OneSpan Raises Full-Year Revenue and EBITDA Outlook

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter revenue reached $63.9 million, up 12%, as Cybersecurity reversed a second-quarter decline and the company lifted 2026 Adjusted EBITDA guidance to $72 million to $76 million.

OneSpan Inc. (OSPN) reported third-quarter revenue of $63.9 million, up 12% from a year earlier, a sharp acceleration from 1% growth in the second quarter and 4% growth in the first. The identity-security software company also raised full-year 2026 revenue and Adjusted EBITDA guidance after Cybersecurity sales reversed a year-over-year decline and subscription growth picked up.

Cybersecurity, the larger of the two reportable segments, generated $44.9 million of revenue, up 11% from the year-ago quarter, after a 7% year-over-year decline in the second quarter. Digital Agreements contributed $19.0 million, up 14% year over year, after 25% growth in the prior quarter. Subscription revenue, which the company now presents with term maintenance included, rose 16% year over year to $51.5 million, after 11% growth in the second quarter and 8% growth in the first.

Gross profit was $48.7 million, or a 76% gross margin, compared with $42.0 million, or 74%, a year earlier. Operating income increased 12% year over year to $9.2 million, after a 17% year-over-year decline in the second quarter. Adjusted EBITDA was $19.3 million, up 10% from $17.5 million a year earlier, after a 4% year-over-year decline in the second quarter. Net income was $7.8 million, or $0.20 a share. Non-GAAP net income was $13.6 million, or $0.35 a share.

Annual recurring revenue increased 9% year over year to $195.5 million, after 7% growth in the second quarter and 14% growth in the first. Net retention rate was 105%, up from 103% in the second quarter. Chief Executive Victor Limongelli said the company delivered an excellent third quarter highlighted by 16% subscription revenue growth and a 12% increase in operating income, and that it had continued to improve execution in both Cybersecurity and Digital Agreements while investing to strengthen its competitive position.

Cybersecurity segment operating income was $18.5 million, compared with $16.7 million a year earlier. Digital Agreements operating income was $6.9 million, compared with $4.2 million. Corporate and other posted a $16.2 million operating loss. Cybersecurity subscription revenue was $32.5 million and Digital Agreements subscription revenue was $19.0 million in the quarter. Hardware products, all in Cybersecurity, contributed $10.5 million.

Cash and cash equivalents were $51.4 million at September 30, 2026, compared with $70.5 million at December 31, 2025. The company drew $5.0 million on a revolving credit facility in the nine months ended September 30, 2026. The board declared a quarterly cash dividend of $0.13 a share, payable December 4, 2026.

OneSpan said it is updating previously issued full-year 2026 guidance to reflect increases in software and services revenue, ARR, and Adjusted EBITDA expectations. The company now expects total revenue of $254 million to $258 million, versus a prior range of $248 million to $252 million. Software and services revenue is expected at $208 million to $210 million, versus $202 million to $204 million. Hardware revenue guidance of $46 million to $48 million was unchanged. ARR is expected at $197 million to $201 million, versus $194 million to $198 million. Adjusted EBITDA is expected at $72 million to $76 million, versus $67 million to $71 million.

The company said DigipassONE Authenticate Free Trial is planned for November 2026 and general availability of DigipassONE Verify is expected in early 2027. It also announced planned Digital Agreements innovations including AI-assisted capabilities, automated document validation, and advanced identity verification.