$OSPN

VASCO DATA SECURITY INTERNATIONAL INC

CIK:0001044777|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue
Total revenue	$ 60,466	$ 59,843	$ 126,413	$ 123,209
Cost of goods sold
Total cost of goods sold	15,983	15,876	33,416	32,151
Gross profit	44,483	43,967	92,997	91,058
Operating costs
Sales and marketing	13,073	11,505	25,753	22,962
Research and development	9,908	9,444	18,985	17,372
General and administrative	11,954	11,779	22,913	21,326
Amortization of intangible assets	776	685	1,473	1,241
Write-off of assets	31	0	315	0
Restructuring and other related charges	0	48	0	469
Total operating costs	35,742	33,461	69,439	63,370
Operating income	8,741	10,506	23,558	27,688
Interest (expense) income, net	(154)	732	(173)	1,424
Other income (expense), net	47	(669)	(339)	(678)
Income before income taxes	8,634	10,569	23,046	28,434
Provision for income taxes	1,853	2,227	4,700	5,587
Net income	$ 6,781	$ 8,342	$ 18,346	$ 22,847
Net income per share
Basic (in dollars per share)	$ 0.18	$ 0.22	$ 0.49	$ 0.60
Diluted (in dollars per share)	$ 0.18	$ 0.21	$ 0.48	$ 0.59
Weighted average common shares outstanding
Basic (in shares)	37,213	38,205	37,411	38,156
Diluted (in shares)	38,142	39,012	38,098	39,026
Product and license
Revenue
Total revenue	$ 28,175	$ 32,237	$ 63,682	$ 69,477
Cost of goods sold
Total cost of goods sold	6,631	8,296	15,391	17,014
Services and other
Revenue
Total revenue	32,291	27,606	62,731	53,732
Cost of goods sold
Total cost of goods sold	$ 9,352	$ 7,580	$ 18,025	$ 15,137

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 18,346	$ 22,847
Adjustments to reconcile net income from operations to net cash provided by operations:
Depreciation and amortization of intangible assets	6,566	4,585
Write-off of assets	315	0
Loss on disposal of asset	0	26
Deferred tax (benefit) expense	(214)	439
Stock-based compensation	5,318	6,227
Recovery of credit losses	(282)	(66)
Changes in operating assets and liabilities, net of the effects from acquisition:
Accounts receivable, net	16,938	24,875
Inventories, net	715	700
Contract assets	3,109	(4,925)
Accounts payable	2,098	1,296
Income taxes payable	(2,237)	1,109
Accrued expenses	(10,156)	(4,983)
Deferred compensation	(27)	(182)
Deferred revenue	(12,164)	(17,994)
Other assets and liabilities	(256)	1,629
Net cash provided by operating activities	28,069	35,583
Cash flows from investing activities:
Additions to property and equipment	(6,297)	(3,483)
Additions to intangible assets	(123)	(5)
Cash paid for acquisition of business, net of cash acquired	(34,554)	(12,052)
Net cash used in investing activities	(40,974)	(15,540)
Cash flows from financing activities:
Dividends paid	(9,834)	(9,196)
Payment of debt issuance costs	0	(566)
Borrowings from credit facility	5,000	0
Tax payments for restricted stock issuances	(1,244)	(2,405)
Repurchase of common stock	(8,297)	0
Net cash used in financing activities	(14,375)	(12,167)
Effect of exchange rate changes on cash	118	1,679
Net (decrease) increase in cash	(27,162)	9,555
Cash, cash equivalents, and restricted cash, beginning of period	70,499	83,331
Cash, cash equivalents, and restricted cash, end of period	$ 43,337	$ 92,886

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 43,337	$ 70,499
Accounts receivable, net of allowances of $861 at June 30, 2026 and $1,227 at December 31, 2025	40,444	55,999
Inventories, net	9,512	10,466
Prepaid expenses	7,979	7,044
Contract assets	15,705	18,269
Other current assets	10,613	9,936
Total current assets	127,590	172,213
Property and equipment, net	23,896	22,234
Operating lease right-of-use assets	6,639	7,356
Goodwill	127,828	103,840
Intangible assets, net of accumulated amortization	15,288	9,741
Deferred income taxes	59,195	54,733
Equity investment	11,834	11,834
Other assets	14,752	15,751
Total assets	387,022	397,702
Current liabilities
Accounts payable	11,030	13,726
Deferred revenue	61,272	71,641
Accrued wages and payroll taxes	11,631	13,553
Short-term income taxes payable	887	3,079
Dividend payable	930	671
Other accrued expenses	10,452	11,859
Deferred compensation	15	42
Total current liabilities	96,217	114,571
Long-term deferred revenue	2,018	2,539
Long-term lease liabilities	5,391	6,139
Deferred income taxes	979	988
Revolving credit facility	5,000	0
Other long-term liabilities	3,937	1,622
Total liabilities	113,542	125,859
Commitments and contingencies
Stockholders' equity
Preferred stock: 500 shares authorized, 0 issued and outstanding at June 30, 2026 and December 31, 2025	0	0
Common stock: $0.001 par value per share, 75,000 shares authorized; 42,252 and 42,091 shares issued; 36,783 and 37,361 shares outstanding at June 30, 2026 and December 31, 2025, respectively	37	37
Additional paid-in capital	132,725	128,651
Treasury stock, at cost: 5,469 and 4,730 shares outstanding at June 30, 2026 and December 31, 2025, respectively	(68,884)	(60,521)
Retained earnings	218,060	209,821
Accumulated other comprehensive loss	(8,458)	(6,145)
Total stockholders' equity	273,480	271,843
Total liabilities and stockholders' equity	$ 387,022	$ 397,702