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.
8. Power Solutions International, Inc. (NASDAQ:PSIX)
Quarterly Revenue Growth (yoy): 73.50%
Upside Potential as of September 01, 2025: 53.22%
EntryPoint Capital LLC has expanded its holdings in Power Solutions International, Inc. (NASDAQ:PSIX) in the first quarter by acquiring 8,119 shares at a value of $205,000, signaling increased confidence in the company’s outlook.
Recently, Power Solutions International, Inc. (NASDAQ:PSIX) delivered strong results, reporting approximately 74% revenue growth driven by its data center-oriented power systems, which comprise 82% of operations. That’s not it – the power segment is expected to grow even further.
Another reason investors are drawn to Power Solutions International, Inc. (NASDAQ:PSIX) is its financial discipline. The recent efforts towards debt reduction and extended credit lines not only strengthen the company’s liquidity but also offer enhanced strategic flexibility.
Power Solutions International, Inc. (NASDAQ:PSIX) is an Illinois-based company that provides engines and power systems globally. The core offerings of the company include engine blocks, packaged power systems, and electrical power generation systems. Founded in 1985, the company is a subsidiary of Weichai America Corp.
7. Innodata Inc. (NASDAQ:INOD)
Quarterly Revenue Growth (yoy): 79.40%
Upside Potential as of September 01, 2025: 69.57%
Axiom Investors LLC DE has increased its stake in Innodata Inc. (NASDAQ:INOD) during the first quarter, as disclosed in the recent filing with the Securities & Exchange Commission. Through the purchase of 42,671 shares, valued at nearly $1,532,000, the capital market firm now owns 0.13% of the company.
It’s quite impressive to see Innodata Inc. (NASDAQ:INOD) expanding in a rapidly transforming market. We have seen how the company has fully leveraged AI, first to collect and annotate data at scale and then using the data to train models. The outcome of this AI-focused strategy is straightforward: customer wins and enhanced revenues.
Earlier this month, the management raised organic revenue growth guidance for 2025 to 45% as Innodata Inc. (NASDAQ:INOD) continues to grow. In just three years, the company delivered a return of 1,010.53% in contrast to the market’s return of 60.28%. Well, the numbers speak for themselves.
Innodata Inc. (NASDAQ:INOD), based in New Jersey, is a data engineering company operating through three segments: Digital Data Solutions (DDS), Synodex, and Agility. Incorporated in 1988, the company is dedicated to improving business outcomes.
6. Sky Harbour Group Corporation (NYSE:SKYH)
Quarterly Revenue Growth (yoy): 82.10%
Upside Potential as of September 01, 2025: 62.04%
According to the Marketbeat Ratings report, Sky Harbour Group Corporation (NYSE:SKYH) has received an average rating of “Buy” from seven brokerages, with the average price target of $17.3750 implying an upside of nearly 64% from the current levels. Analysts’ response remains optimistic, with one Hold, four Buy, and a Strong Buy rating on the stock.
If there’s one stock that is high-risk and high-reward, that is SKYH. The company’s network of high-end hangar campuses taps the untapped, making its business model one of a kind. So far, Sky Harbour Group Corporation (NYSE:SKYH) has demonstrated somewhat strong traction, achieving full occupancy in existing campuses and securing noteworthy deals at higher rents.
While this growth is an outcome of years of development expense, investors bullish on Sky Harbour Group Corporation (NYSE:SKYH) believe that the company will grow into a sustainable and quasi-utility business with franchise-like control over pricing.
Sky Harbour Group Corporation (NYSE:SKYH) is a New York-based aviation infrastructure development company that develops, leases, and operates general aviation hangars. With a commitment to providing a unique home-based business aircraft, the company aims to achieve economies of scale through standardized development.
5. Applied Optoelectronics, Inc. (NASDAQ:AAOI)
Quarterly Revenue Growth (yoy): 137.90%
Upside Potential as of September 01, 2025: 12.40%
Applied Optoelectronics, Inc. (NASDAQ:AAOI), announced on August 27, 2025, that it is in an Equity Distribution Agreement with Raymond James & Associates, Inc. and Needham & Company, LLC. This means that the company can now raise up to $150 million worth of capital through the sale of common stock via these agents.
This deal allows Applied Optoelectronics, Inc. (NASDAQ:AAOI) to issue shares opportunistically, given the market environment. As the company moves towards higher capacity building for its transceiver offerings, the arrangement explicitly outlines agent compensation, reimbursement terms, standard termination, and indemnification provisions.
Many believe 2026 to be the inflection point for Applied Optoelectronics, Inc. (NASDAQ:AAOI), with the production of its high-speed transceiver to accelerate in the next few quarters and a strong outlook for its CATV demand. If we examine the company’s comparative returns, to say we’re impressed would be an understatement. While the three-year return delivered by the S&P 500 (^GSPC) stands at 60.28%, AAOI returned a stellar 891.80%.
Applied Optoelectronics, Inc. (NASDAQ:AAOI), based in Texas, is a manufacturer and seller of fiber-optic networking products. With a strong presence in the United States, Taiwan, and China, the company offers laser components, amplifiers, optical filters, and turn-key equipment, among others.
4. United States Antimony Corporation (NYSE:UAMY)
Quarterly Revenue Growth (yoy): 187.30%
Upside Potential as of September 01, 2025: 8.13%
As per the Marketbeat report, five analysts have given an average recommendation of “Buy” to United States Antimony Corporation (NYSE:UAMY). With one “Strong Buy” and four “Buy” ratings, the analysts have increased confidence in the company’s performance in the quarters ahead.
There are two factors that determine the company’s future: successful Alaska mining and smelting expansion. As long as the project delivers well, there’s a good chance that United States Antimony Corporation (NYSE:UAMY) will witness substantial revenue growth.
The management believes that further improvement in financials and operating results will be sustained, as United States Antimony Corporation (NYSE:UAMY) has what it calls “the right ingredients to achieve the goal.” September may finally mark the beginning of Alaska’s antimony supply, after the previously anticipated August start was pushed back. The expansion of the Thompson Falls facility, on the other hand, appears to be on track to deliver a sixfold increase in throughput.
United States Antimony Corporation (NYSE:UAMY), based in Texas and founded in 1968, provides antimony, zeolite, and precious metals in the United States and Canada. With two main segments: Antimony and Zeolite, the company is committed to contributing to the U.S. national supply chain.
3. Delcath Systems, Inc. (NASDAQ:DCTH)
Quarterly Revenue Growth (yoy): 211.00%
Upside Potential as of September 01, 2025: 120.91%
Invesco Ltd. has expanded its position in Delcath Systems, Inc. (NASDAQ:DCTH) through the acquisition of 399,389 shares of the company’s stock, as revealed in the latest 13F filing with the Securities and Exchange Commission. With a transaction worth $5,084,000, the investment management firm now owns 1.19% of DCTH.
In the case of Delcath Systems, Inc. (NASDAQ:DCTH), its liver-directed chemotherapy system delivers meaningful clinical benefits; however, the market remains limited. What’s noteworthy is that the company is expanding into bigger cancer markets, and if successful, the company’s potential is enormous.
As Gerard J. Michel, the CEO, outlined,
“Preparations are underway to conduct company-sponsored trials in liver-dominant metastatic colorectal cancer and liver-dominant metastatic breast cancer, both of which allow us to approach large markets with clear unmet needs.”
Although Delcath Systems, Inc. (NASDAQ:DCTH) may face short-term challenges, such as pricing pressure from 340B/NDRA programs and high R&D costs, the company’s future growth depends on the success of its trials in metastatic breast and colorectal cancers. If things go as planned, the payoff could be massive.
Delcath Systems, Inc. (NASDAQ:DCTH) is a New York-based interventional oncology company that was founded in 1987. Through the revolution of the treatment of liver cancers, the company is committed to improving patient outcomes.
2. ARS Pharmaceuticals, Inc. (NASDAQ:SPRY)
Quarterly Revenue Growth (yoy): 3,043.40%
Upside Potential as of September 01, 2025: 166.76%
Lupin Inc., a leading player in the healthcare sector, sent a Paragraph IV certification notice to ARS Pharmaceuticals, Inc. (NASDAQ:SPRY) on August 13, 2025, outlining that Lupin has submitted an Abbreviated New Drug Application (ANDA) to the FDA for approval of the launch of a generic version of ARS’s neffy© nasal spray before multiple patents expire.
In response, ARS Pharmaceuticals, Inc. (NASDAQ:SPRY) is working to aggressively defend its patents through the filing of a patent infringement lawsuit against Lupin, which could delay the FDA approval of Lupin’s generic product by 30 months if filed within the next 45 days. Although the outcome remains uncertain, one thing is certain: this would substantially impact the company’s market leadership and intellectual property rights.
Neffy is considered a blockbuster for ARS Pharmaceuticals, Inc. (NASDAQ:SPRY) for emergency allergic reactions. While much of the company’s prospects depend on its market position and Neffy’s market demand, the outlook remains quite encouraging.
ARS Pharmaceuticals, Inc. (NASDAQ:SPRY), headquartered in San Diego, California, is a biopharmaceutical company providing treatments for severe allergic reactions. Founded in 2015, the company is committed to offering patient-friendly solutions.
1. CorMedix Inc. (NASDAQ:CRMD)
Quarterly Revenue Growth (yoy): 4,829.40%
Upside Potential as of September 01, 2025: 34.83%
During the first quarter, the Swiss National Bank expanded its position in CorMedix Inc. (NASDAQ:CRMD) as disclosed with the Securities and Exchange Commission. Through the purchase of 117,600 shares of the company’s stock, with a worth of nearly $724,000, the bank now owns 0.17% of the company.
Just as the dawn breaks after the darkest night, CorMedix Inc. (NASDAQ:CRMD) has finally stepped into profitability, and that too quite quickly. Having said that, the quarterly revenue growth (YoY) of the company stands at an impressive 4,829.40%. That’s not it. While the one-year return delivered by the S&P 500 (^GSPC) is reported at 15.53%, the company returned nearly ten times more, a staggering return of approximately 144.32%.
The company’s future looks equally appealing, all thanks to DefenCath’s FDA approval and successful commercialization. The product is unique in itself as it not only brings value to insurance companies but also captures significant market share.
CorMedix Inc. (NASDAQ:CRMD), incorporated in 2006, is a New Jersey-based biopharmaceutical company that provides treatments for serious conditions. With DefenCath as its lead candidate, the company is committed to addressing critical unmet medical needs.
While we acknowledge the potential of CRMD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRMD and that has 100x upside potential, check out our report about this cheapest AI stock.
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