Key Highlights

  • OSPN shares trading up 31.51% to $26.50 today.
  • Third-quarter Revenue rose 12% to $63.9 million, with subscription revenue up 16% to $51.5 million.
  • Adjusted EBITDA climbed 10% to $19.3 million, and Net Income was $7.8 million, or $0.20 per diluted share.
  • Full-year revenue guidance rose to $254 million to $258 million from $248 million to $252 million.
  • Rosenblatt cut its rating to Neutral from Buy on October 27, before the results.

Third-Quarter Growth and Raised Guidance Overpower the Rosenblatt Downgrade

OneSpan (NASDAQ:OSPN) shares are trading up 31.51% today after the company reported third-quarter results on October 29, 2026 and lifted its full-year outlook. The move comes despite a downgrade from Rosenblatt on October 27, which cut the rating to Neutral from Buy and cited valuation ahead of earnings.

OneSpan provides digital identity, authentication and e-signature products, organized into Cybersecurity and Digital Agreements segments. It serves customers across the Americas, Europe, the Middle East, Africa and Asia Pacific, with about 509 employees.

The 8-K filed with the results contained only the Earnings release, with no Leadership or deal announcement. That points to the quarterly numbers and the guidance increase as the main drivers of today's gain.

Revenue Up 12% With Subscription and Margin Gains

Revenue for the quarter ended September 30 rose 12% to $63.9 million from $57.1 million. Cybersecurity contributed $44.9 million, up 11%, and Digital Agreements added $19.0 million, up 14%, while subscription revenue grew 16% to $51.5 million.

Gross margin widened to 76% from 74%, and Operating Income reached $9.2 million versus $8.2 million. Net income was $7.8 million, or $0.20 per diluted share, compared with $6.5 million, or $0.17, a year earlier. Non-GAAP net income was $13.6 million, or $0.35 per share.

The company also drew $5.0 million on its revolving Credit Facility during the period, and shares outstanding fell to about 36.8 million from 37.4 million at the end of 2025 as Buybacks continued.

Guidance Raised Across Revenue, ARR and Adjusted EBITDA

Annual Recurring Revenue reached $195.5 million, up 9%, with net revenue retention at 105%. The company now expects 2026 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, all above prior ranges. Adjusted EBITDA guidance rose to $72 million to $76 million from $67 million to $71 million, while hardware revenue guidance of $46 million to $48 million was unchanged.

Cash and equivalents were $51.4 million at quarter end, down from $70.5 million at the end of 2025, after $34.6 million of Acquisition spending and $8.3 million of share repurchases over nine months. The board declared a quarterly Dividend of $0.13 per share, payable December 4, 2026 to holders of record on November 13.

Before today's jump, market data showed a market Capitalization near $759 million and a P/E of 11.58 on trailing earnings of $1.78 per share. At today's price, the Market Value works out to roughly $976 million based on 36.8 million shares outstanding, and the shares trade above the prior 52-week high of $20.82.

November Product Trial and December Dividend Are the Next Dated Events

A free trial of DigipassONE Authenticate is planned for November 2026, with DigipassONE Verify expected to reach general availability in early 2027. Investors will watch whether subscription growth and the raised ARR target hold, and how the stock settles relative to the Rosenblatt rating.