OneSpan Inc. reported its financial results for the first quarter ended March 31, 2025, on May 1, 2025, achieving a record high Adjusted EBITDA of $23 million. This represents a 15% increase from $20 million in Q1 2024 and reached a record 36% of revenue, demonstrating continued operational excellence. The company also generated $29.4 million in cash from operations, ending the quarter with $105.2 million in cash and cash equivalents.
Annual Recurring Revenue (ARR) grew 9% to $168.4 million, with a Net Retention Rate (NRR) of 107%, primarily driven by customer expansion contracts. Subscription revenue increased by 9% in the quarter, fueled by demand for software authentication, app shielding, and e-signature solutions. This growth occurred despite a slight 2% decline in total revenue to $63.4 million, attributed to anticipated hardware revenue reductions and headwinds from sunsetted products.
The company affirmed its full-year 2025 guidance, expecting revenue in the range of $245 million to $251 million, ARR between $180 million and $186 million, and Adjusted EBITDA from $72 million to $76 million. OneSpan also declared its second quarterly cash dividend of $0.12 per share, to be paid in the current quarter, reinforcing its balanced capital allocation strategy. The company noted potential impacts from tariffs and foreign currency fluctuations but expressed confidence in its core business.
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