OneSpan (OSPN, Financial) has officially acquired Nok Nok Labs to bolster its offerings in the security domain. This strategic move aims to lead the industry towards enhanced security by offering a variety of adaptable and future-ready authentication solutions. The integration of Nok Nok’s capabilities will enable OneSpan to provide a more comprehensive and robust portfolio, ultimately delivering increased value to their customers in the banking and enterprise sectors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for OneSpan Inc (OSPN, Financial) is $19.33 with a high estimate of $23.00 and a low estimate of $15.00. The average target implies an upside of 20.91% from the current price of $15.99. More detailed estimate data can be found on the OneSpan Inc (OSPN) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, OneSpan Inc's (OSPN, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for OneSpan Inc (OSPN, Financial) in one year is $14.90, suggesting a downside of 6.82% from the current price of $15.99. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the OneSpan Inc (OSPN) Summary page.
OSPN Key Business Developments
Release Date: May 01, 2025
- Adjusted EBITDA: $23 million, a 15% increase from last year's $20 million, representing 36% of revenue.
- ARR (Annual Recurring Revenue): Grew 9% to $168.4 million.
- Subscription Revenue Growth: 9% overall, with Digital Agreements up 13% and Security up 7%.
- Total Revenue: $63.4 million, a 2% decrease from the previous year.
- Gross Margin: 74%, up from 73% in the prior year quarter.
- GAAP Operating Income: $17.2 million, up from $14.1 million last year.
- GAAP Net Income per Share: $0.37, compared to $0.35 last year.
- Non-GAAP Earnings per Share: $0.45, up from $0.39 in the previous year.
- Cash from Operations: $29 million, ending the quarter with $105 million in cash.
- Dividend: $0.12 per share, totaling approximately $4.6 million.
- Security Solutions Revenue: Declined 5% to $47.7 million.
- Digital Agreements Revenue: Grew 9% to $15.7 million.
- Security Segment Operating Margin: 51% in both current and prior year periods.
- Digital Agreements Segment Operating Income: $3.4 million, or 22% of revenue.
- Cash and Cash Equivalents: $105.2 million at the end of Q1 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- OneSpan Inc (OSPN, Financial) achieved record high adjusted EBITDA of $23 million, a 15% increase from the previous year.
- The company reported a 9% growth in Annual Recurring Revenue (ARR), aligning with their full-year 2025 guidance.
- Subscription revenue grew by 9%, driven by demand for software authentication, app shielding, and e-signature solutions.
- OneSpan Inc (OSPN) generated $29 million in cash from operations and ended the quarter with $105 million in cash on hand.
- The company paid its first quarterly dividend of $0.12 per share, totaling approximately $4.6 million, and plans to continue this program.
Negative Points
- Total revenue declined slightly in the first quarter, primarily due to lower hardware revenues as banks adopt mobile-first policies.
- The transition from legacy perpetual maintenance contracts to term-based subscriptions resulted in lower maintenance revenue.
- Headwinds from sunsetted products impacted revenue by $1.4 million in the quarter, with similar impacts expected in the future.
- The on-time renewal rate slipped due to two large contracts not closing as expected in Q1, though they are anticipated to close in Q2.
- Potential tariff impacts and foreign currency fluctuations pose risks, with up to $1 million in incremental tariff-related costs expected for 2025.
