OneSpan Inc. (OSPN): Business Model Canvas [Dec-2025 Updated]

You're looking at OneSpan Inc.'s Business Model Canvas right now, trying to figure out if their big strategic move from hardware to a software-first approach is actually paying off. Honestly, the 2025 guidance paints a clear picture: with software and services already driving about 80% of their projected $239 million to $241 million in total revenue, and a 103% Net Retention Rate showing existing clients are expanding their use, the recurring revenue engine is clearly gaining traction. But what specific activities and partnerships are fueling this shift away from physical tokens? Keep reading below to see the full, nine-block breakdown of how OneSpan Inc. is building its future.

OneSpan Inc. (OSPN) - Canvas Business Model: Key Partnerships

You're looking at the core relationships OneSpan Inc. builds to deliver its security and e-signature value proposition. These aren't just vendor agreements; they are deep integrations that secure billions in transactions annually.

The reach of OneSpan Inc. into the global financial system is cemented by its client base. Trusted by global blue-chip enterprises, more than 60% of the world's 100 largest banks rely on OneSpan Inc.'s solutions. This massive footprint means OneSpan Inc. processes millions of digital agreements and billions of multi-factor authentication transactions across more than 100+ countries each year. As of the Third Quarter 2025 Investor Presentation, the company reported a Market Cap of $580M and Trailing Twelve Months (TTM) Revenue of $241M, underscoring the scale supported by these partnerships.

A key strategic move in late 2025 was the investment in and partnership with ThreatFabric B.V., a Dutch provider specializing in proactive fraud detection. This alliance strengthens OneSpan Inc.'s cybersecurity features, particularly against the surge in Authorized Push Payment (APP) fraud. ThreatFabric, which previously raised $12.6 million over two rounds, protects more than 60 million banking customers worldwide with its layered fraud prevention platform. Following this investment in October 2025, OneSpan Inc. joined ThreatFabric's board of directors and its newly created Strategic Advisory Board.

Standardization is another pillar, driven by OneSpan Inc.'s deep commitment to FIDO protocols. This commitment was significantly bolstered by the acquisition of Nok Nok Labs Inc. in the second quarter of 2025. Nok Nok Labs, a founding member of the FIDO Alliance, brought world-class FIDO passwordless software authentication technology, allowing OneSpan Inc. to offer the industry's most comprehensive portfolio spanning both FIDO2 hardware security keys and software solutions.

The shift to modern infrastructure is supported by cloud partnerships. OneSpan Cloud Authentication (OCA) is a modern, cloud-based multi-factor authentication solution, and the company continues its technology integration with major cloud providers. For instance, in November 2025, Sumitomo Mitsui Trust Bank, Japan's largest trust bank, implemented OneSpan Inc.'s cloud-based FIDO authentication solution for mobile banking, made possible by collaboration with SCSK Corporation.

Here's a quick look at the scale and recent financial context surrounding these key relationships as of late 2025:

The ecosystem also includes necessary integrations for broader enterprise adoption. OneSpan Inc. maintains relationships with integration partners to facilitate Customer Identity Management workflows, such as those involving platforms like Salesforce and SAP, ensuring their security layers fit into existing enterprise architecture.

The focus on specific threat vectors is evident through these alliances:

• Securing mobile banking access for customers like BankID in Norway.
• Expanding capabilities against malware, device compromise, and cyberfraud.
• Integrating behavioral risk evaluation and real-time threat intelligence.
• Driving the industry toward passwordless authentication standards.

The company's strategy is clearly about embedding its security DNA within the critical paths of digital finance, so partnerships are defintely not an afterthought. Finance: review the integration roadmap for ThreatFabric capabilities into the OCA platform by end of Q4 2025.

OneSpan Inc. (OSPN) - Canvas Business Model: Key Activities

You're looking at the core actions OneSpan Inc. (OSPN) is taking to reshape its business right now, and the numbers show a clear, aggressive pivot.

Accelerating the transition to a software-centric business model

• The software business now comprises approximately 80% of the overall OneSpan Inc. business.
• The transition to a Software as a Service (SaaS) model within the digital agreements business is substantially completed.
• Subscription revenue grew 12% year-over-year in Q3 2025.
• Security subscription revenue grew 13% in Q3 2025.
• Digital agreements subscription revenue grew 11% in Q3 2025.
• The Net Retention Rate (NRR) for Q3 2025 was 103%.

Here's the quick math on the full-year 2025 financial outlook, which clearly separates the software focus from the legacy business:

Research and development (R&D) of advanced security and digital agreement software

• A new CTO, Ashish Jain, was brought on board to lead R&D and internal development efforts.
• Internal development efforts are designed to enhance the product portfolio.
• Management pointed to the S3 product and FIDO2 protocol as growth drivers, noting internal development, particularly in Artificial Intelligence (AI) for digital agreements.

Targeted Mergers & Acquisitions (M&A), like the Knock Labs acquisition

• The acquisition of Nok Nok Labs closed on June 4, 2025.
• The Nok Nok business is expected to be accretive to the Security operating income in Q4 2025.
• After the third quarter ended, OneSpan Inc. made a strategic investment to obtain a 15% equity stake in ThreatFabric.
• The acquisition of Nok Nok Labs contributes to the Cybersecurity subscription revenue growth by 4 percentage points for the trailing twelve months as of 9/30/25.

Enhancing go-to-market capabilities for subscription sales

• Full Year 2025 Software and Services revenue guidance implies growth between 3% and 4%.
• The company is focused on a land and expand model with a focus on new logos and profitable growth.
• The company closed 2 new logos for the S3 product in the low 6-figure range.

Manufacturing and distribution of legacy hardware security tokens

• Full Year 2025 hardware revenue guidance projects an approximately 16% decline from 2024.
• In Q3 2025, total revenue growth was offset by a reduction in security and hardware revenue.
• The expected hardware revenue for the full year 2025 is in the range of $49 million to $50 million.

OneSpan Inc. (OSPN) - Canvas Business Model: Key Resources

You're looking at the core assets OneSpan Inc. (OSPN) relies on to run its business as of late 2025. These aren't just ideas; they are tangible and intellectual properties that drive revenue and secure market position.

The company's proprietary software stack is central, particularly its offerings in authentication and digital agreements. For instance, in Q1 2025, Security subscription revenue, which includes software-based authentication and app shielding products, grew 7% year-over-year to \$28,100,000.

The push into passwordless is heavily supported by the recent acquisition of Nok Nok Labs in June 2025,. This move integrated their leading phishing-resistant FIDO authentication solutions, specifically the S3 FIDO2 software product, into the OneSpan portfolio,. This positions OneSpan Inc. to offer both software and hardware-based FIDO/FIDO2 options,.

For digital signature and workflow automation, the Digital Agreements segment is key. This segment, which includes OneSpan Sign e-signature, saw its revenue increase 9% year-over-year in Q1 2025, reaching \$15,700,000.

Financially, the balance sheet remains a core resource. You see the strong cash position of \$105.2 million as of Q1 2025,,. This was built on \$29,400,000 in cash from operations during that quarter,. The company also has a plan to return about \$25 million to shareholders through dividends and buybacks by the end of 2025.

Here's a quick look at some key performance indicators from the latest reported quarter, Q3 2025, which shows the software shift in action:

The intellectual property underpinning these products is protected by an extensive patent portfolio. OneSpan Inc. relies on a combination of patent, copyright, trademark, and trade secret laws. The company holds several issued patents in the U.S. and internationally, with many covering the Digipass product line. These patents expire between now and more than 10 years from now.

The company's reach is also a key resource, as they are trusted by more than 60% of the world's 100 largest banks,. They process billions of multi-factor authentication transactions annually across 100+ countries,. As of February 21, 2025, there were 38,175,819 shares of common stock outstanding.

You should track the software mix, as software and services revenue is expected to be \$190 million to \$192 million for the full-year 2025, while hardware revenue guidance is \$49 million to \$50 million. Finance: draft 13-week cash view by Friday.

OneSpan Inc. (OSPN) - Canvas Business Model: Value Propositions

You're looking at the core value OneSpan Inc. (OSPN) delivers to its customers, which is all about securing digital interactions and agreements in a world that's moving faster than ever. Honestly, for a company serving heavily regulated financial institutions, this is where the rubber meets the road.

The primary value is a comprehensive digital agreement and transaction security platform. This isn't just one tool; it's a stack that covers the entire digital journey. As of late 2025, OneSpan Inc. serves over 4,000 customers globally, operating in more than 100 countries, and that includes more than 60% of the world's 100 largest banks. The software business now makes up over 80% of the overall business.

This platform provides strong security and compliance for regulated industries. For a bank dealing with GDPR or other strict data rules, this is non-negotiable. The value here is baked into their financial performance, showing a clear shift to more predictable revenue:

A key part of the offering is the seamless integration of authentication, e-signature, and fraud prevention. You see this integration strength reflected in their product evolution, especially following the June 2025 acquisition of Nok Nok Labs, which immediately added new software FIDO capabilities. This combination means customers get a unified approach rather than stitching together disparate security layers.

The focus on future-proofing is evident in their high-assurance, future-ready FIDO2 authentication portfolio. OneSpan Inc. co-chairs the Hardware Security Keys Special Interest Group (SIG) for the FIDO Alliance. Their Digipass FX1 was named Multifactor Solution of the Year in the 2025 CyberSecurity Breakthrough Awards Program. The combined portfolio now includes Digipass, FIDO2 security keys, Cronto transaction signing, and the Nok Nok platform, supporting both software and hardware authenticators.

Finally, the tangible financial benefit to the customer base is significant, translating security investment into hard savings. The estimated value delivered is:

• Reduced fraud losses, estimated at over $500 million for customers in 2024.
• The company itself is focused on profitability, with FY 2025 revenue guidance set between $239 million and $241 million.
• The company achieved cumulative annualized cost savings of $77 million by the end of 2024.

If you're a financial institution, you're buying trust and quantifiable loss avoidance. Finance: draft the Q4 2025 cash flow projection by next Tuesday.

OneSpan Inc. (OSPN) - Canvas Business Model: Customer Relationships

You're looking at how OneSpan Inc. (OSPN) keeps its enterprise customers engaged and growing their spend, which is key since the software business now makes up over 80% of the entire operation. The relationship focus is clearly on high-value, sticky contracts.

The commitment to top-tier clients is evident in the structure. OneSpan Inc. serves a valuable blue-chip installed base, which includes more than 60% of the world's 100 largest banks. These relationships span operations in over 100 countries, suggesting a need for dedicated, high-touch support for global deployments.

The success of this relationship strategy is quantified by the expansion within the existing base. The Net Retention Rate (NRR) was reported at 103% as of the third quarter of 2025, showing that existing customers, on average, increased their spending with OneSpan Inc. even after accounting for any churn or downgrades. This follows a 107% NRR reported in the first quarter of 2025.

The subscription-based model is the engine driving this recurring revenue. For the third quarter of 2025, subscription revenue hit $37.8 million, marking a 12% year-over-year increase. The Annual Recurring Revenue (ARR) reached $180.2 million in Q3 2025, a 10% jump from the prior year. Management's guidance for the full fiscal year 2025 projects total software and services revenue in the range of $190 million to $192 million.

Here's a quick look at the key recurring revenue metrics as of late 2025:

Professional services are integral for implementation and integration support, especially for complex, high-value transactions. While subscription revenue growth was 12% in Q3 2025, this was partially offset by declines in maintenance and professional services revenues in that specific quarter, showing that the services component is tied to the initial deployment cycle and legacy product sunsets.

The company supports developer integration through self-service portals and documentation, which is a necessary component for scaling adoption of their software solutions across the large customer base. The Digital Agreements segment, which includes e-signature and digital workflow solutions, saw revenue growth of 9% year-over-year in Q3 2025, suggesting successful adoption of the software platform.

• Dedicated account management for global blue-chip enterprise clients.
• Net Retention Rate (NRR) of 103% as of Q3 2025.
• Subscription revenue grew 12% year-over-year in Q3 2025.
• Software and services expected to be 3% to 4% growth for FY 2025.
• Customer base includes over 60% of the world's 100 largest banks.

OneSpan Inc. (OSPN) - Canvas Business Model: Channels

You're looking at how OneSpan Inc. (OSPN) gets its security and digital agreement solutions into the hands of global financial institutions as of late 2025. The approach is clearly multi-faceted, balancing high-touch direct sales with a broader partner ecosystem, all while pushing the higher-margin software business.

Direct sales force targeting large financial institutions globally

The direct sales force remains central, especially for landing the core Security Solutions business and large Digital Agreements contracts. This team coordinates sales activity globally, often making direct sales calls alongside their partners.

OneSpan Inc. is trusted by more than 60% of the world's largest 100 banks. The company processes billions of transactions in more than 100 countries annually, showing the global footprint this direct channel supports. The strategic focus is clearly on software, with the software and services segment projected to generate $190 million to $192 million for the full fiscal year 2025, which is approximately 80% of the total expected revenue of $239 million to $241 million.

Geographically, the revenue mix as of the third quarter of 2025 shows the direct sales focus:

• Americas: 46% of Q3 2025 revenue.
• EMEA: 38% of Q3 2025 revenue.
• APAC: 17% of Q3 2025 revenue.

Cloud marketplaces and integrated solutions via technology partners

The push into cloud-based, recurring revenue is heavily supported by strategic technology partnerships and the integration of new software capabilities. The acquisition of Nok Nok Labs brought the FIDO2 software product, S3, into the portfolio, and management noted they have already closed 2 new logos for S3, both in the low 6-figure range. This suggests initial traction for new software offerings, likely facilitated through partner channels or direct sales leveraging new tech.

The overall Annual Recurring Revenue (ARR) reflects the success of the subscription-focused channel strategy. For Q3 2025, total ARR reached $180 million, representing a 10% year-over-year increase. The Digital Agreements segment, which is largely cloud-based, saw its Q3 2025 revenue grow 9% year-over-year to $16.7 million.

Here's how the ARR breaks down by segment as of Q3 2025:

Regional channel partners and distributors for hardware and on-premise software

OneSpan Inc. utilizes a network of distributors, resellers, systems integrators, and original equipment manufacturers to sell its solutions worldwide. This channel is critical for the hardware and on-premise software deployments, though this part of the business is facing secular headwinds.

The company expects hardware revenue for the full year 2025 to be in the range of $49 million to $50 million, which represents an approximately 16% decline from 2024. This decline is a key factor in the overall revenue guidance revision. Still, the company offers customers a choice between SaaS, private cloud, and traditional on-premise software deployments, meaning these channel partners are essential for delivering the on-premise options.

The Security Solutions segment, which includes hardware, had Q3 2025 revenue of $40.322 million. The sales staff provides product education seminars to these resellers and distributors to maintain working relationships.

Investor Relations website for financial transparency

The Investor Relations website serves as a primary channel for delivering transparent financial data to stakeholders. Key figures released for the full fiscal year 2025 guidance, as updated in late 2025, include:

• Total Revenue Guidance: $239 million to $241 million.
• Annual Recurring Revenue (ARR) Guidance: $183 million to $187 million.
• Adjusted EBITDA Guidance: $72 million to $76 million.

The company also communicates capital allocation discipline through this channel, noting plans to return about $25 million to shareholders between dividends and buybacks by the end of 2025. The quarterly cash dividend was declared at $0.12 per share in Q3 2025, and the company repurchased approximately 450,000 shares of common stock for $6.3 million in that quarter alone. Finance: draft 13-week cash view by Friday.

OneSpan Inc. (OSPN) - Canvas Business Model: Customer Segments

You're looking at the core clientele for OneSpan Inc. as of late 2025, which is heavily weighted toward institutions where security and compliance aren't optional-they're the entire business. The company has successfully pivoted its revenue base to be predominantly software-driven.

The customer base is global, serving over 4,000 customers across more than 100 countries. This global footprint is reflected in the Q3 2025 geographical revenue split, which shows significant reliance on the Americas and EMEA regions.

The focus on financial institutions is clear, but OneSpan Inc. also targets other sectors where high-assurance security is non-negotiable. This includes government agencies and regulated public sector organizations, leveraging their established trust in compliance-heavy environments.

For large enterprises, especially in sectors like healthcare and technology that demand robust security for digital workflows and identity verification, OneSpan Inc. positions itself as a trusted partner. The company reports serving global blue-chip enterprises, underscoring this high-assurance requirement.

The transition away from physical security devices is a defining characteristic of the current customer base. This shift is evidenced by the expected secular decline in hardware sales, which is projected to be approximately 16% for fiscal year 2025 compared to 2024. This movement is directly tied to the adoption of mobile-first software solutions. The recent acquisition of Nok Nok Labs in Q2 2025, which brought in FIDO2 passwordless software, has already resulted in securing 2 new logos for the S3 product, both in the low 6-figure range in the first four months post-acquisition.

You can see the strategic shift reflected in the subscription growth metrics:

• Subscription revenue grew 12% year-over-year in Q3 2025.
• Annual Recurring Revenue (ARR) reached $180.2 million as of September 30, 2025.
• Net Retention Rate (NRR) was 103% in Q3 2025.

OneSpan Inc. (OSPN) - Canvas Business Model: Cost Structure

You're looking at the cost side of OneSpan Inc.'s business as of late 2025, and it's clear the company is managing a transition. The cost structure reflects heavy investment in software alongside the wind-down of older hardware revenue streams, plus the integration of a recent purchase.

High cost of R&D and software development for new product features

Research and Development (R&D) expenses are a core component of the cost structure, sitting within the segment operating costs. While the search results don't isolate the exact R&D spend for Q3 2025, we know it's a significant driver of the operating expense base, especially as OneSpan Inc. pushes its software and services, which now represent about 80% of the total business. The Security segment operating income declined to $16.7 million, or 41% of revenue, in Q3 2025, partly due to planned investments necessary to advance the software portfolio.

Operating expenses, including increased share-based compensation and advisory fees

Overall operating expenses are under scrutiny, as evidenced by the drop in GAAP Operating Income. For the third quarter of 2025, GAAP Operating Income was $8.2 million, a noticeable step down from $11.3 million in the third quarter of 2024. This pressure on the bottom line is explicitly tied to several factors. Honestly, you can see the impact of integrating the new acquisition, higher share-based compensation, and nonrecurring advisory expenses hitting that operating line directly. Specifically, employer payroll taxes related to employee stock-based award transactions totaled $0.2 million in the third quarter of 2025.

• GAAP Operating Income (Q3 2025): $8.2 million
• Security Segment Operating Margin (Q3 2025): 41% of revenue
• Payroll Taxes on Stock Awards (Q3 2025): $0.2 million

Sales and marketing costs to drive subscription and ARR growth

Sales and marketing costs are categorized as a significant segment expense, necessary to fuel the growth in Annual Recurring Revenue (ARR). The company is focused on this software metric, updating its FY 2025 ARR guidance to a range of $183 million to $187 million. To achieve this, subscription revenue grew 12% year-over-year in Q3 2025 to $37.8 million. These costs are baked into the segment results, supporting the shift away from lower-margin hardware sales.

Cost of goods sold (COGS) for the declining hardware segment

The hardware segment is shrinking, which impacts the overall COGS profile. The company expects hardware revenue for the full year 2025 to be in the range of $49 million to $50 million, representing an approximate 16% decline from 2024. This decline is attributed to customer shifts toward mobile-first authentication solutions in regions like EMEA and APAC. The overall blended gross margin remained stable at 74.4% for Q3 2025, but the lower-margin hardware component is being systematically reduced as a percentage of total revenue.

Acquisition-related costs, such as the Knock Nok Labs purchase

The acquisition of Nok Nok Labs Inc., which closed on June 4, 2025, is a direct cost factor in the current period. The financial results for Q3 2025 include the contributions from this purchase. These acquisition costs are cited as a primary reason for the year-over-year decline in Security segment operating income. Looking at capital deployment in Q3 2025, OneSpan Inc. used $1.9 million for Knock Nok acquisition-related payments.

Here's a quick look at the key financial data points influencing the cost structure as of the latest reporting:

Finance: draft 13-week cash view by Friday.

OneSpan Inc. (OSPN) - Canvas Business Model: Revenue Streams

You're looking at the top-line expectations for OneSpan Inc. (OSPN) heading into the close of 2025. The guidance suggests a clear focus on predictable income streams, which is what investors generally prefer to see.

The full-year 2025 total revenue guidance sits right between $239 million to $241 million. This range gives you a solid anchor point for modeling out the year's performance. Honestly, the real story here is the mix of that revenue.

The Annual Recurring Revenue (ARR) guidance is set from $183 million to $187 million. That recurring piece is key for valuation, showing the stickiness of their software and service contracts.

Here's the quick math on the expected composition of that revenue, which you can map out clearly:

The software and services revenue is projected to fall between $190 million to $192 million, representing roughly 80% of the total expected revenue. This concentration confirms the shift toward subscription and service-based recognition, which is typically higher quality revenue.

Still, you can't ignore the hardware component. Revenue from physical security tokens is guided to be between $49 million to $50 million. What this estimate hides is the timing of large hardware deployments, so keep an eye on quarterly fluctuations there.

To keep things simple for your model, here are the core financial metrics OneSpan Inc. is targeting for the full year 2025:

• Full-year 2025 Total Revenue Guidance: $239 million to $241 million
• Annual Recurring Revenue (ARR) Guidance: $183 million to $187 million
• Software and Services Revenue: $190 million to $192 million
• Hardware Revenue from Physical Security Tokens: $49 million to $50 million
• Adjusted EBITDA Guidance: $72 million to $76 million

The profitability expectation, reflected in the Adjusted EBITDA guidance, is set from $72 million to $76 million for the full year 2025. That shows they are expecting operating leverage to kick in as the higher-margin recurring revenue base grows. Finance: draft 13-week cash view by Friday.