OneSpan Inc (OSPN) Stock Forecast & Price Target

OneSpan Inc. has demonstrated a positive trajectory in its revenue growth, with Digital Agreements' revenue increasing by 7% year-over-year to $16.7 million, contributing approximately 29% to total revenue. The company reported an annual recurring revenue (ARR) growth of 10% year-over-year, reaching $180 million, alongside a notable improvement in net revenue retention (NRR) to 103%. Additionally, the software segment, which now constitutes around 80% of total revenue, experienced a 12% rise in subscription revenue, indicating robust performance in a key area of the business.

OneSpan Inc. has projected a negative outlook, indicating a -3% year-over-year organic revenue decline while forecasting only approximately 5% year-over-year organic annual recurring revenue (ARR) growth, which reflects significant ongoing challenges. The company's total ARR reached $180.2 million, which represents a 10% year-over-year increase on a reported basis but only about 5% on an organic basis, falling short of earlier expectations and indicating weaker customer expansions, particularly in the EMEA and APAC regions. Additionally, management has revised its full-year fiscal 2025 revenue guidance down to the range of $239 million to $241 million, attributed to diminished hardware demand and ongoing declines in the security business, suggesting a concerning shift in market dynamics affecting the company's performance.