11 Best Small Cap Tech Stocks With High Upside Potential

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6. Pagaya Technologies Ltd. (NASDAQ:PGY)

Pagaya Technologies Ltd. (NASDAQ:PGY) is one of the best small cap tech stocks with high upside potential. On February 9, Pagaya Technologies delivered a strong financial performance for the full year 2025, with revenue climbing 26% year-over-year to $1.3 billion. The company achieved a turnaround in profitability, reporting GAAP net income of $81 million, which was a $483 million improvement over 2024, and a 76% surge in adjusted EBITDA to $371 million.

This growth was supported by a 9% increase in network volume to $10.5 billion and the onboarding of major new partners, including GLS and a leading North American buy-now-pay-later provider. Despite these gains, Pagaya is adopting a more conservative stance for 2026, prioritizing risk management over aggressive market share expansion.

Management has proactively tightened production and reduced exposure to higher-risk credit tiers in response to persistent macroeconomic uncertainty and cautious behavior among lending partners. This pullback is expected to result in more measured volume growth in the coming year. Looking ahead, Pagaya Technologies Ltd. (NASDAQ:PGY) aims to maintain a fee-related-performance margin between 4% and 5% while continuing to diversify its funding and product offerings.

Pagaya Technologies Ltd. (NASDAQ:PGY) is a product-focused technology company that deploys data science and proprietary AI-powered technology for financial services and other service providers, their customers, and asset investors in the US, Israel, and the Cayman Islands.

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