Authentication software provider OneSpan misses Q3 revenue expectations, lowers guidance

Onespan

30/10/2025 20:16

Overview

OneSpan Q3 revenue grows 1% yr/yr but misses analysts' expectations

Adjusted EPS for Q3 beats analyst expectations

Company repurchased 450,000 shares for $6.3 mln

Outlook

OneSpan lowers full-year 2025 revenue to between $239 mln-$241 mln from $245 mln-$251 mln

Company cuts 2025 ARR guidance to between $183 mln-$187 mln from $186 mln-$192 mln

OneSpan forecasts 2025 adjusted EBITDA between $72 mln and $76 mln

Result Drivers

SUBSCRIPTION GROWTH - Subscription revenue increased 12% yr/yr to $37.8 mln, driving overall revenue growth

ACQUISITION IMPACT - Financial results include contributions from Nok Nok Labs acquisition, completed in June 2025

OPERATING COSTS - Operating income decreased 27% yr/yr due to higher operating costs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$57.06 mln
$58.18 mln (5 Analysts)
Q3 Adjusted EPS
Beat
$0.33
$0.28 (5 Analysts)
Q3 Adjusted Net Income
Beat
$12.89 mln
$11.36 mln (4 Analysts)
Q3 Adjusted EBITDA
Beat
$17.54 mln
$14.91 mln (5 Analysts)
Q3 Annual Recurring Revenue
$180.27 mln
Q3 Gross Profit
$42 mln
Q3 Operating Income
$8.19 mln
Q3 Subscription Revenue
$37.80 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for OneSpan Inc is $20.00, about 24.2% above its October 29 closing price of $15.16

Press Release: ID:nBw8mfBFqa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)