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, 2024 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 ...

Exhibit 99.1 OneSpan Reports Fourth Quarter and Full Year 2024 Financial Results BOSTON, February 27, 2025 – OneSpan Inc. (NASDAQ: OSPN) today reported financial results for the fourth quarter and full year ended December 31, 2024. "We ended the year with another strong quarter of subscription revenue growth, profitability and cash generation," stated OneSpan CEO, Victor Limongelli. "With the improvements we have made to our operating profile over the last year, combined with planned disciplined investments ...

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on OneSpan (OSPN), and highlights the differences between average brokerage recommendations (ABR) and Zacks Rank as tools for investors [1][4]. Group 1: Brokerage Recommendations - OneSpan has an average brokerage recommendation (ABR) of 1.80, indicating a consensus between Strong Buy and Buy, with 60% of the five recommendations being Strong Buy [2]. - The article suggests that while the ABR indicates a buying opportunity, investors should not rely solely on this metric for investment decisions due to the limited success of brokerage recommendations in predicting stock price increases [4][9]. Group 2: Analyst Bias and Zacks Rank - Brokerage analysts often exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [5][9]. - Zacks Rank, a proprietary stock rating tool, categorizes stocks based on earnings estimate revisions and is considered a more effective indicator of near-term stock price performance compared to ABR [7][10]. Group 3: Earnings Estimates and Stock Performance - The Zacks Consensus Estimate for OneSpan's current year earnings remains unchanged at $1.34, suggesting stable analyst views on the company's earnings prospects [12]. - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for OneSpan, indicating a cautious approach despite the Buy-equivalent ABR [13].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on OneSpan (OSPN), and highlights the potential misalignment of interests between brokerage firms and retail investors [1][4]. Group 1: Brokerage Recommendations - OneSpan has an average brokerage recommendation (ABR) of 1.80, indicating a position between Strong Buy and Buy, with 60% of the five recommendations being Strong Buy [2]. - Despite the positive ABR, relying solely on this information for investment decisions may not be advisable, as studies suggest brokerage recommendations often fail to guide investors effectively [4][9]. Group 2: Analyst Bias and Zacks Rank - Brokerage analysts tend to exhibit a strong positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [5][9]. - The Zacks Rank, a proprietary stock rating tool, categorizes stocks based on earnings estimate revisions and is considered a more reliable indicator of near-term stock performance compared to ABR [7][10]. Group 3: Earnings Estimates and Stock Performance - The Zacks Consensus Estimate for OneSpan's current year earnings remains unchanged at $1.34, suggesting analysts have steady views on the company's earnings prospects [12]. - The unchanged consensus estimate has resulted in a Zacks Rank 3 (Hold) for OneSpan, indicating a cautious approach despite the Buy-equivalent ABR [13].

Company Performance - OneSpan (OSPN) closed at $19.59, reflecting a +1.4% increase from the previous day, outperforming the S&P 500's daily gain of 0.53% [1] - Over the past month, OneSpan's shares have appreciated by 4.21%, contrasting with the Computer and Technology sector's decline of 0.75% and the S&P 500's gain of 1.24% [1] Upcoming Earnings - OneSpan is scheduled to release its earnings report on February 27, 2025, with an expected EPS of $0.27, indicating a 42.11% increase from the same quarter last year [2] Analyst Estimates - Recent modifications to analyst estimates for OneSpan are crucial as they reflect changing business trends, with positive revisions indicating analysts' confidence in the company's performance [3] Zacks Rank and Valuation - OneSpan currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the past month [5] - The company is trading at a Forward P/E ratio of 13.05, which is a discount compared to the industry's average Forward P/E of 30.73 [6] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 47, placing it in the top 19% of over 250 industries [6] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [7]

Stock Performance - OneSpan closed at $19 09, up 0 9% from the previous session, outperforming the S&P 500's 0 61% gain [1] - Over the past month, OneSpan shares gained 2 88%, surpassing the Computer and Technology sector's 1 24% and the S&P 500's 2 08% gains [1] Earnings and Estimates - OneSpan's upcoming earnings report is scheduled for February 27, 2025, with projected EPS of $0 27, a 42 11% increase from the same quarter last year [2] - Recent upward revisions in analyst estimates reflect positivity towards the company's business operations and profit generation [3] - The Zacks Consensus EPS estimate for OneSpan has remained steady over the past month [5] Valuation and Industry Ranking - OneSpan is trading at a Forward P/E ratio of 12 78, a discount compared to the industry average of 29 01 [6] - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 41, placing it in the top 17% of over 250 industries [6] - The Zacks Industry Rank shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7] Zacks Rank System - OneSpan currently has a Zacks Rank of 3 (Hold) [5] - The Zacks Rank system, ranging from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 ranked stocks yielding an average annual return of +25% since 1988 [5]

Company Performance - OneSpan (OSPN) closed at $19.07, reflecting a -0.47% change from the previous day, underperforming the S&P 500's loss of 0.21% [1] - The stock has increased by 6.33% over the past month, contrasting with the Computer and Technology sector's decline of 2.15% and the S&P 500's loss of 1.56% [1] Earnings Expectations - OneSpan is scheduled to announce its earnings on February 27, 2025, with an expected EPS of $0.27, representing a 42.11% increase from the same quarter last year [2] Analyst Estimates - Recent changes in analyst estimates for OneSpan are crucial as they indicate shifts in near-term business trends, with positive revisions suggesting optimism about the company's profitability [3] Zacks Rank and Valuation - OneSpan currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [5] - The company is trading at a Forward P/E ratio of 12.95, which is a discount compared to the industry's average Forward P/E of 28.24 [6] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 33, placing it in the top 14% of over 250 industries [6] - The strength of industry groups is measured by the Zacks Industry Rank, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Company Overview - OneSpan Inc. is a technology company with a market capitalization of $715 million, specializing in digital security solutions [1] - The company's product offerings include cloud authentication, mobile application security, electronic signatures, and other digital agreement authentication products [1] Industry Focus - OneSpan operates within the digital security sector, which is increasingly important as businesses and consumers seek secure online transactions and communications [1] - The company's strong credibility in the digital security space positions it well to capitalize on growing market demands for secure digital solutions [1]

Group 1 - OneSpan has an average brokerage recommendation (ABR) of 1.80, indicating a consensus between Strong Buy and Buy, with 60% of the recommendations being Strong Buy from five brokerage firms [2][4] - The reliability of brokerage recommendations is questioned, as studies suggest they have little success in guiding investors towards stocks with significant price appreciation potential [4][5] - Analysts from brokerage firms tend to exhibit a positive bias in their ratings due to vested interests, leading to a higher number of favorable ratings compared to negative ones [5][9] Group 2 - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, making it a more effective indicator of near-term stock performance compared to ABR [7][10] - The Zacks Rank is updated more frequently than ABR, as it reflects real-time changes in earnings estimates, providing timely predictions for future stock prices [11] - OneSpan's Zacks Consensus Estimate for the current year remains unchanged at $1.34, suggesting that analysts have steady views on the company's earnings prospects, which may lead to performance in line with the broader market [12][13]

Company Performance - OneSpan (OSPN) shares have increased by 7.7% over the past month and reached a new 52-week high of $19.09, with a year-to-date gain of 74.4% compared to 33% for the Zacks Computer and Technology sector and 39.6% for the Zacks Internet - Software industry [1] - The company has a strong record of positive earnings surprises, not missing earnings consensus estimates in the last four quarters, reporting EPS of $0.33 against a consensus estimate of $0.21 in its latest earnings report on October 30, 2024 [2] Valuation Metrics - OneSpan currently has a Value Score of D, with Growth and Momentum Scores of A and B respectively, resulting in a VGM Score of B [5] - The stock trades at 14X current fiscal year EPS estimates, below the peer industry average of 34.7X, and at 5X trailing cash flow compared to the peer group's average of 28.5X [5] Zacks Rank - OneSpan holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, aligning with the recommendation for investors to select stocks with Zacks Rank of 1 or 2 and Style Scores of A or B [6] Industry Comparison - The Internet - Software industry is in the top 14% of all industries, indicating favorable conditions for both OneSpan and its peer AppFolio, Inc. (APPF) [9] - AppFolio has a Zacks Rank of 2 (Buy) and reported a 27.45% earnings beat, with expected earnings of $5.66 per share on revenue of $790.55 million for the current fiscal year [7][8]