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Jun 30, 2025
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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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