v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
Segments are defined as components of a company that engage in business activities from which they may earn revenues and incur expenses, and for which separate financial information is available and regularly provided to the chief operating decision maker (CODM), in deciding how to allocate resources and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company's reportable segments are business units that offer different products and services and are as follows:
•Cybersecurity. Cybersecurity, formerly Security Solutions, consists of our broad portfolio of software products, software development kits ("SDKs") and Digipass authenticator devices that are used to build applications designed to defend against attacks on digital transactions across online environments, devices, and applications. The software products and SDKs included in the Cybersecurity segment are delivered through on-premises and cloud-based deployment models and include standards-based authentication technologies such as Fast Identity Online ("FIDO") authentication and passkeys, multi-factor authentication, transaction signing solutions and mobile application security.
•Digital Agreements. Digital Agreements consists of solutions that enable our clients to secure and automate business processes associated with their digital agreement and customer transaction lifecycles that require consent, non-repudiation and compliance. These solutions, which are cloud-based, include OneSpan Sign e-signature, OneSpan Notary, and Identity Verification.
Segment operating income (loss) consists of the revenues generated by a segment, less the direct costs of revenue, sales and marketing, research and development expenses, general and administrative expenses, restructuring and other related charges, and amortization of intangible assets expense that are incurred directly by a segment. Sales and marketing and research and development expenses were determined to be significant segment expenses. Unallocated corporate costs include costs related to administrative functions that are performed in a centralized manner that are not directly attributable to a particular segment.
The tables below set forth information about the Company’s operating segments for the three and six months ended June 30, 2026 and 2025, along with the items necessary to reconcile the segment information to the totals reported in the accompanying condensed consolidated financial statements.
Three Months Ended June 30, 2026
(In thousands, except percentages)CybersecurityDigital AgreementsCorporate and OtherTotal
Revenue$40,928 $19,538 $— $60,466 
Cost of goods sold11,037 4,946 — 15,983 
Gross profit29,891 14,592 — 44,483 
Gross margin73 %75 %*74 %
Sales and marketing8,896 3,318 859 13,073 
Research and development6,315 3,064 529 9,908 
Other segment items (1)(3)
861 1,238 10,662 12,761 
Operating income (loss) (2)(4)
13,819 6,972 (12,050)8,741 
Interest (expense) income, net(154)
Other income (expense), net47 
Income before income taxes$8,634 
Three Months Ended June 30, 2025
(In thousands, except percentages)CybersecurityDigital AgreementsCorporate and OtherTotal
Revenue$44,235 $15,608 $— $59,843 
Cost of goods sold11,413 4,463 — 15,876 
Gross profit32,822 11,145 — 43,967 
Gross margin74 %71 %*73 %
Sales and marketing7,329 3,467 709 11,505 
Research and development5,358 3,587 499 9,444 
Other segment items (1)(3)
336 1,212 10,964 12,512 
Operating income (loss) (2)(4)
19,799 2,879 (12,172)10,506 
Interest (expense) income, net732 
Other income (expense), net(669)
Income before income taxes$10,569 
Six Months Ended June 30, 2026
(In thousands, except percentages)CybersecurityDigital AgreementsCorporate and OtherTotal
Revenue$89,475 $36,938 $— $126,413 
Cost of goods sold23,677 9,739 — 33,416 
Gross profit65,798 27,199 — 92,997 
Gross margin74 %74 %*74 %
Sales and marketing17,385 6,750 1,618 25,753 
Research and development12,255 5,884 846 18,985 
Other segment items (1)(3)
1,552 2,311 20,838 24,701 
Operating income (loss) (2)(4)
34,606 12,254 (23,302)23,558 
Interest (expense) income, net(173)
Other income (expense), net(339)
Income before income taxes$23,046 

Six Months Ended June 30, 2025
(In thousands, except percentages)CybersecurityDigital AgreementsCorporate and OtherTotal
Revenue$91,948 $31,261 $— $123,209 
Cost of goods sold23,041 9,110 — 32,151 
Gross profit68,907 22,151 — 91,058 
Gross margin75 %71 %*74 %
Sales and marketing14,201 6,870 1,891 22,962 
Research and development10,277 6,593 502 17,372 
Other segment items (1)(3)
471 2,443 20,122 23,036 
Operating income (loss) (2)(4)
43,958 6,245 (22,515)27,688 
Interest (expense) income, net1,424 
Other income (expense), net(678)
Income before income taxes$28,434 
*Percentage not meaningful.
(1) Cybersecurity other segment items includes general and administrative expense and amortization of intangibles for the three months ended June 30, 2026, and general and administrative expense, write-off of assets, and amortization of intangibles for the six months ended June 30, 2026. Cybersecurity other segment items includes general and administrative expense and restructuring and other related charges for the three and six months ended June 30, 2025.
(2) Cybersecurity operating income includes $1.0 million and $1.7 million of total amortization and depreciation expense for the three and six months ended June 30, 2026, respectively. Cybersecurity operating income includes $0.2 million and $0.4 million of total amortization and depreciation expense for the three and six months ended June 30, 2025, respectively.
Cybersecurity operating income does not include any restructuring and other related charges for the three and six months ended June 30, 2026. Cybersecurity operating income includes $0.1 million and $0.2 million of restructuring and other related charges for the three and six months ended June 30, 2025, respectively.
(3) Digital Agreements other segment items includes general and administrative expense and amortization of intangibles for the three and six months ended June 30, 2026. Digital Agreements other segment items includes general and administrative expense and restructuring and other related charges for the three and six months ended June 30, 2025.
(4) Digital Agreements operating income includes $2.2 million and $4.3 million of total amortization and depreciation expense for the three and six months ended June 30, 2026, respectively. Digital Agreements operating income includes $1.8 million and $3.5 million of total amortization and depreciation expense for the three and six months ended June 30, 2025, respectively.
Digital Agreements operating income does not include any restructuring and other related charges for the three and six months ended June 30, 2026.
Digital Agreements operating income includes $0.1 million and $0.2 million of restructuring and other related charges for the three and six months ended June 30, 2025, respectively.
The following tables illustrate the disaggregation of revenues by category and services, including a reconciliation of the disaggregated revenues to revenues from the Company’s two reportable operating segments for the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30,
20262025
(In thousands)CybersecurityDigital AgreementsCybersecurityDigital Agreements
Subscription (1)
$27,186 $19,523 $26,532 $15,599 
Perpetual maintenance and services2,303 15 3,688 9 
Hardware products11,439 — 14,015 — 
Total Revenue$40,928 $19,538 $44,235 $15,608 
Six Months Ended June 30,
20262025
(In thousands)CybersecurityDigital AgreementsCybersecurityDigital Agreements
Subscription (1)
$62,499 $36,877 $59,655 $31,168 
Perpetual maintenance and services4,950 61 7,215 93 
Hardware products22,026 — 25,078 — 
Total Revenue$89,475 $36,938 $91,948 $31,261 
(1) Cybersecurity Subscription revenue during the three and six months ended June 30, 2025 includes $5.9 million and $11.0 million, respectively, of term maintenance that has been reclassified from maintenance and services to align with the revised presentation of revenue described in Note 4 below. Digital Agreements Subscription revenue during the three and six months ended June 30, 2025 includes less than $0.1 million for all periods related to the reclassification from maintenance and services to align with the revised presentation of revenue.
Asset information by segment is not reported to or reviewed by the CODM to allocate resources, and therefore, the Company has not disclosed asset information for the segments.