In this article, we will take a look at some of the fastest growing small cap stocks to buy.
These days, everyone is obsessed with speed: fast fashion, fast food, fast internet. So, one wonders: why should investing be any different? Why wait years for returns when fast and high returns aren’t impossible?
Small-cap stocks may not always grab headlines or analyst attention, but they can certainly offer high growth potential, as they have room to expand. BofA has advocated for these stocks, stating that small-cap stocks are poised to outperform the overall market over the next decade.
From trends like reshoring and valuation that offer “steep discount,” the reasons to invest in such stocks are many. According to a 1992 paper by Fama and French, the smallest 30% of US stocks have surpassed the largest 30% by a monthly average of 0.19%. Given this, we will take a look at some of the fastest growing small cap stocks.
Our Methodology
We have compiled a list of the 11 fastest growing small-cap stocks to consider for investment using the Stock Analysis screener. We have filtered the stocks that have a market cap between $300 million and $2 billion, a revenue growth rate (quarterly) of over 50%, and a 3-year return CAGR of over 20%. The upside potential is calculated using the one-year price targets by analysts at Yahoo Finance. These stocks are then ranked according to the YoY quarterly revenue growth.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11. The Real Brokerage Inc. (NASDAQ:REAX)
Quarterly Revenue Growth (yoy): 58.70%
Upside Potential as of September 01, 2025: 17.69%
According to the recent filing with the SEC, Nuveen LLC has increased its position in The Real Brokerage Inc. (NASDAQ:REAX) through the purchase of 1,147,729 shares. This transaction, worth $4,660,000, raised the financial services firm’s stake to 0.58%.
Some say that The Real Brokerage Inc. (NASDAQ:REAX) is not an ordinary real estate company; rather, it is the most tech-centered company, with new agents coming on board every day. Having said that, the company leverages proprietary software and AI tools to enhance agent growth and operational efficiency.
Behind every fastest-growing company, there’s something that differentiates it from its peers. In the case of The Real Brokerage Inc. (NASDAQ:REAX), the competitive advantage lies in the company’s technology. While conventional franchises often lack proprietary software and rely on outsourcing, REAX empowers its agents with complete freedom of action through its “reZEN” software.
The Real Brokerage Inc. (NASDAQ:REAX), based in Miami, Florida, is a real estate technology company. With a strong presence in the United States and Canada, the company offers brokerage, mortgage broker, and wallet services.
10. Avadel Pharmaceuticals plc (NASDAQ:AVDL)
Quarterly Revenue Growth (yoy): 64.20%
Upside Potential as of September 01, 2025: 29.55%
As disclosed in the latest Form 13F filing with the SEC, Nuveen LLC has increased its position in Avadel Pharmaceuticals plc (NASDAQ:AVDL) through the purchase of 517,939 shares, worth $4,055,000, during the first quarter. The investment leader now owns about 0.54% of the company.
During its recent earnings call, the management highlighted the growth momentum of LUMRYZ, the company’s lead product, which is anticipated to drive the future of Avadel Pharmaceuticals plc (NASDAQ:AVDL). As Thomas S. McHugh, the senior VP, stated,
“We believe we have clear visibility to deliver on the updated guidance, which is based on the favorable trends in the first half of 2025, including growing patient demand and improvements in key patient metrics.”
The company’s commercial strength, together with investments in HCP and patient-centered programs, can’t be overlooked. Even if we consider the comparative statistics, the year-to-date return delivered by AVDL stands at 40.44% in contrast to the S&P 500 (^GSPC)’s return of a mere 9.84%. With key metrics aligning with the growth narrative, Avadel Pharmaceuticals plc (NASDAQ: AVDL) is expected not only to sustain, but also to thrive.
Avadel Pharmaceuticals plc (NASDAQ:AVDL) is an Ireland-based biopharmaceutical company that mainly offers LUMRYZ to treat cataplexy or excessive daytime sleepiness. Incorporated in 2015, the company is dedicated to addressing unmet medical needs.
9. Climb Global Solutions, Inc. (NASDAQ:CLMB)
Quarterly Revenue Growth (yoy): 73.00%
Upside Potential as of September 01, 2025: 7.63%
Invesco Ltd. has reduced its position in Climb Global Solutions, Inc. (NASDAQ:CLMB) by selling 20,632 shares during the first quarter, as disclosed with the Securities and Exchange Commission (SEC). The investment management firm now owns 74,567 shares of the CLMB, translating to 1.62% of the company.
During its latest earnings call, the management highlighted double-digit organic growth, new vendor contracts, and a strong footing in both the U.S. and Europe markets. The backbone of the company’s strong quarter is the acquisition of Douglas Stewart Software (DSS), which boosted performance through incremental and seasonal gains. That being said, Climb Global Solutions, Inc. (NASDAQ:CLMB) also entered into a contract with Ignite, the impact of which will perhaps be more visible in the quarters ahead.
As Matthew Sullivan, the VP and CFO, stated,
“We’re continuing to explore strategic acquisitions that align with our high-performance culture and strengthen our ability to meet evolving customer needs.”
As long as the company remains focused on high-growth sectors with M&A opportunities, there’s a good reason to believe that Climb Global Solutions, Inc. (NASDAQ:CLMB) will draw further investor interest.
Climb Global Solutions, Inc. (NASDAQ:CLMB) is a New Jersey-based value-added information technology (IT) distribution and solutions company. Founded in 1982, the company operates through two segments: Distribution and Solutions.
