OneSpan (OSPN) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $59.8M, down 2% year-over-year, with ARR up 8% to $178M, driven by subscription growth and the Nok Nok Labs acquisition.

• Adjusted EBITDA for Q2 2025 was $17.6M (29% margin), up from $16.2M in Q2 2024; non-GAAP EPS was $0.34, and net income was $8.3M ($0.21 per diluted share).

• Subscription revenue grew 22% year-over-year to $36.2M, offsetting hardware declines.

• Completed acquisition of Nok Nok Labs in June 2025, adding FIDO2 passwordless authentication and $8M to ARR.

• Entered a $100M revolving credit facility and declared a $0.12/share quarterly dividend.

Financial highlights

• Q2 2025 revenue: $59.8M (down 2% year-over-year); Security Solutions: $44.2M (down 3%); Digital Agreements: $15.6M (up 1%).

• Gross margin improved to 73% from 66% year-over-year, with gross profit at $44.0M.

• Adjusted EBITDA for Q2 2025: $17.6M; six-month Adjusted EBITDA: $41M (33% of revenue).

• Net retention rate (NRR) was 101% for Q2 2025.

• Cash and cash equivalents at quarter-end were $92.9M.

Outlook and guidance

• FY 2025 revenue guidance maintained at $245M–$251M; adjusted EBITDA guidance at $72M–$76M.

• ARR guidance raised to $186M–$192M, reflecting the Nok Nok Labs acquisition.

• Nok Nok Labs expected to be slightly accretive to adjusted EBITDA in Q4 2025.

• Double-digit subscription revenue growth expected for 2025, with hardware headwinds persisting in Q3 and improvement in Q4.