10 Undervalued Quantum Computing Stocks to Buy Now

5. OneSpan Inc. (NASDAQ:OSPN)

Number of Hedge Fund Holders: 25

Forward Price to Earnings (P/E) ratio: 11.21

OneSpan Inc. (NASDAQ:OSPN) is a digital security solutions provider, with services spanning authentication, identity verification, e-signature, and digital workflow products. The company’s clientele is spread across industries like financial services, healthcare, and government. The services provided by OneSpan, including mobile security and multifactor authentication, help secure digital transactions and build customer satisfaction worldwide.

In Q4 ended December 31, 2024, OneSpan Inc. (NASDAQ:OSPN) posted EPS of $0.24, falling short of the expected $0.27. The revenue stood at $61.2 million, a decline of 3% YoY, though annual recurring revenue was $168 million, an increase of 8.5%. The company’s full-year revenue increased 3% to $243.2 million, and Q4 adjusted EDIBTA surged 32.4% from 17.7% in the last year. Moreover, its Security Solutions had a decline in revenue for Q4, although ARR rose 6%, followed by a subscription revenue increase of 49%. Meanwhile, the Digital Agreements segment had an 8% increase due to a 15% increase in subscription revenue.

OneSpan Inc. (NASDAQ:OSPN) is advancing its higher-margin software model, focusing on the growth of its security software and channel partnerships. In addition, the company is looking into M&A options for advancing its digital identity solutions. Looking forward to 2025, the company predicts its revenue to be around $245 to $251 million, with ARR increasing 14-18%, while adjusted EDIBTA stood at $72-$76 million.

The company is directed toward resolving security issues revolving around possible threats regarding quantum computing. OneSpan Inc. (NASDAQ:OSPN) has launched quantum-resistant encryption to its Authentication Suite Server SDK to strengthen its core engine against quantum computing risks. Although the quantum computers breaking current encryption algorithms is still theoretical, the company’s approach to using post-quantum encryption makes it stand out in the evolving tech sector, while ranking among cheap stocks to buy now.