OneSpan (OSPN) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue grew 1% year-over-year to $57.1M, with subscription revenue up 12% and ARR up 10% to $180.2M; software now represents over 80% of total revenue, driving double-digit subscription and ARR growth.

• Adjusted EBITDA for Q3 2025 was $18M (31% margin), up from $17M in Q3 2024; operating income declined 27% year-over-year to $8.2M.

• Net income for Q3 2025 was $6.5M, down from $8.3M in Q3 2024; non-GAAP EPS was $0.33, flat year-over-year.

• Completed the acquisition of Nok Nok Labs and made a strategic investment in ThreatFabric, both funded by operating cash.

• Returned over $20M to shareholders via dividends and buybacks in the first nine months of 2025; quarterly dividend of $0.12 per share paid and approved for Q4.

Financial highlights

• Q3 2025 revenue: $57.1M (up 1% YoY); subscription revenue grew 12%; ARR reached $180.2M (up 10% YoY); NRR was 103%.

• Adjusted EBITDA was $18M (31% margin); GAAP operating income was $8.2M; GAAP EPS was $0.17; non-GAAP EPS was $0.33.

• Gross margin held steady at 74%.

• Cash and equivalents at Q3 end: $85.6M–$86M; no long-term debt.

• Returned $6.3M via share repurchases and $4.7M in dividends in Q3.

Outlook and guidance

• Full-year 2025 revenue guidance lowered to $239M–$241M (from $245M–$251M), reflecting hardware headwinds and slower net expansion.

• Software/services revenue expected at $190M–$192M; hardware revenue to decline to $49M–$50M.

• ARR guidance updated to $183M–$187M (was $186M–$192M); adjusted EBITDA guidance maintained at $72M–$76M.

• Management expects continued focus on profitable, efficient growth, especially in subscription revenue.

• Restructuring charges related to cost reduction actions expected to be minimal for the remainder of 2025.