OneSpan Q3 2025 Earnings EPS Beats Estimates Despite 21.3% Net Income Decline

OneSpan (OSPN) reported fiscal 2025 Q3 earnings on October 31, 2025, with total revenue rising 1.4% to $57.06 million. While non-GAAP EPS of $0.33 beat estimates, the company revised full-year revenue guidance downward to $239–241 million, citing hardware declines and slower security expansion.

Revenue

Subscription revenue led the way at $37.78 million, growing 12% year-over-year, while maintenance and support accounted for $8.89 million. Professional services and other segments contributed $660,000, and hardware revenue totaled $9.73 million, though the company noted a secular decline in this area.

Earnings/Net Income

Non-GAAP EPS of $0.33 exceeded estimates, but GAAP EPS fell 19% to $0.17. Net income declined 21.3% to $6.51 million, though the company set a 20-year high for Q3 net income. Despite the EPS beat, mixed market reactions highlight risks from inconsistent revenue performance.

Post-Earnings Price Action Review

Historical backtests show OSPN’s stock returns +4.2% on average after revenue beats, with a 50% success rate over six years. However, Q3 2025 saw a 16% post-earnings drop due to revised guidance, underscoring volatility. Short-term traders should balance potential gains with tight stop-loss strategies, while long-term focus should prioritize software growth and AI integration.

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CEO Commentary

CEO Victor Limongelli emphasized software’s 80% business contribution, with 12% subscription growth and $180 million ARR. He highlighted strategic acquisitions (Nok Nok) and AI advancements to drive 2026 growth, alongside $6.3 million in Q3 buybacks.

Guidance

Full-year 2025 revenue guidance was cut to $239–241 million, with ARR projected at $183–187 million. Adjusted EBITDA remains at $72–76 million, and the $0.12 quarterly dividend continues.

Additional News

1. M&A Activity: Acquired Nok Nok Labs to bolster authentication solutions, with $6-figure S3 FIDO2 contracts.


2. Leadership Change: Hired Ashish Jain as CTO to accelerate R&D and AI integration.


3. Dividend/Buybacks: Declared a $0.12 dividend (4.11% yield) and executed $6.3 million in share repurchases.

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The stock’s post-earnings volatility and revised guidance underscore the need for cautious positioning. Investors should monitor software adoption and hardware transition risks in the coming quarters.