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OneSpan Q1 2025 Earnings Report
OneSpan reported a solid first quarter in 2025, marked by record high operating income and strong cash generation, with total revenue slightly decreasing year-over-year.
Key Takeaways
OneSpan Inc. reported a total revenue of $63.4 million for the first quarter of 2025, a 2% decrease compared to the same period in 2024. Despite the slight revenue dip, the company achieved a record high operating income of $17.2 million, a 22% increase year-over-year, and strong cash generation, with cash and cash equivalents reaching $105.2 million.
Operating income increased 22% year-over-year to $17.2 million, reaching a record high.
Total revenue decreased by 2% year-over-year to $63.4 million.
Subscription revenue increased 9% year-over-year to $43.6 million, indicating growth in recurring revenue streams.
Annual Recurring Revenue (ARR) grew by 9% year-over-year to $168.4 million, and Net Retention Rate (NRR) was 107%.
OneSpan
OneSpan
OneSpan Revenue by Segment
Revenue by Segment
Security Solutions Revenue
CapyFin.comDigital Agreements Revenue
CapyFin.com Forward Guidance
For the full year 2025, OneSpan expects total revenue to be in the range of $245 million to $251 million, ARR to be between $180 million and $186 million, and Adjusted EBITDA to be in the range of $72 million to $76 million.
Positive Outlook
- Expected ARR growth to a range of $180 million to $186 million.
- Anticipated Adjusted EBITDA in the range of $72 million to $76 million, indicating continued profitability.
- Focus on operational excellence to drive efficient revenue growth.
- Continued optimization of cost structure.
- Recurring quarterly cash dividend of $0.12 per share declared.
Challenges Ahead
- Potential for changes in the global tax environment to impact non-GAAP tax rate.
- Significant changes in geographic earnings mix could affect non-GAAP tax rate.
- Changes to strategy or business operations could impact non-GAAP tax rate.
- Inability to predict certain items for GAAP net income reconciliation to Adjusted EBITDA.
- Future dividends are subject to the sole discretion of the Board of Directors.
Revenue & Expenses
Visualization of income flow from segment revenue to net income