Q3 2025 OneSpan Inc Earnings Call Transcript
Key Points
- OneSpan Inc (OSPN) reported strong profitability with $17.5 million in adjusted EBITDA, representing 31% of revenue.
- The company generated $11 million in cash from operations during the quarter, contributing to a total of $47 million for the first nine months of 2025.
- Subscription revenue grew by 12%, driven by 13% growth in security and 11% growth in digital agreements.
- The acquisition of Nok Nok and the strategic investment in ThreatFabric are expected to enhance OneSpan Inc (OSPN)'s product portfolio and drive future growth.
- The software business, now over 80% of the overall business, delivered double-digit subscription revenue growth and ARR growth.
- Total revenue growth was modest at 1%, primarily offset by a reduction in security hardware revenue due to a shift in consumer banking strategies.
- The company revised its full-year 2025 revenue guidance downward to $239 million to $241 million from the previous range of $245 million to $251 million.
- GAAP operating income decreased to $8.2 million from $11.3 million in the same quarter last year, reflecting increased operating expenses.
- The hardware business continues to decline, with hardware revenue expected to decrease by approximately 16% from 2024.
- Lower activity in net expansions and new logos, particularly in the security business, contributed to the revised revenue and ARR guidance.
Good day and thank you for standing by. Welcome to the OneSpan third quarter 2025 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 your first speaker today, Joe Maxa, Vice President of Investor relations. Please go ahead.
Thank you, operator. Hello, everyone, and thank you for joining the OneSpan third 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 Mangarali, our Chief Executive Officer; and Jorge Martel, our Chief Financial Officer.
This afternoon after the market closed, OneSpan issued a press release announcing results for our third quarter 2025. To access a copy of the press release and other investor information, please visit our website.
Following our prepared comments today, we'll open the call for
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