OneSpan holds steady as Digital Agreements grow but cybersecurity growth slows and margins shrink.

OneSpan reported solid first-quarter results with its Digital Agreements segment showing over 10% year-on-year revenue growth and a 9 percentage point margin expansion, highlighting it as the company's strongest business. However, growth in the cybersecurity segment is mainly driven by acquisitions, with organic annual recurring revenue growth stalling and margins declining by 8 percentage points. The company's valuation remains fair at about 10 times earnings, supported by strong margins, net cash, and capital returns, but the lack of organic growth limits potential upside. Overall, OneSpan maintains a 'Hold' rating due to mixed performance and cautious outlook on growth prospects.