Track market-moving stories before they get noisy

OneSpan (OSPN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this internet security company have returned +9% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Internet - Software industry, to which OneSpan belongs, has gained 5.5% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

OneSpan is expected to post earnings of $0.25 per share for the current quarter, representing a year-over-year change of -26.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $1.23 for the current fiscal year indicates a year-over-year change of -17.5%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $1.33 indicates a change of +8.1% from what OneSpan is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, OneSpan is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For OneSpan, the consensus sales estimate for the current quarter of $57.75 million indicates a year-over-year change of -3.5%. For the current and next fiscal years, $246.53 million and $256.09 million estimates indicate +1.4% and +3.9% changes, respectively.

Last Reported Results and Surprise HistoryOneSpan reported revenues of $65.95 million in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $0.39 for the same period compares with $0.45 a year ago.

Compared to the Zacks Consensus Estimate of $60.94 million, the reported revenues represent a surprise of +8.22%. The EPS surprise was +8.33%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

OneSpan is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about OneSpan. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

BOSTON--(BUSINESS WIRE)--Organizations are under increasing pressure to modernize authentication while supporting existing infrastructure, meeting evolving regulatory requirements, deploying emerging technologies, and reducing operational complexity. For financial institutions in particular, authentication modernization must balance security, compliance, and operational efficiency while meeting the evolving expectations and preferences of their customers. Yet the journey to modern authenticatio.

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BOSTON--(BUSINESS WIRE)--OneSpan Inc. (NASDAQ: OSPN), today announced it will release its second quarter 2026 financial results after the market close on Tuesday, August 4, 2026. OneSpan will host a conference call that day at 4:30 p.m. ET to discuss the results.

A live webcast of the conference call will be accessible from the OneSpan investor relations website at investors.onespan.com. Shortly after the conclusion of the call, a replay of the webcast will be available on the same website.

For investors and analysts accessing the conference call by phone, please use this registration link to receive dial-in details. OneSpan encourages participants to dial-in at least 15 minutes before the start of the call.

About OneSpan

OneSpan helps organizations build secure, seamless, and trusted digital experiences through two solution portfolios: Cybersecurity and Digital Agreements. Our cybersecurity solutions protect identities, secure mobile apps, and safeguard access through advanced high-assurance authentication, threat intelligence, fraud prevention, and robust mobile app protection, defending users, devices, and applications against sophisticated attacks. Our digital agreement solutions streamline agreement workflows with secure e-signatures, identity verification, and smart digital forms, built to enable speed, compliance and exceptional customer experiences. Trusted by leading global enterprises, including more than 60% of the world’s 100 largest banks, OneSpan processes over 100 million digital agreements and billions of secure authentication transactions across more than 120 countries each year.

For more information, visit our website, explore our blog, or follow us on LinkedIn or YouTube.

Copyright© 2026 OneSpan North America Inc., all rights reserved. OneSpan™ is a registered or unregistered trademark of OneSpan North America Inc. or its affiliates in the U.S. and other countries.

More News From OneSpan Inc.

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OneSpan (OSPN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this internet security company have returned +4.3%, compared to the Zacks S&P 500 composite's +1.1% change. During this period, the Zacks Internet - Software industry, which OneSpan falls in, has gained 3.2%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

OneSpan is expected to post earnings of $0.25 per share for the current quarter, representing a year-over-year change of -26.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $1.23 points to a change of -17.5% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $1.33 indicates a change of +8.1% from what OneSpan is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for OneSpan.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For OneSpan, the consensus sales estimate for the current quarter of $57.75 million indicates a year-over-year change of -3.5%. For the current and next fiscal years, $246.53 million and $256.09 million estimates indicate +1.4% and +3.9% changes, respectively.

Last Reported Results and Surprise HistoryOneSpan reported revenues of $65.95 million in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $0.39 for the same period compares with $0.45 a year ago.

Compared to the Zacks Consensus Estimate of $60.94 million, the reported revenues represent a surprise of +8.22%. The EPS surprise was +8.33%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

OneSpan is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about OneSpan. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

OneSpan (OSPN - Free Report) closed the most recent trading day at $14.31, moving +1.06% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.18%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 2.07%.

The internet security company's shares have seen a decrease of 1.94% over the last month, surpassing the Computer and Technology sector's loss of 5.33% and the S&P 500's loss of 2.9%.

Analysts and investors alike will be keeping a close eye on the performance of OneSpan in its upcoming earnings disclosure. The company is expected to report EPS of $0.25, down 26.47% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $57.75 million, showing a 3.49% drop compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.23 per share and revenue of $246.53 million. These totals would mark changes of -17.45% and +1.38%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for OneSpan. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.51% higher. OneSpan is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, OneSpan is holding a Forward P/E ratio of 11.51. Its industry sports an average Forward P/E of 18.67, so one might conclude that OneSpan is trading at a discount comparatively.

One should further note that OSPN currently holds a PEG ratio of 1.05. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.05 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 33% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Investors interested in Internet - Software stocks are likely familiar with OneSpan (OSPN - Free Report) and Adyen N.V. Unsponsored ADR (ADYEY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, OneSpan has a Zacks Rank of #2 (Buy), while Adyen N.V. Unsponsored ADR has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that OSPN likely has seen a stronger improvement to its earnings outlook than ADYEY has recently. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

OSPN currently has a forward P/E ratio of 11.51, while ADYEY has a forward P/E of 21.38. We also note that OSPN has a PEG ratio of 1.05. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ADYEY currently has a PEG ratio of 1.29.

Another notable valuation metric for OSPN is its P/B ratio of 1.93. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ADYEY has a P/B of 5.63.

These are just a few of the metrics contributing to OSPN's Value grade of A and ADYEY's Value grade of D.

OSPN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that OSPN is likely the superior value option right now.

In the latest close session, OneSpan (OSPN - Free Report) was down 3.72% at $13.73. The stock's change was less than the S&P 500's daily loss of 1.22%. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq depreciated by 1.35%.

Prior to today's trading, shares of the internet security company had gained 14.17% outpaced the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 1.56%.

Investors will be eagerly watching for the performance of OneSpan in its upcoming earnings disclosure. The company is expected to report EPS of $0.25, down 26.47% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $57.75 million, indicating a 3.49% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.23 per share and revenue of $246.53 million, which would represent changes of -17.45% and +1.38%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for OneSpan. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.51% higher within the past month. Right now, OneSpan possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, OneSpan is currently exchanging hands at a Forward P/E ratio of 11.59. This expresses a discount compared to the average Forward P/E of 18.64 of its industry.

It's also important to note that OSPN currently trades at a PEG ratio of 1.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.03.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 36% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

“Try adding some tech growth to your portfolio.”

That was a suggestion I received last week. The reality is that “tech growth” is pretty much a double negative for dividend investors.

When a company has earnings, it can really only do three things with it:

Save it as cash for a rainy day Invest it back into the business Share it with the business owners, aka shareholders By design, a company in its growth phase shouldn’t be paying much or any dividend. It should be reinvesting its available cash back into the business. This is true no matter what sector the company operates in.

Growth = Reinvest earnings

Tech companies, no matter how mature, should also be heavily reinvesting into their business. This is the only way to stay ahead of their competitors.

Unfortunately, if earnings are needed for reinvestment, they cannot be paid to shareholders as dividends. For us dividend investors, there is the added headwind that growth stocks tend to trade at a premium valuation. That makes the yield even smaller!

So, in most cases when you see a tech growth company with a decent dividend, it’s actually a red flag. You might be able to collect that dividend for a short period of time, but the odds are it’s going to end up getting cut.

A Cautionary Tale Intel Corp. (INTC) is a great example of how this tradeoff works.

The semiconductor giant paid a quarterly dividend for 32 consecutive years. Then in 2023, management slashed the dividend from $0.365 to $0.125. Just over a year later the dividend was suspended completely.

So, what happened?

Intel had underinvested in its manufacturing process for years. This allowed Taiwan Semiconductor (TSMC) and Advanced Micro Devices (AMD) to leapfrog right over them technologically. The performance of AMD’s Ryzen and EPYC chips edged ahead of Intel’s in both the consumer and data center markets.

The loss of leadership in the chip market caused Intel’s revenues to collapse.

Intel responded in 2021 with its IDM 2.0 strategy to rebuild its foundry business. It required tens of billions of dollars that simply couldn’t be funded while also paying a dividend.At the end of the day, there would have been no need to rebuild its business had it kept up with reinvestments in the first place.

When The Opportunity Is There, We’ll Take It If you look at mainstream lists of tech growth stocks, you’ll be hard pressed to find a dividend yield over 1%.

Broadcom (AVGO) is one of the standout dividend payers in tech growth. It has raised its dividend for 15 consecutive years, but its yield is just 0.7%.

Nvidia (NVDA) just increased its quarterly dividend from $0.01 to $0.25, but that’s still just 0.4%.

Most companies are like Palantir (PLTR) which doesn’t pay a dividend and ploughs everything back into growth.

However, I’m always on the hunt for technology opportunities wherever I can find them.

Back in 2023, my Essential Income readers grabbed shares of International Business Machines (IBM) when they yielded over 5%. We scored a quick gain of 42% in just 11 months.

In 2024, we picked up exchange traded 8.375% senior notes issued by Synchronoss Technologies. The company provides white label cloud storage solutions to telecom companies. The notes were redeemed early and we snagged an 18.2% gain in less than a year.

Then in March of this year, Essential Income readers got into OneSpan Inc. (OSPN). The company is a leader in digital identity and anti-fraud solutions for banking, financial services, and healthcare companies. Shares had been unfairly beaten down after earnings were revised lower and the broader sell-off in software companies.

We got in at $10.63 for a great yield of 4.89%. This is a shorter-term position in our Opportunity Portfolio. We’ll keep collecting our dividends as the company’s transitional period unfolds, which is already playing out. In less than three months, shares are up 33.9%, dropping today’s yield to just 3.7%.

If you want to add tech dividends to your portfolio, you have to get a little creative. Check for preferred shares or exchange traded senior notes that have fixed payments. And always watch for shares being unfairly punished by investor fears that will surely pass.

I may not talk about the tech sector very often, but I regularly monitor it for opportunities when they pop up.

For more income, now and in the future,

Kelly Green

Originally published June 17, 2026

For more news, information, and strategy, visit ETF Trends.

OneSpan helps organizations unlock the value of digital credentials for customer onboarding and authentication

LAS VEGAS & BOSTON--(BUSINESS WIRE)--OneSpan Inc. (NASDAQ: OSPN) will showcase its latest innovations in digital identity and authentication at Identiverse 2026, June 15–17 in Las Vegas (Booth #827), including an early-access release of its digital credentials solution, designed to simplify the way organizations issue, manage, and verify identities across digital wallets.

As digital identity wallets rapidly gain traction, fueled by regulatory momentum such as eIDAS 2.0 and rising demand for more secure, user-friendly identity experiences, organizations are under increasing pressure to modernize their user onboarding and authentication processes. The timeline is accelerating: EU member states must make digital identity wallets available by December 2026, and by December 2027, banks and other relying parties must support them for user onboarding and authentication.

At Identiverse, OneSpan will demonstrate how organizations can move beyond fragmented approaches and adopt digital credentials in a scalable, practical way without the complexity of integrating multiple wallets, standards, and trust frameworks.

"Digital credentials represent a fundamental shift in how identity is established and reused across digital interactions," said Ashish Jain, Chief Technology Officer at OneSpan. "Organizations need a practical way to adopt these technologies without navigating the complexity of multiple wallets, standards, and trust frameworks. OneSpan is helping customers bridge today's authentication infrastructure with tomorrow's credential-based identity ecosystem."

Digital credentials enable a trusted, reusable identity that can be securely shared across services, reducing reliance on traditional verification methods such as document uploads and selfies, which continue to introduce friction and growing exposure to fraud, including AI-driven attacks. By simplifying how organizations connect to a fragmented digital wallet ecosystem, OneSpan enables the secure issuance and verification of digital credentials across multiple wallets through a single integration layer, making adoption more practical, scalable, and ready for real-world deployment.

Digital credentials are becoming a foundational component of the future identity ecosystem, where trust is portable and reusable across digital interactions. Realizing this future depends on making adoption practical today. By combining digital credentials with existing authentication methods, MFA, and passkeys, OneSpan enables organizations to introduce credential-based experiences without disrupting current user journeys while building toward a credential-first future.

Attendees visiting Booth #827 will see live demonstrations of how digital credentials can be seamlessly integrated into onboarding, authentication, and other high-value customer journeys, unlocking new efficiencies and business opportunities.

As part of this showcase, OneSpan is inviting organizations to sign up for early access to its upcoming digital credentials solution. Participants will gain early insight into how to prepare for the shift to wallet-based identity ahead of general availability in the coming weeks.

About OneSpan

OneSpan helps organizations build secure, seamless, and trusted digital experiences through two solution portfolios: Cybersecurity and Digital Agreements. Our cybersecurity solutions protect identities, secure mobile apps, and safeguard access through advanced high-assurance authentication, threat intelligence, fraud prevention, and robust mobile app protection, defending users, devices, and applications against sophisticated attacks. Our digital agreements solutions streamline agreement workflows with secure e-signatures, identity verification, and smart digital forms, built to enable speed, compliance, and exceptional customer experiences. Trusted by leading global enterprises, including more than 60% of the world’s 100 largest banks, OneSpan processes over 100 million digital agreements and billions of secure authentication transactions across more than 120 countries each year.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable U.S. securities laws, including statements regarding the expected capabilities, availability, and benefits of OneSpan’s digital credentials solution, the anticipated timing of its general availability, and the expected evolution and adoption of digital credentials and identity technologies. Forward-looking statements may be identified by words or phrases such as "seek", "believe", "plan", "estimate", "anticipate", “expect", "intend", "continue", "outlook", "may", "will", "should", "could", or "might" and other similar expressions. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could materially affect our business and financial results include, but are not limited to the factors described in the “Risk Factors” section of our Annual Report on Form 10-K, as updated by the “Risk Factors” section of our Quarterly Reports on Form 10-Q. Our filings with the Securities and Exchange Commission (the “SEC”) and other important information can be found in the Investor Relations section of our website at investors.onespan.com. We do not have any intent, and disclaim any obligation, to update the forward-looking information to reflect events that occur, circumstances that exist or changes in our expectations after the date of this press release, except as required by law.

Unless otherwise noted, references in this press release to “OneSpan”, “Company”, “we”, “our”, and “us” refer to OneSpan Inc. and its subsidiaries.

For more information, go to www.onespan.com. You can also follow @OneSpan on X or visit us on LinkedIn and Facebook.

More News From OneSpan Inc.

OneSpan (OSPN - Free Report) closed at $10.60 in the latest trading session, marking a -1.58% move from the prior day. This move lagged the S&P 500's daily loss of 0.11%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.35%.

The stock of internet security company has risen by 0.75% in the past month, lagging the Computer and Technology sector's gain of 0.88% and overreaching the S&P 500's gain of 0.51%.

The upcoming earnings release of OneSpan will be of great interest to investors. The company's earnings report is expected on April 30, 2026. The company's upcoming EPS is projected at $0.36, signifying a 20.00% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $60.94 million, indicating a 3.83% downward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.26 per share and revenue of $246.46 million, indicating changes of -15.44% and +1.35%, respectively, compared to the previous year.

Any recent changes to analyst estimates for OneSpan should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. OneSpan is currently sporting a Zacks Rank of #4 (Sell).

From a valuation perspective, OneSpan is currently exchanging hands at a Forward P/E ratio of 8.57. This denotes a discount relative to the industry average Forward P/E of 17.88.

Meanwhile, OSPN's PEG ratio is currently 0.78. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

OneSpan (OSPN - Free Report) closed at $11.33 in the latest trading session, marking a +1.52% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.26% for the day. On the other hand, the Dow registered a gain of 0.24%, and the technology-centric Nasdaq increased by 0.36%.

Shares of the internet security company witnessed a gain of 7.72% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 9.34%, and outperforming the S&P 500's gain of 5.98%.

The investment community will be paying close attention to the earnings performance of OneSpan in its upcoming release. The company is slated to reveal its earnings on April 30, 2026. On that day, OneSpan is projected to report earnings of $0.36 per share, which would represent a year-over-year decline of 20%. Simultaneously, our latest consensus estimate expects the revenue to be $60.94 million, showing a 3.83% drop compared to the year-ago quarter.

OSPN's full-year Zacks Consensus Estimates are calling for earnings of $1.26 per share and revenue of $246.46 million. These results would represent year-over-year changes of -15.44% and +1.35%, respectively.

Investors might also notice recent changes to analyst estimates for OneSpan. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. OneSpan is currently sporting a Zacks Rank of #4 (Sell).

With respect to valuation, OneSpan is currently being traded at a Forward P/E ratio of 8.88. For comparison, its industry has an average Forward P/E of 18.83, which means OneSpan is trading at a discount to the group.

We can also see that OSPN currently has a PEG ratio of 0.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 37% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

OneSpan (OSPN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this internet security company have returned +9.5% over the past month versus the Zacks S&P 500 composite's +9.7% change. The Zacks Internet - Software industry, to which OneSpan belongs, has gained 10% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, OneSpan is expected to post earnings of $0.36 per share, indicating a change of -20% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The consensus earnings estimate of $1.26 for the current fiscal year indicates a year-over-year change of -15.4%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $1.34 indicates a change of +6.6% from what OneSpan is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, OneSpan is rated Zacks Rank #4 (Sell).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of OneSpan, the consensus sales estimate of $60.94 million for the current quarter points to a year-over-year change of -3.8%. The $246.46 million and $256.7 million estimates for the current and next fiscal years indicate changes of +1.3% and +4.2%, respectively.

Last Reported Results and Surprise HistoryOneSpan reported revenues of $62.92 million in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $0.36 for the same period compares with $0.24 a year ago.

Compared to the Zacks Consensus Estimate of $59.88 million, the reported revenues represent a surprise of +5.08%. The EPS surprise was +20%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates just once over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

OneSpan is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about OneSpan. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.

Posted by Defense World Staff on Apr 24th, 2026

Onespan Inc (NASDAQ:OSPN – Get Free Report) has received an average recommendation of “Hold” from the five analysts that are currently covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and two have assigned a buy rating to the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $16.6667.

Several research firms recently commented on OSPN. Wall Street Zen upgraded shares of Onespan from a “hold” rating to a “buy” rating in a research report on Saturday, March 28th. Zacks Research lowered shares of Onespan from a “hold” rating to a “strong sell” rating in a research report on Tuesday, March 3rd. DA Davidson decreased their price objective on shares of Onespan from $13.00 to $12.00 and set a “neutral” rating on the stock in a research report on Friday, February 27th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Onespan in a research report on Friday, April 10th.

View Our Latest Report on OSPN

Insider Activity In other Onespan news, CFO Jorge Garcia Martell sold 15,000 shares of the firm’s stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $10.33, for a total transaction of $154,950.00. Following the sale, the chief financial officer directly owned 110,218 shares of the company’s stock, valued at $1,138,551.94. This trade represents a 11.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 1.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Onespan Several hedge funds have recently modified their holdings of the company. Towarzystwo Funduszy Inwestycyjnych PZU SA boosted its stake in shares of Onespan by 81.8% during the 4th quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 2,000 shares of the company’s stock worth $26,000 after purchasing an additional 900 shares during the last quarter. Register Financial Advisors LLC boosted its stake in shares of Onespan by 2.3% during the 4th quarter. Register Financial Advisors LLC now owns 68,628 shares of the company’s stock worth $881,000 after purchasing an additional 1,521 shares during the last quarter. Deutsche Bank AG boosted its stake in shares of Onespan by 4.7% during the 4th quarter. Deutsche Bank AG now owns 33,569 shares of the company’s stock worth $431,000 after purchasing an additional 1,522 shares during the last quarter. Hohimer Wealth Management LLC boosted its stake in shares of Onespan by 13.0% during the 3rd quarter. Hohimer Wealth Management LLC now owns 13,642 shares of the company’s stock worth $217,000 after purchasing an additional 1,572 shares during the last quarter. Finally, Amundi boosted its stake in shares of Onespan by 10.0% during the 4th quarter. Amundi now owns 18,463 shares of the company’s stock worth $237,000 after purchasing an additional 1,676 shares during the last quarter. 95.52% of the stock is owned by institutional investors and hedge funds.

Onespan Stock Down 4.5% Onespan stock opened at $11.18 on Friday. Onespan has a 52 week low of $10.07 and a 52 week high of $18.13. The firm’s 50-day simple moving average is $10.87 and its 200 day simple moving average is $12.24. The firm has a market capitalization of $418.91 million, a PE ratio of 5.95, a P/E/G ratio of 1.06 and a beta of 1.51.

Onespan (NASDAQ:OSPN – Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported $0.36 EPS for the quarter, topping the consensus estimate of $0.31 by $0.05. Onespan had a net margin of 29.98% and a return on equity of 19.58%. The business had revenue of $62.92 million for the quarter, compared to analyst estimates of $59.78 million. On average, research analysts expect that Onespan will post 1 EPS for the current fiscal year.

Onespan Increases Dividend The company also recently declared a quarterly dividend, which was paid on Friday, March 27th. Shareholders of record on Friday, March 13th were paid a dividend of $0.13 per share. The ex-dividend date of this dividend was Friday, March 13th. This represents a $0.52 annualized dividend and a dividend yield of 4.7%. This is an increase from Onespan’s previous quarterly dividend of $0.12. Onespan’s dividend payout ratio is 27.66%.

About Onespan (Get Free Report)

OneSpan, formerly known as Vasco Data Security International, is a Chicago-based cybersecurity software company specializing in digital identity and anti-fraud solutions. Founded in 1991, the company provides a suite of authentication and transaction security products designed to help organizations protect critical applications and high-value transactions across online, mobile and in-branch channels.

The core OneSpan portfolio includes multi-factor authentication, risk-based authentication and transaction signing solutions.

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BOSTON--(BUSINESS WIRE)--OneSpan Inc. (NASDAQ: OSPN) today reported financial results for the first quarter ended March 31, 2026.

“We delivered a strong first quarter with solid profitability and subscription revenue growth,” stated OneSpan CEO, Victor Limongelli. “We also closed the acquisition of Build38, which strengthens our cybersecurity product portfolio by enabling customers to build threat protection into their mobile applications, and by providing the telemetry necessary for visibility into the threat and operating environment. As we invest organically and through targeted M&A, we remain focused on driving efficient revenue growth, maintaining strong profitability and cash generation, and returning capital to shareholders.”

First Quarter 2026 Financial Highlights

Total revenue was $65.9 million, an increase of 4% compared to $63.4 million for the same quarter of 2025. Cybersecurity revenue was $48.5 million, an increase of 2% year-over-year. Digital Agreements revenue was $17.4 million, an increase of 11% year-over-year. ARR increased 14% year-over-year to $192.1 million. Gross profit was $48.5 million, or 74% gross margin, compared to $47.1 million, or 74% gross margin, in the same period last year. Operating income was $14.8 million, compared to operating income of $17.2 million in the same period last year. Net income was $11.6 million, or $0.30 per diluted share, compared to net income of $14.5 million, or $0.37 per diluted share, in the same period last year. Non-GAAP net income was $14.8 million, or $0.39 per diluted share, compared to non-GAAP net income of $17.7 million, or $0.45 per diluted share in the same period last year.1 Adjusted EBITDA was $21.0 million, compared to $23.0 million in the same period last year. Cash and cash equivalents were $49.8 million at March 31, 2026 compared to $70.5 million at December 31, 2025. OneSpan repurchased approximately 510,000 shares of its common stock for $5.4 million. Recent Business Highlights

OneSpan completed its acquisition of Build38, a provider of next-generation mobile application protection solutions, to expand its App Shielding capabilities and enable its customers to strengthen their mobile channels through continuous in-app protection, cloud-powered threat intelligence, and adaptive, AI-enabled defenses. The Company’s Board of Directors has declared a quarterly cash dividend of $0.13 per share as part of the Company’s recurring quarterly dividend program. The dividend is payable on June 4, 2026 to shareholders of record as of the close of business on May 14, 2026. OneSpan was named an Overall Leader, Product Leader, Innovation Leader, and Market Leader in the 2026 KuppingerCole Leadership Compass: Passwordless Authentication for Enterprises. Financial Outlook

OneSpan is updating its previously issued financial guidance to reflect an increase in its ARR expectations. For the Full Year 2026, the Company expects:

Total revenue to be in the range of $244 million to $249 million. Software and services revenue to be in the range of $201 million to $204 million. Hardware revenue to be in the range of $43 million to $45 million. ARR to be in the range of $194 million to $198 million, as compared to its previous guidance range of $192 million to $196 million. Adjusted EBITDA to be in the range of $64 million to $68 million. Conference Call Details

In conjunction with this announcement, OneSpan Inc. will host a conference call today, April 30, 2026, at 4:30 p.m. ET. During the conference call, Mr. Victor Limongelli, CEO, and Mr. Jorge Martell, CFO, will discuss OneSpan’s results for the first quarter 2026.

For investors and analysts accessing the conference call by phone, please refer to the press release dated April 9, 2026, announcing the date of OneSpan’s first quarter 2026 earnings release. It can be found on the OneSpan investor relations website at investors.onespan.com.

The conference call is also available in listen-only mode at investors.onespan.com. Shortly after the conclusion of the call, a replay of the webcast will be available on the same website for approximately one year.

An explanation of the use of Non-GAAP financial measures is included below under the heading “Non-GAAP Financial Measures.” A reconciliation of each Non-GAAP financial measure to the most directly comparable GAAP financial measure has also been provided in the tables below. We are not providing a reconciliation of Adjusted EBITDA guidance to GAAP net income, the most directly comparable GAAP measure, because we are unable to predict certain items included in GAAP net income without unreasonable efforts. ARR is calculated as the approximate annualized value of our customer recurring contracts as of the measurement date. These include subscription, term-based license, and maintenance and support contracts and exclude one-time fees. To the extent that we are negotiating a renewal with a customer within 90 days after the expiration of a recurring contract, we continue to include that revenue in ARR if we are actively in discussion with the customer for a new recurring contract or renewal and the customer has not notified us of an intention to not renew. See our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 for additional information describing how we define ARR, including how ARR differs from GAAP revenue. NRR is defined as the approximate year-over-year growth in ARR from the same set of customers at the end of the prior year period. About OneSpan

OneSpan helps organizations build secure, seamless, and trusted digital experiences through two solution portfolios: Cybersecurity and Digital Agreements. Our cybersecurity solutions protect identities, secure mobile apps, and safeguard access through advanced high-assurance authentication, threat intelligence, fraud prevention, and robust mobile app protection, defending users, devices, and applications against sophisticated attacks. Our digital agreement solutions streamline agreement workflows with secure e-signatures, identity verification, and smart digital forms, built to enable speed, compliance and exceptional customer experiences. Trusted by leading global enterprises, including more than 60% of the world’s 100 largest banks, OneSpan processes over 100 million digital agreements and billions of secure authentication transactions across more than 120 countries each year.

For more information, visit our website, explore our blog, or follow us on LinkedIn or YouTube.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable U.S. securities laws, including statements regarding our 2026 financial guidance; our plans to drive efficient revenue growth, maintain strong profitability and cash generation, and return capital to shareholders; and our general goals and expectations regarding our operational or financial performance in the future. Forward-looking statements may be identified by words such as "seek", "believe", "plan", "estimate", "anticipate", “expect", "intend", "continue", "outlook", "may", "will", "should", "could", or "might", and other similar expressions. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could materially affect our business and financial results include, but are not limited to: our ability to attract new customers and retain and expand sales to existing customers; our ability to successfully develop and market new product offerings and product enhancements; changes in customer requirements; the potential effects of technological changes; the loss of one or more large customers; difficulties enhancing and maintaining our brand recognition; competition; lengthy sales cycles; unintended costs and consequences of our cost reduction and restructuring actions, including higher than anticipated restructuring charges, disruption to our operations, litigation or regulatory actions, or employee turnover; challenges retaining key employees and successfully hiring and training qualified new employees; security breaches or cyber-attacks; real or perceived malfunctions or errors in our products; interruptions or delays in the performance of our products and solutions; reliance on third parties for certain products and data center services; our ability to effectively manage third party partnerships, acquisitions, divestitures, alliances, or joint ventures; economic recession, inflation, tariffs or trade disputes, and political instability; claims that we have infringed the intellectual property rights of others; changing laws, government regulations or policies; pressures on price levels; component shortages; delays and disruption in global transportation and supply chains; impairment of goodwill or amortizable intangible assets causing a significant charge to earnings; actions of activist stockholders; and exposure to increased economic and operational uncertainties from operating a global business, as well as other factors described in the “Risk Factors” section of our most recent Annual Report on Form 10-K, as updated by the “Risk Factors” section of our subsequent Quarterly Reports on Form 10-Q (if any). Our filings with the Securities and Exchange Commission and other important information can be found in the Investor Relations section of our website at investors.onespan.com. We do not have any intent, and disclaim any obligation, to update the forward-looking information to reflect events that occur, circumstances that exist or changes in our expectations after the date of this press release, except as required by law.

Unless otherwise noted, references in this press release to “OneSpan”, “Company”, “we”, “our”, and “us” refer to OneSpan Inc. and its subsidiaries.

OneSpan Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

  Three Months Ended
March 31,

2026

2025

Revenue

Product and license

$

35,507

$

37,240

Services and other

30,440

26,126

Total revenue

65,947

63,366

Cost of goods sold

Product and license

8,760

8,718

Services and other

8,673

7,557

Total cost of goods sold

17,433

16,275

Gross profit

48,514

47,091

Operating costs

Sales and marketing

12,679

11,457

Research and development

9,078

7,928

General and administrative

10,958

9,547

Amortization of intangible assets

698

556

Write-off of assets

284

—

Restructuring and other related charges

—

421

Total operating costs

33,697

29,909

—

Operating income

14,817

17,182

Interest (expense) income, net

(19

)

692

Other expense, net

(386

)

(9

)

Income before income taxes

14,412

17,865

Provision for income taxes

2,847

3,360

Net income

$

11,565

$

14,505

Net income per share

Basic

$

0.31

$

0.38

Diluted

$

0.30

$

0.37

Weighted average common shares outstanding

Basic

37,611

38,106

Diluted

38,070

39,027

OneSpan Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)

  March 31,

December 31,

2026

2025

ASSETS

Current assets

Cash and cash equivalents

$

49,754

$

70,499

Accounts receivable, net of allowances of $1,204 at March 31, 2026 and $1,227 at December 31, 2025

33,245

55,999

Inventories, net

9,137

10,466

Prepaid expenses

7,147

7,044

Contract assets

13,543

18,269

Other current assets

10,057

9,936

Total current assets

122,883

172,213

Property and equipment, net

22,902

22,234

Operating lease right-of-use assets

7,147

7,356

Goodwill

128,144

103,840

Intangible assets, net of accumulated amortization

16,481

9,741

Deferred income taxes

59,069

54,733

Equity investment

11,834

11,834

Other assets

14,686

15,751

Total assets

$

383,146

$

397,702

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable

$

11,122

$

13,726

Deferred revenue

60,732

71,641

Accrued wages and payroll taxes

11,970

13,553

Short-term income taxes payable

1,749

3,079

Dividend payable

671

671

Other accrued expenses

11,749

11,859

Deferred compensation

8

42

Total current liabilities

98,001

114,571

Long-term deferred revenue

2,395

2,539

Long-term lease liabilities

5,796

6,139

Deferred income taxes

989

988

Other long-term liabilities

3,949

1,622

Total liabilities

111,130

125,859

Commitments and contingencies

Stockholders' equity

Preferred stock: 500 shares authorized, none issued and outstanding at March 31, 2025 and December 31, 2025

—

—

Common stock: $0.001 par value per share, 75,000 shares authorized; 42,220 and 42,091 shares issued; 36,982 and 37,361 shares outstanding at March 31, 2026 and December 31, 2025, respectively.

37

37

Additional paid-in capital

129,541

128,651

Treasury stock, at cost: 5,238 and 4,730 shares outstanding at March 31, 2026 and December 31, 2025, respectively

(65,922

)

(60,521

)

Retained earnings

216,423

209,821

Accumulated other comprehensive loss

(8,063

)

(6,145

)

Total stockholders' equity

272,016

271,843

Total liabilities and stockholders' equity

$

383,146

$

397,702

OneSpan Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited)

  Three Months Ended March 31,

2026

2025

Cash flows from operating activities:

Net income

$

11,565

$

14,505

Adjustments to reconcile net income from operations to net cash provided by operations:

Depreciation and amortization of intangible assets

3,132

2,129

Write-off of assets

284

—

Loss on disposal of asset

—

36

Deferred tax (benefit) expense

(26

)

75

Stock-based compensation

1,876

2,776

Recovery of credit losses

(10

)

(453

)

Changes in operating assets and liabilities, net of the effects from acquisition:

Accounts receivable, net

24,002

27,756

Inventories, net

1,168

203

Contract assets

5,427

93

Accounts payable

(2,824

)

(1,437

)

Income taxes payable

(1,363

)

1,757

Accrued expenses

(3,482

)

(3,641

)

Deferred compensation

(34

)

(181

)

Deferred revenue

(12,583

)

(16,593

)

Other assets and liabilities

1,040

2,341

Net cash provided by operating activities

28,172

29,366

Cash flows from investing activities:

Additions to property and equipment

(3,120

)

(1,626

)

Additions to intangible assets

(80

)

(19

)

Cash paid for acquisition of business, net of cash acquired

(34,554

)

—

Net cash used in investing activities

(37,754

)

(1,645

)

Cash flows from financing activities:

Dividends paid

(4,986

)

(4,587

)

Tax payments for restricted stock issuances

(986

)

(1,327

)

Repurchase of common stock

(5,401

)

—

Net cash used in financing activities

(11,373

)

(5,914

)

Effect of exchange rate changes on cash

210

244

Net (decrease) increase in cash

(20,745

)

22,051

Cash, cash equivalents, and restricted cash, beginning of period

70,499

83,331

Cash, cash equivalents, and restricted cash, end of period

$

49,754

$

105,382

Operating Segments

We report our financial results under the following two lines of business, which are our reportable operating segments: Cybersecurity and Digital Agreements.

Cybersecurity. Cybersecurity, formerly Security Solutions, consists of our broad portfolio of software products, software development kits ("SDKs") and Digipass authenticator devices that are used to build applications designed to defend against attacks on digital transactions across online environments, devices, and applications. The software products and SDKs included in the Cybersecurity segment are delivered through on-premises and cloud-based deployment models and include standards-based authentication technologies such as Fast Identity Online ("FIDO") authentication and passkeys, multi-factor authentication, transaction signing solutions and mobile application security. Digital Agreements. Digital Agreements consists of solutions that enable our clients to secure and automate business processes associated with their digital agreement and customer transaction lifecycles that require consent, non-repudiation and compliance. These solutions, which are cloud-based, include OneSpan Sign e-signature, OneSpan Notary, and Identity Verification. Segment operating income (loss) consists of the revenues generated by a segment, less the direct costs of revenue, sales and marketing, research and development expenses, general and administrative expenses, restructuring and other related charges, and amortization of intangible assets expense that are incurred directly by a segment. Sales and marketing and research and development expenses were determined to be significant segment expenses. Unallocated corporate costs include costs related to administrative functions that are performed in a centralized manner that are not directly attributable to a particular segment.

Segment and consolidated operating results (unaudited):

Three Months Ended March 31, 2026

(In thousands, except percentages)

Cybersecurity

Digital Agreements

Corporate and Other

Total

Revenue

$

48,546

$

17,401

$

—

$

65,947

Cost of goods sold

12,640

4,793

—

17,433

Gross profit

35,906

12,608

—

48,514

Gross margin

74

%

72

%

*

74

%

Sales and marketing

8,489

3,433

757

12,679

Research and development

5,941

2,820

317

9,078

Other segment items (1)(3)

691

1,073

10,176

11,940

Operating income (loss) (2)(4)

20,785

5,282

(11,250

)

14,817

Interest (expense) income, net

(19

)

Other income (expense), net

(386

)

Income before income taxes

$

14,412

Three Months Ended March 31, 2025

(In thousands, except percentages)

Cybersecurity

Digital Agreements

Corporate and Other

Total

Revenue

$

47,713

$

15,653

$

—

$

63,366

Cost of goods sold

11,628

4,647

—

16,275

Gross profit

36,085

11,006

—

47,091

Gross margin

76

%

70

%

*

74

%

Sales and marketing

6,872

3,402

1,183

11,457

Research and development

4,919

3,006

3

7,928

Other segment items (1)(3)

134

1,231

9,159

10,524

Operating income (loss) (2)(4)

24,160

3,367

(10,345

)

17,182

Interest (expense) income, net

692

Other income (expense), net

(9

)

Income before income taxes

$

17,865

  *Percentage not meaningful.

(1)

  Cybersecurity other segment items includes general and administrative expense, write-off of assets and amortization of intangibles for the three months ended March 31, 2026. Cybersecurity other segment items include general and administrative expense, restructuring and other related charges for the three months ended March 31, 2025.

  (2)

  Cybersecurity operating income includes $0.7 million and $0.2 million of total amortization and depreciation expense for the three months ended March 31, 2026 and 2025, respectively. Cybersecurity operating income also includes $0.3 million related to write-off of assets for the three months ended March 31, 2026. There were no write-off of assets for the three months ended March 31, 2025. Cybersecurity operating income includes $0.2 million of restructuring and other related charges for the three months ended March 31, 2025.

  (3)

  Digital Agreements other segment items includes general and administrative expense and amortization of intangibles for the three months ended March 31, 2026. Digital Agreements other segment items includes general and administrative expense, restructuring and other related charges for the three months ended March 31, 2025.

  (4)

  Digital Agreements operating income includes $2.2 million and $1.7 million of total amortization and depreciation expense for the three months ended March 31, 2026 and 2025, respectively. Digital Agreements operating income includes $0.2 million of restructuring and other related charges for the three months ended March 31, 2025.

Revenue by major products and services (unaudited):

Effective January 1, 2026, we have revised our presentation of revenue by major products and services to better align with how we manage the business and our strategic focus on growing recurring revenues. Accordingly, term maintenance revenue is now included within subscription revenue. As a result, subscription revenue now consists primarily of subscription licenses sold for on-premises software, the related maintenance and support revenue, and SaaS revenue. Additionally, maintenance revenue associated with perpetual licenses and professional services is now presented together, which reflects the steady decline in perpetual license arrangements. These changes are presentation-only and have no impact on total revenue, operating income, or cash flows, and prior-period results have been updated for comparability.

Three Months Ended March 31,

2026

2025

(In thousands)

Cybersecurity

Digital Agreements

Cybersecurity

Digital Agreements

Subscription (1)

$

35,312

$

17,355

$

33,123

$

15,569

Perpetual maintenance and services

2,647

46

3,527

84

Hardware products

10,587

—

11,063

—

Total Revenue

$

48,546

$

17,401

$

47,713

$

15,653

Non-GAAP Financial Measures

We report financial results in accordance with GAAP. We also evaluate our performance using certain non-GAAP financial metrics, namely Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Net Income Per Diluted Share. Our management believes that these measures, when taken together with the corresponding GAAP financial metrics, provide useful supplemental information regarding the performance of our business, as further discussed in the descriptions of each of these non-GAAP metrics below.

These non-GAAP financial measures are not measures of performance under GAAP and should not be considered in isolation or as alternatives or substitutes for the most directly comparable financial measures calculated in accordance with GAAP. While we believe that these non-GAAP financial measures are useful for the purposes described below, they have limitations associated with their use, since they exclude items that may have a material impact on our reported results and may be different from similar measures used by other companies. Additional information about the non-GAAP financial measures and reconciliations to their most directly comparable GAAP financial measures appear below.

Adjusted EBITDA

We define Adjusted EBITDA as net income before interest, taxes, depreciation, amortization, long-term incentive compensation and related payroll tax expense, restructuring and other related charges, and certain non-recurring items, including acquisition related costs, rebranding costs, and non-routine shareholder matters. We use Adjusted EBITDA as a simplified measure of performance for use in communicating our performance to investors and analysts and for comparisons to other companies within our industry. As a performance measure, we believe that Adjusted EBITDA presents a view of our operating results that is most closely related to serving our customers. By excluding interest, taxes, depreciation, amortization, long-term incentive compensation and related payroll tax expense, restructuring costs, and certain other non-recurring items, we are able to evaluate performance without considering decisions that, in most cases, are not directly related to meeting our customers’ requirements and were either made in prior periods (e.g., depreciation, amortization, long-term incentive compensation and related payroll tax expense, non-routine shareholder matters), deal with the structure or financing of the business (e.g., interest, one-time strategic action costs, restructuring costs, impairment charges) or reflect the application of regulations that are outside of the control of our management team (e.g., taxes). In addition, removing the impact of these items helps us compare our core business performance with that of our competitors.

Reconciliation of Net Income to Adjusted EBITDA

(in thousands, unaudited)

  Three Months Ended March 31,

(In thousands)

2026

2025

Net income

$

11,565

$

14,505

Interest expense (income), net

19

(692

)

Provision for income taxes

2,847

3,360

Depreciation and amortization of intangible assets (1)

3,132

2,129

Long-term incentive compensation and related payroll tax expense (2)

2,077

3,248

Restructuring and other related charges (3)

—

446

Other non-recurring items (4)

1,369

39

Adjusted EBITDA

$

21,009

$

23,035

(1)

  Includes cost of sales depreciation and amortization expense directly related to delivering cloud subscription revenue of $1.9 million and $1.1 million for the three months ended March 31, 2026 and 2025, respectively. Costs are recorded in "Services and other cost of goods sold" on the condensed consolidated statements of operations.

  (2)

  Long-term incentive compensation and related payroll tax expense includes stock-based compensation and related employer payroll tax expense, and cash incentive grants awarded to employees located in jurisdictions where we do not issue stock-based compensation due to tax, regulatory or similar reasons. The immaterial expense associated with these cash incentive grants was less than $0.1 million for the three months ended March 31, 2026 and 2025.

  (3)

  Costs are recorded in "Services and other cost of goods sold" and "Restructuring and other related charges," respectively, on the condensed consolidated statements of operations.

    Includes restructuring and other related charges of less than $0.1 million for the three months ended March 31, 2025. These charges are recorded in "Services and other cost of goods sold" on the condensed consolidated statements of operations.

  (4)

  For the three months ended March 31, 2026 and 2025, other non-recurring items consist of $1.4 million and less than $0.1 million, respectively, of fees related to non-recurring projects.

Non-GAAP Net Income and Non-GAAP Net Income Per Diluted Share

We define Non-GAAP Net Income and Non-GAAP Net Income Per Diluted Share as net income or net income per diluted share, as applicable, before the consideration of long-term incentive compensation expenses, the amortization of intangible assets, restructuring costs, and certain other non-recurring items. We use these measures to assess the impact of our performance excluding items that can significantly impact the comparison of our results between periods and the comparison to competitor results.

We exclude long-term incentive compensation and related payroll tax expense because our long-term incentives generally reflect the use of restricted stock unit grants or cash incentive grants, including incentives directly tied to the performance of the business, while other companies may use different forms of incentives that have different cost impacts, which makes comparison difficult. We exclude amortization of intangible assets as we believe the amount of such expense in any given period may not be correlated directly to the performance of the business operations and that such expenses can vary significantly between periods as a result of new acquisitions, the full amortization of previously acquired intangible assets, or the write down of such assets due to an impairment event. However, intangible assets contribute to current and future revenue, and related amortization expense will recur in future periods until expired or written down.

We also exclude certain non-recurring items including one-time strategic action costs and non-recurring shareholder matters, as these items are unrelated to the operations of our core business. By excluding these items, we are better able to compare the operating results of our underlying core business from one reporting period to the next.

We use a long-term projected non-GAAP tax rate of 20% for the purpose of determining our Non-GAAP Net Income and Non-GAAP Net Income Per Diluted Share to provide better consistency across interim reporting periods. We will assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations.

Reconciliation of Net Income to Non-GAAP Net Income

(in thousands, except per share data)

(unaudited)

  Three Months Ended March 31,

2026

2025

Net income

$

11,565

$

14,505

Provision for income taxes

2,847

3,360

Income before income taxes

14,412

17,865

Long-term incentive compensation and related payroll tax expense (1)

2,077

3,248

Amortization of intangible assets (2)

698

556

Restructuring and other related charges (3)

—

446

Other non-recurring items (4)

1,369

39

Non-GAAP net income before income taxes

18,556

22,154

Non-GAAP provision for income taxes (5)

(3,711

)

(4,431

)

Non-GAAP net income

$

14,845

$

17,723

Non-GAAP net income per share, diluted

$

0.39

$

0.45

Weighted-average shares used to compute non-GAAP net income per share, diluted

38,070

39,027

(1)

  Long-term incentive compensation and related payroll tax expense includes stock-based compensation and related employer payroll tax expense, and cash incentive grants awarded to employees located in jurisdictions where we do not issue stock-based compensation due to tax, regulatory or similar reasons. The immaterial expense associated with these cash incentive grants was less than $0.1 million for the three months ended March 31, 2026 and 2025.

  (2)

  Includes cost of sales amortization expense directly related to delivering cloud subscription revenue of $0.2 million for the three months ended March 31, 2026. There was no amortization expense included in cost of sales for the three months ended March 31, 2025. Costs are recorded in "Services and other cost of goods sold" on the condensed consolidated statements of operations.

  (3)

  Costs are recorded in "Services and other cost of goods sold" and "Restructuring and other related charges," respectively, on the condensed consolidated statements of operations.

      Includes restructuring and other related charges of less than $0.1 million for the three months ended March 31, 2025. These charges are recorded in "Services and other cost of goods sold" on the condensed consolidated statements of operations.

  (4)

  For the three months ended March 31, 2026 and 2025, other non-recurring items consist of $1.4 million and less than $0.1 million, respectively, of fees related to non-recurring projects.

  (5)

  We use a long-term projected non-GAAP tax rate of 20% for the purpose of determining our Non-GAAP Net Income and Non-GAAP Net Income Per Diluted Share to provide better consistency across interim reporting periods.

Copyright© 2026 OneSpan North America Inc., all rights reserved. OneSpan™ is a registered or unregistered trademark of OneSpan North America Inc. or its affiliates in the U.S. and other countries.

More News From OneSpan Inc.

OneSpan Inc. (OSPN) Q1 2026 Earnings Call Transcript

OneSpan (OSPN - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this internet security company have returned +6.8%, compared to the Zacks S&P 500 composite's +11.4% change. During this period, the Zacks Internet - Software industry, which OneSpan falls in, has gained 6.5%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

OneSpan is expected to post earnings of $0.25 per share for the current quarter, representing a year-over-year change of -26.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -19.7%.

The consensus earnings estimate of $1.21 for the current fiscal year indicates a year-over-year change of -18.8%. This estimate has changed -0.5% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $1.33 indicates a change of +10.3% from what OneSpan is expected to report a year ago. Over the past month, the estimate has changed -0.8%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, OneSpan is rated Zacks Rank #2 (Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For OneSpan, the consensus sales estimate for the current quarter of $57.75 million indicates a year-over-year change of -3.5%. For the current and next fiscal years, $246.53 million and $256.09 million estimates indicate +1.4% and +3.9% changes, respectively.

Last Reported Results and Surprise HistoryOneSpan reported revenues of $65.95 million in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $0.39 for the same period compares with $0.45 a year ago.

Compared to the Zacks Consensus Estimate of $60.94 million, the reported revenues represent a surprise of +8.22%. The EPS surprise was +8.33%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

OneSpan is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about OneSpan. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

Investors looking for stocks in the Internet - Software sector might want to consider either OneSpan (OSPN - Free Report) or HubSpot (HUBS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

OneSpan and HubSpot are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OSPN is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

OSPN currently has a forward P/E ratio of 10.08, while HUBS has a forward P/E of 19.59. We also note that OSPN has a PEG ratio of 0.92. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HUBS currently has a PEG ratio of 0.98.

Another notable valuation metric for OSPN is its P/B ratio of 1.66. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, HUBS has a P/B of 6.18.

Based on these metrics and many more, OSPN holds a Value grade of A, while HUBS has a Value grade of D.

OSPN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that OSPN is likely the superior value option right now.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is ONESPAN (OSPN - Free Report) . OSPN is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.62, while its industry has an average P/E of 26.88. Over the last 12 months, OSPN's Forward P/E has been as high as 14.05 and as low as 8.73, with a median of 11.50.

Another notable valuation metric for OSPN is its P/B ratio of 2.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. OSPN's current P/B looks attractive when compared to its industry's average P/B of 4.27. Within the past 52 weeks, OSPN's P/B has been as high as 3.78 and as low as 2.01, with a median of 2.84.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OSPN has a P/S ratio of 1.98. This compares to its industry's average P/S of 2.8.

Finally, our model also underscores that OSPN has a P/CF ratio of 8.92. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.87. Within the past 12 months, OSPN's P/CF has been as high as 26.28 and as low as 7.22, with a median of 9.86.

These are only a few of the key metrics included in ONESPAN's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, OSPN looks like an impressive value stock at the moment.

OneSpan (OSPN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this internet security company have returned +22.4% over the past month versus the Zacks S&P 500 composite's +4.6% change. The Zacks Internet - Software industry, to which OneSpan belongs, has gained 6.4% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, OneSpan is expected to post earnings of $0.25 per share, indicating a change of -26.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The consensus earnings estimate of $1.23 for the current fiscal year indicates a year-over-year change of -17.5%. This estimate has changed +2.5% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $1.33 indicates a change of +8.1% from what OneSpan is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, OneSpan is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of OneSpan, the consensus sales estimate of $57.75 million for the current quarter points to a year-over-year change of -3.5%. The $246.53 million and $256.09 million estimates for the current and next fiscal years indicate changes of +1.4% and +3.9%, respectively.

Last Reported Results and Surprise HistoryOneSpan reported revenues of $65.95 million in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $0.39 for the same period compares with $0.45 a year ago.

Compared to the Zacks Consensus Estimate of $60.94 million, the reported revenues represent a surprise of +8.22%. The EPS surprise was +8.33%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

OneSpan is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about OneSpan. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.