OneSpan Inc (OSPN)
NASDAQ:OSPN
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OneSpan
(NASDAQ:OSPN)
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Rating:71Outperform
Price Target:
$11.50
▲(8.49% Upside)
Action:ReiteratedDate:03/03/26
The score is driven primarily by improved financial performance and a strong balance sheet with solid recent profitability and cash generation, plus attractive valuation (low P/E and high dividend yield). Offsetting these strengths are weak technicals (downtrend and negative MACD) and conservative 2026 guidance that implies slower growth and near-term margin pressure.
Positive Factors
Conservative balance sheet
Very low long-term debt and rising equity provide financial flexibility for M&A, dividends, and R&D without threatening liquidity. This reduces refinancing risk and supports durable capital returns and strategic investments over the next several quarters.
Negative Factors
Secular hardware revenue decline
Structural shrinkage of the hardware token market erodes a once-stable revenue base and creates ongoing top-line headwinds. Even with software gains, persistent hardware decline limits total revenue growth and forces more investment in higher-growth areas.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low long-term debt and rising equity provide financial flexibility for M&A, dividends, and R&D without threatening liquidity. This reduces refinancing risk and supports durable capital returns and strategic investments over the next several quarters.
Read all positive factors
OneSpan (OSPN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$397.15M
Dividend Yield3.75%
Average Volume (3M)699.97K
Price to Earnings (P/E)6.7
Beta (1Y)1.05
Revenue Growth-1.43%
EPS Growth101.80%
CountryUS
Employees465
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.36
Shares Outstanding37,466,946
10 Day Avg. Volume443,880
30 Day Avg. Volume699,973
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 Cap0.85
Enterprise Value/Revenue1.39
Enterprise Value/Gross Profit1.97
Enterprise Value/Ebitda5.60
Forecast
1Y Price Target
$13.50Price Target Upside27.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.42
Revenue Forecast (FY)$244.75M
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 through a combination of software licensing, subscription services, and professional services. Its primary revenue streams come from the sale of its authentication and e-signature products, which can be licensed on a one-...
OneSpan Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The call highlights substantial progress in the company’s software transition, with double-digit ARR growth, strong subscription momentum, record digital agreements performance, improved gross margins, solid full-year adjusted EBITDA and cash generation, and active strategic M&A to expand capabilities. However, material headwinds remain from a secular decline in hardware, near-term profitability dilution from planned investments and the Build38 acquisition, a moderation in 2026 revenue and ARR growth guidance, and a modest decline in cash after M&A and shareholder returns. Overall the tone is balanced: operational and financial improvements and strategic positioning are encouraging, but the company is signaling conservative near-term guidance and expects some margin pressure as it invests to drive future growth.Positive Updates
Strong ARR Growth and Composition
Annual recurring revenue (ARR) reached $187.0M, up 11.5% year-over-year. Cybersecurity ARR grew 12% to $120.0M and Digital Agreements ARR grew 10% to $67.0M, reflecting recurring software strength.
Negative Updates
Ongoing Hardware Revenue Decline
Hardware revenue declined ~16.6% (company commentary also referenced ~17%) in 2025 due to secular declines in consumer banking tokens as customers shift to mobile. Guidance expects further hardware decline of 8%–12% in 2026, which constrains total revenue growth.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong ARR Growth and Composition
Annual recurring revenue (ARR) reached $187.0M, up 11.5% year-over-year. Cybersecurity ARR grew 12% to $120.0M and Digital Agreements ARR grew 10% to $67.0M, reflecting recurring software strength.
Read all positive updates
Company Guidance
The company guided to 2026 software and services revenue of $201M–$204M (up ~4%–5%), hardware revenue of $43M–$45M (down ~8%–12%), and total revenue of $244M–$249M (0%–2% growth), with ARR of $192M–$196M (up ~3%–5%) and adjusted EBITDA of $64M–$68M (inclusive of the pending Build38 acquisition). Management said it will make incremental internal investments of about $5.5M in sales/marketing and product/R&D that will modestly pressure near-term profitability, expects Build38 to dilute adjusted EBITDA by $3M–$4M in 2026, anticipates continued secular decline in consumer banking hardware tokens, and noted lower visibility into multiyear license expansions early in the year.OneSpan Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 243.18M | 243.18M | 235.11M | 219.01M | 214.48M |
| Gross Profit | 171.90M | 174.58M | 157.72M | 148.57M | 142.94M |
| EBITDA | 64.40M | 57.61M | -5.08M | -6.74M | -17.20M |
| Net Income | 72.90M | 57.08M | -29.80M | -14.43M | -30.58M |
Balance Sheet | |||||
| Total Assets | 397.70M | 338.73M | 289.19M | 335.08M | 342.27M |
| Cash, Cash Equivalents and Short-Term Investments | 70.50M | 83.16M | 42.49M | 98.83M | 98.49M |
| Total Debt | 6.14M | 9.28M | 6.82M | 10.70M | 10.18M |
| Total Liabilities | 125.86M | 126.20M | 130.05M | 131.77M | 122.49M |
| Stockholders Equity | 271.84M | 212.53M | 159.14M | 203.31M | 219.78M |
Cash Flow | |||||
| Free Cash Flow | 50.49M | 46.42M | -23.28M | -10.78M | -4.95M |
| Operating Cash Flow | 59.45M | 55.67M | -10.73M | -5.76M | -2.75M |
| Investing Cash Flow | -35.58M | -9.30M | -12.01M | 46.59M | -10.98M |
| Financing Cash Flow | -38.42M | -5.24M | -32.09M | -7.31M | -10.39M |
OneSpan Technical Analysis
Negative
10.60
Price Trends
10.80
Negative
11.57
Negative
13.13
Negative
Market Momentum
>-0.01
Negative
47.35
Neutral
55.02
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 10.6 is above the 20-day moving average (MA) of 10.59, below the 50-day MA of 10.80, and below the 200-day MA of 13.13, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.35 is Neutral, neither overbought nor oversold. The STOCH value of 55.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $397.15M | 6.67 | 29.64% | 3.75% | -1.43% | 101.80% | |
71 Outperform | $2.32B | 8.80 | 6.07% | ― | 9.60% | ― | |
70 Outperform | $1.72B | 30.33 | 20.61% | 1.33% | 10.27% | 3.52% | |
70 Outperform | $592.67M | 44.08 | -0.32% | ― | ― | ― | |
64 Neutral | $11.13B | 63.23 | 3.45% | ― | 12.12% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
OSPN
OneSpan
10.60
-3.25
-23.48%
NTCT
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32.16
12.06
60.00%
ATEN
A10 Networks
24.00
8.44
54.22%
OKTA
Okta
62.93
-37.95
-37.62%
CGNT
Cognyte Software
8.11
-1.53
-15.87%
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.