OneSpan Q2 adjusted net income beats expectations

Onespan

05/08/2025 21:14

Overview

OneSpan Q2 revenue fell 2% yr/yr but beat analyst expectations, per LSEG data

Operating income rose 38% yr/yr to $10.5 mln

Co acquired Nok Nok Labs to enhance authentication solutions

Outlook

OneSpan expects full-year 2025 revenue between $245 mln and $251 mln

Company projects 2025 ARR to range from $186 mln to $192 mln

OneSpan forecasts adjusted EBITDA of $72 mln to $76 mln for 2025

Result Drivers

SUBSCRIPTION GROWTH - Co's subscription revenue increased 22% yr/yr, driven by demand for digital agreements solutions

ACQUISITION IMPACT - ARR growth includes $8.1 mln from Nok Nok Labs acquisition, enhancing authentication offerings

GROSS MARGIN IMPROVEMENT - Gross margin rose to 73% from 66% yr-ago, attributed to improved cost management

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$59.80 mln
$59 mln (4 Analysts)
Q2 Adjusted Net Income
Beat
$13.30 mln
$12.20 mln (3 Analysts)
Q2 Adjusted EBITDA
Beat
$17.60 mln
$15.30 mln (4 Analysts)
Q2 Annual Recurring Revenue
$177.80 mln
Q2 Gross Profit
$44 mln
Q2 Operating Income
$10.50 mln
Q2 Subscription Revenue
$36.20 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "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 27% above its August 4 closing price of $14.60

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw4YjqJQa

(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.)