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Jun 30
OneSpan Q2 2025 Earnings Report
OneSpan reported strong profitability in Q2 2025, driven by increased operating income and net income, while revenue saw a slight decrease. The company also expanded its product portfolio through the acquisition of Nok Nok Labs.
Key Takeaways
OneSpan delivered a strong second quarter in 2025, with significant increases in operating income and net income, demonstrating improved profitability. Despite a slight decrease in total revenue, the company saw robust growth in subscription revenue and annual recurring revenue (ARR). A key strategic move was the acquisition of Nok Nok Labs, enhancing its authentication solutions.
Operating income increased by 38% year-over-year to $10.5 million, indicating strong profitability.
Total revenue for the quarter was $59.8 million, a 2% decrease compared to the same period last year.
Subscription revenue grew by 22% year-over-year to $36.2 million, highlighting a shift towards recurring revenue streams.
Annual Recurring Revenue (ARR) increased by 8% year-over-year to $177.8 million, partly due to the acquisition of Nok Nok Labs.
OneSpan
OneSpan
OneSpan Revenue by Segment
Revenue by Segment
Security Solutions Revenue
CapyFin.comDigital Agreements Revenue
CapyFin.com Forward Guidance
OneSpan has updated its full-year 2025 financial guidance, expecting higher Annual Recurring Revenue (ARR) and Adjusted EBITDA, while maintaining its revenue outlook.
Positive Outlook
- Full Year 2025 ARR guidance increased to a range of $186 million to $192 million, up from the previous guidance of $180 million to $186 million.
- Full Year 2025 Adjusted EBITDA guidance set in the range of $72 million to $76 million, indicating strong expected profitability.
- The acquisition of Nok Nok Labs is expected to contribute positively to ARR.
- The company is focused on driving profitable, efficient revenue growth.
- Strategic inorganic opportunities will continue to be evaluated to best position the company.
Challenges Ahead
- Total revenue guidance for Full Year 2025 remains in the range of $245 million to $251 million, indicating no upward revision despite positive KPI trends.
- The company did not provide specific forward guidance on GAAP net income or EPS, citing inability to predict certain items without unreasonable efforts.
- Changes in non-GAAP tax rate and inclusion of employer payroll taxes in non-GAAP measures could impact comparability with prior periods.
- The rapidly evolving global tax environment could lead to changes in the non-GAAP tax rate.
- Significant changes in geographic earnings mix or other changes to strategy or business operations could affect future performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income