Key Highlights

  • OSPN is up 31.51% today at $26.50 per share.
  • Third-quarter Revenue grew 12% to $63.9 million, and subscription sales climbed 16% to $51.5 million.
  • Adjusted EBITDA reached $19.3 million, up 10%, while Net Income came in at $7.8 million, or $0.20 per diluted share.
  • The full-year revenue forecast moved up to $254 million to $258 million from $248 million to $252 million.
  • Rosenblatt lowered its rating to Neutral from Buy on October 27, ahead of the quarterly release.

A Quarterly Beat and Higher Guidance Outweigh the Rosenblatt Cut

OneSpan (NASDAQ:OSPN) is trading up 31.51% today after reporting third-quarter figures on October 29, 2026 and raising its full-year outlook. The advance arrived despite Rosenblatt's October 27 decision to move the stock to Neutral from Buy, a call that pointed to valuation ahead of earnings.

The company builds digital identity, authentication and electronic signature tools, reporting through its Cybersecurity and Digital Agreements divisions. Its customers are spread across the Americas, Europe, the Middle East, Africa and Asia Pacific, and the workforce numbers about 509 people.

An 8-K filing that accompanied the results contained nothing beyond the Earnings release, with no Leadership change or transaction disclosed. The quarterly numbers and the higher outlook therefore look like the main forces behind the gain.

Subscription Growth and Margin Expansion Stand Out in the Quarter

Revenue for the period ended September 30 climbed 12% to $63.9 million, up from $57.1 million a year earlier. Cybersecurity produced $44.9 million, an 11% increase, while Digital Agreements brought in $19.0 million, up 14%, and subscription revenue advanced 16% to $51.5 million.

Gross margin improved to 76% from 74%, and Operating Income came to $9.2 million compared with $8.2 million. Net income totaled $7.8 million, or $0.20 per diluted share, versus $6.5 million, or $0.17, last year, and non-GAAP net income reached $13.6 million, or $0.35 per share.

Shares outstanding dropped to roughly 36.8 million from 37.4 million at year-end 2025, reflecting ongoing buybacks.

Raised 2026 Targets for Revenue, ARR and Adjusted EBITDA

Annual Recurring Revenue hit $195.5 million, rising 9%, and net revenue retention stood at 105%. For 2026 the company now projects total revenue of $254 million to $258 million, software and services revenue of $208 million to $210 million, and ARR of $197 million to $201 million, each above its earlier range. Adjusted EBITDA is now expected at $72 million to $76 million, up from $67 million to $71 million, while the hardware revenue range of $46 million to $48 million was left unchanged.

Cash and equivalents ended the quarter at $51.4 million, versus $70.5 million at year-end 2025, after $34.6 million went to acquisitions and $8.3 million to share repurchases over nine months. The board approved a quarterly Dividend of $0.13 per share, payable December 4, 2026, to shareholders of record on November 13.

Before the rally, a market data snapshot placed the market Capitalization near $759 million, with a P/E of 11.58 on trailing earnings of $1.78 per share. Using 36.8 million shares, the value at today's price works out to roughly $976 million, and the stock now trades above its prior 52-week high of $20.82.

DigipassONE Trial and Verify Timeline Set the Next Checkpoints

A free trial of DigipassONE Authenticate is slated for November 2026, while DigipassONE Verify is expected to become generally available in early 2027. Investors will be watching whether subscription growth and the raised ARR goal hold up, and how the shares settle relative to Rosenblatt's Neutral rating.