OneSpan Inc.OSPN
OneSpan Inc. Revenue Disclosure
Revenue
Disaggregation of Revenues
The following tables present the Company's revenues disaggregated by major products and services, geographical region and timing of revenue recognition.
Revenue by major products and services
| Years Ended December 31, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Subscription | $ | 156,128 | $ | 139,403 | $ | 106,436 | |||||||||||
| Maintenance and support | 34,826 | 40,078 | 46,383 | ||||||||||||||
| Professional services and other | 3,119 | 4,847 | 6,321 | ||||||||||||||
| Hardware products | 49,107 | 58,851 | 75,966 | ||||||||||||||
| Total Revenue | $ | 243,180 | $ | 243,179 | $ | 235,106 | |||||||||||
Revenue by location of customer for the years ended December 31, 2025, 2024, and 2023
| Years Ended December 31, | |||||||||||||||||
| (In thousands, except percentages) | 2025 | 2024 | 2023 | ||||||||||||||
| EMEA | $ | 102,604 | $ | 108,555 | $ | 111,568 | |||||||||||
| Americas | 95,709 | 86,803 | 80,057 | ||||||||||||||
| APAC | 44,867 | 47,821 | 43,481 | ||||||||||||||
| Total revenue | $ | 243,180 | $ | 243,179 | $ | 235,106 | |||||||||||
| % of Total Revenue | |||||||||||||||||
| EMEA | 42 | % | 44 | % | 47 | % | |||||||||||
| Americas | 39 | % | 36 | % | 34 | % | |||||||||||
| APAC | 19 | % | 20 | % | 19 | % | |||||||||||
Timing of revenue recognition
| Years Ended December 31, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Products and Licenses transferred at a point in time | $ | 129,892 | $ | 132,109 | $ | 130,848 | |||||||||||
| Services transferred over time | 113,288 | 111,070 | 104,258 | ||||||||||||||
| Total Revenue | $ | 243,180 | $ | 243,179 | $ | 235,106 | |||||||||||
Contract balances
The following table provides information about receivables, contract assets and contract liabilities from contracts with customers as of December 31, 2025 and 2024:
| (In thousands) | December 31, | ||||||||||
| 2025 | 2024 | ||||||||||
| Receivables, inclusive of trade and unbilled | $ | 55,999 | $ | 56,229 | |||||||
| Contract Assets (current and non-current) | $ | 20,136 | $ | 10,686 | |||||||
| Contract Liabilities (deferred revenue current and non-current) | $ | 74,180 | $ | 70,855 | |||||||
Contract assets relate primarily to multi-year term license arrangements and the remaining contractual billings. These contract assets are transferred to receivables when the right to billing occurs over a 2- to 5-year period. The contract liabilities primarily relate to the advance consideration received from customers for subscription and maintenance services. Revenue is recognized for these services over time.
As a practical expedient, the Company does not adjust the promised amount of consideration for the effects of a significant financing component when it is expected, at contract inception, that the period between the Company's transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less. Extended payment terms are not typically included in contracts with customers.
Revenue recognized during the year ended December 31, 2025 included $66.1 million that was included on the December 31, 2024 consolidated balance sheet in contract liabilities.
Transaction price allocated to the remaining performance obligations
Remaining performance obligations represent the revenue that is expected to be recognized in future periods related to performance obligations that are unsatisfied, or partially unsatisfied, as of the end of the period. The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2025:
| (In thousands) | 2026 | 2027 | 2028 | Beyond 2028 | Total | ||||||||||||||||||||||||
| Future revenue related to current unsatisfied performance obligations | $ | 62,840 | $ | 29,524 | $ | 12,503 | $ | 1,192 | $ | 106,059 | |||||||||||||||||||
The Company applies practical expedients and does not disclose information about remaining performance obligations (a) that have original expected durations of one year or less, or (b) where revenue is recognized as invoiced.
Costs of obtaining a contract
The Company incurs incremental costs related to commissions, which can be directly tied to obtaining a contract. The Company capitalizes commissions associated with certain new contracts and amortizes the costs over a period of up to seven years, which is the determined benefit period based on the estimated customer relationship period or customer benefit period. The Company determined the period of benefit by taking into consideration the customer contracts, its technology and other factors, including customer attrition. Commissions and amortization expense are included in “Sales and marketing” expense in the consolidated statements of operations.
Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period for the assets that the Company otherwise would have recognized is one year or less. These costs are included in the “Sales and marketing” caption in the consolidated statements of operations.
The following tables provide information related to the capitalized costs and amortization recognized in the current and prior period within "Other current assets" and "Other assets" on the consolidated balance sheets:
| December 31, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Capitalized costs to obtain contracts, current | $ | 5,223 | $ | 4,478 | |||||||
| Capitalized costs to obtain contracts, non-current | $ | 12,558 | $ | 12,431 | |||||||
| (In thousands) | Years Ended December 31, | ||||||||||
| 2025 | 2024 | ||||||||||
| Amortization of capitalized costs to obtain contracts | $ | 4,970 | $ | 4,007 | |||||||
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 | |
| 2018 | Mar 15, 2019 | |
| 2017 | Mar 8, 2018 | |
| 2016 | Mar 10, 2017 | |
| 2015 | Feb 29, 2016 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.