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the last 30 days [5]

Company Performance - OneSpan (OSPN) stock decreased by 1.99% to $17.69, underperforming the S&P 500 which gained 0.61% [1] - Over the past month, OneSpan shares increased by 8.87%, outperforming the Computer and Technology sector's gain of 5.6% and the S&P 500's gain of 3.85% [1] Earnings Forecast - OneSpan is expected to report an EPS of $0.27, reflecting a 12.9% decline compared to the same quarter last year [2] - For the full year, earnings are projected at $1.45 per share, indicating a 9.85% increase, while revenue is expected to remain unchanged at $0 million [2] Analyst Estimates - Recent adjustments to analyst estimates for OneSpan are noteworthy, as they indicate evolving short-term business trends [3] - Positive estimate revisions suggest analyst optimism regarding the company's business and profitability [3] Valuation Metrics - OneSpan currently has a Forward P/E ratio of 12.45, which is a discount compared to the industry average Forward P/E of 28.96 [6] - The Internet - Software industry, which includes OneSpan, has a Zacks Industry Rank of 62, placing it in the top 26% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows that OneSpan currently holds a Zacks Rank of 3 (Hold) [5] - The Zacks Rank has a proven track record, with 1 stocks generating an average annual return of +25% since 1988 [5]