Group 1 - The core investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective, rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - Most recommendations will be holds, indicating a cautious approach to investment, with only a small fraction of companies deemed suitable for buying at any given time [1] Group 2 - The articles aim to provide important information for future investors and introduce a healthy skepticism towards a generally bullish market [1]

Market Overview - U.S. stocks traded higher, with the Nasdaq Composite gaining more than 1% on Friday, while the Dow rose 0.09% to 47,563.80, and the S&P 500 increased by 0.58% to 6,862.07 [1] - Consumer discretionary shares saw a significant jump of 4.3% on Friday, indicating strong performance in that sector [1] Company Performance - Apple Inc. reported fiscal fourth-quarter revenue of $102.47 billion, surpassing analyst estimates of $102.17 billion, and earnings of $1.85 per share, exceeding expectations of $1.76 per share [3] - EPWK Holdings Ltd. shares surged 137% to $0.1559, while Getty Images Holdings, Inc. shares rose 45% to $2.93 following a multi-year licensing agreement with Perplexity AI [10] - MSP Recovery, Inc. shares increased by 77% to $0.56 [10] Declines in Company Stocks - Luminar Technologies, Inc. shares dropped 34% to $1.3801 after receiving a subpoena from the SEC and suspending its FY25 guidance [10] - Intensity Therapeutics, Inc. shares fell 28% to $0.95 after announcing a $4 million registered direct offering of common stock [10] - OneSpan Inc. shares decreased by 26% to $11.52 due to worse-than-expected third-quarter sales results and a cut in FY25 sales guidance [10] Commodity Market - Oil prices increased by 0.7% to $61.04, while gold rose by 0.4% to $4,031.90 [6] - Silver prices fell by 0.3% to $48.485, and copper decreased by 0.4% to $5.0860 [6] International Markets - European shares were lower, with the eurozone's STOXX 600 slipping 0.5% and major indices in Spain, London, Germany, and France also experiencing declines [7] - Asian markets closed mostly lower, with Japan's Nikkei 225 gaining 2.12%, while Hong Kong's Hang Seng fell 1.43%, and China's Shanghai Composite dipped 0.81% [8]

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The platform revenue for Roku was $1.06 billion, up 17% year-over-year, while device revenue decreased by 5% to $146 million [2] - Roku shares fell by 5% to $94.99 in pre-market trading following the earnings report [2] Other Companies in Focus - SPS Commerce Inc saw a 32.1% drop in shares to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares fell 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC shares fell 7.6% to $75.88 [4] - Ventas Inc shares declined 7.5% to $68.77 [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The company's platform revenue reached $1.06 billion, up 17% year-over-year, while devices revenue fell to $146 million, down 5% year-over-year [2] - Roku shares dropped 5% to $94.99 in pre-market trading following the earnings announcement [2] Other Company Movements - SPS Commerce Inc saw a 32.1% decline in pre-market trading to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares dropped 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC and Ventas Inc saw declines of 7.6% to $75.88 and 7.5% to $68.77, respectively [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]

Group 1: Amazon's Financial Performance - Amazon reported third-quarter net sales of $180.2 billion, representing a 13% year-over-year increase, surpassing the Street consensus estimate of $177.8 billion [1] - The company anticipates fourth-quarter net sales to be between $206.0 billion and $213.0 billion, indicating a year-over-year growth of 10% to 13% [1] Group 2: Stock Movements - Amazon shares increased by 12.5% to $250.79 in pre-market trading following the positive financial results [2] - Other notable stock movements included DEFSEC Technologies Inc gaining 74.3%, Beneficient surging 46%, and Medicinova Inc rising 37.7% in pre-market trading [5]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - OneSpan (OSPN) reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, with an earnings surprise of +17.86% [1] - The company posted revenues of $57.06 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 2.23% [2] - OneSpan has surpassed consensus EPS estimates three times over the last four quarters but has not beaten revenue estimates during the same period [2] Earnings Performance - The earnings report indicates a consistent performance with earnings of $0.33 per share compared to the same quarter last year [1] - The company had a previous quarter earnings surprise of +25.93%, with actual earnings of $0.34 per share against an expected $0.27 [1] Stock Performance - OneSpan shares have declined approximately 18.2% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.35, with projected revenues of $67.72 million, and for the current fiscal year, the estimate is $1.44 on revenues of $249.3 million [7] - The outlook for the industry, particularly the Internet - Software sector, is favorable, ranking in the top 30% of Zacks industries, which historically outperforms the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - Total revenue grew 1% to $57 million, driven by double-digit organic subscription revenue growth, primarily offset by a reduction in security hardware revenue [11][15] - Annual recurring revenue (ARR) increased 10% to $180 million [9][15] - Adjusted EBITDA was $17.5 million, or 31% of revenue, with record adjusted EBITDA of $58 million for the first nine months of the year, representing 32% of revenue [9][12] Business Line Data and Key Metrics Changes - Software business, now over 80% of overall business, delivered double-digit subscription revenue growth and ARR growth [5][9] - Subscription revenue grew 12%, led by 13% growth in security and 11% growth in digital agreements [11][16] - Digital agreements ARR grew 8% to $65 million, with revenue growing 9% to $16.7 million [19] Market Data and Key Metrics Changes - Revenue mix was 46% from the Americas, 38% from EMEA, and 17% from APAC, compared to 39%, 40%, and 21% respectively in the same quarter last year [20] - Strong performance noted in North America and Latin America, while EMEA and APAC experienced declines in hardware revenues [10][21] Company Strategy and Development Direction - Company is focused on enhancing its product portfolio through internal development, acquisitions, and strategic partnerships [8][13] - The acquisition of Knock Knock Labs and investment in ThreatFabric are aimed at improving product offerings and driving future growth [6][12] - Company aims to achieve a Rule of 40 performance level while maintaining strong profitability and cash generation [9][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the hardware business and lower activity in net expansions, particularly in EMEA and APAC [30][32] - The company updated its revenue guidance for 2025 to a range of $239 million to $241 million, reflecting a modest decline from previous expectations [23][24] - Management remains optimistic about future growth driven by software and services, with expectations for continued improvement in subscription revenue [50][51] Other Important Information - The company returned over $20 million to shareholders in the first nine months of 2025 through share repurchases and dividends [12][13] - The strategic focus remains on mobile authentication and the adoption of FIDO2 protocols, with expectations for significant growth in these areas [6][44] Q&A Session Summary Question: What led to the scale back on revenue and ARR guidance? - Management noted higher headwinds in the hardware business and lower activity in net expansions, particularly in EMEA [30][31] Question: Is the decline in hardware demand a long-term trend? - Management confirmed a long-term shift away from hardware tokens towards mobile authentication, with expectations that hardware will not disappear entirely [35][36] Question: How should gross margin be viewed moving forward? - Management expects gross margin to remain similar to last year's Q4, around 73% [38][39] Question: What products are expected to drive growth in the next 12 to 24 months? - Management highlighted the importance of FIDO2 and mobile authentication technologies as key growth areas [44][45] Question: What is the visibility on late-stage deals and pipeline for Q4? - Management expressed confidence in the Q4 ARR guidance, citing improved visibility and a positive sales environment [66][72] Question: Is the revenue and ARR cut related to gross churn or lower new logos? - Management indicated that the cut was primarily due to lower activity in net expansions, with hardware also contributing to the decline [77][79]

Revenue Performance - Security Solutions subscription revenue grew by 13% and Digital Agreements subscription revenue grew by 11% for the three months ended September 30, 2025, compared to the same period in 2024[126]. - Total revenue for Security Solutions decreased by 1% and 3% for the three and nine months ended September 30, 2025, respectively, due to a shift towards mobile authentication solutions[127]. - For the three months ended September 30, 2025, total revenue was $57.056 million, a slight decrease from $56.242 million in the same period of 2024[161][162]. - For the nine months ended September 30, 2025, total revenue was $180.265 million, compared to $182.008 million for the same period in 2024[162][164]. - Security Solutions segment revenue for the three months ended September 30, 2025, was $40.322 million, while Digital Agreements segment revenue was $16.734 million[161]. - Security Solutions segment revenue for the nine months ended September 30, 2025, was $132.270 million, while Digital Agreements segment revenue was $47.995 million[162]. - Total revenue increased by $0.8 million, or 1%, for the three months ended September 30, 2025, compared to the same period in 2024, while revenue decreased by $1.7 million, or 1%, for the nine months ended September 30, 2025[169]. Profitability and Margins - Gross profit for the three months ended September 30, 2025, was $42.003 million, with a gross margin of 74%[161]. - Operating income for the three months ended September 30, 2025, was $8.227 million, compared to $11.252 million in the same period of 2024[161][162]. - Security Solutions gross profit decreased by $0.5 million, or 2%, during the three months ended September 30, 2025, with a gross margin of 74%[184]. - Digital Agreements operating income for Q3 2025 was $4.2 million, an increase from $3.4 million in Q3 2024, driven by higher gross profit and lower operating expenses[197]. - Adjusted EBITDA for the three months ended September 30, 2025, was $17.5 million, compared to $17.0 million for the same period in 2024, driven by lower costs of goods sold[226]. - For the nine months ended September 30, 2025, Adjusted EBITDA was $58.2 million, an increase from $53.4 million in the same period of 2024[226]. Expenses and Restructuring - The company incurred restructuring charges of approximately $0.1 million to $0.2 million related to the 2023 Actions for the remainder of 2025[133]. - The company reduced headcount by approximately 341 positions as part of the restructuring plan[135]. - Operating expenses included $3.4 million and $2.7 million related to stock-based and long-term incentive plans for the three months ended September 30, 2025, and 2024, respectively[145]. - Operating expenses increased by $3.5 million, or 11%, during the three months ended September 30, 2025, with a negative impact from foreign exchange rates of approximately $0.5 million[182]. - Sales and marketing expenses for Q3 2025 increased by $1.3 million, or 12%, compared to Q3 2024, primarily due to higher employee compensation costs[185]. - Research and development expenses for Q3 2025 increased by $1.3 million, or 17%, compared to Q3 2024, driven by higher compensation and consulting costs related to the acquisition of Nok Nok Labs[187]. - General and administrative expenses for Q3 2025 increased by $0.8 million, or 7%, compared to Q3 2024, largely due to increased stock-based compensation and director fees[189]. - Restructuring charges for the nine months ended September 30, 2025 decreased by $2.7 million, or 70%, compared to the same period in 2024, due to minimal headcount reduction and vendor rationalization costs[191]. Cash Flow and Investments - Cash and cash equivalents as of September 30, 2025 were $85.6 million, up from $83.2 million at December 31, 2024[199][200]. - Net cash used in investing activities for the nine months ended September 30, 2025 was $20.0 million, compared to $7.3 million for the same period in 2024, primarily due to the acquisition of Nok Nok Labs[209]. - Cash provided by operating activities for the nine months ended September 30, 2025 was $46.9 million, an increase from $43.2 million in the same period in 2024[206]. Acquisitions and Strategic Moves - On June 4, 2025, the company acquired Nok Nok Labs, enhancing its passwordless software authentication solutions[136]. - The company entered into a $100.0 million credit agreement on June 23, 2025, with no borrowings outstanding as of September 30, 2025[137]. Foreign Exchange and Geographic Revenue - Foreign exchange rate changes positively impacted total revenue and Security Solutions revenue by approximately $1.3 million for the three months ended September 30, 2025[129]. - Approximately 79% of revenues for the nine months ended September 30, 2025, were generated outside of the U.S.[154]. - For the nine months ended September 30, 2025, 57% of revenue was denominated in U.S. Dollars, 40% in Euros, and 3% in other currencies[155]. - Revenue generated in the Americas increased by $4.0 million, or 18%, for the three months ended September 30, 2025, primarily driven by software authentication products[173]. - Revenue generated in APAC decreased by $2.3 million, or 19%, for the three months ended September 30, 2025, primarily due to lower hardware volumes[175]. Tax and Income - The effective tax rate reflects a geographic mix of earnings, with statutory tax rates for primary foreign jurisdictions ranging from 17% to 30%[153]. - The company’s net income for the three months ended September 30, 2025, was $6.5 million, compared to $8.3 million for the same period in 2024[223]. - Interest income for the nine months ended September 30, 2025 was $1.8 million, an increase from $1.2 million in the same period in 2024, attributed to higher average excess cash invested[194]. Annual Recurring Revenue (ARR) and Retention - As of September 30, 2025, the company reported an Annual Recurring Revenue (ARR) of $180.2 million, a 10% increase from $163.9 million on September 30, 2024, including contributions from the acquisition of Nok Nok Labs[218]. - The Net Retention Rate (NRR) was reported at 103% as of September 30, 2025, down from 106% a year earlier, primarily due to a decrease in expansion contracts[220]. - Changes in foreign exchange rates positively impacted ARR by approximately $0.2 million compared to the prior year[218]. Accounting Policies - The company’s accounting policies are detailed in its Form 10-K for the year ended December 31, 2024[227].