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Sep 30
OneSpan Q3 2025 Earnings Report
OneSpan reported its financial results for the third quarter ended September 30, 2025, showing a slight increase in total revenue and strong growth in subscription revenue and ARR.
Key Takeaways
OneSpan delivered a solid third quarter in 2025, with total revenue increasing by 1% year-over-year to $57.1 million. The company's software business, which now constitutes over 80% of its operations, drove a 12% increase in subscription revenue and a 10% rise in Annual Recurring Revenue (ARR). Despite a decrease in operating income, adjusted EBITDA saw a 3% increase, and the company maintained strong profitability and cash generation.
Total revenue for Q3 2025 increased by 1% year-over-year to $57.1 million.
Subscription revenue grew by 12% year-over-year, reaching $37.8 million.
Annual Recurring Revenue (ARR) increased by 10% year-over-year to $180.2 million.
Net income was $6.5 million, or $0.17 per diluted share, while non-GAAP net income was $12.9 million, or $0.33 per diluted share.
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 revenue to be between $239 million and $241 million, and ARR to be in the range of $183 million to $187 million. Adjusted EBITDA is projected to be between $72 million and $76 million.
Positive Outlook
- Continued focus on driving efficient revenue growth.
- Commitment to maintaining strong profitability.
- Strong cash generation expected to continue.
- Return of capital to shareholders through dividends and share repurchases.
- Strategic investment in ThreatFabric to expand cyber fraud prevention capabilities.
Challenges Ahead
- Full-year 2025 revenue guidance lowered from previous range of $245 million to $251 million.
- Full-year 2025 ARR guidance lowered from previous range of $186 million to $192 million.
- Operating income decreased 27% year-over-year in Q3 2025.
- Security Solutions revenue decreased 1% year-over-year.
- The rapidly evolving global tax environment could impact non-GAAP tax rate assessments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income