In this article, we take a look at the 9 Best Performing Micro Cap Stocks in 2025.
A Bloomberg report published on January 2, 2026, argues that 2025 was an everything rally. Global stocks, bonds, credit, and commodities all rallied together and delivered the strongest cross‑asset performance since 2009. This also made risk‑taking highly rewarding, said the report. And which is why even companies with the smallest market capitalization, also called micro-caps, saw substantial growth. The Dow Jones US Micro-Cap Total Stock Market Index confirms this assertion; it gained 12.59% in the 12 months between January and December 2025. This is not too far from the nearly 17% achieved by the mega-cap-heavy S&P 500.
But 2025 wasn’t entirely good for micro-caps, notes Kennedy Capital Management. According to their analysis, these stocks lagged larger peers, mostly due to macroeconomic uncertainty and liquidity constraints. However, as the year progressed, a remarkable turnaround took shape. Kennedy Capital Management’s analysis shows that the Russell Micro-Cap Index returned 17.03% in Q3 2025, which was a dramatic recovery from the 14.39% decline experienced in the first quarter of the year. The primary driver behind this resurgence, says the firm, has been the performance of stocks tied to the artificial intelligence (AI) theme.
Interestingly, analysts think investors haven’t seen the best of smaller companies yet. According to Miles Lewis, portfolio manager at Royce Investment Partners, the quality and value of smaller companies are “poised for meaningful rebounds in 2026.” This is because “2025’s returns, particularly since the April lows, have been driven primarily by lower quality, speculative stocks and just about anything that is an obvious beneficiary of the AI boom.”
In the same vein, Nick Sheridan, portfolio manager at Janus Henderson Investors, is convinced that global smaller companies are primed to outgrow the giants in 2026. Sheridan argues that large caps have eclipsed small and micro-caps since 2022 mainly because of macroeconomic shocks. But the conditions are reversing, Sheridan noted. He stated: “Inflation is at more moderate levels, conflicts are easing, energy prices have stabilized, and central banks are re-setting monetary policy, with more interest rates cuts expected.” Sheridan concluded that the stage is set for small and micro-cap resurgence.
Against this backdrop, this article explores 9 micro-cap stocks that won big in 2025.
Our Methodology
We used Finviz to select micro‑cap stocks, which we defined as companies with market capitalization between $50 million and $300 million, and looked for names that posted the strongest year‑to‑date (YTD) performance in 2025. We also considered hedge fund sentiment around each stock based on Q3 2025 13F filing data in Insider Monkey’s database. The stocks are ranked in ascending order of YTD performance.
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).
Note: The YTD performance data is as of December 31, 2025.
Best Performing Micro Cap Stocks in 2025
9. Duos Technologies Group Inc (NASDAQ:DUOT)
Market Capitalization: $205.17 Million
YTD Performance: 49.20%
Number of Hedge Fund Holders: 9
Duos Technologies Group Inc (NASDAQ:DUOT) is one of the best performing micro cap stocks in 2025. On December 30, Ascendiant Capital raised its price target on Duos Technologies Group Inc (NASDAQ:DUOT) stock from $11.50 to $14.00 and kept a Buy rating. According to Ascendiant, Duos’ recent major contract was the primary reason for this upgraded outlook. The firm also cited Duos’ leadership in train check service; the Railcar Inspection Portal system, which uses optical tech and AI to automate train checks, is Duos’ historical core business, noted Ascendiant. The firm added that this segment set a solid foundation for everything else.
Ascendiant also pointed out that Duos strengthened its finances in Q3 with a $40 million cash raise. The company sold 6.7 million shares at $6 each. However, Ascendiant highlighted high risks and commercialization challenges for Duos’ three newer business lines beyond rail. Yet, the firm argued that the $14 target “appropriately balances out the high risks with large upside opportunities” to reward bold moves.
In a different update, on December 30, Duos Edge AI, Duos’ subsidiary, expanded its Edge Data Centers (EDCs) operations in Texas and Illinois. The EDCs are designed to bring secure, low-latency computing closer to users, typically within 12 miles of end devices for real-time data processing, noted the company. Duos already has multiple EDCs deployed in several locations in Texas, where it serves education, healthcare, and service providers. And the expansion to the Greater Chicagoland Area in Illinois is the first venture outside Texas.
Duos Technologies Group Inc. (NASDAQ:DUOT) is a Jacksonville-based technology company that designs and deploys intelligent machine vision and AI solutions. Its flagship offerings, such as Centraco and truevue360, integrate computer vision, object detection, and deep learning for industries like rail, transportation, and logistics.
8. Journey Medical Corp (NASDAQ:DERM)
Market Capitalization: $150.49 Million
YTD Performance: 80.99%
Number of Hedge Fund Holders: 7
Journey Medical Corp (NASDAQ:DERM) is one of the best performing micro cap stocks in 2025. On January 4, Lake Street analyst Thomas Flaten reaffirmed a Buy rating on Journey Medical Corp (NASDAQ:DERM) with a $13 price target.
Earlier on December 10, Journey Medical Corp published results from a Phase 1 clinical trial, focusing on Emrosi’s impact on microbial flora in healthy adults, in the Journal of Drugs in Dermatology. Emrosi is an FDA-approved oral medication used to treat skin conditions such as papules and pustules in adults.
According to Journey Medical, the trial met all three primary endpoints. That is, there were no significant microbiome changes in skin; no notable antibiotic resistance to minocycline; and no major rise in opportunistic organisms compared to placebo. The data showed that Emrosi is well tolerated with no significant safety concerns. This aligns with its low-dose profile to minimize disruption to normal body flora and support safe, extended use in rosacea patients, Journey Medical noted.
Claude Maraoui, Journey Medical’s co-founder, president, and CEO, noted that this publication reinforces Emrosi’s differentiated benefits as a low-dose option that avoids meaningful microbial disruption or resistance, based on consistent data across trials.
Emrosi received FDA approval in November 2024. This made it the only oral therapy approved for addressing both inflammatory lesions and redness in rosacea. The approval was supported by two Phase 3 clinical trials, MVOR-1 and MVOR-2, conducted from March 2022 to May 2023 in the US and Germany.
Journey Medical Corp (NASDAQ:DERM) is a commercial-stage pharmaceutical company focused on developing and marketing prescription dermatology products. Its portfolio includes treatments for conditions such as acne, rosacea, actinic keratosis, and fungal infections.
7. One Stop Systems Inc (NASDAQ:OSS)
Market Capitalization: $169.16 Million
YTD Performance: 89.95%
Number of Hedge Fund Holders: 13
One Stop Systems Inc (NASDAQ:OSS) is one of the best performing micro cap stocks in 2025. On December 31, Lake Street’s Eric Martinuzzi reaffirmed a Buy rating on One Stop Systems Inc (NASDAQ:OSS) and set a $9 price target.
Independently of the analyst action, on December 30, One Stop Systems (OSS) completed the sale of its Bressner Technology subsidiary to Hiper Euro. OSS originally acquired Bressner on October 31, 2018, for approximately $5.6 million. Under OSS’s ownership, Bressner’s annual sales expanded from about $18.3 million in 2019 to roughly $33 million as of September 30, 2025. The transaction, valued at $22.4 million, is a multiple of about 0.7 times Bressner’s recent sales and is projected to yield a pretax gain of approximately $7.4 million for OSS in Q4 2025, before transaction costs.
Due to the divestiture, OSS updated its full-year 2025 guidance for continuing operations. The company now expects $30 million to $32 million in revenue, a year-over-year growth of 22% to 30%, and will be driven by its core high-margin segments, noted the management. This adjustment lowers the prior consolidated revenue outlook from $63 million to $65 million by excluding Bressner’s contributions.
Management stated that the sale enables them to streamline operations. They will also be able to redirect resources toward faster-growing areas, including deployable AI systems, real-time sensor processing, and rugged edge computing for mission-critical defense.
One Stop Systems Inc. (NASDAQ:OSS) designs and manufactures high-performance computing systems for AI, machine learning, and data-intensive applications. Its products include GPU-accelerated servers, ruggedized edge systems, and flash storage arrays tailored for industries such as defense, media, and autonomous vehicles.
6. Tenax Therapeutics Inc (NASDAQ:TENX)
Market Capitalization: $76.92 Million
YTD Performance: 94.11%
Number of Hedge Fund Holders: 14
Tenax Therapeutics Inc (NASDAQ:TENX) is one of the best performing micro cap stocks in 2025. On December 17, Guggenheim raised its price target on Tenax Therapeutics Inc (NASDAQ:TENX) to $25 from $14 and maintained a Buy rating. The firm stated that its decision to nearly double the price target for Tenax relies on a specific divergence in the market. That is, while competitors target small patient subgroups, Tenax is pursuing a massive, untreated population with no current competition in late-stage trials.
Guggenheim noted that Tenax has successfully cleared its financial hurdles and that it has secured enough capital to fund operations through major clinical milestones in 2026. And for that reason, the firm reiterated Tenax as a “Top Pick for 2026.” This designation, Guggenheim stated, focuses on the anticipation of the first pivotal readout from the LEVEL trial for the oral levosimendan (TNX-103) drug, which is expected in the second half of 2026.
Meanwhile, on December 17, Tenax conducted a pre-planned statistical review of the first 150 patients in its LEVEL study. And, the company said that the review confirmed that the trial is powered at well over 90% to detect the drug’s effectiveness. In other words, the current number of patients is sufficient to produce a scientifically valid result.
Because the data variability was lower than initially feared, the company confirmed it maintains sufficient statistical power without requiring enrollment increases. The target remains at approximately 230 patients. And management reiterated that they expect to finish enrolling patients for the LEVEL study in the first half of 2026, with topline results anticipated in the second half.
Tenax Therapeutics Inc. (NASDAQ:TENX) is a specialty pharmaceutical company. It develops and commercializes therapies for cardiovascular and pulmonary diseases, and its pipeline includes drug candidates such as levosimendan for pulmonary hypertension and TNX-201 for angina.
5. Amtech Systems Inc (NASDAQ:ASYS)
Market Capitalization: $190.23 Million
YTD Performance: 122.91%
Number of Hedge Fund Holders: 10
Amtech Systems Inc (NASDAQ:ASYS) is one of the best performing micro cap stocks in 2025. On December 11, Benchmark reaffirmed its Hold rating on Amtech Systems Inc (NASDAQ:ASYS) stock. Benchmark noted that Amtech has experienced recent success, primarily on the back of increased demand for reflow equipment related to AI applications. In fact, Benchmark pointed out, Amtech’s AI-related revenue grew more than three times annually, now representing 30% of their Thermal Processing Solutions segment.
Despite the AI boom, Benchmark observed that business from front-end semiconductor customers remained soft during the reporting period. The analysts identified this as a persistent headwind for Amtech’s overall growth.
Separately, Amtech released its Q4 FY2025 earnings on December 10, in which it reported EPS of $0.10, against the forecasted loss of $0.06. Revenue reached $19.8 million, also exceeding estimates; the anticipated figure was $18.25 million. Nonetheless, the revenue figure was 18% lower year over year due to what management described as reduced sales in the mature node semiconductor market.
For the full fiscal 2025, revenue totaled $79.4 million, down from $101.2 million the previous year. Management stated that this reduction was also a function of weaker mature node demand but partially mitigated by AI growth. The company raised guidance for Q1 FY 2026; management expects revenue to fall in the $18-20 million range, with high single-digit adjusted EBITDA margins, citing continued AI market strength and improved operating leverage.
Amtech Systems Inc. (NASDAQ:ASYS) supplies thermal processing and semiconductor equipment used in advanced materials manufacturing. Its product portfolio includes diffusion furnaces, ion implant equipment, and polishing systems.
4. OptimizeRx Corp (NASDAQ:OPRX)
Market Capitalization: $245.50 Million
YTD Performance: 123.32%
Number of Hedge Fund Holders: 15
OptimizeRx Corp (NASDAQ:OPRX) is one of the best performing micro cap stocks in 2025. On January 5, Stifel Nicolaus analyst David Grossman reaffirmed a Buy rating on OptimizeRx with a $21 price target. Just days earlier, on December 23, Lake Street analyst Eric Martinuzzi also reiterated a Buy rating on the stock, setting a $24 price target.
On December 17, OptimizeRx Corp (NASDAQ:OPRX) revealed a major expansion of its point-of-care network, which it said is aimed at boosting reach and engagement in clinical workflows.
The move involves four new agreements: first, an exclusive multi-year deal with a sought-after e-prescribing platform. OptimizeRx stated that this platform was once exclusive to a rival network, and bringing it into its fold widens access during prescription processes. Second, a fresh partnership introduces coverage in the point-of-discharge phase. This will allow interactions with providers right as patient treatment plans and instructions are set. OptimizeRx sees this as an opportunity to extend its presence beyond traditional settings.
Third and fourth, there will be multi-year renewals with two top-performing electronic health records and e-prescribing partners. One is now exclusive, lock in premium ad inventory and build on proven high returns for pharmaceutical clients, the company explained.
These steps add two new channel partners, a competitive eRx platform and a health systems access provider. As a result, OptimizeRx expects a 37% jump in unique National Provider Identifier reach.
Overall, the company’s management hopes that the expansions will strengthen its market edge in three ways. First, by securing exclusive spots, and then improving revenue predictability from established channels. Third, the expansions will support life sciences firms in driving faster brand uptake through in-workflow tools.
OptimizeRx Corp (NASDAQ:OPRX) is a digital health company. It provides point-of-care technology solutions to connect life sciences companies, healthcare providers, and patients. Its platform integrates real-time communication tools into electronic health records.
3. Intellicheck Inc (NASDAQ:IDN)
Market Capitalization: $128.71 Million
YTD Performance: 130.34%
Number of Hedge Fund Holders: 6
Intellicheck Inc (NASDAQ:IDN) is one of the best performing micro cap stocks in 2025. On December 16, H.C. Wainwright increased its price target for Intellicheck Inc (NASDAQ:IDN) stock to $8.50 from $6. The firm maintained a Buy rating on the shares, and stated that the decision was based on Intellicheck’s promising growth path in identity verification.
Specifically, the analysts explained that target upgrade comes down to Intellicheck’s move away from struggling retail clients hit by high inflation and bankruptcies toward stronger areas like banking, title insurance, and automotive. These new focus areas, the analysts noted, have helped Intellicheck balance out big drops in retail sales. And as a result, Intellicheck saw a 14% rise in revenue during the first nine months of 2025. To the analysts, the shift is paying off and setting up for even better growth in 2026.
The analysts also highlighted significant revenue and reputational upside from fully rolling out a significant customer contract. This, and other new wins not yet in market forecasts, led H.C. Wainwright to boost Intellicheck’s 2026 revenue predictions and raise the valuation multiple to 6.0x from 4.0x.
H.C. Wainwright also pointed to Intellicheck’s Q3 2025 earnings as a bright point. The company’s revenue clocked $6.01 million. This is 28% higher than Q3 2024 and topped the expected $5.25 million. The EPS was also a beat; it came in at $0.01 instead of a forecasted $0.02 loss.
Intellicheck Inc. (NASDAQ:IDN) specializes in identity authentication and fraud prevention solutions. Its platform integrates with point-of-sale systems, mobile devices, and online portals to verify government-issued IDs in real time.
2. Above Food Ingredients Inc. (NASDAQ:ABVE)
Market Capitalization: $91.63 Million
YTD Performance: 196.36%
Number of Hedge Fund Holders: 7
Above Food Ingredients Inc. (NASDAQ:ABVE) is one of the best performing micro cap stocks in 2025. On December 12, Above Food Ingredients Inc. (NASDAQ:ABVE) raised its profit guidance for FY2026 to over $40 million from the prior $30 million. The company cited improved operations from restructuring that positions it for sustainable growth. Management also used this opportunity to update on its delayed FY2025 audit.
According to the company, the audit for FY2025, which ended January 31, 2025, faced setbacks from team illnesses and the holiday season. This pushed completion to shortly after the new year and forced the company to request a 180-day extension from NASDAQ for its Form 20-F filing. But despite the delay, management highlighted a positive relationship with auditors and progress in an ongoing restructuring.
This update is a follow up to the November 28 update, where the company announced that it had eliminated all corporate debt. It also revealed that it expected over $30 million in profit for the financial year ending January 31, 2026. The company also used the opportunity to inform investors that it had appointed a new auditor with expertise in digital asset tokenization and stablecoin infrastructure and was targeting completion of its audit and filing of Form 20‑F by December 12.
Above Food Ingredients Inc. (NASDAQ:ABVE) is a vertically integrated plant-based food company. It develops, manufactures, and distributes sustainable ingredients and consumer products. Its operations span regenerative agriculture, seed genetics, ingredient processing, and branded consumer goods.
1. US Gold Corp (NASDAQ:USAU)
Market Capitalization: $308.79 Million
YTD Performance: 214.59%
Number of Hedge Fund Holders: 6
US Gold Corp (NASDAQ:USAU) is one of the best performing micro cap stocks in 2025. On December 23, US Gold Corp (NASDAQ:USAU) closed a private placement that netted it about $31.2 million in gross proceeds. The deal involved selling 1,922,159 shares of common stock at $16.25 each, along with warrants for 961,077 more shares at an exercise price of $23.00. The warrants can be used right away and last for two years.
Pricing came at a roughly 4% discount to the stock’s closing price of $16.91 on December 15. It also offered a 1.4% premium over the 30-day average price of $16.03 and a 1.1% discount to the 20-day average of $16.43.
According to the company, new investors in the round included big names like Franklin Templeton Investments, Mackenzie Investments, and Libra Advisors. Management stated that this lineup is evidence of a strong backing for the company’s plans. The company plans to use the net funds primarily to initiate development at its flagship CK Gold Project in Wyoming. It may also buy land, expand exploration at its sites, and use the funds for everyday working capital needs, noted management.
Meanwhile, on December 15, Roth MKM analyst Joseph Reagor maintained his Buy rating on US Gold Corp. He also lifted the price target to $26 from $20. Reagor expressed optimism about US Gold’s progress in advancing its main CK Gold Project in Wyoming, as the company works toward production and exploration goals amid rising metal prices.
US Gold Corp (NASDAQ:USAU) is a gold exploration and development company. Its portfolio includes the CK Gold Project in Wyoming, the Keystone exploration property on Nevada’s Cortez Trend, and the Challis Gold Project in Idaho.
While we acknowledge the potential of US Gold Corp (NASDAQ:USAU) as an investment, 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 USAU and that has 100x upside potential, check out our report about this cheapest AI stock.
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