OneSpan 2025 Q2 Earnings Profitability Surges Despite Revenue Dip

OneSpan reported mixed results in its Q2 2025 earnings, with revenue slightly down but net income rising sharply. The company raised its ARR guidance and highlighted strategic growth through recent acquisitions.

Revenue

OneSpan reported total revenue of $59.84 million in the second quarter of 2025, a 1.8% decline from the $60.92 million recorded in the same period in 2024. Subscription revenue remained the largest contributor at $36.18 million, followed by maintenance and support at $8.69 million. Professional services and other revenue amounted to $960,000, while hardware products brought in $14.02 million.

Earnings/Net Income

The company’s profitability improved significantly, with net income rising 27.3% year-over-year to $8.34 million in Q2 2025 from $6.55 million in Q2 2024. Earnings per share (EPS) also increased by 29.4%, reaching $0.22. This marks a new high for Q2 net income in over two decades and reflects a strong earnings performance.

Price Action

Despite the earnings beat, the stock price of OneSpan declined, falling 2.98% on the latest trading day, 5.23% during the most recent full trading week, and 18.12% month-to-date.

Post-Earnings Price Action Review

A strategy of buying OneSpan shares following a quarterly revenue increase and holding for 30 days has yielded minimal returns over the past three years. This approach, with a compound annual growth rate of 0.00% and an excess return of -1.96%, underperformed the benchmark by 1.96%. It also demonstrated no volatility or drawdown, suggesting it is essentially a risk-free but low-return strategy.

CEO Commentary

OneSpan CEO Victor Limongelli expressed optimism about the company’s performance, noting the strong profitability in Q2 and the recent acquisition of Nok Nok Labs. The acquisition is expected to enhance the company’s authentication offerings with FIDO2 passwordless technology. Limongelli emphasized the value of targeted acquisitions and the company’s ongoing efforts to drive efficient and profitable growth.

Guidance

For the full year 2025, OneSpan expects revenue in the range of $245 million to $251 million, Annual Recurring Revenue (ARR) between $186 million and $192 million, and Adjusted EBITDA between $72 million and $76 million. The company has raised its ARR guidance from a prior range of $180 million to $186 million.

Additional News

Recent non-earnings related developments include OneSpan’s acquisition of Nok Nok Labs, which is set to enhance its FIDO2 authentication capabilities and strengthen its market position. Additionally, the company appointed Ashish Jain as Chief Technology Officer, bringing in an accomplished technology executive to drive the next phase of innovation. On December 16, 2024, OneSpan also announced the initiation of a quarterly cash dividend, marking a significant step in returning value to shareholders. These developments highlight OneSpan’s commitment to strategic growth, technological leadership, and shareholder returns.