Financial Analysis

Commitments and Contingencies The Company leases office space and automobiles under operating lease agreements. See Note 13, Leases, for future minimum rental payments required under non-cancelable leases. At December 31, 2025, the Company has purchase obligations of $11.9 million for other software agreements related to the administration of the Company's business which range from 1 to 3 years. The Company is subject to certain legal proceedings and claims incidental to the operations of its business. The Company is also subject to certain other legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully adjudicated. The Company currently does not anticipate that these matters, if resolved against the Company, will have a material adverse impact on its financial results or financial condition. The Company accrues loss contingencies when losses become probable and are reasonably estimable. If the reasonable estimate of the loss is a range and no amount within the range is a better estimate, the minimum amount of the range is recorded as a liability. As of December 31, 2025, the Company has recorded an accrual of $0.3 million for loss contingencies related to all probable losses where a reasonable estimate could be made. The Company does not accrue for contingent losses that, in the judgment of the Company, are considered to be reasonably possible, but not probable. Although the Company intends to defend its legal matters vigor …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt On June 23, 2025, the Company entered into a $100.0 million credit agreement (the Credit Agreement"") with MUFG Bank, Ltd (""MUFG""), as administrative agent, swingline lender and letter of credit issuer, and other lenders party thereto. The Credit Agreement provides for a $100.0 million revolving credit facility with a $10.0 million letter of credit sublimit and a $10.0 million swingline loan sublimit. As of December 31, 2025, the Company had outstanding letters of credit of $0.4 million and no borrowings outstanding under the Credit Agreement. Any outstanding letters of credit reduce the availability of funds to borrow. The proceeds of borrowings under the Credit Agreement may be used for general corporate purposes. The Company may borrow, repay and reborrow funds under the revolving credit facility until its maturity on June 23, 2030. Revolving loans may be prepaid by the Company, subject to notice and minimum threshold requirements, without penalty or premium, subject to customary breakage costs. The Company is required to pay a commitment fee on the daily unused amount of the revolving credit facility commitments ranging from 0.25% to 0.30% per annum, depending on its consolidated net leverage ratio. At the Company's election, borrowings under the credit facility will bear interest at either (i) the base rate, defined as the highest of (a) the MUFG prime rate, (b) the federal funds rate plus 0.50%, and (c) term SOFR plus 1.00%, in each case, subject to a 1.00% floo …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

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

DisaggregationOfRevenueTableTextBlock

"Share Compensation Plans The Company has a share-based compensation plan, the OneSpan Inc. 2019 Omnibus Incentive Plan (Plan), under which the board of directors may grant share-based awards including restricted stock units (RSUs) and performance restricted stock units (PSUs). The Plan may provide performance incentives to employees and non-employee directors, consultants and other key persons of the Company. The plan is administered by the Management Development and Compensation Committee (the ""Compensation Committee"") of the board of directors and is intended to be a non-qualified plan. As of December 31, 2025, the remaining number of shares allowed to be issued under the Plan was approximately 2.1 million shares of the Companys common stock, representing 6% of the issued and outstanding shares of the Company as of such date . The following table presents share-based compensation expense and other long-term incentive plan compensation expense for the years ended December 31, 2025, 2024, and 2023. Years Ended December 31, (In thousands) 2025 2024 2023 Share-based compensation $ 11,196 $ 8,955 $ 14,252 Other long-term incentive plan compensation (1) 62 217 310 Total compensation $ 11,258 $ 9,172 $ 14,562 (1) Other long-term incentive compensation consists of cash incentive grants awarded to employees located in jurisdictions where the Company does not issue share-based compensation due to tax, regulatory or similar reasons. Time-Based Restricted Stock Units Under the OneSp …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements The fair values of cash equivalents, accounts receivables, and accounts payable approximate their carrying amounts due to their short duration. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entitys pricing base upon its own market assumptions. The estimated fair value of financial instruments has been determined by using available market information and appropriate valuation methodologies, as defined in ASC 820, Fair Value Measurements . The fair value hierarchy consists of the following three levels: Level 1 Inputs are quoted prices in active markets for identical assets or liabilities. Level 2 Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived primarily from or corroborated by observable market data. Level 3 Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The following tables summarize the Companys financial assets by level in the fair value hierarchy, which are …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Income Taxes Income (loss) before income taxes was generated in the following jurisdictions: Years Ended December 31, (In thousands) 2025 2024 2023 U.S. $ 30,741 $ 41,309 $ (13,526) Non-U.S. 18,621 5,178 (13,787) Total $ 49,362 $ 46,487 $ (27,313) For the years ended December 31, 2025 and 2024, domestic income excludes intercompany dividend income of $63.5 million and $8.6 million, respectively. For the year ended December 31, 2023, there was no intercompany dividend included in domestic income. The (benefit) provision for income taxes consists of the following: Years Ended December 31, (In thousands) 2025 2024 2023 Current: Federal $ (2) $ 525 $ 2 State 299 266 54 Foreign 6,543 4,906 2,473 Total current 6,840 5,697 2,529 Deferred: Federal 4,919 (16,771) 361 State (154) (2,318) (47) Foreign (35,147) 2,797 (357) Total deferred (30,382) (16,292) (43) Total $ (23,542) $ (10,595) $ 2,486 For 2025, 2024, and 2023, the Company's U.S. federal statutory rate was 21%. The differences between the income tax (benefit) and provisions computed using the statutory federal income tax rate and the (benefit) provisions for income taxes reported in the consolidated statements of operations are as follows: (In thousands, except percentages) December 31, 2025 US federal statutory income tax rate $ 10,366 21.0 % Domestic state and local income taxes, net of federal effect (a) 145 0.3 % Domestic federal Tax credits Foreign tax credits (594) (1.2) % Other credits (277) (0.6) % Nontaxable and non d …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Leases The Company leases certain real estate and automobiles, which are classified as operating leases. The real estate leases have remaining lease terms of one to eight years. Automobile leases have a remaining lease term of one to five years. Some of the Company's leases include options to renew, with renewal terms that can extend the lease from one 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 Operating lease liabilities $ 2,262 $ 2,351 Non-current Operating l …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that are adopted by the Company as of the specified effective date. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures , which is intended to enhance the transparency and decision usefulness of income tax disclosures. Public business entities are required to adopt for annual fiscal periods beginning after December 15, 2024 and early adoption is permitted. The Company adopted the standard effective December 31, 2025 (see Note 14, Income Taxes ). In November 2024, the FASB issued ASU 2024-03, Comprehensive Income (Topic 220) Disaggregation of Income Statement Expenses , to improve financial reporting by requiring disclosures in the notes to financial statements about specific types of expenses included in the expense captions presented on the face of the statement of operations. The requirements of the ASU are effective for annual reporting periods beginning after December 15, 2026, and for interim reporting periods beginning after December 15, 2027, with early adoption permitted. The requirements are able to be applied prospectively with the option for retrospective application. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements and related disclosures. In September 202 …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Employee Benefit Plans U.S. Plan The Company maintains a defined contribution pension plan for U.S. employees established pursuant to Section 401(k) of the Internal Revenue Code. The plan allows voluntary employee contributions and discretionary employer contributions. For the years ended December 31, 2025, 2024, and 2023, the Company expensed employer-match contributions of $0.5 million, $0.2 million, and $0.6 million, respectively. Non-U.S. Plans The Company is subject to national mandatory pension systems and other compulsory plans, or makes contributions to social pension funds based on local regulations. When the Company's obligation is limited to the payment of the contribution into these plans or funds, the recognition of such liabilities is not required. In addition, the Company has, in some countries, defined benefit plans consisting of final retirement salary and committed pension payments. In Switzerland, the pension plan is a cash balance plan where contributions are expressed as a percentage of the pensionable salary. Contributions to Swiss plans are paid by the employees and the employer. The pension plan guarantees the amount accrued on the members savings accounts, as well as a minimum interest on those savings accounts. The plan assets are held in guaranteed investment contracts. The Company also maintains a pension plan for Belgian employees, in compliance with Belgian law. Contributions to Belgium plans are paid by the employees and the employer. Certain fe …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"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 Contra …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"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 is evaluated regularly by the chief operating decision maker (""CODM"") in deciding how to allocate resources and in assessing performance. The Companys CODM is its Chief Executive Officer. The Company's reportable segments are divisions that offer different products and services and are as follows: Cybersecurity. Cybersecurity, formerly 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 Cybersecurity segment are delivered through on-premises and cloud-based deployment models and include standards-based authentication technologies such as Fast Identity Online (""FIDO"") authentication and passkeys, multi-factor authentication, transaction signing solutions and mobile application security. 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 cloud- …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents are stated at cost plus accrued interest, which approximates fair value. Cash equivalents are high-quality short-term money market instruments and commercial paper with maturities at acquisition of three months or less. Cash and cash equivalents are held by a number of U.S. and non-U.S. commercial banks and money market investment funds. The Company was a party to lease agreements that required letters of credit to secure the obligations, which totaled $0.2 million as of December 31, 2024. The restricted cash at December 31, 2024 related to letters of credit that were recorded as ""Other assets"" on the consolidated balance sheet as its requirement was for a period greater than 12 months. This balance is no longer on the consolidated balance sheet as of December 31, 2025 as the restricted cash was replaced by a bank guarantee in conjunction with the Credit Agreement. Credit Losses Reasonable assurance of collection is a requirement for revenue recognition. Credit limit adjustments for existing customers may result from the periodic review of outstanding accounts receivable. The Company records trade accounts receivable at invoice values, which are generally equal to fair value. In accordance with accounting standards update (""ASU"") No. 2016-13, the Company evaluates its allowance based on expected losses rather than incurred losses, which is known as the curre …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Subsequent EventsOn February 26, 2026, the Company's board of directors declared a quarterly cash dividend as part of its recurring quarterly dividend program announced in December 2024. A cash dividend of $0.13 per share, which represents an increase of 8.3%, will be paid on March 27, 2026 to shareholders of record as of the close of business on March 13, 2026. The declaration and payment of future dividends is subject to the sole discretion of the board

SubsequentEventsTextBlock

"Business Acquisitions 2026 - Build38 Acquisition On February 27, 2026, the Company completed the acquisition of Build38 GmbH (""Build38"") pursuant to a merger agreement (the ""B38 Merger Agreement"") entered into on December 23, 2025 that resulted in the Company purchasing all of the outstanding equity interests of Build38. Build38 is a provider of next-generation mobile application protection solutions and will extend the Company's investment in advanced mobile security technologies. The acquisition is expected to enhance OneSpans App Shielding offering by adding SDK-based security solutions that integrate in-app, cloud, and AI technologies. These enhancements are designed to provide businesses with strong protection against the growing wave of attacks targeting the mobile channel, as well as critical intelligence and telemetry on the mobile devices where the applications are deployed. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations , using the acquisition method of accounting. Under this method, the Company recognized the identifiable assets acquired and liabilities assumed at their estimated fair values as of the acquisition date. Pursuant to the terms of the B38 Merger Agreement, the total provisional purchase consideration for the acquisition was $37.9 million, consisting of $34.6 million in cash consideration paid, $0.9 million in cash acquired, and $2.4 million in deferred consideration. Of the deferred am …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Legal Proceedings and Contingencies The Company is subject to certain legal proceedings and claims that have arisen in the ordinary course of business. The Company currently does not anticipate that these matters, if resolved against the Company, will have a material adverse impact on its financial results or financial condition. The Company accrues loss contingencies when losses become probable and are reasonably estimable. As of March 31, 2026, the Company has no probable and reasonably estimable loss contingencies. The Company does not accrue for contingent losses that, in the judgment of the Company, are considered to be reasonably possible, but not probable. Although the Company intends to defend its legal matters vigorously, the ultimate outcome of these matters is uncertain. However, the Company does not expect the potential losses, if any, to have a material adverse impact on its operating results, cash flows, or financial condition. As of March 31, 2026, the Company does not have any reasonably possible losses for which an estimate can be made.

CommitmentsAndContingenciesDisclosureTextBlock

"Debt On June 23, 2025, the Company entered into a $100.0 million credit agreement (the Credit Agreement"") with MUFG Bank, Ltd (""MUFG""), as administrative agent, swingline lender and L/C issuer, and other lenders party thereto. The Credit Agreement provides for a $100.0 million revolving credit facility with a $10.0 million letter of credit sublimit and a $10.0 million swingline loan sublimit. As of March 31, 2026, the Company had outstanding letters of credit of $0.4 million and no borrowings outstanding under the Credit Agreement. Any outstanding letters of credit reduce the availability of funds to borrow. The proceeds of borrowings under the Credit Agreement may be used for general corporate purposes. The Company may borrow, repay and reborrow funds under the revolving credit facility until its maturity on June 23, 2030. Revolving loans may be prepaid by the Company, subject to notice and minimum threshold requirements, without penalty or premium, subject to customary breakage costs. The Company is required to pay a commitment fee on the daily unused amount of the revolving credit facility commitments ranging from 0.25% to 0.30% per annum, depending on its consolidated net leverage ratio. At the Company's election, borrowings under the credit facility will bear interest at either (i) the base rate, defined as the highest of (a) the MUFG prime rate, (b) the federal funds rate plus 0.50%, and (c) term SOFR plus 1.00%, in each case, subject to a 1.00% floor, (ii) the term …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables present the Companys revenues disaggregated by major products and services, geographical region and timing of revenue recognition. Certain prior period amounts for disaggregated revenues by major products and services have been reclassified to conform with the current year's presentation. The Company historically had reported revenue derived from maintenance contracts on an aggregated basis, encompassing maintenance associated with both perpetual license products and term-based license arrangements. In connection with the Company's strategic focus on expanding its subscription-based offerings and in response to changing customer purchasing preferences, an increasing proportion of customer contracts related to perpetual license products have transitioned to term-based contracts. As a result, the Company has revised its presentation within the revenue-by-products tables to include term-based maintenance revenue within subscription revenue. Additionally, maintenance revenue associated with perpetual licenses and services revenue are now presented together, which reflects the steady decline in perpetual license arrangements. This reclassification had no impact on total revenue, operating income, or cash flows, and prior period results have been updated for comparability. Revenue by major products and services Three Months Ended March 31, (In thousands) 2026 2025 Subscription (1) $ 52,667 $ 48,692 Perpetual maintenance and services 2,693 3,611 Hardware product …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Long-Term Compensation Plan and Stock Based Compensation Under the OneSpan Inc. Amended and Restated 2019 Omnibus Incentive Plan, the Company awards restricted stock units subject to time-based vesting, restricted stock units which are subject to the achievement of future performance criteria and restricted stock units that are subject to the achievement of market conditions. The Company also awards a small amount of cash incentive awards under the Amended and Restated 2019 Omnibus Incentive Plan, as shown in the table below. During the three months ended March 31, 2026, the Company awarded 0.6 million restricted stock units subject to time-based vesting. The fair value of the unissued time-based restricted stock unit grants was $6.3 million at the dates of grant and the grants are being amortized over the vesting period of three years. During the three months ended March 31, 2026, the Company awarded restricted stock units subject to the achievement of service and future performance criteria, which allows for up to 0.8 million shares to be earned if the performance criteria are achieved at the target level. The fair value of these awards was $7.7 million at the dates of grant and the awards are being amortized over the requisite service period of three years. The Company currently believes that approximately 100% of these shares are expected to be earned. The following table summarizes total compensation expense for the three months ended March 31, 2026 and 2025: Three Month …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements The fair values of cash equivalents, accounts receivables, and accounts payable approximate their carrying amounts due to their short duration. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entitys pricing base upon its own market assumptions. The estimated fair value of financial instruments has been determined by using available market information and appropriate valuation methodologies, as defined in ASC 820, Fair Value Measurements . The fair value hierarchy consists of the following three levels: Level 1 Inputs are quoted prices in active markets for identical assets or liabilities. Level 2 Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived primarily from or corroborated by observable market data. Level 3 Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The following tables summarize the Companys financial assets by level in the fair value hierarchy, which are …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The Companys estimated annual effective tax rate for 2026 before discrete items is expected to be approximately 20%. The Companys global effective tax rate is lower than the U.S. statutory tax rate of 21% primarily due to the benefit from Foreign-Derived Deduction Eligible Income (FDDEI) and R&D credits. The benefits are mostly offset by differences in foreign income tax rates and nondeductible expenses. The ultimate tax expense will depend on the mix of earnings in various jurisdictions. Income taxes, net of refunds, of $3.3 million and $1.7 million were paid during the three months ended March 31, 2026 and 2025, respectively. Management assesses the need for a valuation allowance on a regular basis, weighing all positive and negative evidence to determine whether a deferred tax asset will be fully or partially realized. In evaluating the realizability of deferred tax assets, significant pieces of negative evidence such as 3-year cumulative losses are considered. Management also reviews reversal patterns of temporary differences to determine if the Company would have sufficient taxable income due to the reversal of temporary differences to support the realization of deferred tax assets. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases Operating lease cost details for the three months ended March 31, 2026 and 2025 are as follows: Three Months Ended March 31, (In thousands) 2026 2025 Building rent $ 285 $ 231 Automobile rentals 326 264 Total net operating lease costs $ 611 $ 495 At March 31, 2026, the Companys weighted average remaining lease term for its operating leases is 4.3 years, and the weighted average discount rate for its operating leases is 6%. During the three months ended March 31, 2026, there were $1.2 million of operating cash payments for lease liabilities and $0.8 million of right-of-use assets obtained in exchange for new lease liabilities. Maturities of the Companys operating leases as of March 31, 2026 are as follows: (In thousands) As of March 31, 2026 2026 $ 1,939 2027 2,259 2028 2,146 2029 1,198 2030 490 Later years 1,005 Less imputed interest (1,081) Total lease liabilities $ 7,956 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that are adopted by the Company as of the specified effective date. In November 2024, the FASB issued ASU 2024-03, Comprehensive Income (Topic 220) Disaggregation of Income Statement Expenses , to improve financial reporting by requiring disclosures in the notes to financial statements about specific types of expenses included in the expense captions presented on the face of the statement of operations. The requirements of the ASU are effective for annual reporting periods beginning after December 15, 2026, and for interim reporting periods beginning after December 15, 2027, with early adoption permitted. The requirements are able to be applied prospectively with the option for retrospective application. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements and related disclosures. In September 2025, the FASB issued ASU 2025-06, Intangible Goodwill and Other Internal-Use Software (Subtopic 350-40) Targeted Improvements to the Accounting for Internal Use Software, to improve the guidance for the costs to develop software for internal use. Within the updated guidance, the FASB removed reference to prescriptive sequential software development stages. Instead, management will begin capitalizing eligible costs when (i) management has authorized and committed to funding the sof …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Revenue from Contracts with Customers The following tables present the Companys revenues disaggregated by major products and services, geographical region and timing of revenue recognition. Certain prior period amounts for disaggregated revenues by major products and services have been reclassified to conform with the current year's presentation. The Company historically had reported revenue derived from maintenance contracts on an aggregated basis, encompassing maintenance associated with both perpetual license products and term-based license arrangements. In connection with the Company's strategic focus on expanding its subscription-based offerings and in response to changing customer purchasing preferences, an increasing proportion of customer contracts related to perpetual license products have transitioned to term-based contracts. As a result, the Company has revised its presentation within the revenue-by-products tables to include term-based maintenance revenue within subscription revenue. Additionally, maintenance revenue associated with perpetual licenses and services revenue are now presented together, which reflects the steady decline in perpetual license arrangements. This reclassification had no impact on total revenue, operating income, or cash flows, and prior period results have been updated for comparability. Revenue by major products and services Three Months Ended March 31, (In thousands) 2026 2025 Subscription (1) $ 52,667 $ 48,692 Perpetual maintenance an …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"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 Companys CODM is its Chief Executive Officer. The Company's reportable segments are business units that offer different products and services and are as follows: Cybersecurity . Cybersecurity, formerly 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 Cybersecurity segment are delivered through on-premises and cloud-based deployment models and include standards-based authentication technologies such as Fast Identity Online (""FIDO"") authentication and passkeys, multi-factor authentication, transaction signing solutions and mobile application security. 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 cloud-b …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Summary of Significant Accounting Policies There have been no changes to the significant accounting policies described in the Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 26, 2026 that impact the Companys condensed consolidated financial statements and related notes. Other Accrued Expenses Other accrued expenses consist of the following: (In thousands) March 31, 2026 December 31, 2025 Current operating lease liabilities $ 2,160 $ 2,262 Accrued sales tax and VAT 741 2,213 Acquisition hold back 2,700 2,700 Other accrued expenses 5,629 3,602 Accrued professional fees 519 1,082 Total $ 11,749 $ 11,859 Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that are adopted by the Company as of the specified effective date. In November 2024, the FASB issued ASU 2024-03, Comprehensive Income (Topic 220) Disaggregation of Income Statement Expenses , to improve financial reporting by requiring disclosures in the notes to financial statements about specific types of expenses included in the expense captions presented on the face of the statement of operations. The requirements of the ASU are effective for annual reporting periods beginning after December 15, 2026, and for interim reporting periods beginning after December 15, 2027, with early adoption permitted. The requirements are able to be applied prospe …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Subsequent Events On April 30, 2026, the Board of Directors declared a quarterly cash dividend of $0.13 per share as part of the Company's recurring quarterly dividend program initiated in December 2024. This dividend will be paid on June 4, 2026 to shareholders of record as of the close of business on May 14, 2026. The declaration and payment of future dividends is subject to the sole discretion of the Board of Directors.

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