OneSpan (OSPN) AI Stock Analysis

• Market Cap: $594.41M
• Dividend Yield: 2.37%
• Average Volume (3M): 318.89K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.27
• Revenue Growth: -2.79%
• EPS Growth: 259.00%
• Country: US
• Employees: 465
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.33
• Shares Outstanding: 38,324,623
• 10 Day Avg. Volume: 271,881
• 30 Day Avg. Volume: 318,889
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $18.33
• Price Target Upside: 18.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $17.00 ▲(9.61% Upside)

OneSpan's overall stock score reflects strong financial stability and attractive valuation, offset by concerns over declining revenue growth and mixed technical indicators. The earnings call provided positive insights into profitability and strategic acquisitions, but highlighted challenges in revenue and ARR growth.

OneSpan Business Overview & Revenue Model

Company Description

OneSpan (OSPN) is a global leader in digital identity and anti-fraud solutions, specializing in secure authentication, electronic signatures, and transaction verification. The company serves various sectors, including financial services, healthcare, and government, offering a suite of products designed to enhance security and streamline the customer experience in digital transactions. OneSpan's core services include identity verification, risk analytics, and secure electronic signature solutions, which are crucial for organizations looking to mitigate fraud and comply with regulatory requirements.

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's financial statements reflect strong profitability with improved margins and a robust balance sheet. However, the negative revenue growth and challenges in cash conversion are concerns.

Income Statement

OneSpan's income statement shows a strong gross profit margin of over 71% in TTM, indicating efficient cost management. The net profit margin has improved significantly to 24% in TTM from negative values in previous years, reflecting a turnaround in profitability. However, the revenue growth rate is negative in TTM, suggesting a decline in sales compared to the previous period. The EBIT and EBITDA margins are healthy, but the decline in revenue growth is a concern.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.03 in TTM, indicating low leverage and financial stability. The return on equity is strong at 28.5% in TTM, showcasing effective use of equity to generate profits. The equity ratio is healthy, reflecting a solid capital structure. Overall, the balance sheet demonstrates financial strength and low risk.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 8.6% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is below 1, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio is strong, reflecting efficient cash management. Despite improvements, the cash flow stability could be enhanced.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	240.62M	243.18M	235.11M	219.01M	214.48M	215.69M
Gross Profit	177.90M	174.58M	157.72M	148.57M	142.94M	152.25M
EBITDA	62.45M	57.61M	-5.08M	-6.74M	-17.20M	6.75M
Net Income	59.91M	57.08M	-29.80M	-14.43M	-30.58M	-5.46M
Balance Sheet
Total Assets	357.10M	338.73M	289.19M	335.08M	342.27M	375.20M
Cash, Cash Equivalents and Short-Term Investments	92.89M	83.16M	42.49M	98.83M	98.49M	115.25M
Total Debt	9.41M	6.93M	6.82M	8.44M	10.18M	12.40M
Total Liabilities	114.59M	126.20M	130.05M	131.77M	122.49M	117.86M
Stockholders Equity	242.51M	212.53M	159.14M	203.31M	219.78M	257.34M
Cash Flow
Free Cash Flow	54.56M	46.42M	-23.28M	-10.81M	-4.95M	11.82M
Operating Cash Flow	61.99M	55.67M	-10.73M	-5.79M	-2.75M	14.92M
Investing Cash Flow	-19.48M	-9.30M	-12.01M	46.59M	-10.98M	-4.66M
Financing Cash Flow	-15.38M	-5.24M	-32.09M	-7.31M	-10.39M	-7.06M

OneSpan Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OSPN, the sentiment is Neutral. The current price of 15.51 is below the 20-day moving average (MA) of 15.62, above the 50-day MA of 15.48, and below the 200-day MA of 15.83, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 48.71 is Neutral, neither overbought nor oversold. The STOCH value of 46.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OSPN.

OneSpan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	―	$1.26B	26.52	24.39%	1.37%	11.04%	18.70%
NTCT	―	$2.02B	28.03	4.88%	―	5.29%	―
OSPN	―	$594.41M	9.99	28.45%	2.37%	-2.79%	259.00%
OKTA	―	$15.50B	103.66	2.61%	―	12.68%	―
VRNT	―	$1.23B	30.72	4.72%	―	-2.32%	7.70%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CGNT	―	$608.03M	―	-2.26%	―	―	―

OneSpan Corporate Events

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.