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Company has signed Non-Binding Letter of Intent (LOI) for an initial data center project

Alex Spiro serves as the Chairman of the Board of Directors

, /PRNewswire/ -- CleanCore Solutions, Inc. (NYSE American: ZONE) ("CleanCore" or the "Company") today announced that Tyler Hassen has been appointed Chief Executive Officer ("CEO") and as a member of the Company's Board of Directors (the "Board"). Under Hassen's leadership, the Company will focus on building critical AI infrastructure across the United States. Formerly backed by the Dogecoin Foundation in partnership, the Company will move away from its cleaning products business and its previously announced Dogecoin treasury strategy. The Company also announced that it has signed a non-binding Letter of Intent ("LOI") to develop a data center project in the Midwest.

Hassen brings over two decades of experience across the energy, industrial, and government sectors. Most recently, he served as the Acting Assistant Secretary of Policy, Management & Budget at the U.S. Department of the Interior under Secretary Doug Burgum, and previously served as Chief Executive Officer of Basin Holdings, a diversified energy and industrial business. His experience navigating industrial operations, permitting processes, and strategic partnerships in these sectors will help position CleanCore Solutions to execute and transition the business to meet the growing AI infrastructure demand.

"Compute has become one of the most valuable resources in the world, and the demand for power, land and infrastructure it requires is unprecedented, and only continues to accelerate,"  said Tyler Hassen, newly appointed CEO. "We believe that our transition positions us to be a foundational player in the critical infrastructure that powers the AI economy."

The Company is actively evaluating additional development opportunities across rural and industrial areas of the United States, as it expands its pipeline to bring data centers and campuses online.

About CleanCore Solutions, Inc.
CleanCore Solutions, Inc. (NYSE American: ZONE) is building the critical infrastructure that powers the AI economy. Through a growing pipeline of projects, ZONE aims to help meet the increasing demand for compute capacity, power, and digital infrastructure required by the world's leading AI companies.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, statements regarding the Company's strategic transition to AI infrastructure; the Company's plans to develop data centers and related projects; expectations regarding the Letter of Intent and other development opportunities; and other statements that are not historical facts. Forward-looking statements are generally identified by words such as "believes," "looks to," "will," "positions," "focused on," "aims," "expanding," and similar expressions.

These forward-looking statements are based on management's current expectations and assumptions as of the date of this press release and are subject to significant risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied. Such risks and uncertainties include, but are not limited to: the highly speculative and uncertain nature of the Company's anticipated AI critical infrastructure business; the Company's lack of operating history in the data center or computing infrastructure industry; the Company's limited experience in the data center and AI infrastructure industries; the Company's ability to successfully transition its business model from cleaning services; risks associated with the Company's LOI, including that it may not result in a definitive agreement or completed project; the Company's ability to identify, develop, and bring online data center projects on anticipated timelines and budgets; the Company's ability to secure adequate financing for capital-intensive infrastructure projects; the significant capital requirements associated with data center development and the Company's limited current financial resources; the Company's ability to consummate a sale or disposition of its cleaning products business on favorable terms or at all; risks associated with the Company's transition away from its Dogecoin treasury strategy, including potential volatility in cryptocurrency markets and risks related to the disposition of digital asset holdings; competition from established data center operators and hyperscale cloud providers; risks related to permitting, land acquisition, and utility interconnection for data center projects; the Company's dependence on development and operating partners for initial projects; changes in demand for AI infrastructure and compute capacity; changes in government regulation affecting AI infrastructure or data centers; conditions that raise substantial doubt about the Company's ability to continue as a going concern; and general economic and market conditions.

For a more complete discussion of risks and uncertainties, please refer to the Company's filings with the U.S. Securities and Exchange Commission ("SEC"), including the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. All forward-looking statements are qualified in their entirety by this cautionary statement.

SOURCE CleanCore Solutions (NYSE AMERICAN: ZONE)

Allocation of shares to certain primary insiders and their close associates in Equinor (OSE: EQNR, NYSE: EQNR) under Equinor’s share saving plan and long-term incentive programme.

Certain primary insiders, and their close associates, participating in Equinor’s share saving plan, have on 20 May 2026 been allocated shares.

Further, certain primary insiders participating in Equinor’s long term incentive programme, have on 20 May 2026 been allocated shares at a share price of NOK 356,31 per share in connection with the company’s long-term incentive programme. The long-term incentive programme is a fixed, monetary compensation calculated as a portion of the participant’s base salary, ranging from 20-25 per cent depending on the individual’s position. The net annual amount is invested in Equinor shares. The shares are subject to a three-year lock-in period.

Details on individual allocation of shares to the primary insiders and their close associates are set forth in the attached overview.

This information is subject to disclosure obligations pursuant to the EU Market Regulation, cf. section 3-1 in the Norwegian Securities Trading Act, and section 5-12 of the Norwegian Securities Trading Act.

20 May 2026 Allocation of shares - LTI 20 May 2026 Allocation of shares

May 21, 2026 01:50 ET  | Source: Equinor ASA

Equinor ASA (OSE: EQNR, NYSE: EQNR) announced on 4 February 2026 a cash dividend per share of USD 0.39 for fourth quarter 2025.

The NOK cash dividend per share is based on average USDNOK fixing rate from Norges Bank in the period plus/minus three business days from record date 15 May 2026, in total seven business days.

Average Norges Bank fixing rate for this period was 9.2414. Total cash dividend for fourth quarter 2025 is consequently NOK 3.6041 per share.

On 27 May 2026, the cash dividend will be paid to relevant shareholders on Oslo Børs (Oslo Stock Exchange) and to holders of American Depositary Receipts ("ADRs") on New York Stock Exchange.

This information is published in accordance with the requirements of the Continuing Obligations and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Item 1 of 2 Gas installation is pictured at the Cavern Underground Gas Storage (CUGS) Kosakowo facility, near Debogorze, Poland April, 30. 2022. Picture taken April 30, 2022. REUTERS/Kacper Pempel

[1/2]Gas installation is pictured at the Cavern Underground Gas Storage (CUGS) Kosakowo facility, near Debogorze, Poland April, 30. 2022. Picture taken April 30, 2022. REUTERS/Kacper Pempel Purchase Licensing Rights, opens new tab

SummaryCompaniesEuropean gas stocks are just above 35%Equinor's Kristiansen says stocks could reach acceptable level if Strait of Hormuz reopens soonDutch TTF gas prices peaked at 74 euros/MWh in March, highest since January ​2023AMSTERDAM, May 21 (Reuters) - Europe could face a critical shortfall in gas stocks if ‌disruption to shipping through the Strait of Hormuz lasts one to three months from now, as low inventories and distorted prices slow stockpiling, senior executives at Equinor (EQNR.OL), opens new tab said.

Gas caverns and tanks across Europe are currently just above 35% full, ​below a seasonal norm of around 50%, Gas Infrastructure Europe data showed.

The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.

Member states need to ​build a gas buffer during the northern hemisphere summer to reach an EU-imposed ⁠90% storage target between October and the beginning of December.

"If the war stopped tomorrow, with free ​flow to the Strait happening quickly, we could come to an acceptable, but tight storage level of ​75%, but if the closure continues for one to three months, it could become critical," Equinor Senior Vice President for Gas & Power Trading Helle Ostergaard Kristiansen told Reuters.

Refilling gas storage for next winter already looked problematic at the beginning of ​March and little progress has been made since then due to current prices, with contracts for ​gas delivery in winter cheaper than summer.

HIGHER PRICES COULD CURB GAS CONSUMPTIONGovernments could intervene in the market with incentives ‌and rules ⁠or the structure of prices must change with a rise in contracts for gas delivery in the winter compared with summer deliveries, analysts say.

"We saw that in 2022, when the governments imposed regulation on storage filling... it was very costly for them. So the market itself can probably balance the situation ​through price signals," Peder ​Bjorland, Equinor's vice president ⁠for gas trading, said on the sidelines of the Flame energy conference in Amsterdam.

He added that elevated prices could curb gas consumption significantly - through fuel ​switching to coal, an increased use of renewable energy and a fall ​in fuel demand ⁠by the industry - helping a rebalance.

"If we have prices up to what we saw in the beginning (of the Iran war), around 60-70 euros per megawatt hour, then we have estimated that gas to power alone ⁠could actually ​result in a reduced demand of around 10 billion cubic ​metres," Bjorland said.

European gas prices at the Dutch TTF gas hub were hovering around 50 euros/MWh on Thursday, having risen in ​March to 74 euros/MWh, their highest level since January 2023.

Reporting by Francesca Landini; Editing by Emelia Sithole-Matarise

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Francesca has covered since 2022 some of Europe's biggest energy groups, focusing on their efforts to decarbonize their business while ensuring growth and technological progress. She also reports about European Union's initiatives against climate change and energy regulation in Italy. She was named Reporter of the Year in 2022 by Reuters. Before energy, Francesca was part of Reuters aerospace and defense reporting team. She is graduated in Economics and loves painting in her free time.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Equinor (EQNR - Free Report) Headquartered in Stavanger, Norway, Equinor ASA is one of the premier integrated energy companies in the world, with operations spreading across 30 countries. In Europe, the company is the second-largest supplier of natural gas. Equinor is also a leading seller of crude oil. Over the years, the company has developed its expertise to expand upstream operations outside of conventional offshore resources to the prolific shale oil and gas plays. Importantly, at 2025-end, the company had estimated proved reserves of 5,183 million barrels of oil equivalent (Boe), compared to 5,571 million Boe at 2024-end. The reserve replacement ratio was 48% in 2025.

EQNR is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Oils-Energy stock. EQNR has a Momentum Style Score of A, and shares are up 2% over the past four weeks.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.87 to $5.10 per share. EQNR also boasts an average earnings surprise of +10.9%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, EQNR should be on investors' short list.

June 01, 2026 02:02 ET  | Source: Equinor ASA

The nomination committee of Equinor ASA (OSE:EQNR, NYSE:EQNR) recommends that the company's corporate assembly elects Jarle Roth as new chair of the board of directors of Equinor ASA.

Furthermore, the nomination committee recommends re-election of Anne Drinkwater as deputy chair, in addition to Finn Bjørn Ruyter, Haakon Bruun-Hanssen, Mikael Karlsson, Fernanda Lopes Larsen and Dawn Summers as members of the board of directors of Equinor ASA. Jon Erik Reinhardsen, who has been the chair of the board since 2017, would like to resign from the board of directors.

Jarle Roth has been a member of the board since1 December 2025.

Jarle Roth is an independent advisor. Roth has held CEO roles in multiple Norwegian companies, including at Eksportkreditt Norge AS, Arendals Fossekompani ASA, Umoe Group, Schat-Harding and Unitor ASA. His career spans across industrial investment management, change management, energy transition initiatives, financing of Norwegian export industries and global shipping services. He has extensive experience from major listed companies. His boardroom experience includes governance, risk management, strategy, M&A, and sustainability. Internationally, Roth has led and integrated businesses with activities within Europe, Americas and Asia.

Roth has previously served as chair of the nomination committee and corporate assembly of Equinor ASA.

Roth has a MSc of Finance and Business Administration (“siviløkonom”) from the Norwegian School of Economics (NHH).

The election to the board of directors of Equinor ASA will be held in the company's corporate assembly meeting Monday 8 June 2026. It is proposed that the election enters into effect from 1 July 2026 and until the ordinary election of members to the board of directors in June 2027.

Contacts:

Nils Morten Huseby, chair of the nomination committeeAll enquiries to be directed through Equinor Corporate Press Office, Sissel Rinde, +47 412 60 584. This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Key Takeaways Baker Hughes signed multi-year contract extensions with Equinor for offshore projects on the NCS.Baker Hughes will deploy advanced drilling and reservoir-mapping technologies to support field development.Baker Hughes is expanding its intervention role to help improve well output, efficiency and longevity. Baker Hughes Company (BKR - Free Report) announced two multi-year contract extensions with Equinor ASA (EQNR - Free Report) to provide integrated drilling, well services and wireline intervention solutions for offshore projects in the North Sea. The contract will help EQNR develop both mature and new fields on the Norwegian Continental Shelf (NCS) to boost efficiency, increase resource recovery and meet production targets.

Under the integrated drilling and well services contract, BKR will deploy technologies across its Well Construction and Completions, Intervention and Measurement portfolio to support the development of the NCS. Advanced solutions such as the Kantori autonomous well construction system and TRU-ARMS advanced reservoir mapping services will be used to enhance field development.

Under the intervention contract, Baker Hughes will combine its surface and downhole solutions with partner technologies to maximize the lifespan and output of the North Sea offshore wells. This contract extension expands the PRIME Technology Platform's role in driving production efficiency and lowering emissions on the NCS.

The contract extensions reinforce BKR’s long-standing presence in Norway’s energy sector and strengthen its position in the North Sea market. They also highlight the growing demand for advanced technologies that improve operational efficiency, maximize hydrocarbon recovery and support long-term offshore production growth. Such contracts strengthen BKR’s business model, boost cash flow and increase investor appeal.

Baker Hughes currently has a Zacks Rank #5 (Strong Sell), while Equinor carries a Zacks Rank #3 (Hold).

The business models of BKR and other players providing oilfield services to upstream companies are closely tied to upstream players' capital spending. With West Texas Intermediate crude prices trading around the $90-per-barrel mark, according to oilprice.com, upstream players like Chevron Corporation (CVX - Free Report) , YPF Sociedad Anónima (YPF - Free Report) and EQNR are benefiting from the elevated crude prices. CVX and YPF sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Chevron is an integrated energy giant with a robust presence in the Permian Basin. Supported by strong upstream execution and its expanding resource base, CVX achieved first-quarter 2026 international net oil-equivalent production of 1.8 million barrels of oil equivalent per day, representing an increase from the year-ago quarter.

YPF is a major integrated energy company that leverages its extensive footprint in Argentina’s Vaca Muerta formation to fuel production growth. YPF expects spending and activity to increase in the coming quarters of 2026, which should bolster oil and gas production in the second half of 2026.

June 08, 2026 11:15 ET  | Source: Equinor ASA

Bedriftsforsamlingen i Equinor ASA (OSE:EQNR, NYSE:EQNR) har 8. juni 2026 valgt Jarle Roth som ny leder av styret i Equinor ASA.

Anne Drinkwater ble gjenvalgt som nestleder og Finn Bjørn Ruyter, Haakon Bruun-Hanssen, Mikael Karlsson, Fernanda Lopes Larsen og Dawn Summers ble gjenvalgt som medlemmer av styret i Equinor ASA. Nåværende styreleder Jon Erik Reinhardsen vil tre ut av styret.

Aksjonærrepresentanter til styret i Equinor ASA er valgt med virkning fra 1. juli 2026 og gjelder frem til neste ordinære valg til styret i juni 2027.

Kontaktpersoner:

Nils Morten Huseby, leder av valgkomiteenForespørsler formidles gjennom informasjonsdirektør i Equinor,
Sissel Rinde, +47 412 60 584 Denne opplysningen er informasjonspliktig etter verdipapirhandelloven §5-12

Equinor logo is seen displayed in this illustration taken, May 3, 2022. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

CompaniesCOPENHAGEN, June 8 (Reuters) - Norwegian oil group Equinor (EQNR.OL), opens new tab said on Monday ​it had elected Jarle Roth ‌as its new board chair, after the nomination committee proposed ​him last week.

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Roth is ​elected with effect from July ⁠1, Equinor said in ​a statement.

Equinor's nomination committee proposed ​Roth after Jon Erik Reinhardsen, who has been chair since 2017, ​decided to step down.

Roth, ​66, an independent adviser, joined Equinor's ‌board ⁠in December 2025, having previously served as CEO of Norwegian companies Eksportkreditt Norge, ​Arendals Fossekompani, ​Umoe ⁠Group, Schat-Harding and Unitor.

The board also re-elected ​Anne Drinkwater as deputy ​chair, ⁠along with board members Finn Bjorn Ruyter, Haakon Bruun-Hanssen, ⁠Mikael ​Karlsson, Fernanda Lopes ​Larsen and Dawn Summers.

Reporting by Louise ​Rasmussen; Editing by Nia Williams

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Equinor remains my top buy for European natural gas exposure amid a looming supply crunch and low inventories. The widening WTI & Brent price spread also plays into positive fundamentals. I am raising my buy target to $37, planning incremental purchases below this level as Europe's energy crisis deepens. Q1 results showed net income rising to $3.1B on higher upstream production, despite lower realized European gas prices.

May 15, 2026 Thursday's MarketsS&P 500
7,501 (+0.77%)Nasdaq
26,635 (+0.88%)Dow
50,063 (+0.75%)Bitcoin
$81,245 (+2.05%)

Source: Image created by Jester AI.

1. Nu Holdings' Latin America Growth Continues Nu Holdings (NU +0.86%) posted a 56% net income jump year over year (YoY) in its first quarter of fiscal 2026 yesterday, after customer numbers reached a new record – up 14% YoY to 135 million. The outlook for the Latin American fintech platform is on scaling technology, including AI. But with credit risk growing, and operating costs expected to rise, the stock fell over 4% in pre-market trading this morning. The stock lags the S&P 500 by 11% since its 2023 Rule Breakers recommendation.

Over 15 million Mexico customers: Mexico was a highlight of the quarter, with Nu Holdings now the third-largest financial institution in the country – as it achieved break-even for the first time. It follows previous growth across the region. "In Brazil, we surpassed 115 million customers": Founder and CEO David Vélez also spoke of "our position as the largest private financial institution in the country," as the company approaches 100 million monthly active customers. 2. Cerebras Soars 68% on IPO Cerebras Systems (CBRS 3.75%) made its highly anticipated stock market debut yesterday, at an initial pricing of $185 – raising $5.55 billion, to nail it as the biggest IPO of the year so far. The launch was oversubscribed more than 20 times, and the stock quickly spiked to $385 – triggering a temporary trading halt. By market close the price settled to $311, for a 68% rise on the offer price – and it gained a further 2% in overnight trading.

Wafer-scale AI chips: Market leader Nvidia (NVDA +0.08%) and other semiconductor makers etch multiple chips on the same wafer and cut it up to produce individual devices. Cerebras, instead, is the first company to commercialize making the entire wafer into a single massive chip – which can handle AI workloads faster and with less power. Revenue up 76% in 2025 to $510 million: From revenue of just $25 million in 2022, Cerebras is growing impressively. But it's still way behind Nvidia, which reported nearly 380 times the data center revenue last year that Cerebras achieved. 3. Thursday Earnings You Might Have Missed Globant (GLOB 4.34%) gained more than 5% pre-market following the AI services tech's Q1 earnings. Though revenue dipped 0.7% in the quarter, it was still above the high end of the company's guidance. Annual recurring revenue from Globant's AI Pods subscription service soared to $32.8 million, from $20.6 million in the previous quarter. Applied Materials (AMAT +5.64%) revealed new revenue and profit records in Q2 yesterday, with non-GAAP earnings per share up 20% YoY – as its Semiconductor Systems segment drove most of the growth. Despite these gains, free cash flow fell 80% due to big spending on manufacturing capacity. The stock dipped 3% in early trading. Figma (FIG 3.59%) climbed 10% this morning, after the cloud-based tools specialist saw growth accelerate in Q1. Fool analyst Tim Beyers noted "enterprise software tools – including SaaS tools – are likely to be the greatest distribution mechanism for AI tools and technology." 4. Futures Dip as Trump-Xi Summit Ends Markets retreated sharply this morning, after both the S&P 500 and Nasdaq hit fresh all-time highs yesterday – and the Dow ended above 50,000 points. In early trading, S&P 500 futures declined 1%, with Nasdaq futures down 1.5%.

"One thing he agreed to today, he's going to order 200 jets": As President Trump's meeting with Chinese President Xi Jinping drew to an end, Trump told Fox News of a new deal with Boeing (BA +2.43%) – though shares remained depressed after the company was hit with a $49.5 million penalty relating to the 2019 Ethiopian Airlines 737 Max crash. He also spoke of new farm goods deals, though Beijing has not confirmed anything. Iran war costs: There were hopes China could be enlisted to help end the turmoil in Iran, while Xi warned of possible "clashes and even conflicts" with the U.S. over Taiwan. Meanwhile, inflation continues to drive up, while global bonds are in a rout – with 10-year Treasury yields above 4.5%. 5. Your Take IPOs often pop on day one, then settle or pull back in the following weeks/months. Do you have the patience to wait for a better price, or does watching from the sidelines feel worse than overpaying?

Debate with friends and family, or become a member to hear what your fellow Fools are saying!

This image and article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Applied Materials, Boeing, Figma, Globant, Nu Holdings, and Nvidia. The Motley Fool has a disclosure policy.

Key Takeaways Figma shares jumped 12% after Q1 earnings beat estimates and revenues climbed 46% y/y.FIG raised its 2026 revenue guidance as AI credit monetization and seat expansion gained traction.Figma ended Q1 with 15,218 customers generating more than $10,000 in ARR. Figma (FIG - Free Report) shares gained 12% during Thursday’s extended trading session after the company reported better-than-expected first-quarter 2026 results. Figma came out with non-GAAP earnings of 10 cents per share, beating the Zacks Consensus Estimate by 66.7%. The company reported earnings of 3 cents in the year-ago quarter.

Figma posted revenues of $333.4 million in the first quarter of 2026, surpassing the Zacks Consensus Estimate by 5.5%. Figma’s first-quarter 2026 revenues increased 46% year over year.

Figma’s first-quarter results reflected broad-based seat expansion and rising AI adoption, with net dollar retention reaching 139% at the end of the first quarter. Management also highlighted early traction from AI credit monetization, which began rolling out in March 2026.

FIG’s AI Rollout Starts to Show Up in ResultsA key theme in the first quarter was the company’s push to monetize AI usage while keeping adoption intact. FIG implemented AI credit limits across seats beginning March 18, and management pointed to encouraging early behavior among larger customers as usage moved into a more structured framework.

The company also emphasized that the “surface area” for credit consumption is expanding. While current credit usage is heavily tied to products like Figma Make and image-editing workflows, management expects newer capabilities, including an AI assistant that is in alpha, to further broaden where credits are consumed over time.

Figma’s Quarterly Results in DetailFIG’s non-GAAP gross profit rose 31.5% year over year to $274.6 million, with a non-GAAP gross margin of 82.4%, down 910 basis points from the prior-year quarter.

The company’s non-GAAP operating profit increased 30.3% year over year to $52.1 million, with a non-GAAP operating margin of 15.6%, down 190 basis points from the prior-year quarter.

The company ended the quarter with 15,218 customers generating more than $10,000 in ARR, adding 1,357 customers in this category in the first quarter of 2026. The company now has 1,525 customers generating more than $100,000 in ARR, adding 120 customers in this category in the first quarter of 2026 alone.

FIG’s Balance SheetAs of March 31, 2026, Figma held $1.6 billion in cash and marketable securities compared with $1.7 billion as of Dec. 31, 2025.

Figma generated $97.3 million in operating cash flow and $88.6 million in adjusted free cash flow during the quarter.

Figma Raises 2026 Revenue OutlookFor 2026, the company raised its revenue outlook to $1.422-$1.428 billion, implying year-over-year growth of 40%, up from its prior view of $1.366-$1.374 billion, suggesting growth of 30%. The Zacks Consensus Estimate for 2026 revenues is pinned at $1.37 billion.

Figma projects its 2026 non-GAAP operating income between $125 million and $135 million, up from the prior stated $100-$110 million.

FIG guided to second-quarter 2026 revenues of $348-$350 million, implying 40% year-over-year growth at the mid-point. The Zacks Consensus Estimate for the second quarter of 2026 revenues is pinned at $330.3 million.

Management tied the upward revision to sustained seat expansion across tiers, improved paid conversion, and better-than-expected performance in credit utilization and add-on purchases since AI credit limits were introduced.

Zacks Rank & Stocks to ConsiderCurrently, Figma carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Computer and Technology sector are Broadcom (AVGO - Free Report) , Celestica (CLS - Free Report) and Amphenol (APH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Broadcom have gained 27.1% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by a penny over the past 30 days, indicating a year-over-year surge of 67.9%.

Shares of Celestica have gained 29.1% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 15.1% over the past 30 days, indicating a year-over-year jump of 67.9%.

Amphenol shares have declined 4.4% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11.4% over the past 30 days, indicating a year-over-year increase of 42.5%.

Figma shares rose after the creative software platform reported first-quarter results that beat expectations and raised its full-year forecast, with analysts saying the report eased concerns about AI-related disruption. Figma CEO Dylan Field joins Bloomberg's Caroline Hyde and Ed Ludlow on "Bloomberg Tech.

With whispers of a valuation approaching $2 trillion, SpaceX stands on the precipice of potentially the largest initial public offering in history. Yet forecasting the company's stock price at 2030 feels more like an astrology project than astute financial analysis. SpaceX must overcome regulatory hurdles and make significant technological leaps over the next few years to meet investors' sky-high expectations.

Let's explore where SpaceX stands today, detail the company's vast opportunities, and examine some sobering lessons from recent high-profile IPOs.

Image source: Getty Images.

Putting SpaceX's valuation into perspective Let's take a look at SpaceX's valuation trajectory over the last couple of years:

In late 2024, SpaceX bought back shares from employees for $185 each. This secondary share deal valued the company at $350 billion. About one year later, a tender offer pushed the company's worth to $800 billion by December 2025. Earlier this year, SpaceX merged with xAI in a $1.25 trillion transaction. Most recently, shares of SpaceX hit a valuation of $1.5 trillion on Forge Global's private market trading platform. The company is reportedly eying an IPO valuation between $1.75 trillion and $2 trillion. For context, the company would be valued higher than Walmart, Samsung, Meta Platforms, and Tesla at the high end of this range.

Given SpaceX's S-1 filing remains confidential, investors have only estimates of the company's revenue and profitability. Some analysts estimate that SpaceX generated between $15 and $16 billion in revenue last year, while others put the company's top line closer to $18 billion. Regardless of the precise sales figure, SpaceX's IPO valuation implies a price-to-sales (P/S) multiple exceeding 100.

Separating SpaceX's actual business from its lofty goals SpaceX currently operates two proven segments with a third, transformative one taking shape. The company's reusable rockets reduce launch costs by orders of magnitude, helping SpaceX capture lucrative contracts across commercial and government sectors. Meanwhile, Starlink has evolved from a niche connectivity provider into a global broadband network.

The real multiplier for SpaceX is artificial intelligence (AI). The company is increasingly marketing itself as an orbital AI infrastructure provider -- leveraging Starlink's network and Starship's launch capacity to deploy data centers in space.

The pitch looks compelling on the surface: Orbital compute can sidestep Earth's power grid and cooling bottlenecks, offering greater scale for training and inference workloads. Reports claim that SpaceX estimates its total addressable market to be around $28 trillion, with the vast majority tied to enterprise AI.

These technology IPOs might be a good proxy for SpaceX's fate After a direct listing in 2020, Palantir Technologies (PLTR 1.54%) faced loads of skepticism over its lumpy, government-heavy revenue and recurring operating losses. A strategic pivot toward commercial AI applications fueled top-line growth and helped widen profit margins. Since bottoming at around $6 per share in 2022, Palantir stock has gained more than 2,100%.

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Snowflake (SNOW 0.81%) followed a completely different arc. Its 2020 IPO popped dramatically on the first day of trading. Ultimately, it surrendered these gains due to a high-interest-rate environment and normalized growth rates. Investors who bought near the peak remain in the red years later.

SNOW data by YCharts

Most recently, Figma (FIG 3.59%) and Cerebras Systems (CBRS 3.75%) delivered outsize first-day surges driven by enthusiasm across high-growth software and next-generation chip architectures. Figma's momentum eventually settled into a more measured trajectory, with shares now hovering well below their level in early trading days. For now, it's too early to tell if Cerebras stock will maintain its premium as the company works to convert backlog from OpenAI and Amazon Web Services into durable revenue against larger chip rivals.

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History shows that high-profile IPOs generally come with immediate hype and valuation premiums that are driven by narrative. These frothy valuations can persist if business fundamentals compound rapidly and execution matches the growth story -- as with Palantir.

More often, however, IPO stocks erode in the first year after lockups expire, as actual quarterly performance replaces inspiring rhetoric. SpaceX enters the public markets under immense scrutiny. Its IPO will almost certainly price shares at a premium, reflecting the assumed synergies between AI and the final frontier. But the company's valuation in 2030 remains anyone's guess.

Maintaining a trillion-dollar profile will require Starlink to scale to serve tens of millions of users, Starship to achieve routine launches, and orbital AI to evolve from an interesting concept into a revenue-generating business. Execution delays, geopolitical tensions over orbital routes, dependence on Elon Musk, and the possibility that AI compute economics favor ground-based solutions are all genuine risks for SpaceX.

Buying SpaceX at its IPO price requires accepting extreme valuation and volatility risk. A single missed milestone or change in perception could easily trigger a steep correction that lasts several years. Meanwhile, flawless execution from Musk and his team could mint generational wealth. While the stars are within reach, the journey will undoubtedly test even the most patient investors.

Adam Spatacco has positions in Amazon, Meta Platforms, Palantir Technologies, and Tesla. The Motley Fool has positions in and recommends Amazon, Figma, Meta Platforms, Palantir Technologies, Snowflake, Tesla, and Walmart. The Motley Fool has a disclosure policy.

Key Takeaways While software sentiment remains bearish, earnings tell a different story.The sector-wide selloff has compressed valuations to highly attractive levels.Software titans like Microsoft are finding buyers at long-term technical support. Is the AI-induced “SaaS-pocalypse” Real?The software industry has suffered one of the biggest bearish divergences from the overall equity markets on Wall Street. Driven by fear of artificial intelligence disruption, the iShares Software ETF ((IGV - Free Report) ) is down nearly 13% over the past year while the S&P 500 Index is up 8%.

Image Source: Zacks Investment Research

In early 2026, software stocks cratered after Anthropic released its “Claude Cowork” agentic AI product.

Will Legacy Software-as-a-Service Players Survive?The answer to the question above requires some nuance. There is not a one-size-fits-all answer to the question, other than investors likely “threw out the baby with the bath water” when they crushed all software stocks in early 2026. Although some legacy software companies will be disrupted, top-quality SaaS players will survive and even thrive because they have:

1.      Data: Legacy software platforms hold years of transaction history, customer logs, and deeply entrenched data.

2.      Compliance: Although AI coding assistants can build a custom CRM from scratch, Fortune 500 companies rely on legacy software companies because of their legal accountability and enterprise security.

3.      AI Integration: Top software firms are successfully integrating AI into their existing products. These software companies benefit from built-in distribution.

Finally, one of the main bearish arguments is that agentic AI systems will mean the end of seat-based monetization. However, top AI companies like Anthropic and OpenAI are leveraging the seat-based monetization structure themselves, undercutting the bearish argument.

Software Earnings: Words Talk, Data ScreamsIf software companies are being disrupted, it certainly hasn’t shown up in corporate earnings yet. Last week, Figma ((FIG - Free Report) ) beat Zacks Consensus Estimates by 66%, signaling that AI remains incapable of high-level strategy, cross-functional empathy, or complex brand identity.

Image Source: Zacks Investment Research

Additionally, ServiceNow ((NOW - Free Report) ) is another quality software company showing few signs of slowing.While shares have declined over the past year,they are up nearly 10% today after an analyst upgrade. Meanwhile, although NOW shares are down, Wall Street analysts see steady earnings growth into the end of the decade.

Image Source: Zacks Investment Research

AI-native platform expansion, rising adoption of agentic capabilities, a growing customer base, acquisitions, and cash generation support NOW’s revenue durability over time.

Shrinking Valuations & Share BuybacksIndustry juggernaut Salesforce ((CRM - Free Report) ) recently announced that it will buy back ~250 million shares or ~$50 billion worth of stock. The buyback announcement is one of the largest on Wall Street and signals that CEO Marc Benioff has confidence in his company. Additionally, the buyback will reduce the share count, making the supply-demand dynamics more attractive for bulls. Meanwhile, with a p/e ratio of just 13.82x, CRM has become extremely attractive from a valuation perspective.

Image Source: Zacks Investment Research

MSFT Tags 200-week MACharlie Munger once famously said, “If all you ever did was buy high-quality stocks on the 200-week moving average, you would beat the S&P 500 by a large margin over time. The problem is that very few people have the kind of discipline to stick with it.” Microsoft ((MSFT - Free Report) ) shares recently found buyers at the 200-week moving average – a level that has held since the Global Financial Crisis of 2008.

Image Source: Zacks Investment Research

Bottom Line

Ultimately, Wall Street’s blanket punishment of the software sector has created a classic “baby out with the bathwater” scenario. Software stocks have decoupled from the S&P 500’s rally amid fears of AI disruption. However, recent software earnings reports suggest that the death of high-quality software companies is overexaggerated – especially given current valuations.

Figma is upgraded to a buy after a Q1 beat and raised outlook, reversing prior caution. FIG demonstrates hypergrowth with 43% y/y revenue growth, targeting over $1.4 billion in revenue this year. Retention remains robust near 140% net expansion, aided by cross-selling and upmarket customer focus.

Believes Figma is Significantly Undervalued

Calls for Management to Sharpen Product Focus and Rationalize Costs in Line with Competitors

Calls for Board to Examine Relationship with Anthropic Given Launch of Claude Design

, /PRNewswire/ -- Findell Capital Management LLC, ("Findell Capital" or "Findell"), which beneficially owns shares of common stock of Figma, Inc. (NYSE: FIG) (the "Company" or "Figma"), today issued the following letter to the CEO and Board of Directors of Figma, as well as an accompanying report (see here).

Findell believes that Figma has a strong moat that investors will come to appreciate over the coming months. That said, Findell contends that there are several steps that Figma could take today to maximize its shareholder value:

1) Enhance focus in the product organization by simplifying its offering
2) Rationalize costs so they are in line with peers
3) Conduct a governance review of the Board dynamics in light of the Claude Design launch

We outline these points in our letter below and in our report (see here).

Dear Mr. Field and Members of the Board of Directors:

We and our affiliates are shareholders of Figma, Inc. ("Figma" or the "Company"). We have great admiration for the product and the design movement Figma has built and believe that Figma has a true moat, all of which we articulated in a write-up we put out this morning (see here).

We write to the Board to respectfully offer ways Figma could further improve its long-term positioning as a publicly traded company:

1) Product Positioning and Leadership

We believe there is an opportunity to streamline the Figma product portfolio and also upgrade the product organization with seasoned leadership. Figma should further focus its product suite on Design, Dev Mode, FigJam, and Make, and sunset or repackage the remaining products. This would enable Figma to focus its engineering and product resources on building the strongest moat around its core franchise. This would allow the company to accelerate product velocity in its highest-value workflows, and sharpen the company's marketing narrative against new entrants.

2) Cost Rationalization

We would suggest that Figma bring its compensation practices more in line with industry norms and also align its cost base with scaled SaaS peers over time. Estimates call for R&D to exceed 30% of revenues in 2026 (exclusive of stock-based compensation).1 We believe this number should be meaningfully reduced as product focus narrows. Figma should rely on a mix of internal R&D and tuck-in outsourced R&D by way of acqui-hires. Analyst estimates call for Figma to spend ~$375mm or 27% of revenues on stock-based compensation in 2026,1 as compared to Adobe, which spent ~8% of revenues on stock-based compensation in its most recent quarter.2 This comparison is particularly stark because we believe Figma stock has more upside than Adobe on a relative basis.

3) Board Governance

We were concerned by some of the recent developments on the Figma Board. Mr. Krieger (Anthropic's Chief Product Officer) resigned from the Board on 4/14/26.3 On 4/17/26, Anthropic released Claude Design, a product which directly competes with Figma.4 This pattern of events raises serious corporate governance concerns. It appears that there are two Board Members remaining on the Figma Board who are material investors in Anthropic.5,6 We believe the Board should conduct an independent investigation to evaluate whether Anthropic benefitted from any improper use of Figma's confidential information.

It may be appropriate to consider refreshing the membership of the Board in light of these potential conflicts.

We believe Figma is a generational company and is being misunderstood by the market. Improving margins and governance will help unlock additional value alongside continued business execution and help the market better understand what a great asset it is.

Sincerely,

Brian Finn
Findell Capital
88 Pine Street, 22nd Floor
New York, New York 10005

THIS COMMUNICATION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT A RECOMMENDATION, AN OFFER TO PURCHASE OR A SOLICITATION OF AN OFFER TO SELL SHARES.

THIS COMMUNICATION CONTAINS OUR CURRENT VIEWS ON THE VALUE OF FIGMA SECURITIES AND CERTAIN ACTIONS THAT FIGMA MAY TAKE TO ENHANCE THE VALUE OF ITS SECURITIES. OUR VIEWS ARE BASED ON OUR OWN ANALYSIS OF PUBLICLY AVAILABLE INFORMATION AND ASSUMPTIONS WE BELIEVE TO BE REASONABLE. THERE CAN BE NO ASSURANCE THAT THE INFORMATION WE CONSIDERED AND ANALYZED IS ACCURATE OR COMPLETE. SIMILARLY, THERE CAN BE NO ASSURANCE THAT OUR ASSUMPTIONS ARE CORRECT. FIGMA'S PERFORMANCE AND RESULTS MAY DIFFER MATERIALLY FROM OUR ASSUMPTIONS AND ANALYSIS.

OUR VIEWS AND OUR HOLDINGS COULD CHANGE AT ANY TIME. WE MAY SELL ANY OR ALL OF OUR HOLDINGS OR INCREASE OUR HOLDINGS BY PURCHASING ADDITIONAL SECURITIES. WE MAY TAKE ANY OF THESE OR OTHER ACTIONS REGARDING FIGMA WITHOUT UPDATING THIS COMMUNICATION OR PROVIDING ANY NOTICE WHATSOEVER OF ANY SUCH CHANGES (EXCEPT AS OTHERWISE REQUIRED BY LAW).

1 Piper Sandler 4/28 Report on Figma Titled: 1Q26 Preview: Framing Up a Strong Quarter; AI Competition Front and Center
2 https://www.adobe.com/cc-shared/assets/investor-relations/pdfs/21306202/ay45th643t5y46.pdf
3 https://www.sec.gov/Archives/edgar/data/1579878/000162828026025127/fig-20260414.htm
4 https://www.anthropic.com/news/claude-design-anthropic-labs
5 https://thenextweb.com/news/sequoia-joins-anthropics-25b-funding-round
6 Kleiner Perkins firm materials, kleinerperkins.com (accessed May 2026) 

Contact:
Findell Capital Management, LLC
88 Pine Street, 22nd Fl.
New York, NY 10005
[email protected]

SOURCE Findell Capital Management, LLC

Figma FIG shares have lost 27.4% year to date (YTD), underperforming the Zacks Internet - Software industry's decline of 6.2%.

Key Takeaways Figma's 139% net dollar retention rate is driven by seat expansion and broader platform adoption.FIG relies on customer seat growth; weaker hiring or IT spending could slow retention and revenues.Figma faces Adobe and Atlassian competition while trading at 11.91x forward sales. Figma (FIG - Free Report) is growing on the back of strong seat expansion across its customer base, supported by large enterprise agreements, increasing adoption by developers and broader use of the platform beyond design teams.

Management noted that organizations are expanding Figma usage across product, engineering and business teams, which is helping drive the company’s industry-leading 139% net dollar retention rate. Its seat-plus-credit model also adds new consumption dynamics, which can lead to more quarter-to-quarter variability.

At the same time, this growth model carries risk. If hiring slows, enterprise technology budgets tighten, or companies cut software spending amid a weaker economy, seat expansion could slow.

Since Figma’s retention and revenue growth depend heavily on customers adding users and widening platform adoption, any slowdown in seat growth could weigh on net dollar retention and revenue growth. In addition, high infrastructure costs and AI serving expenses may continue to pressure margins.

The Zacks Consensus Estimate for FIG’s bottom line for 2026 is pegged at 23 cents per share, indicating a year-over-year decline of 23%. The estimates have remained unchanged for 60 days. This can be worsened by continued competitive pressure from larger players, leading Figma to offer its products at a low margin while spending on R&D at the same time.

How Competitors Fare Against FigmaFigma operates in a crowded design and product workflow market with established incumbents and newer AI-native tools, including AI coding tools, AI design tools, AI website builders and AI product-development platforms.

Figma faces constant competitive challenges from established players, including Adobe (ADBE - Free Report) and Atlassian (TEAM - Free Report) . Atlassian is focusing on adding generative AI features to some of its collaboration software.

Atlassian is partnering with Google Cloud to bring Atlassian’s AI-powered teamwork platform, including Jira, Confluence and Loom, onto Google’s AI-optimized infrastructure. Maintaining product leadership in this marketplace requires sustained investment and higher operating costs. Adobe recently partnered with Google Cloud to enhance Adobe’s creative ecosystem with AI.

Figma’s Share Price Performance, Valuation and EstimatesFigma shares have lost 35% year to date. The Zacks Internet - Software industry has declined 6.2% in the same period.

FIG YTD Performance Chart
Image Source: Zacks Investment Research

Figma stock is trading at a premium, with a forward 12-month Price/Sales of 6.99X compared with the Computer and Technology sector’s 4.00X. FIG has a Value Score of F.

FIG Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research

The consensus mark for 2026 earnings is pegged at 28 cents per share, which has increased 17.3% over the past 30 days. This indicates a 6.7% decline from the reported figure of 2025.

Image Source: Zacks Investment Research

Figma currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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.

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