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We polled X to discover a few new small-cap growth stocks. Here are the ideas that were presented.

We did something special this month.

In addition to sharing our 7investing Community’s favorite new ideas, we also asked an external audience “what is your favorite small-cap growth stock right now?”

As a disclaimer, these ideas come from an external community. 7investing’s opinions might differ from what is presented, and the people submitting ideas may have positions in the stocks they are recommending.

Without further ado, here are the X Community’s favorite small-cap growth stocks.

 

Altus Power – AMPS

Submitted By: hold_the_winner

Fav is $TMDX but already mentioned. Behind that would probably be either $AMPS or $PLMR.

$AMPS young growing utility company focused on solar power generation via panel grids and storage.

$PLMR small specialty insurance company growing quickly, only financial I own beside $KNSL

Byrna Technologies  – BYRN

Submitted By: EliasTsokas

I’m bullish on $BYRN for all of 2025. The company is profitable and delivering solid revenue growth.

While net profitability remains modest, I consider this expected for stocks of this nature. It’s quite volatile, but I embrace volatility, and its debt levels are very low.

ClearPoint Neuro

Submitted By: GordonsGecko

$CLPT, But, also like $TMDX, $TSSI, $EOSE and $ASPN

FitLife Brands

Submitted By: PetertheBorr

FTLF (micro) is a roll-up compounder in nutritional supplement brands for health-conscious consumers in the United States and abroad. 20X since Dayton Judd joined as CEO. ROIC is 72% for this company with current revenues of 63M on a 145M market cap. The sharecount is stable/declining and goodwill is reasonable, demonstrating his capital allocation talents.

PLMR appears to be an excellent operator with a combined ratio of 80% (rivaling KNSL). They do cover natural hazards and have exposure to California wildfires, as well as limited exposure in Florida.

Flywire  – FLYW

Submitted By: SanDav

I would go with Flywire $FLYW. Software and payments processor growing at well over 20% and valued at 15 times Adj EBITDA

Shares of Flywire have faced pressure this year, primarily due to challenges in its education segment, stemming from stricter immigration rules for students in Canada.

Despite these headwinds, the company has continued to deliver impressive organic growth exceeding 25%, with significant margin improvements. The company’s strategy of bundling software together with its payments solutions has proven to be successful, and it is now rapidly expanding further into additional customer segments such as travel.

With shares trading at just 3 times next year’s revenue and 15.2 times next year’s adjusted EBITDA, this valuation represents a significant discount to peers, thereby presenting a compelling investment opportunity for investors to go long FLYW stock.

Kelly Partners Group — ASX:KPG

Submitted By: Lowe52560

Founder led, trying to be Constellation Software of accountancy. Their owners manual for prospective investors gives good mission overview.

Appear aligned to long term shareholder interests. Already own and done well for me, like adding to winners though.

LanzaTech Global

Submitted By: Poelmans737

$LNZA. It’s a beaten down stock, they do carbon recycling using a unique method and they produce SAF.

With the SAF mandate in Europe to grow from 5% to 70% the opportunity is very big. Also extremely bullish on $ASTS!

Pure Cycle Corporation – PCYO

Submitted By: TelosInvestor

$PCYO Valuable assets with a low cost basis, low-cost advantage from being very affordable home builder/land developer, growing recurring revenue base, in early days of monetizing assets.

TransMedics – TMDX

Submitted By: Kimsbinvesting

Qualitative Analysis Thesis:

1. Severe underutilization of deceased donors organs: 10,438 DBD donors + 5894 DCD donors, 9% CAGR in 2023

2. 10,000 transplants by 2028 currently 3,600 transplants

3. TMDX can leverage its technology to provide different services (e.g logistics)

4. The OCS platform: The Only Multiorgan, Portable Warm Perfusion Platform, 75% & ~55% of US DCD transplants for heart and liver respectively are done using OCS today

5. Superior Post-Transplant Clinical Outcomes

6. NOP: Fully Integrated End-to-End Transplant Network, 17 hubs across the US and 24 / 7 managed by the Logistics Command Center

7. OCS make Daytime Liver transplant possible: “It protects the transplant program from the cost overruns of doing a transplant in the middle of the night. But more importantly, it gives the transplant program, the financial power to do more than one transplant a day without overtaxing the time and burden on the transplant surgical team and the financial well-being of the transplant program.

8.OCS Kidney launch in 2029

9.International market expansion. Pilot programs in 2026. Building NOP model in Italy

Risks:

1. Artificially created organs

2. Variability of donor availability -> Transplant volumes decline in q3 2024

3. Airplane maintenance volatility that could cause negative impacts

4. Growth after 2028? 12% growth in CY23 for hearts and liver -> kidney launch in 2029

5. Supply limited by organ donations -> 2028 28,636 estimated with 12% CAGR

Quantitative Analysis Revenue growth: Conservative

‘23 growth rate: 158.9% – ‘26 growth rate: 21.2% – current transplant volume for 2024 is 3,600 and the management is shooting for 10,000 by 28. 20% seems conservative if the management execute on this goal.

Margin Expansion: Fair

‘24 EBTIDA margin: 18.1% -‘26 EBITDA margin: 22.9% – Seems fair as the leverage of NOP platform will increase the margin with scale.

Multiple Expansion: Conservative

Current PE: 66.7 – ‘26 PE: 25.5 – Given its moat and management’s plan beyond 2028, the company can compound its revenue by 10% for the next decade after 2026. PE of 40 seems to be the fair range.

Decision Buy –

already have the fully positions but the valuation is really attractive. The management has plan for after 2028 with its plan for kidney launch and international expansion. I will continue to buy until the sentiment recovers. I see $TMDX can double easily from this level.

Willis Lease Finance Corporation

Submitted By: SmallCapVal

I like $WLFC. Airline/engine leasing is in strong demand right now and probably through the end of the decade due to mishaps at Boeing and P&W.

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