Revenue from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2025

Revenue from Contract with Customer [Abstract]

Schedule of revenues disaggregated by major products and services, geographical region and timing of revenue recognition

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


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2025		2024		2025		2024
Subscription	$	36,176	$	29,642	$	79,793	$	69,636
Maintenance and support	8,691		10,232		16,699		20,802
Professional services and other (1)	960		1,311		1,638		3,013
Hardware products	14,016		19,739		25,079		32,316
Total Revenue	$	59,843	$	60,924	$	123,209	$	125,767

(1) Professional services and other includes perpetual software licenses revenue, which was immaterial for the three and six months ended June 30, 2025 and approximately 1% of total revenue for the three and six months ended June 30, 2024.

Revenue by location of customer

We classify our sales by customer location in three geographic regions: 1) EMEA, which includes Europe, Middle East and Africa; 2) the Americas, which includes North, Central, and South America; and 3) Asia Pacific (APAC), which includes Australia and New Zealand. The breakdown of revenue in each of our major geographic areas was as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands, except percentages)	2025			2024			2025			2024
Revenue
EMEA	$	23,398		$	25,194		$	54,404		$	57,036
Americas	23,879			21,099			44,974			42,443
APAC	12,566			14,631			23,831			26,288
Total revenue	$	59,843		$	60,924		$	123,209		$	125,767

% of Total Revenue
EMEA	39		%	41		%	44		%	45		%
Americas	40		%	35		%	37		%	34		%
APAC	21		%	24		%	19		%	21		%

Timing of revenue recognition


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2025		2024		2025		2024
Products and licenses transferred at a point in time	$	32,237	$	32,438	$	69,477	$	70,236
Services transferred over time	27,606		28,486		53,732		55,531
Total Revenue	$	59,843	$	60,924	$	123,209	$	125,767

Schedule of changes in contract assets and contract liabilities

The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers as of June 30, 2025 and December 31, 2024:


	June 30,		December 31,
(In thousands)	2025		2024
Receivables, inclusive of trade and unbilled	$	35,064	$	56,229
Contract Assets (current and non-current)	$	16,454	$	10,686
Contract Liabilities (Deferred Revenue current and non-current)	$	57,395	$	70,855

Schedule of estimated revenue expected to be recognized in the future

The following table includes expected revenue to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2025:


(In thousands)	2025		2026		2027		Beyond 2027		Total
Future revenue related to current unsatisfied performance obligations	$	33,903	$	44,120	$	18,199	$	5,169	$	101,391

Schedule of information related to the capitalized costs and amortization recognized in the current and prior period

The following tables provide information related to the capitalized costs and amortization recognized in the current and prior period within "Other current assets" and "Other assets" on the condensed consolidated balance sheets:


(In thousands)	June 30, 2025		December 31, 2024
Capitalized costs to obtain contracts, current	$	4,608	$	4,478
Capitalized costs to obtain contracts, non-current	$	11,543	$	12,431


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2025		2024		2025		2024
Amortization of capitalized costs to obtain contracts	$	1,193	$	942	$	2,360	$	1,826

OneSpan Inc. 10-Q