Thu, May 1, 9:17 PM (21 days ago)
**OneSpan Inc. (OSPN) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $63.4 million, down 2% YoY due to lower hardware sales and foreign exchange impacts. - **Profit Margins:** Gross margin improved to 74% from 73% YoY, driven by favorable product mix and operational efficiencies. - **Net Income:** $14.5 million, up 7% YoY, reflecting higher operating income and lower taxes. - **Cash Flow:** Positive operating cash flow of $29.4 million, driven by net income and changes in working capital. **Segment Performance:** - **Security Solutions:** Revenue down 5% YoY to $47.7 million, with gross margin improving to 76% from 74% YoY. - **Digital Agreements:** Revenue up 9% YoY to $15.7 million, with gross margin improving to 70% from 69% YoY. **Operational Metrics:** - **ARR:** $168.4 million, up 9% YoY, driven by subscription growth. - **NRR:** 107%, indicating strong customer retention and expansion. - **Adjusted EBITDA:** $23.0 million, up 14% YoY, reflecting lower operating expenses. **Trends & Uncertainties:** - **Subscription Growth:** Both segments show strong subscription growth, driving ARR and NRR improvements. - **Hardware Sales:** Decline in hardware sales impacts overall revenue but is offset by subscription growth. - **Foreign Exchange:** Negative impact on revenue and ARR due to currency fluctuations. - **Restructuring:** Ongoing cost reduction actions expected to continue through 2025, with minimal headcount reductions planned. **Future Operations Impact:** - **Focus on Subscription Growth:** Continued investment in high-margin software solutions and hardware authentication. - **Cost Management:** Ongoing restructuring to drive higher Adjusted EBITDA and operational efficiency. - **Geographic Diversification:** Revenue distribution remains stable across EMEA, Americas, and APAC regions. **Dividends:** Declared a quarterly cash dividend of $0.12 per share, payable June 6, 2025. **Stock Repurchase Program:** Authorized to repurchase up to $50.0 million of common stock through May 9, 2026. **Risk Factors:** Potential impacts from U.S. trade policies, tariffs, and global economic conditions on Digipass sales and supply chain.