OneSpan Inc. reported its financial results for the second quarter of 2026, revealing a total revenue of $60.5 million, a slight increase of 1% compared to $59.8 million in the same quarter of 2025. For the first half of 2026, revenue reached $126.4 million, up 3% from $123.2 million year-over-year. The company’s net income for the quarter was $6.8 million, or $0.18 per share, down from $8.3 million, or $0.22 per share, in the prior year. For the six-month period, net income totaled $18.3 million, compared to $22.8 million in 2025.
The financial performance reflects a mixed landscape, with product and license revenue declining by 13% to $28.2 million in the second quarter, while services and other revenue increased by 17% to $32.3 million. The decrease in product revenue was attributed to lower hardware sales, which were partially offset by an increase in software revenue driven by recent acquisitions and existing customer expansions. The company also noted that foreign exchange rate fluctuations positively impacted revenue by approximately $3.3 million for the six months ended June 30, 2026.
Strategically, OneSpan completed the acquisition of Build38 GmbH in February 2026, enhancing its cybersecurity offerings with advanced mobile application protection solutions. This acquisition follows the earlier purchase of Nok Nok Labs in June 2025, which expanded OneSpan's capabilities in passwordless authentication. The company is focusing on subscription revenue growth, with Cybersecurity and Digital Agreements segments reporting increases of 2% and 25%, respectively, in subscription revenue for the second quarter compared to the previous year.
Operationally, OneSpan's customer base continues to grow, with annual recurring revenue (ARR) reaching $189.7 million, a 7% increase from $177.8 million a year earlier. The company reported a net retention rate of 103%, indicating strong customer engagement and expansion. However, the total cash and cash equivalents decreased to $43.3 million from $70.5 million at the end of 2025, primarily due to cash used for acquisitions and operational expenses.
Looking ahead, OneSpan aims to drive profitable growth across its segments while navigating the challenges posed by market conditions and competition. The company anticipates continued investment in its product offerings and infrastructure to support future growth, with a focus on enhancing its subscription-based services. The outlook remains cautiously optimistic, with management emphasizing the importance of maintaining customer relationships and expanding its market presence.
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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