OneSpan Inc (OSPN) Stock Forecast & Price Target

OneSpan Inc has demonstrated solid revenue growth, with Digital Agreements' revenue increasing by 7% year-over-year to $16.7 million, contributing approximately 29% of total revenue. The company reported noteworthy progress in its annual recurring revenue (ARR), which rose by 10% year-over-year to $180 million, along with an improvement in net revenue retention (NRR) to 103%. Furthermore, the strength of the software segment is highlighted by subscription revenue growth of 12%, showcasing the robustness of OneSpan's offerings in the information technology security space.

OneSpan Inc. has adjusted its revenue guidance for FY25 downward to a range of $239M–$241M, down from a previous estimate of $245M–$251M, largely due to weaker hardware demand and challenges in the EMEA region. Although recurring revenue represented 82% of Q3 revenue and grew by 8% year-over-year, it fell short of the anticipated 10% growth. The company's total Annual Recurring Revenue (ARR) of $180.2M showed a modest 10% increase year-over-year; however, organic ARR growth was only around 5%, indicating ongoing headwinds and soft activity levels within its security business, particularly in key international markets.