OneSpan (OSPN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 4% to $66M, with 80% from subscription revenue and strong contributions from Digital Agreements and cybersecurity; adjusted EBITDA margin was 32%.

• ARR increased 14% year-over-year to $192.1M; NRR was 105%.

• Net income was $11.6M ($0.30 per diluted share), down from $14.5M ($0.37 per diluted share) year-over-year, reflecting higher operating expenses.

• Completed the acquisition of Build38, enhancing mobile application security offerings.

• Returned capital to shareholders via $5.4M in share buybacks and $5M in dividends in Q1 2026.

Financial highlights

• Subscription revenue reached $53M (80% of total), up 8% year-over-year.

• Gross margin held steady at 74%; gross profit was $48.5M.

• Adjusted EBITDA was $21M (32% margin); non-GAAP net income per share was $0.39.

• Cash and cash equivalents at quarter-end were $49.8M, with no long-term debt.

• Operating expenses rose 13% to $33.7M, mainly due to higher compensation and acquisition-related costs.

Outlook and guidance

• Affirmed full-year 2026 revenue guidance of $244M–$249M and adjusted EBITDA of $64M–$68M.

• Raised ARR guidance to $194M–$198M (previously $192M–$196M).

• Software and services revenue projected at $201M–$204M; hardware revenue at $43M–$45M.

• Expect continued growth in software and services, with Q2 ARR headwind of ~$3M from two non-renewing contracts.

• Management believes financial resources are adequate for operating needs over the next twelve months.