OneSpan Inc. Common Stock (OSPN)

FairStock Score: 87/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking at OneSpan as a small-cap security and digital-agreement software company. The first thing I notice is the turnaround: in FY2023 it reported a net loss of $29.8 million, then net income of $57.1 million in FY2024 and $72.9 million in FY2025. That is real improvement, and the balance sheet is conservative, with a debt-to-equity ratio of 0.05 and an Altman Z-Score of 4.66, which FairStock calculates. Free cash flow is $40.0 million trailing twelve months, a 6.0% FCF yield at the 2026-10-13 close, and the dividend yield is 2.97%. But the operating picture is mixed. Revenue growth is only 1.04%, FY2025 revenue of $243.2 million matched FY2024, and the latest filed quarter, fiscal Q2 2026, ended 2026-06-30, had $60.5 million revenue and $6.8 million net income, down from $8.3 million in fiscal Q2 2025. The supplied data shows profit growth of -18.71%. The returns are uneven: ROE is 26.51%, but ROCE is 7.82%, and the Piotroski F-Score is 3/9. Valuation at $18.20 gives a P/E of 10.28, P/B of 2.45, EV/EBITDA of 11.06, and a Graham Number of $17.20, so the margin of safety is -5.81%. The stock is near its 52-week high of $18.83. I see a financially safer turnaround, but not yet a wide-moat compounder. The price looks fair-to-full unless growth and margins reaccelerate.

In plain English: OneSpan makes security and digital signature software for businesses, mainly around authentication and electronic agreements. The company has become profitable again and carries little debt, but sales are almost flat and profit slipped in the latest quarter. At $18.20 a share, the price is near its 52-week high and looks a little expensive compared with its recent earnings and asset values.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer