Overview

* OneSpan ( OSPN ) Q2 revenue fell 2% yr/yr but beat analyst expectations, per LSEG data

* Operating income rose 38% yr/yr to $10.5 mln

* Co acquired Nok Nok Labs to enhance authentication solutions

Outlook

* OneSpan ( OSPN ) expects full-year 2025 revenue between $245 mln and $251 mln

* Company projects 2025 ARR to range from $186 mln to $192 mln

* OneSpan ( OSPN ) forecasts adjusted EBITDA of $72 mln to $76 mln for 2025

Result Drivers

* SUBSCRIPTION GROWTH - Co's subscription revenue increased 22% yr/yr, driven by demand for digital agreements solutions

* ACQUISITION IMPACT - ARR growth includes $8.1 mln from Nok Nok Labs acquisition, enhancing authentication offerings

* GROSS MARGIN IMPROVEMENT - Gross margin rose to 73% from 66% yr-ago, attributed to improved cost management

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $59.80 $59 mln

Revenue mln (4

Analysts

)

Q2 Beat $13.30 $12.20

Adjusted mln mln (3

Net Analysts

Income )

Q2 Beat $17.60 $15.30

Adjusted mln mln (4

EBITDA Analysts

)

Q2 $177.80

Annual mln

Recurrin

g

Revenue

Q2 Gross $44 mln

Profit

Q2 $10.50

Operatin mln

g Income

Q2 $36.20

Subscrip mln

tion

Revenue

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for OneSpan Inc ( OSPN ) is $20.00, about 27% above its August 4 closing price of $14.60

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)