Q2 2025 OneSpan Inc Earnings Call Transcript
Key Points
- OneSpan Inc (OSPN) reported a strong quarter with adjusted EBITDA of $18 million, representing 29.5% of revenue.
- The acquisition of Nok Nok Labs enhances OneSpan Inc (OSPN)'s authentication portfolio, adding FIDO2 passwordless authentication software.
- Annual recurring revenue (ARR) grew by 8% year over year, reaching $178 million, including contributions from the Nok Nok acquisition.
- Subscription revenue increased by 22% in Q2 2025, driven by 39% growth in security and 5% growth in digital agreements.
- The company maintained a strong cash position with $93 million in cash on hand and generated $36 million in cash from operations in the first half of the year.
- Total revenue declined by 2% compared to the previous year, primarily due to a decrease in security hardware revenue.
- The transition of certain legacy perpetual maintenance contracts to term-based subscriptions led to a reduction in maintenance revenue.
- Revenue was negatively impacted by $1.2 million from sunsetted products.
- The company faced a challenging year-over-year ARR comparison due to large contracts in the previous year's second quarter.
- Geographically, Europe (EMEA) showed weaker performance compared to the Americas, which could impact overall growth.
Welcome to the Q2 2025 OneSpan earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to Joe Maxa, Vice President of Investor relations. Please go ahead.
Thank you, operator. Hello, everyone, and thank you for joining the OneSpan second quarter 2025 earnings conference call. This call is being webcast and can be accessed on the Investor Relations section of OneSpan's website at investors.onespan.com.
Joining me on the call today is Victor Limongelli, our Chief Executive Officer; and Jorge Martell, our Chief Financial Officer. This afternoon, after market closed, OneSpan issued a press release announcing results for our second quarter 2025.
To access a copy of the press release and other investor information, please visit our website. Following our prepared comments today, we will open the call for questions.
Please note that statements made during this conference
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