OneSpan Raises 2026 Revenue Outlook to $258 Million After 12% Quarterly Growth
Key Facts
OneSpan reported results on October 29 for the third quarter ended September 30 and raised its annual revenue and adjusted EBITDA outlook. The company said revenue was $63.9 million, up 12% from the same period in 2025. Adjusted EPS was $0.35, beating analysts’ estimate of $0.29 by $0.06, while revenue exceeded their estimate of $59.16 million. Net income also rose to $7.8 million from $6.5 million a year earlier, and diluted EPS increased to $0.20 from $0.17. The results and new guidance put the company on a higher annual trajectory than it had previously announced.
OneSpan raised its 2026 revenue outlook to $254–258 million, compared with the previous range of $248–252 million. It also increased its adjusted EBITDA outlook to $72–76 million from $67–71 million. The update included software and services revenue, which the company expects to reach $206–210 million, versus a previous estimate of $202–204 million. The company estimated year-end annual recurring revenue at $198–202 million. Third-quarter annual recurring revenue was $195.5 million, up 9% year over year, with a net revenue retention rate of 105%.
Revenue growth was supported by a 16% increase in subscription revenue to $51.5 million. Cybersecurity revenue rose 11% to $44.9 million, while digital agreements revenue increased 14% to $19.0 million. CEO Victor Limongelli said the quarter also featured a 12% increase in operating income alongside subscription growth. He added that the company “continued to improve execution in both its cybersecurity and digital agreements businesses.” Gross profit was $48.7 million, compared with $42.0 million in the same period last year, while gross margin rose to 76% from 74%.
The results follow a second quarter marked by slower revenue growth, when revenue increased 1% to $60.5 million while operating income fell 17% to $8.7 million. Cybersecurity revenue declined 7% to $40.9 million in that quarter, while digital agreements revenue rose 25% to $19.5 million. The comparison shows cybersecurity growth returned to positive territory in the third quarter, while digital agreements growth remained positive but slowed from the previous quarter. Cash and cash equivalents stood at $51.4 million on September 30, compared with $70.5 million on December 31, 2025. In the market, OneSpan shares closed at $20.08 on October 28, before results were announced the following day.
The company’s conference call to discuss third-quarter results was scheduled for October 29 at 4:30 p.m. Eastern Time. The updated fiscal 2026 outlook will guide the trajectory of the company’s revenue and adjusted profitability after it raised both annual ranges. The new guidance is based on estimated total revenue of up to $258 million and adjusted EBITDA of up to $76 million. The company also set a software and services revenue range of up to $210 million. It set its annual recurring revenue outlook at $198–202 million.