OneSpan Inc (OSPN) Stock Forecast & Price Target

OneSpan Inc. demonstrated strong financial performance in its recent reporting period, with Digital Agreements revenue increasing by 7% year-over-year to $16.7 million, contributing approximately 29% of total revenue. The company also reported a substantial growth in ARR, with an overall increase of 10% year-over-year to $180 million, supported by a 12% rise in subscription revenue from its robust Software business, now comprising around 80% of total revenue. Notably, while security solutions ARR grew by 11% year-over-year to $115.5 million, the organization's net retention rate improved to 103%, indicating effective customer retention and satisfaction strategies.

OneSpan Inc. faces a challenging financial outlook marked by a projected -3% year-over-year organic revenue decline and only approximately 5% year-over-year organic annual recurring revenue (ARR) growth. The company reported total ARR of $180.2 million, reflecting a mere ~5% year-over-year organic increase, and experienced weaker-than-expected expansions primarily in the EMEA and APAC markets. Furthermore, management has revised its fiscal year 2025 revenue forecast downward to between $239 million and $241 million due to declining hardware demand and ongoing pressures in the security business, resulting in a significant stock price decline following the Q3 earnings call.