OneSpan (OSPN) Q4 2025 earnings summary

Executive summary

• FY 2025 revenue was flat at $243.2M, with strong Digital Agreements growth offsetting a slight decline in Cybersecurity revenue due to hardware weakness.

• Subscription revenue grew 12% to $156.1M, and ARR increased 11.5% to $187M.

• Adjusted EBITDA reached $78M (32% margin), up from $73M in FY 2024, driven by cost reductions and operational improvements.

• Strategic acquisitions (Nok Nok Labs completed, Build38 pending) and investments (ThreatFabric) enhanced technology and customer value.

• Returned $32M to shareholders through $18.5M in dividends and $13.1M in share repurchases in 2025.

Financial highlights

• Q4 2025 revenue: $62.9M, up 3% year-over-year; full year revenue flat at $243.2M.

• Q4 adjusted EBITDA: $19.4M (30.9% margin); full year adjusted EBITDA: $77.6M (31.9% margin).

• Q4 GAAP operating income: $12.5M; full year: $48.4M.

• Q4 GAAP EPS: $1.13; full year GAAP EPS: $1.88. Q4 non-GAAP EPS: $0.36; full year non-GAAP EPS: $1.49.

• ARR at year-end: $187M, up 11.5% year-over-year.

• Subscription revenue grew 12% for the year to $156.1M.

• Gross margin for 2025: 74%, up from 72% in 2024.

Outlook and guidance

• 2026 software and services revenue expected at $201M–$204M (4–5% growth); hardware revenue $43M–$45M (8–12% decline).

• Total 2026 revenue guidance: $244M–$249M (0–2% growth).

• 2026 ARR expected at $192M–$196M (3–5% growth).

• 2026 adjusted EBITDA guidance: $64M–$68M, including Build38 acquisition impact.

• Board approved an 8% increase in quarterly dividend to $0.13/share for 2026.