OneSpan Inc.

Good day and thank you for standing by. Welcome to the OneSpan second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Joe Maxa, VP of Investor Relations. Please go ahead.

Thank you, operator. Hello, everyone. Thank you for joining the OneSpan second quarter 2026 earnings conference call. This call is being webcast and can be accessed on the investor relations section of OneSpan's website at investors.onespan.com. Joining me on the call today is Victor Limongelli, our Chief Executive Officer, and Jorge Martell, our Chief Financial Officer. This afternoon, after market close, OneSpan issued a press release announcing results for our second quarter of 2026. To access a copy of the press release and other investor information, please visit our website. Following our prepared comments today, we will open the call for questions. Please note that statements made during this conference call that relate to future plans, events, or performance, including the outlook for full year 2026 and other long-term financial targets, are forward-looking statements. These statements involve risks and uncertainties and are based on current assumptions. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements. I direct your attention to today's press release and the company's filings with the US Securities and Exchange Commission for a discussion of such risks and uncertainties. Also note that certain financial measures that may be discussed on this call are expressed on a non-GAAP basis and have been adjusted from a related GAAP financial measure. We have provided an explanation for and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in the earnings press release and in the investor presentation available on our website. In addition, please note that all growth rates discussed on this call refer to a year-over-year basis unless otherwise indicated. The date of this conference call is August 4, 2026. Any forward-looking statements and related assumptions are made as of this date. Except as required by law, we undertake no obligation to update these statements as a result of new information or future events or for any other reason. I will now turn the call over to Victor.

Thank you, Joe. Hello, everyone. Thank you for joining us today. We had a strong second quarter, including subscription revenue growth of 11% and solid profitability with an adjusted EBITDA margin of 28%. Before reviewing our results in more detail, I'd like to spend a few minutes discussing our recently launched DigiPAS 1 authentication platform, which represents an important milestone in OneSpan's evolution. DigiPAS 1 unifies the innovations from our Knock Knock Labs and Build38 acquisitions with OneSpan's existing capabilities, delivering a single, integrated platform solution. DigiPass One includes four components. DigiPass One Authenticate, DigiPass One Verify, DigiPass One Protect, and DigiPass One Insights. First and foremost, DigiPass One Authenticate builds on the foundation of the world's broadest suite of authentication functionality, including pass keys, FIDO2 security keys, hardware tokens, mobile authenticators, and software authenticators to deliver secure, phishing-resistant login and transaction signing. Banks and other high-value, high-trust customers gain the flexibility to support different users, devices and authentication preferences through a unified platform. DigiPass One Verify expands the platform with our new capabilities for verifiable credentials and digital wallets. Verifiable credentials are designed to improve onboarding, authentication, and trust by enabling cryptographically secure and tamper-proof identity verification. DigiPass One Protect strengthens the offering with our mobile application shielding technology. Delivered via both SDKs and post-compilation app wrapping, it protects mobile apps against tampering, abuse, and runtime threats, promoting reliability and trustworthiness for users. Last but not least, DigiPath 1 Insights ties it all together with telemetry and analytical insights across authentication flows and application protection signals. so that customers can better react to imminent threats or challenging operating environments. Looking ahead, over the next few years, we expect consumers to begin using agents to conduct banking and other high-value transactions, and we further expect that the development of this new channel for customer interaction will augment, not replace, the existing channels of in-person, online, and mobile. In other words, in the future, banks will continue to engage with their customers across branches, websites, and mobile apps while adding a new category of agent-driven banking interactions. DigiPath 1 provides the foundation to help banks and other high-value, high-trust businesses authenticate customers, verify intent, and protect transactions across both We see the shift to agentic-driven interactions in the future as an opportunity to extend our offering and further strengthen our value to our customers. Stepping back, the launch of DigiPath 1 is a key milestone in a broader platform strategy that strengthens our ability to innovate, deepen customer relationships, address new market opportunities, and support long-term growth. Turning to our digital agreements business, where we focus on delivering secure, seamless agreement workflows, purpose-built for financial services and other highly regulated industries. We believe our combination of white label these signatures, identity verification, and workflow automation provides a meaningful differentiator in the market. In addition, we are investing in AI-enabled capabilities designed to help customers improve efficiency, gain deeper insights from agreement workflows, deliver a better end user experience, seamlessly integrate with agentic workflows, and simplify deployment within existing environments. Turning to our results, as mentioned, we had a solid second quarter, including generating $17 million of adjusted EBITDA, were 28% of revenue. We ended the second quarter with annual recurring revenue of $190 million, up 7% year over year. Total Q2 revenue grew 1% to $60.5 million, and second quarter subscription revenue grew 11% to $47 million, and accounted for 77% of total revenue, up from 70% in last year's Q2. Both business units continued to be solidly profitable at the division level, supporting our board's commitment to a balanced capital allocation strategy that considers shareholder returns, organic investment, and targeted M&A. In the second quarter, we returned almost $8 million to shareholders through dividends and share repurchases. And on an aggregate basis over the last four quarters, The total return to shareholders exceeds $40 million, or over a dollar per share. The Board has also approved a quarterly dividend of 13 cents per share to be paid in the current quarter and will continue to evaluate additional share repurchase opportunities. In summary, we continue to make progress in building a stronger foundation for future growth. We have expanded our capabilities through targeted acquisitions and internal innovation, both of which are evidenced in the launch of DigiPath 1. We remain focused on serving our customers now and investing for the future in order to be able to continue delivering value to them for years to come. With that, I'll turn the call over to Jorge.