OneSpan Inc. reported its financial results for the third quarter of 2025, revealing a total revenue of $57.1 million, a slight increase of 1% compared to $56.2 million in the same period last year. The company’s net income for the quarter was $6.5 million, or $0.17 per diluted share, down from $8.3 million, or $0.21 per diluted share, in the prior year. For the nine months ended September 30, 2025, total revenue was $180.3 million, a decrease of 1% from $182.0 million in the same period of 2024, while net income rose to $29.4 million from $28.3 million.
The company experienced a decline in its Security Solutions segment, which saw revenues decrease by 1% to $40.3 million for the quarter, primarily due to reduced hardware sales as customers shifted towards mobile authentication solutions. In contrast, the Digital Agreements segment reported a 9% increase in revenue to $16.7 million, driven by growth in cloud subscription services. The overall gross profit for the quarter was $42.0 million, maintaining a gross margin of 74%, consistent with the previous year.
OneSpan's operational metrics showed a significant shift in customer engagement, with annual recurring revenue (ARR) increasing by 10% to $180.2 million, bolstered by the acquisition of Nok Nok Labs in June 2025. The company reported a net retention rate of 103%, indicating a slight decline from 106% a year earlier, attributed to reduced expansion contracts. The total employee headcount was reported at 1,000, reflecting a strategic reduction of approximately 341 positions as part of ongoing restructuring efforts aimed at improving efficiency.
In terms of strategic developments, OneSpan completed the acquisition of Nok Nok Labs, a provider of passwordless authentication solutions, for $18.4 million. This acquisition is expected to enhance OneSpan's offerings in secure authentication. The company also entered into a $100 million credit agreement to support its operational needs and future growth initiatives. Looking ahead, OneSpan aims to drive profitable growth across its segments, with a focus on increasing subscription revenue and optimizing its operational structure.
About OneSpan Inc.
OneSpan provides secure authentication and digital agreement solutions, primarily serving financial institutions, enterprises, and government agencies worldwide. Its offerings include multi-factor and passwordless authentication, electronic signatures, identity verification, and digital workflows. The company emphasizes cloud and on-premises deployment, subscription-based revenue, and a competitive edge through patented technology, global reach, and a focus on high-margin software solutions to address evolving cybersecurity and digital transaction needs.
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