OneSpan (OSPN) Q1 2026 earnings snapshot

OneSpan (OSPN) has opened 2026 with Q1 revenue of US$65.9 million and basic EPS of US$0.31, setting the tone for investors assessing how the business is converting its software demand into bottom line results. Over the past year, the company has seen trailing twelve month revenue sit at US$245.8 million with basic EPS of US$1.84, alongside earnings growth of 20.4% and net margins at 28.5% compared to 24% a year earlier. This provides useful context for the latest quarterly print. Taken together, the numbers point to a story where profitability and margins are front and center for investors weighing the new results against the recent earnings momentum.

See our full analysis for OneSpan.

With the Q1 scorecard on the table, the next step is to see how these results line up with the dominant narratives about OneSpan, both in terms of growth potential and the risks investors are watching most closely.

Margins And Profitability Stand Out

• On a trailing basis, OneSpan earned US$69.96 million in net income on US$245.76 million of revenue, which lines up with the 28.5% net margin and 20.4% earnings growth over the last year that investors have been watching.
• Supporters with a bullish view point to this combination of a 28.5% margin and 20.4% trailing earnings growth as evidence that the software transition and higher recurring revenue are feeding through to the bottom line. At the same time, the bullish narrative also acknowledges that analyst forecasts in the data set call for earnings to shrink on average by about 26% per year over the next three years, which sits in clear tension with the recent profitability figures.

🐂 OneSpan Bull Case

Low 6.1x P/E Versus Software Peers

• The shares trade on a trailing P/E of 6.1x, which is well below the US Software industry average of 28.8x and the peer average of 46.8x. The price of US$11.54 is also below a DCF fair value of about US$18.47 based on the supplied model.
• Investors taking the bearish side argue that this low P/E and discount to the US$18.47 DCF fair value are explained by the same forecasts that show earnings declining by roughly 26% per year over the next three years and revenue growing only 1.9% per year versus 11% for the broader US market. For that cautious view, the key question is whether the market is correctly focusing on those forward pressures rather than the recent 20.4% trailing earnings growth and 28.5% net margin.

🐻 OneSpan Bear Case

Q1 2026 EPS In Context Of Recent Volatility

• Q1 2026 basic EPS of about US$0.31 sits between the recent quarterly extremes of US$0.17 and US$1.15 over the last four reported quarters, while quarterly revenue over that same stretch has moved in a narrower band from US$57.06 million to US$65.95 million.
• Consistent with a balanced or consensus style narrative, this pattern of relatively steady revenue in the US$57 million to US$66 million range alongside much more volatile EPS numbers ties back to the bigger storyline, where bulls highlight margin progress and high quality trailing earnings and bears focus on forecasts that show future earnings pressure despite that recent margin improvement.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for OneSpan on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of optimism and caution feels familiar, that is the point. Now is a good time to review the numbers yourself and weigh up the 3 key rewards and 2 important warning signs

See What Else Is Out There

OneSpan’s low 6.1x P/E, forecast 26% annual earnings decline and modest 1.9% revenue growth expectations highlight concerns about its longer term earnings power.

If those pressures make you question sticking with the story, compare this setup with companies in the 52 high quality undervalued stocks that pair lower valuations with stronger growth profiles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.