OneSpan Inc (OSPN)
NASDAQ:OSPN
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OneSpan
(NASDAQ:OSPN)
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Rating:79Outperform
Price Target:
$13.50
▲(17.49% Upside)
Action:ReiteratedDate:05/01/26
The score is driven mainly by strong financial quality (profitability rebound and low leverage) and very attractive valuation (low P/E and high dividend yield). The earnings outlook is constructive with reaffirmed guidance and raised ARR targets, but tempered by near-term ARR headwinds and margin pressure. Technicals are supportive but not fully bullish given the stock remains below its 200-day moving average.
Positive Factors
Very low leverage / strong balance sheet
OneSpan's minimal long-term debt and very low leverage give the company durable financial flexibility to fund M&A, product investment, dividends, and buybacks without stressing liquidity. This reduces solvency risk and supports multi-quarter strategic execution even if growth temporarily slows.
Negative Factors
Secular decline in hardware revenue
The shrinking hardware business reduces revenue diversification and increases reliance on software subscription growth. Hardware is lumpy and lower-margin; its secular decline means management must replace that revenue with recurring SaaS sales or M&A to sustain topline growth over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
OneSpan's minimal long-term debt and very low leverage give the company durable financial flexibility to fund M&A, product investment, dividends, and buybacks without stressing liquidity. This reduces solvency risk and supports multi-quarter strategic execution even if growth temporarily slows.
Read all positive factors
OneSpan (OSPN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$432.37M
Dividend Yield3.75%
Average Volume (3M)625.13K
Price to Earnings (P/E)8.6
Beta (1Y)1.04
Revenue Growth1.68%
EPS Growth22.57%
CountryUS
Employees465
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.85
Shares Outstanding37,466,946
10 Day Avg. Volume490,803
30 Day Avg. Volume625,133
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 Cap0.90
Enterprise Value/Revenue1.59
Enterprise Value/Gross Profit2.25
Enterprise Value/Ebitda6.47
Forecast
1Y Price Target
$13.50Price Target Upside17.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.23
Revenue Forecast (FY)$246.31M
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 agreeme...
How the Company Makes Money
OneSpan generates revenue primarily by selling and licensing its security and digital agreement software and related services. Key revenue streams include: (1) subscription and cloud-based (SaaS) offerings for capabilities such as electronic signa...
OneSpan Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful progress: solid ARR growth (+14.1% YoY), increased subscription mix (80% of revenue), strong segment performance in digital agreements (+11.2% revenue) and continued cybersecurity subscription growth, plus strategic acquisitions (Build 38, Nok Nok) that broaden product capabilities. These positives were tempered by near-term pressures: lower GAAP operating income and EPS, a decline in adjusted EBITDA margin versus prior year, a modest Q2 ARR headwind (~$3M) from non-renewals, continued secular decline in hardware (now 16% of revenue), and a reduced cash balance following acquisition and capital returns. Management reaffirmed revenue and EBITDA guidance and raised ARR guidance, signaling confidence in medium-term growth while acknowledging short-term cost and timing impacts.Positive Updates
Strong ARR Growth and Retention
Annual recurring revenue (ARR) of $192.1M, up 14.1% year over year (inclusive of acquisitions) and up 24% since 03/31/2024; net retention rate 105%; gross revenue retention ~90% company-wide and 94% in digital agreements.
Negative Updates
ARR Headwind from Near-Term Non-Renewals
Management flagged a Q2 ARR headwind of ~ $3M from two contracts not expected to renew (one ~ $2M), driven by customers moving to passwordless solutions (a decision largely made before Nok Nok acquisition).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong ARR Growth and Retention
Annual recurring revenue (ARR) of $192.1M, up 14.1% year over year (inclusive of acquisitions) and up 24% since 03/31/2024; net retention rate 105%; gross revenue retention ~90% company-wide and 94% in digital agreements.
Read all positive updates
Company Guidance
OneSpan affirmed its full-year 2026 outlook while raising ARR: management now expects total revenue of $244–$249 million, software & services revenue of $201–$204 million, hardware revenue of $43–$45 million, ARR of $194–$198 million (up from a prior guide of $192–$196 million), and adjusted EBITDA of $66–$68 million. They noted a near-term ARR headwind of roughly $3 million in Q2 from two non‑renewals (one ~ $2 million), but said ARR finished Q1 at $192.1 million and should grow in the back half of the year with most of that growth occurring in Q4, driven by continued software & services strength and moderate cybersecurity growth. Management also reiterated the secular decline in consumer banking hardware tokens and the strategic importance of passwordless/FIDO capabilities to offset that trend while maintaining a balanced capital allocation approach.OneSpan Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 245.76M | 243.18M | 243.18M | 235.11M | 219.01M | 214.48M |
| Gross Profit | 173.33M | 171.90M | 174.58M | 157.72M | 148.57M | 142.94M |
| EBITDA | 60.33M | 64.40M | 57.61M | -5.08M | -6.74M | -17.20M |
| Net Income | 69.96M | 72.90M | 57.08M | -29.80M | -14.43M | -30.58M |
Balance Sheet | ||||||
| Total Assets | 383.15M | 397.70M | 338.73M | 289.19M | 335.08M | 342.27M |
| Cash, Cash Equivalents and Short-Term Investments | 49.75M | 70.50M | 83.16M | 42.49M | 98.83M | 98.49M |
| Total Debt | 7.96M | 6.14M | 9.28M | 6.82M | 10.70M | 10.18M |
| Total Liabilities | 111.13M | 125.86M | 126.20M | 130.05M | 131.77M | 122.49M |
| Stockholders Equity | 272.02M | 271.84M | 212.53M | 159.14M | 203.31M | 219.78M |
Cash Flow | ||||||
| Free Cash Flow | 46.63M | 50.49M | 46.42M | -23.28M | -10.78M | -4.95M |
| Operating Cash Flow | 57.09M | 59.45M | 55.67M | -10.73M | -5.76M | -2.75M |
| Investing Cash Flow | -71.69M | -35.58M | -9.30M | -12.01M | 46.59M | -10.98M |
| Financing Cash Flow | -42.71M | -38.42M | -5.24M | -32.09M | -7.31M | -10.39M |
OneSpan Technical Analysis
Neutral
11.49
Price Trends
10.78
Positive
11.53
Negative
13.01
Negative
Market Momentum
0.13
Negative
63.95
Neutral
86.50
Negative
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 11.49 is above the 20-day moving average (MA) of 10.77, above the 50-day MA of 10.78, and below the 200-day MA of 13.01, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 63.95 is Neutral, neither overbought nor oversold. The STOCH value of 86.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OSPN.
OneSpan Risk Analysis
OneSpan disclosed 44 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $432.37M | 8.56 | 29.64% | 3.75% | 1.68% | 22.57% | |
71 Outperform | $2.45B | 8.80 | 6.07% | ― | 4.91% | ― | |
71 Outperform | $1.93B | 34.43 | 21.19% | 1.33% | 12.08% | -8.14% | |
71 Outperform | $712.51M | 44.08 | -0.32% | ― | ― | ― | |
64 Neutral | $13.40B | 63.23 | 3.45% | ― | 11.84% | 730.76% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
OSPN
OneSpan
11.54
-3.06
-20.98%
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64.21%
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9.75
-0.22
-2.21%
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.