10 Best Cybersecurity Stocks to Invest in Under $20

4. OneSpan Inc. (NASDAQ:OSPN)

Share Price: $15.44

Number of Hedge Fund Holders: 25

Thanks to major operational enhancements and strategic initiatives, OneSpan Inc. (NASDAQ:OSPN) is establishing a solid reputation in the fields of cybersecurity and digital identification. OneSpan, headquartered in Boston, provides digital workflow, security, authentication, and identity solutions throughout Asia-Pacific, EMEA, and the Americas.

OneSpan Inc. (NASDAQ:OSPN) achieved a record adjusted EBITDA of $73 million, or 30% of revenue, in fiscal year 2024, which concluded on December 31, 2024. This achievement demonstrated the company’s effective shift to higher-margin software and services. ARR (annual recurring revenue) increased 8.5% to $168 million, driven by 6% growth in security and 12% growth in digital agreements.

Subscription income increased more than 30%, accounting for 57% of total revenue. The strategic shift away from lower-margin hardware, while having a minor influence on total sales growth, significantly increased profitability and operational efficiency. OneSpan generated $56 million in operating cash flow and ended the year with $83 million in cash and no long-term debt, which shows that the company is well-positioned for future investments and shareholder returns.

Operationally, both the Security and Digital Agreements divisions were profitable during the year. With a new CTO who specializes in digital identity, OneSpan is strengthening its R&D skills to maintain its leadership in authentication and e-signatures. OneSpan Inc. (NASDAQ: OSPN) stands out as one of the best cybersecurity stocks under $20, providing an appealing mix of growth, profitability, and shareholder returns.