OneSpan (US:OSPN)2025-08-05 21:18PART I. FINANCIAL INFORMATION This part details OneSpan Inc.'s unaudited financial statements and management's discussion for the first half of 2025 Item 1. Condensed Consolidated Financial Statements (Unaudited) This section presents OneSpan Inc.'s unaudited condensed consolidated financial statements and notes for Q2 and H1 2025 Condensed Consolidated Balance Sheets This section provides a snapshot of the company's financial position at June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (In thousands) | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | ASSETS | | | | Cash and cash equivalents | $92,886 | $83,160 | | Accounts receivable, net | $35,064 | $56,229 | | Total current assets | $169,483 | $174,894 | | Total assets | $357,099 | $338,734 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Accounts payable | $15,643 | $13,310 | | Deferred revenue | $54,460 | $67,465 | | Total current liabilities | $95,575 | $110,275 | | Total liabilities | $114,592 | $126,204 | | Total stockholders' equity | $242,507 | $212,530 | | Total liabilities and stockholders' equity | $357,099 | $338,734 | - Total assets increased by $18.365 million from December 31, 2024, to June 30, 2025, primarily driven by an increase in cash and cash equivalents and goodwill10 - Total liabilities decreased by $11.612 million, mainly due to a reduction in deferred revenue and accrued wages and payroll taxes10 - Stockholders' equity increased by $29.977 million, reflecting net income and other comprehensive income10 Condensed Consolidated Statements of Operations This section details the company's financial performance for the three and six months ended June 30, 2025 Condensed Consolidated Statements of Operations (In thousands, except per share data) | (In thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $59,843 | $60,924 | $123,209 | $125,767 | | Total 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 | | Basic EPS | $0.22 | $0.17 | $0.60 | $0.52 | | Diluted EPS | $0.21 | $0.17 | $0.59 | $0.52 | - Net income for the three months ended June 30, 2025, increased by $1.789 million (27.3%) to $8.342 million compared to $6.553 million in the prior year12 - For the six months ended June 30, 2025, net income increased by $2.826 million (14.1%) to $22.847 million compared to $20.021 million in the prior year12 - Gross profit margin improved to 73% for the three months and 74% for the six months ended June 30, 2025, up from 66% and 70% respectively in the prior year12 Condensed Consolidated Statements of Comprehensive Income This section outlines the company's comprehensive income, including net income and other components Condensed Consolidated Statements of Comprehensive Income (In thousands) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $8,342 | $6,553 | $22,847 | $20,021 | | Cumulative translation adjustment, net of tax | $5,547 | $(488) | $8,221 | $(2,143) | | Pension adjustment, net of tax | $(24) | $(29) | $(48) | $(59) | | Unrealized gain on available-for-sale securities | $— | $2 | $— | $2 | | Comprehensive income | $13,865 | $6,038 | $31,020 | $17,821 | - Comprehensive income significantly increased, primarily due to a positive cumulative translation adjustment of $5.547 million for the three months and $8.221 million for the six months ended June 30, 2025, compared to losses in the prior year periods14 Condensed Consolidated Statements of Stockholders' Equity This section details changes in stockholders' equity, reflecting net income, dividends, and other comprehensive items Condensed Consolidated Statements of Stockholders' Equity (In thousands) | (In thousands) | Balance at Dec 31, 2024 | Net Income (Q2 2025) | Foreign Currency Translation Adjustment (Q2 2025) | Stock-based Compensation (Q2 2025) | Dividends Declared (Q2 2025) | Balance at Jun 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Common Stock (Shares) | 38,058 | — | — | — | — | 38,251 | | Common Stock (Amount) | $38 | $— | $— | $— | $— | $38 | | Treasury - Common Stock (Shares) | 3,724 | — | — | — | — | 3,724 | | Treasury - Common Stock (Amount) | $(47,380) | $— | $— | $— | $— | $(47,380) | | Additional Paid-In Capital | $122,534 | $— | $— | $3,451 | $— | $126,356 | | Retained Earnings | $151,256 | $8,342 | $— | $— | $(4,850) | $169,238 | | Accumulated Other Comprehensive Income (Loss) | $(13,918) | $— | $5,547 | $— | $— | $(5,745) | | Total Stockholders' Equity | $212,530 | $8,342 | $5,547 | $3,451 | $(4,850) | $242,507 | - Total stockholders' equity increased from $212.530 million at December 31, 2024, to $242.507 million at June 30, 2025, driven by net income, foreign currency translation adjustments, and stock-based compensation, partially offset by dividends16 - Dividends declared for the three months ended June 30, 2025, totaled $4.850 million ($0.12 per share)1625 Condensed Consolidated Statements of Cash Flows This section outlines the company's cash flow activities from operations, investing, and financing for H1 2025 Condensed Consolidated Statements of Cash Flows (In thousands) | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $35,583 | $29,262 | | Net cash used in investing activities | $(15,540) | $(5,360) | | Net cash used in financing activities | $(12,167) | $(2,031) | | Effect of exchange rate changes on cash | $1,679 | $(1,098) | | Net increase in cash | $9,555 | $20,773 | | Cash, cash equivalents, and restricted cash, end of period | $92,886 | $64,303 | - Net cash provided by operating activities increased by **$6.