OneSpan Inc.

Good day, everyone. Welcome to the One Span Quarter 3 2026 earnings call. All participants will be in listen-only mode until the question and answer session begins. Following the presentation, we will conduct a question and answer session. This call is being recorded. If you have any objections, please disconnect at this time. I would now like to turn the call over to Joe Maxa, Vice President of Investor Relations. Please go ahead.

Thank you, operator. Hello, everyone. Thank you for joining the OneSpan third 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 third 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 U.S. Securities and Exchange Commission for 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 October 29, 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. Our goal for 2026 was to deliver solid performance while positioning the company for future growth. We are achieving those goals. We had an excellent third quarter with 12% revenue growth, including 16% subscription revenue growth, and a 12% increase in operating income. Before diving into the details, I want to take a moment to thank the entire OneSpan team for all of their efforts in delivering these results. and also to underscore the progress we have made as a business, achieving a rule of 42 performance level in Q3, whereas just a few years ago, in 2023, OneSpan performed at a rule of 12 level. Looking at Q3 specifically, I'm happy to report that both business units grew at a double-digit rate. with digital agreements up 14% and cybersecurity up 11%. Our overall gross margin also improved, rising to 76.3% compared to 73.6% in the year-ago period. And we achieved a company-wide GRR of 91% in Q3, evidence of our stronger customer engagement and our delivery of better customer experiences across both our cybersecurity and digital agreements business units. With respect to the other part of our goals, that is positioning the company for future growth, we made great progress in that area in Q3 as well. In July, we launched the DigiPass One platform in our cybersecurity business. DigiPass One brings together our suite of security solutions, including DigiPass One Authenticate, the industry's broadest customer authentication capabilities, spanning hardware, software, on-prem, in the cloud, OTP, and pass keys. DigiPass One Protect, our mobile application protection portfolio, providing continuous in-app protection, active defense, and real-time threat visibility. DigiPass One Verify, a new offering that provides support for digital credentials and verification capabilities across multiple wallet ecosystems, which will be a key requirement for banks in Europe. And DigiPass One Insights, another new offering that will deliver cross-platform analytics and visibility that will provide enriched insights and actionable intelligence from telemetry spanning the entire platform, providing value not only to our customers' authentication teams, but to their broader security teams as well. You are all familiar with OneSpan as an authentication provider, but I want to take a moment to talk about DigiPAS 1 Verify, which we plan to release early next year. As an important reminder, The European Digital Identity Regulation will require banks to support digital identity wallets for customer onboarding and authentication by December 2027. We remain actively engaged with the ecosystem as verifiable credentials and digital wallets develop and we plan to support the first country-specific wallets slated to be released early next year. We are encouraged by the discussions that we have seen around DigiPass One Verify and expect this to be an important offering as these wallets become more broadly available. As you know, we have a broad customer base of European banks and we expect this offering to be of particular interest in that market. We also continue to see encouraging interest in DigiPass One Protect and our expanded capabilities introduced with our acquisition of Build38. As more consumer banking actions move to mobile applications, there is increased recognition of the importance in protecting these applications and the users from attacks and fraudulent behavior. Our expanded portfolio now offers both a post-compilation or wrapping approach and an SDK approach to provide next gen in-app protection capabilities. Turning to digital agreements, we also made meaningful progress during the quarter. Earlier this month, we announced exciting advancements and innovations that we are adding to One Span Sign, expanding the value it brings to e-signatures and the workflows involved with high-value agreements. We continue to focus on purpose-built features and functions that serve the broader financial services vertical, where security, Compliance and assurance are core requirements. Our recent e-signature innovations are focused on three key areas, making agreements easier and faster to complete, strengthening identity and document assurance without adding unnecessary friction, and better connecting completed agreements into the systems and processes that drive the next business action in our customers' workflows. This includes investments in a redesigned user experience, AI-assisted capabilities such as automatic document validation, as well as advanced identity verification and expanded integration capabilities. We are encouraged by continued healthy gross retention metrics and customer activity we are seeing, including expansion and longer-term contract commitments from large customers. During the third quarter, a major banking customer of our digital agreements business meaningfully expanded its contract in both term and in size, moving from overages under the previous contract into a multi-year contract that will support their continued growth and utilization of One Span Sign. Stepping back, We are encouraged by the progress we are making as a company overall, both in Q3 and more broadly over the past few years. We believe we are investing in the right strategic areas and putting the pieces in place to enable growth over the longer term. And we're proud that we are able to do so while also improving in the day-to-day execution of the business. Please note that the Board has 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. Since the beginning of last year, we have returned $55 million, or just under $1.50 per share, to our shareholders through dividends and share repurchases. In summary, We had an excellent quarter and continue to strengthen the business and position OneSpan for durable long-term growth. With that, I'll turn the call over to Jorge.