OneSpan Inc (OSPN) Stock Forecast & Price Target

OneSpan Inc. has demonstrated positive financial momentum, with Digital Agreements' revenue increasing by 7% year-over-year to $16.7 million, contributing approximately 29% to total revenue. The company further reported a solid Annual Recurring Revenue (ARR) growth of 10% year-over-year, reaching $180 million, alongside a notable increase in Net Revenue Retention (NRR) to 103%. Additionally, the Software business, now comprising about 80% of total revenue, experienced a 12% increase in subscription revenue, indicating strong performance and a positive outlook for future growth.

OneSpan Inc. is facing a negative outlook primarily due to a projected -3% year-over-year organic revenue decline and significantly reduced full-year revenue guidance for FY25, which now estimates between $239 million and $241 million, down from previous expectations. Additionally, the company reported weaker than anticipated expansions in its Security business, mainly in the EMEA and APAC regions, alongside a $2 million headwind in the hardware segment stemming from softer demand. The market reacted negatively, with the stock declining approximately 17% following the Q3 earnings call, reflecting investor concerns over the ongoing challenges in both organic growth and revenue expansion.