In this article, we will look at the 7 High-Growth Penny Stocks That Are Profitable in 2025.
On July 15, Riverwater Partners’ Founder and CEO released his quarterly letter and small-cap strategy, highlighting a surprising paradox. He noted that despite global trade disruptions and geopolitical tensions, the markets are showing resilience. The quarter was marked by some unusual trade disruptions as the US took military action against Iran, causing oil prices to drop dramatically. Moreover, the tariff shock on the Liberation Day also caused a sudden market shock, but it was postponed due to higher volatility.
In such turmoil, common sense suggests that markets should drop; however, the global equity and bond markets mostly rallied to near or record highs. An exception was the US small-cap stocks, which lagged. Riverwater believes this underperformance isn’t supported by fundamentals and remains confident in the small-caps future. The CEO noted that AI tools are expected to democratize automation and coding, benefiting small companies more over time. Although big names currently lead the AI infrastructure, the next wave of AI is expected to favour the small-caps as they would gain access to powerful tools once limited to giants.
Riverwater Partners finds small caps to be attractively valued and noted that the segment has outpaced large-cap revenue growth over the past decade. The main hurdle is investor sentiment and preference for large-caps with high price multiples. The firm expects this trend to reverse, unlocking strong returns for quality small-cap investments.
With that, let’s take a look at the 7 high-growth penny stocks that are profitable in 2025.
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Our Methodology
To curate the list of 7 high-growth penny stocks that are profitable in 2025, we used the Finviz stock screener, Yahoo Finance, Seeking Alpha, and CNN. Using the screener, we aggregated a list of penny stocks (trading below $5) with year-over-year sales growth of more than 20% and positive TTM net income. Next, we cross-checked the sales growth from Seeking Alpha and the TTM net income from Yahoo Finance. Lastly, we ranked the stocks in ascending order of the analyst upside potential sourced from CNN. For instances where analyst upside potential was not available, we used the number of hedge fund holders as of Q1 2025 as our ranking metric. Please note that the data was recorded on July 24, 2025.
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).
7 High-Growth Penny Stocks That Are Profitable in 2025
7. TOYO Co., Ltd. (NASDAQ:TOYO)
Price: $3.59
Year-Over-Year Sales Growth: 183.69%
TTM Net Income: $33.41M
Number of Hedge Fund Holders: 1
Analyst Upside Potential: N/A
TOYO Co., Ltd. (NASDAQ:TOYO) is one of the High Growth Penny Stocks That Are Profitable in 2025. On May 15, TOYO Co., Ltd. (NASDAQ:TOYO) provided updates to its financial report for 2024.
Management noted that it had filed its full annual report with the SEC on May 12, 2025. The company reported its operating expenses growing sharply from $4.7 million in 2023 to $13.0 million in 2024. Moreover, the selling and marketing expenses also rose from $0.02 million a year ago to $1.6 million in 2024. This was due to the higher freight, handling, and sales commissions.
On the bright side, TOYO Co., Ltd. (NASDAQ:TOYO) significantly grew its net income from $9.9 million in 2023 to $40.5 million. As a result, the EPS also went up to $1.09 from $0.24 a year ago. The company had cash and restricted cash of around $17.1 million at the end of 2024, which is slightly less than the $19.0 million at the end of 2023.
TOYO Co., Ltd. (NASDAQ:TOYO) is a solar solutions company that designs, manufactures, and sells solar cells and photovoltaic modules.
6. Tuya Inc. (NYSE:TUYA)
Price: $2.58
Year-Over-Year Sales Growth: 27.63%
TTM Net Income: $19.56M
Number of Hedge Fund Holders: 16
Analyst Upside Potential: 26.23%
Tuya Inc. (NYSE:TUYA) is one of the High Growth Penny Stocks That Are Profitable in 2025. On May 23, Tuya Inc. (NYSE:TUYA) co-hosted The Global Telecom AIoT Summit 2025 along with T3 Technology and Skyworth in Bangkok.
The event’s theme was “New Era of Intelligence for All Industries,” and its goal was to promote smart solutions across industries and speed up digital transformation in Southeast Asia. The company’s Co-Chairman and President, Leo Chen, spoke about his decade-long dedication to AIoT. He noted that Thailand’s “Digital Thailand” plan closely matches Tuya Inc. (NYSE:TUYA)’s vision to advance global intelligence. Moreover, the company also unveiled the Southeast Asia Digital and AI Transformation Joint Initiative at the summit. This initiative promotes cooperation among governments, businesses, and research institutions to expand AI use and build a prosperous digital future.
Tuya Inc. (NYSE:TUYA) is a global IoT cloud platform service provider that enables businesses and developers to create smart IoT devices and applications.
5. Health In Tech, Inc. (NASDAQ:HIT)
Price: $1.81
Year-Over-Year Sales Growth: 29.68%
TTM Net Income: $1.07M
Number of Hedge Fund Holders: 2
Analyst Upside Potential: 44.02%
Health In Tech, Inc. (NASDAQ:HIT) is one of the High Growth Penny Stocks That Are Profitable in 2025. On July 21, Health In Tech, Inc. (NASDAQ:HIT) announced results for its fiscal second quarter of 2025.
The company reported its revenue surged to $9.3 million for the quarter, reflecting an 86% increase year-over-year. Notably, the first half revenue reached $17.3 million, which is already 89% of the company’s full 2024 revenue. Management noted that the billed enrolled employees climbed to 24,839, up by 5,738 compared to last year. In addition, the company’s distribution network grew significantly, as brokers, third-party administrators, and agencies reached 778 partners, an 87% increase.
Health In Tech, Inc. (NASDAQ:HIT) also grew its profitability as pre-tax income more than doubled to reach $0.8 million for the quarter and $1.5 million for the first half of the year.
Health In Tech, Inc. (NASDAQ:HIT) is an Insurtech platform company that uses third-party AI technology to streamline and simplify healthcare insurance processes.
4. Cronos Group Inc. (NASDAQ:CRON)
Price: $2.09
Year-Over-Year Sales Growth: 33.92%
TTM Net Income: $49.44M
Number of Hedge Fund Holders: 13
Analyst Upside Potential: 72.54%
Cronos Group Inc. (NASDAQ:CRON) is one of the High Growth Penny Stocks That Are Profitable in 2025. On July 2, Cronos Group Inc. (NASDAQ:CRON) announced expanding its reach in Europe by forging a new partnership with Dascoli Pharma AG.
Dascoli is a leader in distributing medical cannabis in Switzerland. As per the partnership, the company’s Peace Naturals medical cannabis flower will be sold through Dascoli’s Swiss network. The following strains of Peace Naturals would be available for patients in Switzerland, including GMO Cookies, Space Cake, Atomic Sour Grapefruit, Sonic Lemon Fuel, and Wedding Cake. This partnership aligns with Cronos Group Inc. (NASDAQ:CRON)’s strategy to increase its presence in key medical cannabis markets.
Cronos Group Inc. (NASDAQ:CRON) is a global cannabis company that develops and sells a variety of cannabinoid products.
3. MannKind Corporation (NASDAQ:MNKD)
Price: $4.10
Year-Over-Year Sales Growth: 32.50%
TTM Net Income: $30.12M
Number of Hedge Fund Holders: 29
Analyst Upside Potential: 120.05%
MannKind Corporation (NASDAQ:MNKD) is one of the High Growth Penny Stocks That Are Profitable in 2025. On July 23, RBC Capital’s analyst Douglas Miehm lowered the firm’s price target on MannKind Corporation (NASDAQ:MNKD) from $10 to $8, while maintaining a Buy rating on the stock.
The analyst believes the current stock price reflects an overly pessimistic view of MannKind Corporation (NASDAQ:MNKD)’s products, particularly the Tyvaso DPI royalties, and assigns no value to the company’s product pipeline. During the fiscal first quarter of 2025, the company noted that its Afrezza, an inhaled insulin, saw 20% new prescription growth and 14% total prescription growth year-over-year. Moreover, the insulin’s pediatric Phase 3 trial is progressing, and the company also met with the FDA’s plan file for its approval in mid-2025.
MannKind Corporation (NASDAQ:MNKD) develops and sells inhaled therapeutic products for diabetes and rare lung diseases.
2. Genfit S.A. (NASDAQ:GNFT)
Price: $4.07
Year-Over-Year Sales Growth: 105.01%
TTM Net Income: $1.78M
Number of Hedge Fund Holders: 2
Analyst Upside Potential: 150.74%
Genfit S.A. (NASDAQ:GNFT) is one of the High Growth Penny Stocks That Are Profitable in 2025. On July 8, Justine Telliez from Kepler Capital maintained a Buy rating on Genfit S.A. (NASDAQ:GNFT) with a price target of €8.40.
The rating comes after the company released its mid-year update on its liquidity contract with Credit Industriel et Commercial. The company noted that as of June 30, 2025, there were 201,000 shares in the liquidity account along with €398,484.67 in cash in liquidity. Moreover, the company also released details about its trading activity, which shows 1,412,901 shares were bought, 1,419,301 shares were sold, with the number of buy and sell trades standing at 2,673 and 1,894, respectively.
Genfit S.A. (NASDAQ:GNFT) is a French biopharmaceutical company that develops treatments and diagnostic tools for rare and serious liver diseases.
1. Intchains Group Limited (NASDAQ:ICG)
Price: $2.80
Year-Over-Year Sales Growth: 384.54%
TTM Net Income: $4.51M
Number of Hedge Fund Holders: N/A
Analyst Upside Potential: 157.09%
Intchains Group Limited (NASDAQ:ICG) is one of the High Growth Penny Stocks That Are Profitable in 2025. On May 27, Maxim Group analyst Matthew Galinko lowered the firm’s price target on Intchains Group Limited (NASDAQ:ICG) from $8 to $7.5, while maintaining a Buy rating on the stock.
The analyst noted that the slight price adjustment represents some near-term challenges facing the company. He highlighted that despite the challenges, its growth potential remains strong. The company reported a significant revenue increase in Q1 2025, which was mainly driven by robust sales of its new Aleo mining machines.
Galinko noted Intchains Group Limited (NASDAQ:ICG)’s strategic moves, including the launch of the Goldshell Byte mining machine. He believes that this positions the company to capitalize on emerging opportunities in digital asset mining. Although the company lowered its guidance for the first half of 2025 due to tougher competition and falling cryptocurrency prices, Galinko remains optimistic.
Intchains Group Limited (NASDAQ:ICG) is a holding company that provides altcoin mining products, including mining machines that use high-performance ASIC chips designed for blockchain applications.
While we acknowledge the potential of ICG 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 ICG and that has 100x upside potential, check out our report about this cheapest AI stock.
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