Q1 2026 OneSpan Inc Earnings Call Transcript
Key Points
- OneSpan Inc (OSPN) reported strong profitability with an adjusted EBITDA margin of 32% for Q1 2026.
- Subscription revenue grew by 8% year-over-year, with digital agreements seeing an 11% increase.
- The company completed the acquisition of Build 38, enhancing its mobile application security offerings.
- Annual recurring revenue (ARR) increased by 14% year-over-year, reaching $192 million.
- OneSpan Inc (OSPN) returned capital to shareholders through share buybacks and increased dividends.
- GAAP operating income declined from $17.2 million in Q1 2025 to $14.8 million in Q1 2026 due to increased operating costs.
- GAAP net income per share decreased from $0.37 to $0.30 year-over-year.
- The company anticipates a $3 million ARR headwind in Q2 2026 due to non-renewal of two contracts.
- Hardware revenue continued its long-term decline, decreasing by 4.3% in Q1 2026.
- Operating income for the cybersecurity division decreased due to increased expenses from acquisitions and investments.
Good day, and thank you for standing by.
Welcome to the Q1 2026 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 your first speaker today, Joe Maxa, VP of Investor Relations. Please go ahead.
Thank you, operator. Hello, everyone, and thank you for joining the OneSpan first quarter 2026 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 close, OneSpan issued a press release announcing results for our first quarter of 2026. 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.
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