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OneSpan
(NASDAQ:OSPN)
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Rating:81Outperform
Price Target:
$18.50
▲(22.11% Upside)
Action:Reiterated
Date:08/05/26
OSPN scores well primarily on improved financial fundamentals (profitability turnaround, high gross margins, and very low leverage) and an attractive valuation (low P/E plus a ~3.23% dividend). Technicals are supportive with a clear uptrend, though momentum indicators are nearing overbought levels. The latest earnings call adds a positive tilt via raised FY2026 guidance and recurring revenue strength, tempered by Cybersecurity softness, modest margin/EPS pressure, and some cash-flow/timing and concentration risks.
Positive Factors
High software-like gross margins
Sustained gross margins near 70–72% indicate durable product economics typical of software businesses, supporting gross-profit-led cash generation and reinvestment. High margins give pricing power and buffer for sales/engineering investments, aiding long-term scalability and profitability.
Negative Factors
Weaker cash conversion and FCF decline
FCF remains positive but a 16.4% year-over-year decline and operating cash around half of net income indicate earnings do not fully convert to cash. This weakens internal funding for growth and buybacks and raises sensitivity to working-capital swings and timing over the next 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
High software-like gross margins
Sustained gross margins near 70–72% indicate durable product economics typical of software businesses, supporting gross-profit-led cash generation and reinvestment. High margins give pricing power and buffer for sales/engineering investments, aiding long-term scalability and profitability.
Read all positive factors
OneSpan (OSPN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$573.89M
Dividend Yield3.23%
Average Volume (3M)387.44K
Price to Earnings (P/E)8.4
Beta (1Y)1.11
Revenue Growth1.68%
EPS Growth22.57%
CountryUS
Employees465
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.81
Shares Outstanding37,072,850
10 Day Avg. Volume359,967
30 Day Avg. Volume387,438
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)1.79
Price to Sales (P/S)2.00
P/FCF Ratio9.64
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$18.67Price Target Upside23.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)1.22
Revenue Forecast (FY)$246.38M
OneSpan Business Overview & Revenue Model
Company Description
Globally, OneSpan Inc., along with its affiliated entities, focuses on creating, developing, and marketing digital solutions designed to enhance identity management, strengthen security, and boost business productivity. The company's diverse produ...
How the Company Makes Money
OneSpan primarily makes money by selling software and services that secure and enable digital transactions and digital agreements. Key revenue streams include: (1) Subscription/SaaS revenue from cloud-delivered offerings (e.g., digital agreement/e...
OneSpan Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call portrays a generally positive outlook: strong subscription growth, ARR expansion, a strategic platform launch (DigipassONE), standout Digital Agreements performance, and an upward revision to full-year guidance. Headwinds include a decline in Cybersecurity revenue, modest compression in adjusted EBITDA and EPS, cash reduction and some revenue timing and concentration risks. Overall the positives (platform momentum, recurring revenue growth, guidance raise, strong Digital Agreements results and healthy NRR) modestly outweigh the negatives.Positive Updates
Subscription Revenue Growth
Subscription revenue increased 11% year-over-year to $47.0M and represented 77% of total revenue (up from 70% in prior-year Q2), reflecting continued software shift and recurring revenue strength.
Negative Updates
Total Revenue Growth Muted
Total Q2 revenue increased only 1% year-over-year to $60.5M, reflecting drag from hardware and perpetual maintenance declines that offset subscription growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Subscription Revenue Growth
Subscription revenue increased 11% year-over-year to $47.0M and represented 77% of total revenue (up from 70% in prior-year Q2), reflecting continued software shift and recurring revenue strength.
Read all positive updates
Company Guidance
OneSpan raised its full‑year 2026 outlook, now forecasting total revenue of $248–$252 million (up from $244–$249M prior), with software & services of $202–$204 million (prior $201–$204M) and hardware of $46–$48 million (prior $43–$45M); ARR is expected to be $194–$198 million and adjusted EBITDA $67–$71 million (prior $64–$68M). Management said the raise reflects higher e‑signature volumes/contract overages and stronger hardware bookings in H1, noted Q2 ARR was ~$189.7M and Q2 adjusted EBITDA was $16.9M (27.9% margin), and guided that roughly one‑third of second‑half hardware revenue will be recognized in Q3 (Q3 = seasonally lowest, Q4 strongest) with additional but smaller overages expected in Q3 versus Q2.OneSpan Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 246.38M | 243.18M | 243.18M | 235.11M | 219.01M | 214.48M |
| Gross Profit | 173.84M | 171.90M | 174.58M | 157.72M | 148.57M | 142.94M |
| EBITDA | 55.44M | 64.40M | 57.61M | -5.08M | -6.74M | -17.22M |
| Net Income | 68.40M | 72.90M | 57.08M | -29.80M | -14.43M | -30.58M |
Balance Sheet | ||||||
| Total Assets | 387.02M | 397.70M | 338.73M | 289.19M | 335.08M | 342.27M |
| Cash, Cash Equivalents and Short-Term Investments | 43.34M | 70.50M | 83.16M | 42.49M | 98.83M | 98.49M |
| Total Debt | 10.39M | 6.14M | 9.28M | 6.82M | 10.70M | 10.18M |
| Total Liabilities | 113.54M | 125.86M | 126.20M | 130.05M | 131.77M | 122.49M |
| Stockholders Equity | 273.48M | 271.84M | 212.53M | 159.14M | 203.31M | 219.78M |
Cash Flow | ||||||
| Free Cash Flow | 38.99M | 50.49M | 46.42M | -23.28M | -10.78M | -4.95M |
| Operating Cash Flow | 50.77M | 59.45M | 55.67M | -10.73M | -5.76M | -2.75M |
| Investing Cash Flow | -61.02M | -35.58M | -9.30M | -12.01M | 46.59M | -10.98M |
| Financing Cash Flow | -39.45M | -38.42M | -5.24M | -32.09M | -7.31M | -10.39M |
OneSpan Technical Analysis
Positive
15.15
Price Trends
14.66
Positive
12.92
Positive
12.51
Positive
Market Momentum
0.38
Negative
67.27
Neutral
76.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OSPN, the sentiment is Positive. The current price of 15.15 is below the 20-day moving average (MA) of 15.37, above the 50-day MA of 14.66, and above the 200-day MA of 12.51, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 67.27 is Neutral, neither overbought nor oversold. The STOCH value of 76.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OSPN.
OneSpan Risk Analysis
OneSpan disclosed 45 risk factors in its most recent earnings report. OneSpan reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
OneSpan Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $573.89M | 8.37 | 25.92% | 3.30% | 1.68% | 22.57% | |
76 Outperform | $2.96B | 30.84 | 5.96% | ― | 4.47% | ― | |
75 Outperform | $24.67B | 101.38 | 3.59% | ― | 11.75% | 85.38% | |
66 Neutral | $658.93M | -221.84 | -1.33% | ― | ― | ― | |
65 Neutral | $2.13B | 46.94 | 21.19% | 0.70% | 12.08% | -8.14% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
OSPN
OneSpan
16.30
2.97
22.32%
NTCT
Netscout Systems
41.02
19.30
88.86%
ATEN
A10 Networks
30.84
12.34
66.74%
OKTA
Okta
147.04
49.29
50.42%
CGNT
Cognyte Software
9.13
0.08
0.88%
OneSpan Corporate Events
Executive/Board ChangesShareholder Meetings
OneSpan Shareholders Endorse Board, Pay and Incentive Plan
Positive
Jun 5, 2026
On June 5, 2026, OneSpan held its 2026 annual meeting of stockholders, with 31,392,771 of 37,071,341 outstanding shares represented in person or by proxy. Shareholders elected seven directors to serve until the 2027 annual meeting, reflecting broa...
Business Operations and StrategyStock Buyback
OneSpan Launches New $50 Million Share Repurchase Program
Positive
May 11, 2026
On May 7, 2026, OneSpan Inc.’s Board of Directors terminated its stock repurchase program that had been in place since May 9, 2024 and approved a new share buyback authorization of up to $50 million, running through May 7, 2028. The program ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.