--- title: "OneSpan | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 65.95 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/284838213.md" datetime: "2026-04-30T21:17:05.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284838213.md) - [en](https://longbridge.com/en/news/284838213.md) - [zh-HK](https://longbridge.com/zh-HK/news/284838213.md) generator: "portal-rs" --- # OneSpan | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 65.95 M Revenue: As of FY2026 Q1, the actual value is USD 65.95 M, beating the estimate of USD 62.4 M. EPS: As of FY2026 Q1, the actual value is USD 0.3, beating the estimate of USD 0.215. EBIT: As of FY2026 Q1, the actual value is USD 14.84 M. #### Segment Revenue OneSpan Inc.’s total revenue increased by $2.6 million, or 4%, to $65,947 thousand for the three months ended March 31, 2026, compared to $63,366 thousand in the prior year period, favorably impacted by approximately $2.7 million due to changes in foreign exchange rates. Cybersecurity revenue increased by $0.8 million, or approximately 2%, to $48,546 thousand for the three months ended March 31, 2026, from $47,713 thousand in the prior year, primarily due to increased subscription revenue from acquisitions, existing customer expansions, and higher revenue from past due renewals, partially offset by lower multi-year term license revenue and hardware revenue. Foreign exchange rates favorably impacted Cybersecurity revenue by $2.5 million. Cybersecurity Subscription Revenue was $35,312 thousand for the three months ended March 31, 2026, compared to $33,123 thousand in the prior year. Digital Agreements revenue increased by $1.7 million, or 11%, to $17,401 thousand for the three months ended March 31, 2026, from $15,653 thousand in the prior year, mainly due to higher subscription revenue from existing customer expansions and overages. Foreign exchange rates favorably impacted Digital Agreements revenue by less than $0.2 million. Digital Agreements Subscription Revenue was $17,355 thousand for the three months ended March 31, 2026, compared to $15,569 thousand in the prior year. Perpetual Maintenance and Services Revenue (Total) was $2,693 thousand for the three months ended March 31, 2026, down from $3,611 thousand in the prior year. Hardware Products Revenue (Total) was $10,587 thousand for the three months ended March 31, 2026, down from $11,063 thousand in the prior year. #### Revenue by Geographic Region EMEA revenue was $28,521 thousand (43% of total revenue) for the three months ended March 31, 2026, an 8% decrease from $31,006 thousand (49% of total revenue) in the prior year, largely due to lower hardware revenue and multi-year renewal term revenue for authentication products. Americas revenue was $25,149 thousand (38% of total revenue) for the three months ended March 31, 2026, a 19% increase from $21,095 thousand (33% of total revenue) in the prior year, primarily due to increased subscription revenue from customer expansion in both business segments and contributions from recent acquisitions. APAC revenue was $12,277 thousand (19% of total revenue) for the three months ended March 31, 2026, a 9% increase from $11,265 thousand (18% of total revenue) in the prior year, mainly attributable to higher hardware revenue. #### Operational Metrics OneSpan Inc. reported net income of $11,565 thousand for the three months ended March 31, 2026, down from $14,505 thousand in the prior year period. Total Cost of Goods Sold increased to $17,433 thousand for the three months ended March 31, 2026, from $16,275 thousand in the prior year. Cost of Product and License Revenue remained relatively flat at $8,760 thousand for the three months ended March 31, 2026, compared to $8,718 thousand in the prior year. Cost of Services and Other Revenue increased by $1.1 million, or 15%, to $8,673 thousand for the three months ended March 31, 2026, from $7,557 thousand in the prior year, due to additional cloud subscription revenue and higher third-party license costs. Total Gross Profit increased by $1.4 million, or 3%, to $48,514 thousand for the three months ended March 31, 2026, from $47,091 thousand in the prior year. Total Gross Margin remained flat at 74% for both the three months ended March 31, 2026 and 2025. Cybersecurity Gross Profit decreased by $0.2 million, or 0.5%, to $35,906 thousand for the three months ended March 31, 2026, from $36,085 thousand in the prior year, primarily due to higher third-party license and cloud vendor costs. Cybersecurity Gross Margin was 74% for the three months ended March 31, 2026, down from 76% in the prior year. Digital Agreements Gross Profit increased by $1.6 million, or 15%, to $12,608 thousand for the three months ended March 31, 2026, from $11,006 thousand in the prior year. Digital Agreements Gross Margin was 72% for the three months ended March 31, 2026, up from 70% in the prior year, driven by higher cloud subscription revenue. Total Operating Costs increased by $3.8 million, or 13%, to $33,697 thousand for the three months ended March 31, 2026, from $29,909 thousand in the prior year, with changes in foreign exchange rates increasing operating expenses by approximately $1.0 million. Sales and Marketing Expenses increased by $1.2 million, or 11%, to $12,679 thousand for the three months ended March 31, 2026, from $11,457 thousand in the prior year. Research and Development Expenses increased by $1.2 million, or 15%, to $9,078 thousand for the three months ended March 31, 2026, from $7,928 thousand in the prior year. General and Administrative Expenses increased by $1.4 million, or 15%, to $10,958 thousand for the three months ended March 31, 2026, from $9,547 thousand in the prior year. Amortization of Intangible Assets increased by $0.1 million, or 26%, to $698 thousand for the three months ended March 31, 2026, from $556 thousand in the prior year. Write-off of Assets was $284 thousand for the three months ended March 31, 2026, compared to $0 thousand in the prior year. Restructuring and other related charges were $0 thousand for the three months ended March 31, 2026, compared to $421 thousand in the prior year. Total Operating Income decreased to $14,817 thousand for the three months ended March 31, 2026, from $17,182 thousand in the prior year. Cybersecurity Operating Income decreased by $3.4 million, or 14%, to $20,785 thousand for the three months ended March 31, 2026, from $24,160 thousand in the prior year. Digital Agreements Operating Income increased to $5,282 thousand for the three months ended March 31, 2026, from $3,367 thousand in the prior year. Interest (expense) income, net was - $19 thousand for the three months ended March 31, 2026, compared to $692 thousand in the prior year. Other expense, net was - $386 thousand for the three months ended March 31, 2026, compared to - $9 thousand in the prior year. Provision for Income Taxes was $2,847 thousand for the three months ended March 31, 2026, down from $3,360 thousand in the prior year. #### Cash Flow Net Cash Provided by Operating Activities was $28,172 thousand for the three months ended March 31, 2026, compared to $29,366 thousand in the prior year. Net Cash Used in Investing Activities was - $37,754 thousand for the three months ended March 31, 2026, significantly higher than - $1,645 thousand in the prior year, primarily due to the acquisition of Build38. Net Cash Used in Financing Activities was - $11,373 thousand for the three months ended March 31, 2026, compared to - $5,914 thousand in the prior year, attributable to dividends paid, share repurchases, and tax payments for stock issuances. Cash and Cash Equivalents, End of Period, was $49,754 thousand as of March 31, 2026, compared to $105,382 thousand in the prior year. #### Unique Metrics Annual Recurring Revenue (ARR) was $192.1 million as of March 31, 2026, a 14% increase from $168.4 million as of March 31, 2025, with foreign exchange rates positively impacting ARR by approximately $1.3 million. Net Retention Rate (NRR) was 105% as of March 31, 2026, compared to 107% as of March 31, 2025, with the year-over-year change due to a decrease in expansion contracts and an increase in contracts that reduced in value, partially offset by a reduction in churned contracts. Adjusted EBITDA was $21,009 thousand for the three months ended March 31, 2026, compared to $23,035 thousand in the prior year, largely driven by higher costs of goods sold, sales and marketing costs, and research and development costs, and lower product and license revenue, partially offset by increased service and other revenue. Foreign exchange rates favorably impacted Adjusted EBITDA by approximately $1.5 million. #### Future Outlook and Strategy OneSpan Inc. aims to drive profitable, efficient growth in both its Cybersecurity and Digital Agreements segments, with a particular focus on increasing subscription revenue. The company continues to enhance its offerings through strategic acquisitions, such as Build38 GmbH for mobile application protection and Nok Nok Labs, Inc. for passwordless authentication solutions, to provide a wider range of flexible and adaptable security options. These efforts are designed to defend against sophisticated attacks and streamline digital agreement workflows, supporting the company’s commitment to secure, seamless, and trusted digital experiences for its global enterprise clients. ### Related Stocks - [OSPN.US](https://longbridge.com/en/quote/OSPN.US.md) ## Related News & Research - [Onespan’s Latest Filing Flags No New Risks, Keeping Existing 10-K Vulnerabilities in Focus](https://longbridge.com/en/news/295061823.md) - [OneSpan beats Q2 revenue, profit estimates on subscription growth](https://longbridge.com/en/news/294864057.md) - [OSPN: Q2 2026 saw 1% revenue growth, 28% EBITDA margin, and a dividend hike to $0.52 per share](https://longbridge.com/en/news/294863673.md) - [Top OneSpan Executive Makes Eye‑Catching Move With Company Shares](https://longbridge.com/en/news/289988628.md) - [Onespan (OSPN) to Release Quarterly Earnings on Thursday](https://longbridge.com/en/news/283790062.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**