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Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
Segments are defined as components of a company that engage in business activities from which they may earn revenues and incur expenses, and for which separate financial information is available and regularly provided to the chief operating decision maker (CODM), in deciding how to allocate resources and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company's reportable segments are business units that offer different products and services and are as follows:
•Security Solutions. Security Solutions consists of our broad portfolio of software products, software development kits (SDKs), and Digipass authenticator devices that are used to build applications designed to defend against attacks on digital transactions across online environments, devices, and applications. The software products and SDKs included in the Security Solutions segment are on-premises and, to a lesser extent, cloud software products, and include multi-factor authentication, transaction signing, and mobile application security solutions.
•Digital Agreements. Digital Agreements consists of solutions that enable our clients to secure and automate business processes associated with their digital agreement and customer transaction lifecycles that require consent, non-repudiation and compliance. These solutions, which are largely cloud-based, include OneSpan Sign e-signature, OneSpan Notary, and Identity Verification.
Segment operating income (loss) consists of the revenues generated by a segment, less the direct costs of revenue, sales and marketing, research and development expenses, general and administrative expenses, restructuring and other related charges, and amortization of intangible assets expense that are incurred directly by a segment. Sales and marketing and research and development expenses were determined to be significant segment expenses. Unallocated corporate costs include costs related to administrative functions that are performed in a centralized manner that are not directly attributable to a particular segment.
The tables below set forth information about the Company’s operating segments for the three and nine months ended September 30, 2025 and 2024, along with the items necessary to reconcile the segment information to the totals reported in the accompanying condensed consolidated financial statements.
Three Months Ended September 30, 2025
(In thousands, except percentages)Security SolutionsDigital AgreementsCorporate and OtherTotal
Revenue$40,322 $16,734 $— $57,056 
Cost of goods sold10,325 4,728 — 15,053 
Gross profit29,997 12,006 — 42,003 
Gross margin74 %72 %*74 %
Sales and marketing7,202 3,443 746 11,391 
Research and development5,689 2,917 190 8,796 
Other segment items (1)(3)
431 1,487 11,671 13,589 
Operating income (loss) (2)(4)
16,675 4,159 (12,607)8,227 
Interest income, net388 
Other income (expense), net(208)
Income before income taxes$8,407 
Three Months Ended September 30, 2024
(In thousands, except percentages)Security SolutionsDigital AgreementsCorporate and OtherTotal
Revenue$40,837 $15,405 $— $56,242 
Cost of goods sold10,320 4,374 — 14,694 
Gross profit30,517 11,031 — 41,548 
Gross margin75 %72 %*74 %
Sales and marketing6,303 2,819 1,016 10,138 
Research and development3,843 3,671 19 7,533 
Other segment items (1)(3)
171 1,122 11,332 12,625 
Operating income (loss) (2)(4)
20,200 3,419 (12,367)11,252 
Interest income, net624 
Other income (expense), net(1,915)
Income before income taxes$9,961 
Nine Months Ended September 30, 2025
(In thousands, except percentages)Security SolutionsDigital AgreementsCorporate and OtherTotal
Revenue$132,270 $47,995 $— $180,265 
Cost of goods sold33,365 13,839 — 47,204 
Gross profit98,905 34,156 — 133,061 
Gross margin75 %71 %*74 %
Sales and marketing21,402 10,313 2,638 34,353 
Research and development15,966 9,510 692 26,168 
Other segment items (1)(3)
902 3,930 31,793 36,625 
Operating income (loss) (2)(4)
60,635 10,403 (35,123)35,915 
Interest income, net1,812 
Other income (expense), net(886)
Income before income taxes$36,841 

Nine Months Ended September 30, 2024
(In thousands, except percentages)Security SolutionsDigital AgreementsCorporate and OtherTotal
Revenue$136,728 $45,280 $— $182,008 
Cost of goods sold38,108 14,616 — 52,724 
Gross profit98,620 30,664 — 129,284 
Gross margin72 %68 %*71 %
Sales and marketing18,380 11,940 3,254 33,574 
Research and development11,941 12,118 74 24,133 
Other segment items (1)(3)
1,529 3,606 33,443 38,578 
Operating income (loss) (2)(4)
66,770 3,000 (36,771)32,999 
Interest income, net1,246 
Other income (expense), net(1,293)
Income before income taxes$32,952 
*Percentage not meaningful.
(1)     Security Solutions other segment items includes general and administrative expense, restructuring and other related charges, and amortization of intangibles for the three months ended and September 30, 2025 and 2024, and for the nine months ended September 30, 2025 and 2024.
(2)     Security Solutions operating income includes $0.4 million and $0.7 million of total amortization and depreciation expense for the three and nine months ended September 30, 2025, respectively, and $0.2 million and $0.6 million for the three and nine months ended September 30, 2024, respectively.
Security Solutions operating income includes less than $0.1 million and $0.3 million of restructuring and other related charges for the three and nine months ended September 30, 2025, respectively. Security Solutions operating income includes $0.2 million and $1.6 million of restructuring and other related charges for the three and nine months ended September 30, 2024, respectively.
(3)     Digital Agreements other segment items includes general and administrative expense, restructuring and other related charges, and amortization of intangibles for the three and nine months ended September 30, 2025 and 2024.
(4) Digital Agreements operating income includes $1.9 million and $5.5 million of total amortization and depreciation expense for the three and nine months ended September 30, 2025, respectively. Digital Agreements operating income includes $1.5 million and $4.6 million of total amortization and depreciation expense for the three and nine months ended September 30, 2024, respectively.
Digital Agreements operating income includes $0.0 million and $0.2 million of restructuring and other related charges for the three and nine months ended September 30, 2025, respectively. Digital Agreements operating income includes $0.4 million and $1.4 million of restructuring and other related charges for the three and nine months ended September 30, 2024, respectively.
The following tables illustrate the disaggregation of revenues by category and services, including a reconciliation of the disaggregated revenues to revenues from the Company’s two reportable operating segments for the three and nine months ended September 30, 2025 and 2024:
Three Months Ended September 30,
20252024
(In thousands)Security SolutionsDigital AgreementsSecurity SolutionsDigital Agreements
Subscription$21,106 $16,674 $18,603 $15,045 
Maintenance and support8,860 26 9,317 327 
Professional services and other (1)
626 34 820 33 
Hardware products9,730 — 12,097 — 
Total Revenue$40,322 $16,734 $40,837 $15,405 
Nine Months Ended September 30,
20252024
(In thousands)Security SolutionsDigital AgreementsSecurity SolutionsDigital Agreements
Subscription$69,780 $47,793 $59,642 $43,641 
Maintenance and support25,510 75 29,125 1,321 
Professional services and other (1)
2,171 127 3,548 318 
Hardware products34,809 — 44,413 — 
Total Revenue$132,270 $47,995 $136,728 $45,280 
(1) Professional services and other includes perpetual software licenses revenue, which was immaterial for the three and nine months ended September 30, 2025 and approximately 1% of total revenue for the three and nine months ended September 30, 2024.
Asset information by segment is not reported to or reviewed by the CODM to allocate resources, and therefore, the Company has not disclosed asset information for the segments.