OneSpan Inc. (NASDAQ: OSPN) saw its shares plummet 13.86% in after-hours trading on Thursday following the release of its third-quarter earnings report. The authentication software provider's revenue fell short of analyst expectations, and the company lowered its full-year guidance, sparking investor concern.
For the third quarter, OneSpan reported revenue of $57.056 million, a 1.45% increase year-over-year but missing the analyst consensus estimate of $58.181 million. Despite the revenue shortfall, the company's adjusted earnings per share of $0.33 beat expectations of $0.29. Subscription revenue, a key growth driver, increased by 12% to $37.8 million. However, operating income decreased by 27% compared to the same period last year due to higher operating costs.
Adding to investor worries, OneSpan significantly reduced its full-year 2025 guidance. The company now expects revenue between $239 million and $241 million, down from the previous forecast of $245 million to $251 million. Annual Recurring Revenue (ARR) guidance was also cut to between $183 million and $187 million, from the earlier projection of $186 million to $192 million. This lowered outlook, combined with the Q3 revenue miss, likely contributed to the sharp decline in OneSpan's stock price during after-hours trading.
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