OneSpan and SCSK Corporation announced a partnership to deploy a cloud‑based FIDO authentication solution for the mobile banking platform of Sumitomo Mitsui Trust Bank (SuMiTB), Japan’s largest trust bank. The deployment is the first time OneSpan’s cloud‑based FIDO technology has been implemented in Japan, and it is the first such deployment for a trust bank, positioning the solution to protect customers from account takeover and phishing attacks.
The deal comes at a time when the Financial Services Agency (FSA) has updated its supervisory guidelines to require all financial institutions to use phishing‑resistant authentication. By integrating FIDO directly into SuMiTB’s mobile transactions, the bank will meet the new regulatory mandate and strengthen its security posture against the estimated ¥690 billion in account‑takeover fraud losses reported for 2025.
From a strategic perspective, the partnership marks a milestone for OneSpan’s expansion in the Japanese market and demonstrates the scalability of its cloud‑based authentication platform. The collaboration also creates cross‑sell opportunities with SuMiTB’s extensive customer base, many of whom are large financial institutions that could adopt OneSpan’s broader security and digital‑agreement solutions. The deal supports OneSpan’s transition to a software‑centric model, a shift that has already seen the company’s software revenue grow to over 80 % of total revenue.
OneSpan’s latest quarterly results provide context for the significance of the deal. In Q3 2025, the company generated $57.1 million in revenue, a 1 % year‑over‑year increase from $56.2 million in Q3 2024. Subscription revenue grew 12 %, offsetting a decline in legacy hardware revenue. Operating income fell 27 % to $8.2 million, largely due to the hardware revenue decline, while Adjusted EBITDA rose 3 % to $17.5 million, reflecting improved operating leverage. Earnings per share of $0.33 beat the consensus estimate of $0.29 by 13.8 %, a result driven by strong subscription growth and disciplined cost management.
CEO Victor Limongelli highlighted the company’s “strong subscription growth, profitability, and cash generation” as evidence of the effectiveness of its software‑centric strategy. He emphasized that the firm’s focus on high‑margin software solutions, such as the newly acquired Nok Nok Labs’ FIDO capabilities, positions OneSpan to capture a larger share of the global digital‑security market.
OneSpan operates in a competitive landscape that includes Microsoft, Okta, and Entrust. The acquisition of Nok Nok Labs in June 2025 has bolstered OneSpan’s FIDO expertise, giving it a technical edge in the passwordless authentication space. The company’s shift away from hardware toward recurring software revenue is reflected in its financials, where software revenue now accounts for more than 80 % of total revenue.
Investors responded positively to the earnings beat, noting that the EPS outperformance was a sign of effective cost control amid a modest revenue miss. The company’s guidance for the full year 2025 remains unchanged, with revenue expected between $239 million and $241 million, a slight downward revision that signals caution about near‑term demand but confidence in long‑term profitability.
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