OneSpan Inc. reported its financial results for the first quarter of 2026, revealing a total revenue of $65.9 million, a 4% increase from $63.4 million in the same period last year. The growth was driven by a 2% rise in Cybersecurity revenue, which reached $48.5 million, and an 11% increase in Digital Agreements revenue, totaling $17.4 million. The company’s net income for the quarter was $11.6 million, or $0.30 per diluted share, down from $14.5 million, or $0.37 per diluted share, in the prior year. This decline in profitability was attributed to higher operating costs and increased expenses related to recent acquisitions.
In terms of operational metrics, OneSpan's cash and cash equivalents decreased to $49.8 million from $70.5 million at the end of 2025. The company also reported a significant drop in accounts receivable, which fell to $33.2 million from $56.0 million, reflecting changes in customer payment patterns. The total liabilities decreased to $111.1 million from $125.9 million, primarily due to a reduction in deferred revenue. The company’s annual recurring revenue (ARR) increased by 14% year-over-year to $192.1 million, indicating a strong growth trajectory in its subscription-based offerings.
Strategically, OneSpan completed the acquisition of Build38 GmbH in February 2026, enhancing its mobile application protection capabilities. This acquisition follows the earlier purchase of Nok Nok Labs in June 2025, which expanded OneSpan's passwordless authentication solutions. The company incurred $1.9 million in transaction-related expenses for the Build38 acquisition, which is expected to contribute positively to its cybersecurity segment. The integration of these acquisitions is anticipated to bolster OneSpan's market position and product offerings.
Geographically, revenue from the Americas increased by 19% to $25.1 million, while revenue from EMEA decreased by 8% to $28.5 million, reflecting a shift in customer demand and product mix. The Asia Pacific region saw a 9% increase in revenue, reaching $12.3 million. The company reported a net retention rate of 105%, slightly down from 107% a year earlier, indicating a stable customer base despite some contraction in contract values.
Looking ahead, OneSpan aims to drive profitable growth across its segments, with a focus on expanding subscription revenue. The company expects to benefit from the strategic acquisitions and is optimistic about its ability to navigate market challenges, including foreign exchange fluctuations and competitive pressures. The management remains committed to enhancing operational efficiency and delivering value to shareholders through ongoing investments in technology and customer engagement.
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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