OneSpan Raises Outlook as Digital Agreements Drive Revenue Growth
The company lifted its 2026 adjusted-EBITDA forecast to $67 million-$71 million.
OneSpan Inc. (OSPN), a digital-agreements and cybersecurity company, returned to revenue growth in the second quarter as gains in Digital Agreements outweighed a decline in Cybersecurity.
The quarter marked a shift in OneSpan's business mix. Digital Agreements revenue rose 25% to $19.5 million, accelerating from 1% growth a year earlier, while Cybersecurity revenue fell 7% to $40.9 million after the comparable segment declined 3% in the 2025 quarter.
Total revenue increased 1% to $60.5 million, reversing the 2% declines recorded in both the first and second quarters of 2025. Subscription revenue rose 11% to $46.7 million, compared with growth of 22% in the year-earlier quarter and 9% in the first quarter of 2025.
The shift supported wider margins in Digital Agreements, where gross margin expanded to 75% from 71% and operating income more than doubled to $7.0 million. Cybersecurity gross margin narrowed one percentage point to 73%, and its operating income fell 30% to $13.8 million. Total gross margin increased to 74% from 73%.
Companywide profit declined despite the return to revenue growth. Operating income fell 17% to $8.7 million, net income decreased 19% to $6.8 million, and diluted earnings fell to $0.18 a share from $0.21. Adjusted EBITDA declined 4% to $16.9 million, reversing growth in the two comparison quarters.
Annual recurring revenue rose 7% to $189.7 million, extending a slowdown from 8% growth in the second quarter of 2025 and 9% in the first quarter of that year. Net retention improved to 103% from 101% a year earlier, though it remained below the first quarter of 2025's 107%.
OneSpan now expects 2026 revenue of $248 million to $252 million, up from its previous range of $244 million to $249 million. The higher forecast was concentrated in hardware, whose outlook increased to $46 million–$48 million from $43 million–$45 million; the software-and-services range moved to $202 million–$204 million from $201 million–$204 million.
The company repurchased about 230,000 shares for $2.9 million during the quarter and raised its quarterly dividend to $0.13 a share from $0.12. It also introduced DigipassONE, which combines authentication, digital credentials and wallets, application protection and telemetry, and released an early-access version of DigipassONE Verify.