On February 25, Philip Petursson, Chief Investment Strategist at IG Wealth Management, appeared on BNN Bloomberg to reflect on the broader North American market trends. Petursson observed that the market is transitioning from the 2025 dominance of MAG7 toward a healthier breadth in 2026. This year has seen a rotation away from tech-heavy names and into asset-heavy sectors. In Canada, materials, energy, utilities, and staples are leading the TSX. A similar trend is occurring in the US; although the S&P 500 remains relatively flat, approximately 30% of its constituents are trading 20% or more below their 52-week highs. This churn represents a move from expensive stocks into cheaper ones.
Petursson argued that certain technology and AI-related stocks are being unfairly punished in this rotation. He specifically pointed to cybersecurity stocks and Microsoft as companies that still provide exceptional value. He expressed confusion over the current market environment, where Microsoft trades cheaper on a trailing and forward basis than traditional consumer staples. He suggested that active managers should look to take advantage of these attractive opportunities appearing within the tech sector. He also discussed his preference for equities over fixed income, citing a low probability of recession over the next 12 months. While acknowledging that a market correction could happen at any time, he emphasizes that the lack of a projected bear market makes equities more attractive than fixed income for those seeking higher returns without significant downside risk.
That being said, we’re here with a list of the 12 best fintech stocks to invest in.
Our Methodology
We used screeners to identify Fintech stocks, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Note: All data was sourced on February 26.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12 Best Fintech Stocks to Invest In
12. Intercontinental Exchange Inc. (NYSE:ICE)
Intercontinental Exchange Inc. (NYSE:ICE) is one of the best fintech stocks to invest in. On February 5, Intercontinental Exchange announced its earnings for the full year 2025, reporting a 7% year-over-year increase to $9.9 billion. This growth translated into a rise in profitability, with GAAP diluted earnings per share jumping 21% to $5.77 and adjusted diluted EPS rising 14% to $6.95. Q4 revenue totaled $2.50 billion, which was a 7.79% improvement.
Performance was strong across all primary business segments, particularly in the Exchange segment, which saw a 9% revenue increase in 2025, driven by record volumes in energy and financial futures. The Fixed Income and Data Services segment also hit record levels with $2.4 billion in annual revenue, fueled by high demand for pricing and analytics. Meanwhile, the Mortgage Technology segment began to show renewed strength, achieving $2.1 billion in revenue for the year and successfully exceeding expense synergy targets following the 2023 acquisition of Black Knight.
For 2026, Intercontinental Exchange Inc. (NYSE:ICE) leadership remains focused on modernization and automation, including the integration of AI tools within its mortgage and data platforms. While anticipating some headwinds in mortgage technology contract renewals, management expects 2026 adjusted operating expenses to land between $4.075 billion and $4.140 billion.
Intercontinental Exchange Inc. (NYSE:ICE), together with its subsidiaries, provides technology and data to financial institutions, corporations, and government entities in the US, the UK, the European Union, Canada, Asia Pacific, and the Middle East.
11. CME Group Inc. (NASDAQ:CME)
CME Group Inc. (NASDAQ:CME) is one of the best fintech stocks to invest in. On February 4, CME Group announced financial results for 2025, underscored by annual revenues of $6.5 billion. Average daily volume/AD grew 6% to 28.1 million contracts, driven by a 12% increase in commodities trading and a 5% rise in financials. The company reported record annual adjusted operating income, net income, and adjusted EPS of $11.20.
Q4 for CME Group Inc. (NASDAQ:CME) was particularly strong, marking the highest fourth-quarter volume on record with an ADV of 27.4 million contracts. Cryptocurrency trading emerged as a major growth engine, with Q4 volume surging 92% to over $13 billion in daily notional value. Beyond transaction fees, market data revenue also hit a record $803 million for the year, supported by a 3.5% price increase and expanding global demand. Non-US participation continued to scale, with ADV from Asia rising 18% and EMEA rising 6% during the quarter.
For 2026, CME Group is focused on several capital-efficiency and technology initiatives, including the launch of a new securities clearing house following SEC approval and the ongoing migration to Google Cloud. The company is also expanding into prediction markets and exploring tokenized collateral to enhance client margins.
CME Group Inc. (NASDAQ:CME), together with its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide.
10. EverQuote Inc. (NASDAQ:EVER)
EverQuote Inc. (NASDAQ:EVER) is one of the best fintech stocks to invest in. On February 23, EverQuote announced earnings for the full year 2025, with total revenue surging 38% to $692.5 million. This was fueled by the automotive insurance vertical, which grew 41% to $629.8 million, alongside a 20% increase in home and renters insurance revenue. The company’s focus on operational efficiency through AI integration boosted its bottom line, as adjusted EBITDA jumped 62% year-over-year to $94.6 million.
Q4 mirrored this momentum, with revenue rising 32% to $195.3 million and adjusted EBITDA reaching $25.1 million. A notable highlight was the reported GAAP net income of $57.8 million for the quarter, which was supported by a one-time $38.4 million non-cash tax benefit following the release of a valuation allowance against deferred tax assets.
The company’s CEO emphasized that 2025 was defined by scaling the marketplace and evolving into an AI-first company. For 2026, EverQuote Inc. (NASDAQ:EVER) issued a Q1 revenue guidance of $175 to $185 million, suggesting a more disciplined start to the year as carriers focus on profitable policy growth. Despite a projected short-term slowdown in growth rates, management maintained its long-term goal of reaching $1 billion in annual revenue within the next two to three years.
EverQuote Inc. (NASDAQ:EVER) operates an online marketplace for insurance shopping in the US. The company offers automotive and home & renters insurance, as well as campaign management tools.
9. Hippo Holdings Inc. (NYSE:HIPO)
Hippo Holdings Inc. (NYSE:HIPO) is one of the best fintech stocks to invest in. On February 25, Hippo Holdings achieved a financial turnaround in 2025, reporting a total net income of $58 million, or $2.22 per diluted share, representing a $98 million improvement year-over-year. This shift was driven by a 24% increase in Gross Written Premium/GWP, which surpassed $1.1 billion.
The company’s focus on diversification was evident as its commercial multi-peril and casualty lines surged by 75% and 92%, respectively. These gains helped offset a deliberate 10% contraction in the homeowners segment, where management prioritized rate adequacy and reduced volatility over aggressive volume growth. While Q4 2025 net income of $6 million was lower than the previous year’s $44 million in Q4 2024, the company noted that the prior-year figure was inflated by a one-time $46 million gain from an asset sale.
Looking ahead to 2026, Hippo Holdings Inc. (NYSE:HIPO) issued optimistic guidance, projecting GWP growth between 27% and 36%, targeting a range of $1.4 to $1.5 billion. Adjusted net income is expected to climb to between $45 and $55 million as the company relaunches its retooled homeowners product through strategic partnerships.
Hippo Holdings Inc. (NYSE:HIPO), together with its subsidiaries, provides property and casualty insurance products to individuals and business customers primarily in the US. It operates three segments: Services, Insurance-as-a-Service, and Hippo Home Insurance Program.
8. Root Inc. (NASDAQ:ROOT)
Root Inc. (NASDAQ:ROOT) is one of the best fintech stocks to invest in. On February 25, Root delivered the full-year 2025 earnings results, reporting a 29% increase in revenue and a record net income of $40 million, which was a 30% jump over 2024. The company’s growth was supported by a 16% rise in Gross Written Premium and a doubling of the pace for policies in force compared to the previous year.
Management highlighted that Root is now in its strongest financial position to date, finishing the year with $312 million in unencumbered capital and using its AI-driven pricing models to increase customer lifetime values by more than 20%. Strategic partnerships and geographic expansion remained central to the company’s 2025 narrative. Root expanded its coverage to 80% of the US population and established high-profile collaborations, including a telematics-based insurance initiative with Toyota.
While full-year Adjusted EBITDA rose to $132 million, Q4 net income saw a year-over-year decline of $17 million, dropping to $5 million. This dip was attributed to heavy reinvestment in marketing and partnership integrations designed to capture a larger share of the $350 billion auto insurance market. For 2026, Root Inc. (NASDAQ:ROOT) expects a temporary tightening of margins as it prioritizes new business acquisition. The CEO noted that because new policies typically carry higher loss ratios than renewals, the company anticipates a lower full-year net income for 2026.
Root Inc. (NASDAQ:ROOT) provides insurance products and services in the US. The company offers automobile and renters insurance products.
7. Trupanion Inc. (NASDAQ:TRUP)
Trupanion Inc. (NASDAQ:TRUP) is one of the best fintech stocks to invest in. On February 12, Trupanion delivered the full-year 2025 financial report, highlighted by ~$1 billion in annual subscription revenue. Total revenue for the year grew 12% to over $1.4 billion, while net income reached $19.4 million, which was a sharp recovery from the $9.6 million net loss reported in 2024.
This financial turnaround was driven by a 15% annual subscription-adjusted operating margin and a 33% increase in adjusted operating income, as the company successfully aligned its pricing with rising veterinary costs and improved its per-pet margins. Q4 showcased continued operational strength, with subscription revenue rising 15% year-over-year to $261.4 million and average monthly retention climbing to 98.34%. Despite a 2% decrease in total enrolled pets, primarily due to a decline in the lower-margin other-business segment, subscription pets grew 5% to nearly 1.1 million.
Trupanion Inc. (NASDAQ:TRUP) issued a robust outlook for 2026, projecting total revenue between $1.55 and $1.582 billion. The company expects adjusted operating income to grow by approximately 19% at the midpoint, supported by continued pricing discipline and efficient expense management. While inflation in veterinary services remains a headwind, management is exploring new, lower-priced product offerings to address tighter pet owner budgets over the next 36 months.
Trupanion Inc. (NASDAQ:TRUP), together with its subsidiaries, provides medical insurance for cats and dogs on a subscription basis in the US, Canada, Continental Europe, and Australia. The company has two segments, Subscription Business and Other Business, and serves pet owners and veterinarians.
6. Marqeta Inc. (NASDAQ:MQ)
Marqeta Inc. (NASDAQ:MQ) is one of the best fintech stocks to invest in. On February 24, Marqeta reported earnings for the full-year 2025, capped by a Q4 where Total Processing Volume/TPV surged 36% year-over-year to $109 billion. Full-year TPV reached $383 billion, an increase of 31% over 2024, driven by expansion in Europe and strong demand for modern card issuing across various use cases. This volume growth pushed annual net revenue to $625 million and gross profit to $437 million, representing year-over-year increases of 23% and 24%, respectively.
Q4 saw Marqeta near GAAP break-even, reporting a net loss of just over $1 million, a 95% improvement compared to the same period in 2024. The company’s CEO highlighted the success of value-added services, which now contribute over 7% of gross profit, and noted that 18 of the company’s top 20 customers have adopted these higher-margin solutions.
For 2026, Marqeta Inc. (NASDAQ:MQ) expects net revenue growth between 12% and 14%, with GAAP net income likely reaching ~$10 million. While the company faces headwinds from Block’s Cash App diversification and tough year-over-year comparisons due to 2025 renewal timing, management is confident in its long-term trajectory as momentum continues with new and expanded use cases, such as a program for Uber drivers in the UK and a new partnership with BNPL provider Four Technologies.
Marqeta Inc. (NASDAQ:MQ) operates a cloud-based open API platform for card issuing and transaction processing services in the US.
5. Oscar Health Inc. (NYSE:OSCR)
Oscar Health Inc. (NYSE:OSCR) is one of the best fintech stocks to invest in. On February 10, Oscar Health reported a 28% year-over-year increase in total revenue to $11.7 billion for 2025, driven by a membership base that expanded to ~2 million people. Despite this growth, the company faced financial headwinds, posting a net loss of $443 million and an adjusted EBITDA loss of roughly $280 million.
These losses were primarily attributed to a medical loss ratio that climbed to 87.4% due to higher market morbidity and increased claims utilization as members accelerated their care before the expiration of various subsidies. While medical costs rose, Oscar achieved notable operational efficiencies, improving its SG&A expense ratio by 160 basis points to 17.5%. This was largely accomplished through disciplined cost management and the integration of agentic AI features into its platform.
By early 2026, the company’s membership reached a record high of 3.4 million, reflecting a significant market share expansion from 17% to 30%. To support this scale and optimize its capital structure, the company also secured a new $475 million three-year revolving credit facility in February 2026. Oscar Health Inc. (NYSE:OSCR) now projects total revenue to surge to between $18.7 and $19 billion in 2026.
Oscar Health Inc. (NYSE:OSCR) is a healthcare technology company in the US that offers health plans to individuals, families, employees, and small group markets.
4. Lemonade Inc. (NYSE:LMND)
Lemonade Inc. (NYSE:LMND) is one of the best fintech stocks to invest in. On February 19, Lemonade reported its Q4 2025 earnings report, with in-force premiums rising 31% to $1.24 billion and revenue surging 53% to $228 million. The company achieved a record gross profit of $111 million, a 73% year-over-year increase, while narrowing its adjusted EBITDA loss to just $5 million.
A major highlight was the launch of ‘Lemonade Autonomous Car,’ which is a telematics-based product initially for Teslas that prices risk in real time based on whether the vehicle is parked, human-driven, or AI-operated. By integrating with onboard computers, Lemonade prices AI-driven miles at ~50% of the cost of human-driven miles, reflecting the increased safety of autonomous technology. This AI-first approach extends to their internal operations, where the company is investing heavily in a pricing machine and a revenue machine to enhance underwriting precision and cross-selling capabilities.
For 2026, management expects to maintain a 30% growth rate while targeting full EBITDA profitability by Q4 2026 and for the entire FY2027. Despite a net loss of $22 million for the quarter, Lemonade Inc. (NYSE:LMND) maintains a robust balance sheet with $1.1 billion in cash and investments.
Lemonade Inc. (NYSE:LMND) provides various insurance products in the US, Europe, and the UK. The company offers renters & homeowners, building, car, pet, and life insurance products, as well as landlord insurance products.
3. Virtu Financial Inc. (NYSE: VIRT)
Virtu Financial Inc. (NYSE:VIRT) is one of the best fintech stocks to invest in. Earlier on January 29, Virtu Financial delivered Q4 2025 financial results, recording its highest quarterly adjusted net income since early 2021 at $9.7 million per day, or $613 million total. This strength translated into a robust 72% adjusted EBITDA margin and adjusted earnings of $1.85 per share. For the full year, the company generated $2.1 billion in adjusted net income, supported by a 65% EBITDA margin.
The results were driven by elevated market volatility and high trading volumes, which benefited both the Market Making and Execution Services segments. The company’s growth strategy centered on an expansion of its trading capital, which increased by $625 million over the course of the year. This incremental capital yielded an exceptional 100% average return in 2025, underscoring Virtu’s ability to scale effectively in favorable conditions.
Virtu Execution Services also achieved record results, with $2 million in daily net trading income. While equities remained a core driver, the company highlighted contributions from its diversified global business, including fixed income, currencies, and commodities. Looking toward 2026, Virtu Financial Inc. (NYSE:VIRT) remains focused on increasing its trading capital, upgrading technical infrastructure, and expanding into emerging asset classes like prediction markets and crypto.
Virtu Financial Inc. (NYSE:VIRT) operates as a financial services company in the US, Ireland, and internationally. It operates in two segments: Market Making and Execution Services.
2. MarketAxess Holdings Inc. (NASDAQ:MKTX)
MarketAxess Holdings Inc. (NASDAQ:MKTX) is one of the best fintech stocks to invest in. On February 25, MarketAxess Holding appointed William Quan as its new Chief Technology Officer to lead the company’s global technology organization. Reporting directly to COO Dean Berry and joining the Executive Committee, Quan is tasked with driving innovation and accelerating the modernization of the company’s electronic trading platforms.
His mandate focuses on building resilient, scalable infrastructure while deepening the integration of AI and advanced data analytics across MarketAxess Holdings Inc.’s (NASDAQ:MKTX) product suites and workflows. Quan joins the firm with over 20 years of experience in financial services and cloud technology. Most recently, he served as CTO of Fleete Group, a Macquarie Asset Management portfolio company, where he oversaw the development of AI-enabled SaaS platforms.
His background also includes a tenure at Amazon Web Services advising financial institutions on cloud-native strategies, as well as over a decade in senior leadership roles at JPMorgan and Deutsche Bank, where he focused on electronic trading and digital platform initiatives. This hire signals MarketAxess’s commitment to staying at the forefront of the evolving fixed-income market.
MarketAxess Holdings Inc. (NASDAQ:MKTX), together with its subsidiaries, operates an electronic trading platform for institutional investors and broker-dealer firms in the US, the UK, and internationally.
1. Nasdaq Inc. (NASDAQ:NDAQ)
Nasdaq Inc. (NASDAQ:NDAQ) is one of the best fintech stocks to invest in. On February 10, Nasdaq launched the Nasdaq Private Capital Indexes, which is a new suite of rules-based benchmarks designed to bring transparency and standardization to the historically fragmented private markets. This suite covers various strategies, including private equity, venture capital, private debt, and real estate.
By establishing objective performance standards, Nasdaq Inc. (NASDAQ:NDAQ) aims to help institutional investors and consultants benchmark performance and analyze market exposures with the same rigor found in public markets. The indexes are built upon a massive dataset from Nasdaq eVestment, encompassing over 14,000 institutional private market funds representing more than $11.4 trillion in global assets under management.
Using a documented, rules-based methodology (including Modified Dietz quarterly performance measurement and NAV-weighted aggregation), the indexes provide a comprehensive view of private markets based on actual LP-reported fund performance. This launch represents an expansion of the Nasdaq Private Capital Solutions platform, which integrates these new indexes with existing tools like TopQ+ Analytics and eVestment fund benchmarking.
Nasdaq Inc. (NASDAQ:NDAQ) operates as a technology company that serves capital markets and other industries in the US and internationally. It operates through three segments: Capital Access Platforms, Financial Technology, and Market Services.
While we acknowledge the potential of NDAQ 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 NDAQ and that has 100x upside potential, check out our report about this cheapest AI stock.
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