OneSpan (OSPN) AI Stock Analysis

• Market Cap: $464.69M
• Dividend Yield: 3.93%
• Average Volume (3M): 600.40K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.16
• Revenue Growth: -1.43%
• EPS Growth: 101.80%
• Country: US
• Employees: 465
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.33
• Shares Outstanding: 38,027,122
• 10 Day Avg. Volume: 689,604
• 30 Day Avg. Volume: 600,404
• PEG Ratio: -0.04
• Price to Book (P/B): 3.35
• Price to Sales (P/S): 2.93
• P/FCF Ratio: 15.33
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 2.23
• Enterprise Value/Gross Profit: 3.02
• Enterprise Value/Ebitda: 9.06
• 1Y Price Target: $18.50
• Price Target Upside: 51.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.43
• Revenue Forecast (FY): $240.05M

• Rating: 71 Outperform
• Price Target: $13.50 ▲(10.47% Upside)

OneSpan's overall stock score reflects strong financial performance and attractive valuation, which are offset by bearish technical indicators and challenges highlighted in the earnings call. The company's robust profitability and strategic initiatives in the software sector are positive, but short-term growth concerns and technical weakness weigh on the score.

OneSpan Business Overview & Revenue Model

Company Description

OneSpan Inc., together with its subsidiaries, designs, develops, and markets digital solutions for identity, security, and business productivity worldwide. The company offers OneSpan Sign, a range of e-signature requirements for occasional agreement to processing tens of thousands of transactions; OneSpan Cloud Authentication, a cloud-based multifactor authentication solution that supports a range of authentication options, including biometrics, push notification, and visual cryptograms for transaction data signing, SMS, and hardware authenticators; and OneSpan Identity Verification, which enables banks and financial institutions identity verification services. It also provides Mobile Security Suite, a software development kit; Mobile Authenticator Studio, a mobile authenticator that operates as a discrete mobile application; and authentication servers, which enables customers to administer a high level of access control. In addition, it offers Trusted Identity Platform, a cloud platform that simplify and secure user journeys; Intelligent Adaptive Authentication; and Risk Analytics, a comprehensive anti-fraud solution. It sells its solutions through its direct sales force, as well as through distributors, resellers, systems integrators, and original equipment manufacturers. The company was formerly known as VASCO Data Security International, Inc. and changed its name to OneSpan Inc. in May 2018. OneSpan Inc. was founded in 1991 and is headquartered in Chicago, Illinois. OneSpan Inc. was a former subsidiary of Guidewire Software, Inc.

How the Company Makes Money

OneSpan generates revenue primarily through the sale of its software solutions and services. The company's revenue model includes subscription fees for its cloud-based solutions, licensing fees for on-premise software, and transaction-based fees for its electronic signature and authentication services. Key revenue streams include recurring subscription revenues from financial institutions and enterprises that integrate OneSpan's solutions into their platforms. Additionally, OneSpan has established strategic partnerships with technology providers and financial institutions, which help expand its market reach and enhance its product offerings, contributing significantly to its overall earnings.

OneSpan Financial Statement Overview

Summary

OneSpan demonstrates strong financial health with impressive revenue growth and profitability. The income statement shows a robust gross profit margin and net profit margin, indicating efficient cost management. The balance sheet is solid with low leverage, enhancing financial resilience. However, the decline in free cash flow growth may require strategic attention to sustain long-term liquidity.

Income Statement

OneSpan's income statement shows strong performance with a significant improvement in profitability. The TTM data reveals a gross profit margin of 73.87% and a net profit margin of 24.08%, indicating efficient cost management and strong profitability. Revenue growth is robust at 33.8% TTM, showcasing a positive growth trajectory. However, the EBIT margin has slightly decreased from the previous year, suggesting some operational challenges.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.027, indicating minimal leverage and financial stability. Return on equity is strong at 25.16%, reflecting efficient use of equity to generate profits. The equity ratio is healthy, suggesting a strong capital structure. However, the slight decrease in stockholders' equity over the periods may warrant attention.

Cash Flow

Cash flow analysis shows a mixed picture. Operating cash flow is strong, with a positive ratio to net income, indicating good cash generation from operations. However, free cash flow growth is negative at -5.95% TTM, which could signal potential challenges in maintaining cash reserves. The free cash flow to net income ratio remains high, suggesting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	241.44M	243.18M	235.11M	219.01M	214.48M	215.69M
Gross Profit	178.35M	174.58M	157.72M	148.57M	142.94M	152.25M
EBITDA	59.53M	57.61M	-5.08M	-6.74M	-17.20M	7.65M
Net Income	58.15M	57.08M	-29.80M	-14.43M	-30.58M	-5.46M
Balance Sheet
Total Assets	343.52M	338.73M	289.19M	335.08M	342.27M	375.20M
Cash, Cash Equivalents and Short-Term Investments	85.55M	83.16M	42.49M	98.83M	98.49M	115.25M
Total Debt	6.45M	9.28M	6.82M	10.70M	10.18M	12.40M
Total Liabilities	105.20M	126.20M	130.05M	131.77M	122.49M	117.86M
Stockholders Equity	238.32M	212.53M	159.14M	203.31M	219.78M	257.34M
Cash Flow
Free Cash Flow	50.12M	46.42M	-23.28M	-10.78M	-4.95M	11.82M
Operating Cash Flow	58.14M	55.67M	-10.73M	-5.76M	-2.75M	14.92M
Investing Cash Flow	-21.99M	-9.30M	-12.01M	46.59M	-10.98M	-4.66M
Financing Cash Flow	-27.56M	-5.24M	-32.09M	-7.31M	-10.39M	-7.06M

OneSpan Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OSPN, the sentiment is Negative. The current price of 12.22 is below the 20-day moving average (MA) of 12.48, below the 50-day MA of 14.36, and below the 200-day MA of 15.10, indicating a bearish trend. The MACD of -0.68 indicates Negative momentum. The RSI at 39.72 is Neutral, neither overbought nor oversold. The STOCH value of 24.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OSPN.

OneSpan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	77 Outperform	$1.21B	24.68	23.88%	1.41%	10.27%	3.52%
NTCT	72 Outperform	$1.91B	21.47	5.91%	―	9.60%	―
OSPN	71 Outperform	$464.69M	8.28	26.86%	3.93%	-1.43%	101.80%
VRNT	62 Neutral	$1.24B	31.11	4.72%	―	-2.32%	7.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OKTA	61 Neutral	$13.95B	93.33	2.61%	―	12.68%	―
CGNT	56 Neutral	$594.36M	―	-2.26%	―	―	―

OneSpan Corporate Events

Onespan’s Earnings Call: Software Growth Amid Challenges

The recent earnings call of Onespan painted a mixed picture of the company’s current standing and future prospects. On the positive side, the call highlighted robust growth in the software segment and successful strategic acquisitions, which are expected to drive future growth. However, challenges such as a decline in hardware revenue and revised revenue guidance were also discussed, indicating some concerns about short-term growth prospects. Despite these challenges, profitability and cash generation remain strong, providing a solid foundation for the company’s future endeavors.

OneSpan Reports Modest Revenue Growth in Q3 2025

OneSpan Inc. is a company specializing in security authentication, identity, electronic signature, and digital workflow solutions, primarily serving the financial sector by protecting and facilitating digital transactions and agreements. In its third-quarter 2025 financial report, OneSpan reported a modest 1% increase in total revenue to $57.1 million, with subscription revenue showing a significant 12% year-over-year growth. However, operating income saw a decline of 27% to $8.2 million, while adjusted EBITDA rose by 3% to $17.5 million.

Onespan’s Accounting Policies Under Scrutiny: Potential Risks for Investors

Onespan faces potential business risks related to its critical accounting policies, as outlined in their financial statements. The company’s reliance on these policies, detailed in their Form 10-K and Form 10-Q, underscores the importance of accurate financial reporting. Any misinterpretation or misapplication of these policies could lead to financial discrepancies, affecting investor confidence and market stability. Stakeholders should closely monitor how Onespan adheres to these accounting standards to mitigate potential risks.

OneSpan’s Q2 2025 Earnings Call Highlights Growth

The recent earnings call for OneSpan in Q2 2025 reflected a generally positive sentiment, highlighting the company’s strong financial performance and strategic acquisition as indicators of growth potential. Despite challenges such as declines in hardware revenue and some customer contractions in annual recurring revenue (ARR), the overall outlook remains optimistic due to the company’s strategic initiatives and financial health.

OneSpan’s Q2 2025: Profitability Soars Amid Revenue Dip

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.