Highlights

  • Third-quarter 2026 Revenue increased 12% to US$63.9 million, led by a 16% rise in subscription revenue to US$51.5 million.
  • GAAP Net Income reached US$7.8 million, or US$0.20 per diluted share, up from US$6.5 million a year earlier.
  • Management lifted its 2026 revenue outlook to US$254 million to US$258 million from US$248 million to US$252 million.
  • The board declared a quarterly Dividend of US$0.13 per share, payable on 4 December 2026 to holders of record.

Stronger subscription sales prompted OneSpan Inc. (NASDAQ:OSPN) to raise its full-year targets. The digital security and agreements software company reported revenue of US$63.9 million for the three months ended 30 September 2026, up 12% from US$57.1 million a year earlier, and increased its 2026 guidance for revenue, annual Recurring Revenue (ARR) and adjusted EBITDA.

Chief Executive Officer Victor Limongelli described the quarter as excellent, pointing to 16% subscription revenue growth and a 12% rise in operating income, and said the company is improving execution in both segments while investing for long-term growth.

Both Segments Deliver Double-Digit Growth

The Cybersecurity segment, formerly Security Solutions, generated US$44.9 million in Q3 2026 revenue, up 11%, including US$32.5 million of subscription revenue and US$10.5 million from hardware. Segment Operating Income rose to US$18.5 million, and gross Margin improved to 77% from 74%.

Digital Agreements revenue grew 14% to US$19.0 million, all from subscriptions, with segment operating income increasing to US$6.9 million from US$4.2 million. ARR reached US$195.5 million, up 9%, and net retention rate was 105%.

Profitability and Capital Returns

Consolidated gross margin widened to 76% from 74%, and operating income rose to US$9.2 million. Non-GAAP net income was US$13.6 million, or US$0.35 per diluted share, while adjusted EBITDA, also a non-GAAP measure, increased 10% to US$19.3 million. For the nine months to 30 September 2026, revenue was US$190.3 million and GAAP diluted EPS was US$0.68, compared with US$0.76 a year earlier. Third-quarter costs included US$0.8 million of non-recurring Acquisition project fees.

Cash and cash equivalents fell to US$51.4 million at 30 September 2026 from US$70.5 million at the end of 2025, after US$34.6 million of net cash spent on acquisitions, US$8.3 million of share repurchases and US$14.7 million of dividends during the nine months. The company also had US$5.0 million drawn on its revolving Credit facility. The next quarterly dividend of US$0.13 per share has a Record Date of 13 November 2026.

Raised Outlook and Product Pipeline

For 2026, management now expects total revenue of US$254 million to US$258 million, software and services revenue of US$208 million to US$210 million and ARR of US$197 million to US$201 million. Adjusted EBITDA guidance moved up to US$72 million to US$76 million from US$67 million to US$71 million, while hardware revenue guidance remained at US$46 million to US$48 million.

OneSpan plans a free trial of DigipassONE Authenticate in November 2026, and DigipassONE Verify is in early access, with general availability expected in early 2027. The Digital Agreements Business has also outlined planned AI-assisted capabilities, automated document validation, advanced identity verification and expanded integrations.