OneSpan Inc. reported fourth‑quarter and full‑year 2025 results that exceeded analyst expectations. Total revenue for the quarter was $62.9 million, up 12% from $55.9 million in Q4 2024, while full‑year revenue of $243.2 million was flat compared with the same period in 2024. Non‑GAAP earnings per share were $0.36, beating the consensus estimate of $0.29–$0.30 by $0.07, or roughly 24%.
The earnings beat was driven by disciplined cost management and a favorable product mix. Operating income rose 8% to $12.5 million, supported by higher gross margins and the continued shift from legacy hardware to software‑centric solutions. Subscription revenue grew 12% to $156.1 million, and annual recurring revenue increased 11% to $186.9 million, underscoring the company’s successful transition to a subscription‑based model.
For fiscal 2026, OneSpan guided revenue of $244 million to $249 million, a slight downward revision from the prior $245 million to $251 million range. The guidance reflects anticipated hardware headwinds and the integration of the pending Build38 acquisition, while the company maintains an adjusted EBITDA outlook of $72 million to $76 million.
"We had a strong finish to the year and made great progress in 2025. I'm pleased that we had double‑digit growth in subscription revenue and ARR in 2025, as well as 8% growth in operating income. Our substantial cash generation also enabled us to invest in the business and return capital to shareholders, including in Q4 when we repurchased approximately 560,000 shares," said CEO Victor Limongelli.
Investors reacted positively to the earnings beat, with the EPS and revenue surges cited as key drivers. The company’s emphasis on software, which now accounts for over 80% of revenue, and the continued decline in hardware sales to less than 20% of the business, were highlighted as strategic strengths.
OneSpan’s board also approved a dividend increase to $0.13 per share, up from $0.12, reflecting the company’s strong cash position. Management noted that evolving AI‑driven threats underscore the need for continuous product innovation, and the Build38 acquisition is expected to enhance the company’s mobile application protection capabilities.
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