OneSpan Inc.OSPN
OneSpan Inc. Leases Disclosure
Leases
The Company leases certain real estate and automobiles, which are classified as operating leases. The real estate leases have remaining lease terms of to eight years. Automobile leases have a remaining lease term of to five years.
Some of the Company's leases include options to renew, with renewal terms that can extend the lease from to five years. The exercise of a lease renewal option typically occurs at the discretion of both parties. Certain leases include options to purchase the leased property at fair value. For purposes of calculating operating lease liabilities, lease terms are deemed not to include options to extend the lease termination until it is reasonably certain that the Company will exercise that option.
Operating lease cost details for the years ended December 31, 2025, 2024, and 2023 are as follows:
| Years Ended December 31, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Building rent | $ | 964 | $ | 1,153 | $ | 1,638 | |||||||||||
| Automobile rentals | 1,304 | 1,349 | 1,132 | ||||||||||||||
| Total net operating lease costs | $ | 2,268 | $ | 2,502 | $ | 2,770 | |||||||||||
Short-term lease costs and variable lease costs recognized during the years ended December 31, 2025, 2024, and 2023 are immaterial.
Supplemental consolidated balance sheet information related to operating leases as of December 31, 2025 and 2024 is as follows:
| December 31, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Leases | |||||||||||
| Assets | $ | 7,356 | $ | 7,725 | |||||||
| Operating lease right-of-use assets | $ | 7,356 | $ | 7,725 | |||||||
| Liabilities | |||||||||||
| Current | |||||||||||
| $ | 2,262 | $ | 2,351 | ||||||||
| Non-current | |||||||||||
| 6,139 | 6,932 | ||||||||||
| Total lease liabilities | $ | 8,401 | $ | 9,283 | |||||||
As of December 31, 2025 and 2024, the weighted average remaining lease term for operating leases is 4.5 years and 5.2 years, respectively, and the weighted-average discount rate for operating leases is 6% for both period ends.
Supplemental consolidated cash flow information related to leases is as follows:
| Years Ended December 31, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Supplemental cash flow and other information related to leases: | |||||||||||||||||
| Operating cash payments from operating leases | $ | 2,629 | $ | 2,455 | $ | 2,836 | |||||||||||
| ROU assets obtained in exchange for new operating lease liabilities | $ | 717 | $ | 3,462 | $ | 2,650 | |||||||||||
In October 2023, the Company signed a lease agreement to lease new office space in Brussels. The lease agreement consisted of a nine year lease and commenced in the second quarter of 2024.
As part of its multiyear restructuring plan (see Note 20, Restructuring and Other Related Charges), the Company vacated its Chicago office space and abandoned the underlying leases during June 2023. The Company accrued a $1.4 million early lease termination fee, which is reflected in "Restructuring and other related charges" on the consolidated statements of operations for the year ended December 31, 2023. The underlying lease right-of-use asset and lease liability for the Chicago leased office space were written off, and a $0.3 million gain related to rent concessions and tenant improvement allowances was recorded in "Restructuring and other related charges" on the consolidated statements of operations for the year ended December 31, 2023. In August 2024, the Company finalized its early termination agreement with the landlord to terminate and release any further obligations for either party.
In September 2023, the Company vacated its former Brussels office and terminated the lease as of September 30, 2023. The Company accrued a $0.3 million early lease termination fee, which is reflected in "Restructuring and other related charges" on the consolidated statements of operations for the year ended December 31, 2023. The underlying lease right-of-use asset and lease liability for the Brussels leased office space were written off, and a $0.1 million loss related to rent concessions and tenant improvement allowances was recorded in "Restructuring and other related charges" on the consolidated statements of operations for the year ended December 31, 2023.
Maturities of the Company's operating leases as of December 31, 2025 are as follows:
| (In thousands) | |||||
| 2026 | $ | 2,631 | |||
| 2027 | 2,174 | ||||
| 2028 | 2,058 | ||||
| 2029 | 1,210 | ||||
| 2030 | 490 | ||||
| Thereafter | 1,023 | ||||
| Less: imputed interest | (1,185) | ||||
| Total lease liabilities | $ | 8,401 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Mar 6, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Mar 16, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.