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On August 5, 2025 OneSpan announced the acquisition of Nok Nok Labs to add FIDO2 passwordless authentication software to its product suite, expanding its authentication capabilities and product reach.
Technical Analysis
ADX at 25.77 signals emerging trend strength that can sustain directional moves; directional indicators produced a bullish confluence as DI+ showed a dip and reversal while DI- peaked and reversed, both supporting a near-term bullish bias tied to valuation momentum.
MACD reads 0.25 with the signal at 0.27; the MACD experienced a dip and reversal, indicating bullish momentum development, though MACD has not yet crossed above the signal line and therefore momentum confirmation awaits.
MRO stands at 31.38 and sits positive, indicating price above the internal target and suggesting an elevated probability of downward mean reversion; the MRO peak-and-reversal implies downside risk that could trim upside runs.
RSI at 54.89 sits in the neutral-to-healthy range and reversed from a dip, supporting modest upside without overbought stress; this aligns with price action trading just above short- and medium-term averages.
Price closed at $16.23, above the 50-day average ($14.89) and slightly above the 200-day average ($16.07). The 12-day EMA has shown a dip and reversal while the Ichimoku Tenkan line at $15.92 and Senkou span levels place current price above the cloud, providing technical support. Bollinger bands compress between $15.39–$16.46, indicating contained volatility and a tighter trading range.
Fundamental Analysis
- Revenue & Growth: Total revenue $59,843,000 with year-over-year revenue change of -8.01% and quarter-over-quarter change of -254.96% (as reported). Subscription revenue rose, contributing to an increase in annual recurring revenue to $177.8 million reported alongside the recent update.
- Profitability: Operating income (EBIT) $10,554,000 and operating margin 17.64%. Operating margin improved year-over-year by 14.94% but contracted quarter-over-quarter by 36.52%. The EBIT margin at 17.64% sits below the industry peer mean of 34.25% and industry peer median of 43.47%, indicating margin expansion potential versus peers.
- Earnings Per Share: Reported EPS $0.34 versus estimate $0.29, a beat of $0.05 or 17.24% (EPS surprise ratio 17.24%). This beat reflects operating leverage and cost structure gains during the period.
- Cash, Liquidity & Leverage: Cash and short-term investments $92,886,000 with a cash ratio ~0.97 and current ratio 1.77, slightly above the industry peer mean of 1.69. Total debt $9,410,000 yields debt-to-EBITDA 0.72 and debt-to-equity 0.039, reflecting a conservative leverage profile and substantial liquidity to fund growth or M&A.
- Cash Flow: Operating cash flow $6,217,000 and free cash flow $4,374,000 produce a free cash flow yield near 0.77%, above the reported industry peer mean of 0.53%. Free cash flow growth registered negative movement sequentially, signaling variability in near-term cash conversion that merits monitoring.
- Valuation: Price-to-earnings at 75.07 and forward P/E ~47.59 sit alongside an enterprise value to revenue multiple of 8.13 and enterprise multiple 37.41. WMDST values the stock as under-valued based on the firm’s cash balance, improving subscription metrics, low leverage, and recent product expansion.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-05 |
| NEXT REPORT DATE: | 2025-10-30 |
| CASH FLOW | Begin Period Cash Flow | $ 105.4 M |
| Operating Cash Flow | $ 6.2 M | |
| Capital Expenditures | $ -1.84 M | |
| Change In Working Capital | $ -8.77 M | |
| Dividends Paid | $ -4.61 M | |
| Cash Flow Delta | $ -12.50 M | |
| End Period Cash Flow | $ 92.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 59.8 M | |
| Forward Revenue | $ 23.0 M | |
| COSTS | ||
| Cost Of Revenue | $ 15.9 M | |
| Depreciation | $ 1.8 M | |
| Depreciation and Amortization | $ 2.5 M | |
| Research and Development | $ 9.4 M | |
| Total Operating Expenses | $ 49.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 44.0 M | |
| EBITDA | $ 13.0 M | |
| EBIT | $ 10.6 M | |
| Operating Income | $ 10.6 M | |
| Interest Income | $ 732.0 K | |
| Interest Expense | — | |
| Net Interest Income | $ 732.0 K | |
| Income Before Tax | $ 10.6 M | |
| Tax Provision | $ 2.2 M | |
| Tax Rate | 21.071 % | |
| Net Income | $ 8.3 M | |
| Net Income From Continuing Operations | $ 8.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.29 | |
| EPS Actual | $ 0.34 | |
| EPS Difference | $ 0.05 | |
| EPS Surprise | 17.241 % | |
| Forward EPS | $ 0.34 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 357.1 M | |
| Intangible Assets | $ 113.9 M | |
| Net Tangible Assets | $ 128.6 M | |
| Total Current Assets | $ 169.5 M | |
| Cash and Short-Term Investments | $ 92.9 M | |
| Cash | $ 92.9 M | |
| Net Receivables | $ 35.1 M | |
| Inventory | $ 11.4 M | |
| Long-Term Investments | $ 15.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 15.6 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 95.6 M | |
| Net Debt | — | |
| Total Debt | $ 9.4 M | |
| Total Liabilities | $ 114.6 M | |
| EQUITY | ||
| Total Equity | $ 242.5 M | |
| Retained Earnings | $ 169.2 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 6.34 | |
| Shares Outstanding | 38.251 M | |
| Revenue Per-Share | $ 1.56 | |
| VALUATION | Market Capitalization | $ 570.2 M |
| Enterprise Value | $ 486.7 M | |
| Enterprise Multiple | 37.413 | |
| Enterprise Multiple QoQ | 44.382 % | |
| Enterprise Multiple YoY | 1.139 % | |
| Enterprise Multiple IPRWA | high: 634.148 mean: 91.227 median: 82.154 OSPN: 37.413 low: -577.222 |
|
| EV/R | 8.134 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.473 | |
| Asset To Liability | 3.116 | |
| Debt To Capital | 0.037 | |
| Debt To Assets | 0.026 | |
| Debt To Assets QoQ | -1.237 % | |
| Debt To Assets YoY | 199.772 % | |
| Debt To Assets IPRWA | high: 1.095 mean: 0.161 median: 0.098 OSPN: 0.026 low: 0.002 |
|
| Debt To Equity | 0.039 | |
| Debt To Equity QoQ | 0.701 % | |
| Debt To Equity YoY | 174.788 % | |
| Debt To Equity IPRWA | high: 3.008 mean: 0.299 median: 0.176 OSPN: 0.039 low: -0.874 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.351 | |
| Price To Book QoQ | -10.561 % | |
| Price To Book YoY | -13.142 % | |
| Price To Book IPRWA | high: 34.07 mean: 12.069 median: 10.727 OSPN: 2.351 low: -16.218 |
|
| Price To Earnings (P/E) | 75.073 | |
| Price To Earnings QoQ | 112.153 % | |
| Price To Earnings YoY | 81.905 % | |
| Price To Earnings IPRWA | high: 564.562 mean: 139.074 median: 130.187 OSPN: 75.073 low: -357.639 |
|
| PE/G Ratio | -1.408 | |
| Price To Sales (P/S) | 9.529 | |
| Price To Sales QoQ | -0.629 % | |
| Price To Sales YoY | 20.083 % | |
| Price To Sales IPRWA | high: 113.355 median: 48.199 mean: 45.683 OSPN: 9.529 low: 1.219 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 47.586 | |
| Forward PE/G | -0.892 | |
| Forward P/S | 24.812 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 7.203 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.173 | |
| Asset Turnover Ratio QoQ | -8.072 % | |
| Asset Turnover Ratio YoY | -19.816 % | |
| Asset Turnover Ratio IPRWA | high: 0.416 OSPN: 0.173 mean: 0.13 median: 0.129 low: 0.0 |
|
| Receivables Turnover | 1.851 | |
| Receivables Turnover Ratio QoQ | 25.353 % | |
| Receivables Turnover Ratio YoY | 15.729 % | |
| Receivables Turnover Ratio IPRWA | high: 4.687 OSPN: 1.851 mean: 1.421 median: 1.257 low: 0.131 |
|
| Inventory Turnover | 1.413 | |
| Inventory Turnover Ratio QoQ | -5.294 % | |
| Inventory Turnover Ratio YoY | -6.992 % | |
| Inventory Turnover Ratio IPRWA | high: 10.4 OSPN: 1.413 mean: 0.964 median: 0.815 low: 0.018 |
|
| Days Sales Outstanding (DSO) | 49.297 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 34.795 | |
| Cash Conversion Cycle Days QoQ | -32.768 % | |
| Cash Conversion Cycle Days YoY | -40.001 % | |
| Cash Conversion Cycle Days IPRWA | high: 199.408 OSPN: 34.795 mean: -27.954 median: -36.049 low: -80.145 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.81 | |
| CapEx To Revenue | -0.031 | |
| CapEx To Depreciation | -1.041 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 242.5 M | |
| Net Invested Capital | $ 242.5 M | |
| Invested Capital | $ 242.5 M | |
| Net Tangible Assets | $ 128.6 M | |
| Net Working Capital | $ 73.9 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.972 | |
| Current Ratio | 1.773 | |
| Current Ratio QoQ | -9.509 % | |
| Current Ratio YoY | 15.498 % | |
| Current Ratio IPRWA | high: 9.787 OSPN: 1.773 mean: 1.695 median: 1.353 low: 0.079 |
|
| Quick Ratio | 1.654 | |
| Quick Ratio QoQ | -9.788 % | |
| Quick Ratio YoY | 17.951 % | |
| Quick Ratio IPRWA | high: 14.4 OSPN: 1.654 mean: 1.486 median: 1.347 low: 0.445 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.723 | |
| Cost Of Debt | 3.577 % | |
| Interest Coverage Ratio | 25.431 | |
| Interest Coverage Ratio QoQ | -40.044 % | |
| Interest Coverage Ratio YoY | 12.901 % | |
| Interest Coverage Ratio IPRWA | high: 181.115 median: 54.034 mean: 37.797 OSPN: 25.431 low: -203.84 |
|
| Operating Cash Flow Ratio | 0.089 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 77.508 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 1.81 | |
| Dividend Payout Ratio | 0.553 | |
| Dividend Rate | $ 0.12 | |
| Dividend Yield | 0.008 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 6.977 % | |
| Revenue Growth | -5.56 % | |
| Revenue Growth QoQ | -254.961 % | |
| Revenue Growth YoY | -8.008 % | |
| Revenue Growth IPRWA | high: 32.808 % median: 9.099 % mean: 6.946 % OSPN: -5.56 % low: -21.897 % |
|
| Earnings Growth | -53.333 % | |
| Earnings Growth QoQ | -160.952 % | |
| Earnings Growth YoY | 91.11 % | |
| Earnings Growth IPRWA | high: 157.143 % median: 5.491 % mean: 4.781 % OSPN: -53.333 % low: -200.0 % |
|
| MARGINS | ||
| Gross Margin | 73.471 % | |
| Gross Margin QoQ | -1.137 % | |
| Gross Margin YoY | 10.958 % | |
| Gross Margin IPRWA | high: 91.297 % OSPN: 73.471 % mean: 72.322 % median: 68.585 % low: 33.069 % |
|
| EBIT Margin | 17.636 % | |
| EBIT Margin QoQ | -36.515 % | |
| EBIT Margin YoY | 14.937 % | |
| EBIT Margin IPRWA | high: 74.313 % median: 43.473 % mean: 34.253 % OSPN: 17.636 % low: -124.558 % |
|
| Return On Sales (ROS) | 17.636 % | |
| Return On Sales QoQ | -36.515 % | |
| Return On Sales YoY | 14.937 % | |
| Return On Sales IPRWA | high: 76.082 % median: 44.901 % mean: 34.013 % OSPN: 17.636 % low: -117.376 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 4.4 M | |
| Free Cash Flow Yield | 0.767 % | |
| Free Cash Flow Yield QoQ | -83.187 % | |
| Free Cash Flow Yield YoY | — | |
| Free Cash Flow Yield IPRWA | high: 6.936 % OSPN: 0.767 % median: 0.694 % mean: 0.528 % low: -8.108 % |
|
| Free Cash Growth | -84.221 % | |
| Free Cash Growth QoQ | -150.935 % | |
| Free Cash Growth YoY | -15.701 % | |
| Free Cash Growth IPRWA | high: 278.713 % median: 25.957 % mean: 12.182 % OSPN: -84.221 % low: -316.997 % |
|
| Free Cash To Net Income | 0.524 | |
| Cash Flow Margin | 14.284 % | |
| Cash Flow To Earnings | 1.025 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.415 % | |
| Return On Assets QoQ | -44.006 % | |
| Return On Assets YoY | 3.916 % | |
| Return On Assets IPRWA | high: 18.439 % median: 4.609 % mean: 3.904 % OSPN: 2.415 % low: -24.058 % |
|
| Return On Capital Employed (ROCE) | 4.036 % | |
| Return On Equity (ROE) | 0.034 | |
| Return On Equity QoQ | -45.188 % | |
| Return On Equity YoY | -6.267 % | |
| Return On Equity IPRWA | high: 0.214 median: 0.079 mean: 0.07 OSPN: 0.034 low: -0.337 |
|
| DuPont ROE | 3.523 % | |
| Return On Invested Capital (ROIC) | 3.435 % | |
| Return On Invested Capital QoQ | -44.453 % | |
| Return On Invested Capital YoY | -129.189 % | |
| Return On Invested Capital IPRWA | high: 14.979 % median: 7.176 % mean: 5.594 % OSPN: 3.435 % low: -13.978 % |
|