OneSpan (OSPN) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $60.5 million, up 1% year-over-year, with 77% from subscriptions and strong profitability, driven by Digital Agreements growth and offset by Cybersecurity hardware declines.

• Adjusted EBITDA for Q2 2026 was $16.9 million (28% margin), and non-GAAP EPS was $0.30.

• DigipassONE, a unified authentication platform, was launched, integrating recent acquisitions and expanding authentication, verification, and protection capabilities.

• Cash and cash equivalents stood at $43.3 million at June 30, 2026, down from $70.5 million at year-end 2025, mainly due to the Build38 acquisition.

• Annualized dividend increased to $0.52 per share in Q1 2026, with a quarterly dividend of $0.13 per share paid in Q2.

Financial highlights

• Subscription revenue grew 11% year-over-year to $47 million, now 77% of total revenue.

• Digital Agreements revenue surged 25% year-over-year to $19.5 million, driven by subscription expansion and overage fees.

• Cybersecurity revenue declined 7% year-over-year to $40.9 million, mainly due to lower hardware sales, partially offset by higher software subscription revenue.

• Annual Recurring Revenue (ARR) reached $190 million, up 7% year-over-year; Net Retention Rate (NRR) was 103%.

• Gross margin for Q2 was 74%, up from 73% last year.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $248–$252 million (previously $244–$249 million), with software and services at $202–$204 million and hardware at $46–$48 million.

• ARR guidance set at $194–$198 million; adjusted EBITDA at $67–$71 million (up from $64–$68 million prior).

• Management emphasizes a focus on profitable, efficient growth, especially in subscription revenue.