While the TSX continues to fluctuate in early 2025 due to shifting economic signals and international developments, the long-term fundamental outlook for many growth stocks remains robust. Foolish investors willing to look beyond the short-term market noise and focus on long-term business fundamentals can still find exceptional opportunities.
By including Canadian growth stocks with consistent revenue growth and expanding market share in your portfolio, you could get attractive returns on investments in the long run. In this article, I’ll break down two such growth stocks that have the potential to deliver solid returns well into the future.
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Topicus stock
Topicus.com (TSXV:TOI) is the first growth stock that deserves a spot on your watchlist. Topicus might not be a household name yet, but it’s quietly building a strong reputation in the software sector. This Toronto-based company mainly focuses on vertical market software to provide tailored tech solutions to various industries, including healthcare, education, social services, and finance.
As of March 21, Topicus stock trades at $139.05 per share, giving it a market cap of $11.6 billion. While it doesn’t currently offer a regular dividend, investors have still been rewarded with decent long-term gains. TOI stock is up around 18% over the past year and has climbed over 62% in the last three years, showing it has some serious staying power.
Topicus just wrapped up a strong year in 2024. During the year, the company’s revenue rose 15% YoY (year over year) to €1.3 billion, with its net profit jumping 30% to €149.5 million. What’s even more impressive is that cash flow from operations surged by 41% last year, and free cash flow available to shareholders shot up by 44%.
Moreover, the company’s prime focus remains on long-term growth initiatives. Notably, Topicus completed multiple acquisitions in 2024, investing more than €150 million to expand its portfolio. It remains laser-focused on growing through smart acquisitions while continuing to improve its recurring revenue streams. For patient investors looking to ride long-term tech-driven growth, this Canadian growth stock checks a lot of boxes.
Kinaxis stock
That brings us to Kinaxis (TSX:KXS), another top-growth stock that fits the bill perfectly. This Ottawa-based tech firm helps some of the world’s biggest companies manage their supply chains with more speed and accuracy. Through its artificial intelligence (AI)-powered platform, Kinaxis makes it easier for businesses to plan, predict, and respond to disruptions. Currently, KXS stock trades at $159.84 per share with a market cap of about $4.5 billion.
In 2024, the tech firm’s total revenue rose 13% YoY to US$483 million due mainly to strong demand for its cloud-based software-as-a-service offerings, which alone saw 17% growth. More importantly, Kinaxis registered a solid 47.5% YoY increase in its adjusted annual earnings to US$2.36 per share with the help of better operating efficiency and increased scale.
What really stands out is Kinaxis’s ability to win new customers across the globe, including big-name brands, while also expanding business with existing clients. In addition, its growing investments in generative AI features and a healthy backlog of contracted revenue make it a company that’s not just performing well today but is clearly built for the long term.
