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what it is
OneSpan sells software that secures logins, digital signatures, and business approvals.
how it gets paid
Last year Onespan made $243M in revenue. Security software was the main engine at $0.20B, or 80% of sales.
growth snapshot
Revenue was roughly flat last year at ~$243M on the annual total above. Ignore any 216% “growth” scrape—that cannot coexist with a flat full-year line.
what just happened
A typical quarter is on the order of ~$60M (roughly one-fourth of ~$243M annual)—not $180M, which would exceed the full year. Gross margin near 74% is the quality anchor.
At a glance
B+ balance sheet — decent shape, but not bulletproof
20/100 earnings predictability — expect surprises
8.9x trailing p/e — the market's not buying it — or you found a deal
4.9% dividend yield — cash in your pocket every quarter
26.9% return on capital — every dollar works hard here
xvary composite: 47/100 — below average
What they do
OneSpan sells software that secures logins, digital signatures, and business approvals.
OneSpan ran a 23.7% operating margin and a 26.9% return on capital. That means the business turns a small revenue base into real profit. Your switching pain sits in the workflow itself: identity checks, e-signatures, and document control are wired into customer approvals.
How they make money
$243M
annual revenue · their business grew +0.0% last year
Security software
$0.20B
+0.0%
Hardware tokens
$0.04B
-5.0%
Professional services
$0.01B
+5.0%
The products that matter
digital security and e-signature platform
software & services
~$195M · ~80% of revenue
this is the core software line on the ~$0.20B segment row above—management targets low-single-digit growth while hardware drags.
core engine
hardware authentication tokens
digipass fx1
$49M · about 20% of revenue
this legacy hardware line still produced about $49M, but the annual segment row shows roughly ~5% decline—treat older “down 16%” drafts as a different window or stale scrape and use the filing for the exact vs. prior year.
legacy drag
mobile app security
Build38
$0 acquisition · closed mar 2, 2026
the Build38 deal closed for $0 on march 2, 2026, which limits financial risk but means the upside depends entirely on execution.
adjacency bet
Key numbers
8.9x
trailing p/e
You are paying 8.9 times earnings for a company with 23.7% operating margin. The market is treating it like a sleepy utility.
23.7%
operating margin
This says $1 of sales turns into 24 cents of operating profit. That is solid for a $395M company.
26.9%
return on capital
The business earns 26.9 cents of operating profit for each dollar tied up in it. That is the number that keeps value investors awake.
4.9%
dividend yield
You get paid 4.9% while waiting for revenue to do something less ceremonial than staying flat.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 20 / 100
- long-term debt $6M (2% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for OSPN right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Prior copy claimed $180M “revenue” while the annual total on this page is ~$243M—that is internally impossible. Use ~$60M as a quarterly order of magnitude; gross margin near 73.8%.
Drop the 216% vs. prior year line—it fights the +0% annual growth callout. If adjusted EPS hit ~$0.76 in a given print, label GAAP vs adjusted in the filing.
~$60M
qtr revenue (approx.)
~$0.76
EPS (basis TBD)
73.8%
gross margin
revenue jump
The fix: quarterly revenue has to sit below the ~$243M annual ceiling—here we use ~$60M as one-fourth of that year, not $180M.
source: company earnings report, 2026
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What could go wrong
the #1 risk is software growth failing to outrun the 16% hardware decline.
high
software growth stalls before it earns the rerating
software and services generated $194M and grew 4%. that's the part of the business that needs to carry the story from here.
if the 4–5% 2026 target slips, the 8.9x p/e stops looking cheap and starts looking fair
med
hardware keeps shrinking faster than software can absorb it
hardware was still $49M, about 20% of revenue, and fell 16% from last year. declining legacy businesses have a way of shrinking slower than investors hope.
software can win the mix battle and still lose the total revenue battle if hardware keeps sliding
med
low predictability keeps the multiple pinned
earnings predictability is 20/100 and price stability is 20/100. in human terms: this stock can look fixed for one quarter and broken the next.
multiple expansion is harder when investors do not trust the quarterly trend line
low
Build38 adds execution risk, not balance-sheet risk
the Build38 deal closed for $0 on march 2, 2026. that limits financial downside, but integration still has to produce something useful.
small near-term dollar risk, real risk of distraction if the product contribution stays minimal
$49M of hardware revenue is still exposed to decline, and the rest of the bull case leans on software growing 4–5% fast enough to cover it.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next report needs to show more than an eps beat
watch whether software growth is actually tracking toward the 4–5% 2026 target. another quarter of flat total revenue keeps the story in waiting mode.
mix shift
software should stay above 80% of revenue
software and services were $194M versus $49M for hardware. if that mix moves backward, the transition thesis gets harder to defend.
legacy drag
hardware decline cannot keep outrunning software growth
hardware fell 16% last year. you want that drag shrinking as a share of the business, not redefining the whole income statement.
valuation
a $16.67 analyst target says there is room, but the market wants proof first
with the stock around $13.03, the gap looks attractive on paper. the missing piece is a cleaner growth trend investors will believe.
Analyst rankings
earnings predictability
20 / 100
in human-speak, analysts do not trust the quarterly cadence enough to model this like a stable compounder.
xvary composite
47 / 100
below average overall. cheap valuation helps, but flat revenue and low predictability drag the score back down.
dividend yield
4.9%
in human-speak, you get paid to wait. that helps, but it does not fix the growth problem by itself.
source: institutional data
Institutional activity
institutional ownership data for OSPN is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$13
current price
n/a
target midpoint · n/a from current
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