OneSpan (OSPN) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 1% year-over-year to $60.5 million, with 77% from subscriptions and strong Digital Agreements growth offsetting Cybersecurity hardware declines.

• Adjusted EBITDA for Q2 2026 was $16.9 million (28% margin), and net income was $6.8 million, both down from the prior year.

• Annual Recurring Revenue (ARR) reached $189.7 million, up 7% year-over-year, and Net Retention Rate improved to 103%.

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

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

Financial highlights

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

• Digital Agreements revenue grew 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.

• Gross margin improved to 74% from 73% year-over-year.

• Non-GAAP net income was $11.6 million ($0.30 per diluted share), down from $13.3 million ($0.34 per share) year-over-year.

Outlook and guidance

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

• Adjusted EBITDA guidance increased to $67–$71 million.

• ARR forecasted at $194–$198 million.

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

• Foreign exchange rates are expected to continue impacting results, with a favorable effect in the first half of 2026.