Onespan ( (OSPN) ) has released its Q2 earnings. Here is a breakdown of the information Onespan presented to its investors.
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OneSpan Inc. is a company specializing in security authentication, identity, electronic signature, and digital workflow solutions, primarily serving the financial sector by securing digital transactions and agreements. In its latest earnings report for the second quarter of 2025, OneSpan announced a 38% increase in operating income, reaching $10.5 million, despite a 2% decline in total revenue to $59.8 million. The company also reported a significant 22% rise in subscription revenue, contributing to an 8% increase in Annual Recurring Revenue (ARR) to $177.8 million.
Key financial highlights include a gross profit of $44 million, representing a 73% gross margin, and a net income of $8.3 million, or $0.21 per diluted share. The acquisition of Nok Nok Labs was a strategic move to enhance OneSpan’s authentication solutions, adding FIDO2 passwordless authentication software to its portfolio. This acquisition contributed $8.1 million to the ARR. The company also secured a $100 million revolving credit facility to support its strategic growth initiatives.
OneSpan’s financial performance was bolstered by improved profitability metrics, with adjusted EBITDA rising to $17.6 million from $16.2 million in the previous year. The company maintained a net retention rate of 101%, indicating stable customer retention and growth within its existing customer base. Additionally, OneSpan’s cash and cash equivalents increased to $92.9 million, reflecting strong cash management.
Looking ahead, OneSpan is optimistic about its growth prospects, with updated guidance for 2025 projecting revenue between $245 million and $251 million and ARR between $186 million and $192 million. The company plans to continue focusing on enhancing its product offerings and exploring targeted acquisitions to drive efficient revenue growth.