• OneSpan Sign: Provides e-signature solutions for a wide range of transaction volumes.
• OneSpan Cloud Authentication: A cloud-based multifactor authentication solution supporting various options including biometrics and push notifications.
• OneSpan Identity Verification: Offers identity verification services for banks and financial institutions.
• Mobile Security Suite: A software development kit (SDK) for mobile application security.
• Mobile Authenticator Studio: A standalone mobile application functioning as an authenticator.
• Authentication Servers: Enables customers to administer high levels of access control.
• Trusted Identity Platform: A cloud platform designed to simplify and secure user journeys.
• Intelligent Adaptive Authentication: A solution that dynamically adjusts authentication based on risk.
• Risk Analytics: A comprehensive anti-fraud solution.

OneSpan (OSPN) primarily sells its solutions to other companies (B2B). Based on the provided background, the company's major customers are:

• Banks and financial institutions
• Other enterprises requiring digital solutions for identity, security, and business productivity, including e-signature, cloud authentication, mobile security, and anti-fraud solutions.

The provided background description does not list the specific names of these customer companies or their public symbols.

• Amazon.com, Inc. (AMZN)
• Microsoft Corporation (MSFT)

Victor Limongelli, Chief Executive Officer

Victor Limongelli is OneSpan's Chief Executive Officer. Prior to joining OneSpan, he served as CEO of four software companies: Guidance Software, Inc., which he helped take public and grow from $9 million to $130 million in revenue; AccessData Group, a private security software company; and two private SaaS companies, MobileCause, Inc. and BQE Software, Inc. All four companies achieved impressive performance milestones under his leadership. Before his CEO roles, Victor held various operational positions at Guidance Software, including President, Vice President of Professional Services, and General Counsel. He also served as General Counsel of a venture-backed technology company. Earlier in his career, Limongelli practiced law for five years at Morgan Lewis, specializing in mergers and acquisitions and intellectual property licensing.

Jorge Martell, Chief Financial Officer

Jorge Martell is OneSpan's Chief Financial Officer, bringing over 20 years of experience in financial, strategic, and operational leadership, including M&A strategy and execution, to rapidly growing global private and public companies. Most recently, he was the Chief Financial Officer and Treasurer at Extreme Reach, Inc., where he played an integral role in optimizing the company's balance sheet and executing its global growth strategy through M&A. Before that, Jorge was at Sapient Corporation, a publicly-listed company (later acquired by Publicis Groupe), where he led its global revenue organization and managed the financial strategy and execution of its M&A activities. He also held leadership roles at ABM Industries, Inc., and KPMG LLP.

Sameer Hajarnis, Senior Vice President and General Manager, Digital Agreements

Sameer Hajarnis possesses more than two decades of experience in enterprise software and SaaS companies, leading cross-functional teams in areas such as business development, sales, strategic alliances, and customer success. Prior to his current role, he served as Vice President of Growth and Transformation within OneSpan. Before joining OneSpan, Sameer spent 15 years at OpenText in various leadership positions within the Analytics division, including as Vice President of Professional Services.

Lara Mataac, General Counsel and Chief Compliance Officer

Lara Mataac serves as OneSpan's General Counsel and Chief Compliance Officer, with nearly two decades of legal and compliance experience. Her expertise is focused on corporate governance, regulatory compliance, and mergers and acquisitions for both public and private cloud-based technology companies. Before her tenure at OneSpan, Lara was the General Counsel at Constant Contact, Inc., where she led the legal and compliance team through a period of transformation following the company's spinout from Endurance International Group (EIG). She previously spent eight years at EIG, with her most recent role being Deputy General Counsel.

Ashish Jain, Chief Technology Officer

Ashish Jain is OneSpan's Chief Technology Officer, bringing over two decades of experience in leading product management, engineering, and operations teams at global organizations. He is recognized as a leading expert in digital identity within the industry. Most recently, he held the position of Chief Product Officer at Arkose Labs, an enterprise fraud management and account security company, where he was responsible for developing the platform to address consumer fraud and identity challenges for many Fortune 1000 companies.

The key risks to OneSpan (OSPN) are primarily associated with its ongoing business model transition, the highly competitive nature of its markets, and its significant exposure to the financial services sector.

1. Declining Hardware Business and Transition to Software Model: OneSpan is in a strategic transition from a legacy hardware-centric business (e.g., physical security tokens) to a software-first, subscription-based model. While this shift aims for higher margins and recurring revenue, the declining hardware segment represents a significant drag on overall revenue and profitability. Management anticipates a continued fall in hardware revenue, which has led to downward revisions in total revenue guidance.

2. Intense Competition in Cybersecurity and Digital Identity Markets: OneSpan operates in a highly competitive environment within the digital identity, authentication, and anti-fraud solutions sectors. The company faces strong competition from both specialized providers and larger, well-funded identity management platforms, including major players like Microsoft Entra ID and Okta, as well as emerging AI-powered fraud prevention specialists. This intense rivalry necessitates continuous innovation, product differentiation, and substantial investment in research and development, which can be challenging given OneSpan's market capitalization.

3. Sensitivity to Financial Services Sector and Regulatory Changes: A substantial portion of OneSpan's revenue is derived from financial institutions globally, making the company vulnerable to sector-specific economic fluctuations. This includes risks such as reduced IT spending by banks during economic downturns or potential displacement by competitors at key financial clients. Additionally, as a provider of cybersecurity and e-signature solutions, OneSpan is subject to a complex and evolving landscape of global regulations, particularly those impacting its financial services customers. New or modified regulations could indirectly affect its business operations and demand for its solutions.

The widespread adoption of Passkeys, based on FIDO Alliance standards and backed by major technology platforms such as Apple, Google, and Microsoft, poses a clear emerging threat. These platform-native, hardware-bound, and phishing-resistant authentication methods could significantly reduce the demand for OneSpan's proprietary multi-factor authentication solutions, including its OneSpan Cloud Authentication, Mobile Security Suite, and hardware authenticators, as financial institutions and other customers increasingly opt for standardized and integrated passwordless authentication.

• E-Signature (OneSpan Sign): The global e-signature market generated USD 2,580.3 million in revenue in 2023 and is projected to reach USD 13,407.3 million by 2030, growing at a Compound Annual Growth Rate (CAGR) of 26.7% from 2024 to 2030. Another estimate places the global digital signature market at USD 5,240.0 million in 2024, expected to reach USD 38,164.4 million by 2030, with a CAGR of 40.5% from 2025 to 2030. The global electronic signature software market was valued at US$ 4.46 billion in 2024 and is projected to reach US$ 35.71 billion by 2031, at a CAGR of 34.6% during 2025–2031. North America held the largest market share of approximately 55% in 2023.
• Multi-Factor Authentication (OneSpan Cloud Authentication, Intelligent Adaptive Authentication): The global multi-factor authentication market was valued at approximately USD 20.22 billion in 2024. It is expected to grow to USD 78.09 billion by 2033, at a CAGR of 16.2% during the forecast period (2026–2033). Other projections indicate the market will reach around USD 83.72 billion by 2034, growing at a CAGR of 17.39% from 2025 to 2034. North America held the largest market share in 2024, accounting for over 32.7%.
• Identity Verification (OneSpan Identity Verification): The global identity verification market was valued at USD 13.8 billion in 2024 and is estimated to reach USD 46.4 billion by 2033, exhibiting a CAGR of 14.4% from 2025 to 2033. Another report states the market was valued at USD 11,496.0 million in 2023 and is projected to reach USD 33,928.3 million by 2030, with a CAGR of 16.7% from 2024 to 2030. North America was the largest revenue-generating market in 2023 and dominated the market with a 38.4% share in 2022.
• Mobile Security (Mobile Security Suite, Mobile Authenticator Studio): The global mobile security market was valued at approximately USD 8.62 billion in 2024 and is predicted to grow to around USD 56.82 billion by 2034, with a CAGR of roughly 20.9% between 2025 and 2034. Another estimate indicates the market was valued at USD 8,365.2 million in 2023 and is projected to reach USD 30,803.0 million by 2030, growing at a CAGR of 20.5% from 2024 to 2030. North America accounted for over 35.9% of the total revenue in the global mobile security market in 2023.
• Risk Analytics (Risk Analytics): The global fraud detection and prevention market, which includes risk analytics, was valued at USD 60.75 billion in 2025 and is anticipated to reach USD 150.15 billion by 2030, growing at a CAGR of 19.5%. Other projections show the market valued at USD 51.6 billion in 2025, expected to reach USD 270.4 billion by 2034, with a CAGR of 19.61% during 2026-2034. North America dominated the global market in 2024, with a revenue share of 37.3%. Specifically, the global healthcare fraud analytics market was valued at USD 4.26 billion in 2024 and is projected to reach USD 49.68 billion by 2033, growing at a CAGR of 31.38% from 2025 to 2033.

OneSpan (OSPN) is expected to drive future revenue growth over the next 2-3 years through several strategic initiatives and market trends:

1. Continued Shift to Software and Subscription Revenue: OneSpan is strategically transitioning its business mix, with software and services revenue accounting for over 80% of total revenue in 2025, an increase from 76% in 2024, and expected to remain above 80% in 2026. This shift is characterized by robust growth in subscription revenue, which increased by 12% for the full year 2025. This ongoing pivot away from declining hardware revenue streams towards more predictable and higher-margin software subscriptions is a core growth driver.
2. Growth in Digital Agreements: The Digital Agreements segment is a key area for expansion. Revenue from Digital Agreements grew by 11% in the fourth quarter of 2025 and 7% for the full year, primarily fueled by the expansion of renewal contracts, securing new contracts, and an increase in overages. The company utilizes a "land and expand" model within this division, which encompasses e-signatures, identity verification, and additional offerings like smart forms and remote notary services.
3. Enhanced Cybersecurity Solutions, particularly Mobile App Protection: OneSpan's cybersecurity subscription revenue saw a 13% increase in 2025, driven by both cloud-based and on-premise authentication software, as well as mobile app shielding software. The company focuses on consumer authentication for banking and financial institutions and is actively strengthening its mobile application protection capabilities.
4. Strategic Acquisitions to Bolster Product Offerings: The recent acquisition of Build38, a leader in next-generation mobile application protection, completed in March 2026, is a significant growth driver. This acquisition is designed to enhance OneSpan's App Shielding offering, allowing for deeper integration with customer mobile applications and enabling dynamic updates to detection methods, thereby expanding its cybersecurity portfolio and accelerating its innovation roadmap.
5. Increased Investments in Sales, Marketing, and Research & Development: OneSpan plans to make incremental internal investments of approximately $5.5 million in sales, marketing, and R&D during 2026. These investments are aimed at fostering higher software revenue growth and are anticipated to contribute to both revenue and Annual Recurring Revenue (ARR) as the company progresses through 2026 and into 2027.

Share Repurchases

• OneSpan's Board of Directors authorized a share repurchase program of up to $50.0 million in June 2020. This program was designed to offset equity issuance for compensation purposes and allow for opportunistic repurchases. In May 2024, the company adopted a new program authorizing repurchases of up to $50 million, expiring May 9, 2026.
• In November 2023, OneSpan commenced a modified "Dutch auction" tender offer to repurchase approximately $20 million of its common stock.
• The company used $6.3 million for share repurchases in Q3 2025 and repurchased 423,867 shares in November 2025 and 134,766 shares in December 2025.

Share Issuance

• OneSpan maintains a share-based compensation plan (2019 Omnibus Incentive Plan) that grants restricted stock units (RSUs) and performance restricted stock units (PSUs) to employees and non-employee directors.
• In June 2025, stockholders approved an increase of 1,500,000 shares available for issuance under the 2019 Omnibus Incentive Plan.
• Approximately $4.4 million was attributed to restricted stock issuance in 2025.

Outbound Investments

• In June 2025, OneSpan acquired Nok Nok Labs Inc. to enhance its passwordless authentication capabilities. The costs for acquisitions in 2025, which included Nok Nok and an equity stake in ThreatFabric, amounted to approximately $14 million.
• OneSpan made a strategic investment in and partnered with ThreatFabric in October 2025, a provider of fraud detection and mobile threat intelligence solutions, with OneSpan joining ThreatFabric's board.
• OneSpan completed the acquisition of Build38, a leader in next-generation mobile application protection solutions, in February 2026. The definitive agreement was announced in January 2026.

Capital Expenditures

• OneSpan's capital expenditures were $5.00 million in 2022, $12 million in 2023, and $9.25 million in 2024.
• In the first three quarters of 2025, capital expenditures amounted to $6.0 million, and in Q4 2025, they were $2.9 million.
• The company expects to leverage its cash position to support working capital and capital expenditures over the upcoming year, focusing on product development and operational optimization.