When tracking TSX small-caps with high growth potential, looking back at recent historical milestones is a great way to verify if the growth stock’s investment thesis is actually playing out. For context, when Kraken Robotics (TSXV: PNG) featured in December 2024 as a growth stock capable of potentially turning a $100,000 investment into $1 million over the long haul, the subsea technology market was just beginning to gain mainstream attention. Since that time, the company’s steady operational execution has spoken for itself, driving a hypothetical $100,000 investment from December 2024 to more than $295,000 today.
But past performance is simply historical data – what truly matters is where a growth stock is headed next. If you are worried that you have already missed the boat on this marine technology leader, its underlying revenue and earnings growth fundamentals suggest the runway remains clear. Driven by powerful macroeconomic tailwinds and a massive strategic shift, Kraken Robotics still looks like an exceptional growth stock to buy now for long-term investors looking to buy and hold it during the remainder of 2026 and beyond.
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Kraken Robotics stock’s unstoppable macro tailwinds
Kraken Robotics operates at the intersection of three industries: national security, maritime commerce, and subsea energy. The company designs and manufactures advanced sonar sensors, pressure-tolerant batteries, and autonomous underwater robotics.
Right now, navies within NATO are urgently modernizing their aging mine-hunting fleets and transitioning toward unmanned, autonomous vehicles. Concurrently, Canada is ramping up its defense spending. These trends present a massive revenue opportunity through 2028 and beyond.
Investors may witness the growth stock’s amplified momentum through Kraken’s May 6, 2026 agreement with Turkey’s SEFINE SISAM to integrate its KATFISH systems into autonomous surface vessels, validating its rapid, high-resolution seabed warfare capabilities in operational environments.
Explosive profitable revenue growth, and PNG’s game-changing acquisition
While many tech startups struggle to generate positive profit margins, Kraken Robotics’s underlying business is scaling beautifully.
Total revenue grew 12% year-over-year in 2025, fueled by a 63.2% explosion in high-margin service revenue. For 2026, management expects organic revenue to surge by 61.8% to 71.6%, rising up to $175 million – before considering any new acquisitions.
Meanwhile, cash flow from operations turned positive in 2025, providing an excellent foundation for the business’s operational sustainability.
The biggest catalyst for 2026, however, is Kraken Robotic’s massive $615 million acquisition of Covelya Group, set to close during the second quarter of 2026. To finance the accretive deal, Kraken has raised over $400 million in subscription receipts. Covelya is a high-growth technology group that generated $365 million in profitable revenue in 2025 (three-times Kraken’s total sales in 2025), and maintained a 24% compound annual growth rate since 2023. Post-acquisition, Kraken will morph into a global powerhouse with dual Defense and Commercial units serving over 700 customers.
PNG stock: A timely buying opportunity
Despite a solid 13.9% gain year-to-date, PNG stock has pulled back by 15.5% over the past month. This kind of consolidation could be a gift for investors looking for a growth stock to buy right now.
With first-quarter 2026 results scheduled for release on May 28, 2026, investors have a prime window to accumulate shares before the next leg up. PNG stock currently trades at a forward P/E of 40, at writing. While that reflects the market’s high growth expectations, a forward price-earnings-to-growth (PEG) ratio of just 0.9 strongly implies that the stock remains somewhat undervalued relative to its earnings growth potential.
Some risks to consider
The hyper-growth investment opportunity comes with a few notable risks to consider. Kraken’s operating margins compressed from 15.1% to 8.4% last year due to rapid capacity expansions. Furthermore, the company faces high revenue concentration as one customer accounted for 45% of sales in 2025.
Geographically, revenue has heavily shifted to the Asia-Pacific region (49.2% of 2025 sales), while North American sales dipped to 24.5%. It’s worth monitoring how Kraken rebalances its market segments going forward.
Finally, successfully integrating an acquisition as massive as Covelya will require flawless execution by management to avoid integration friction.
Foolish bottom line
Kraken Robotics stock has evolved from a speculative micro-cap into a high-conviction mid-cap juggernaut. With the Covelya acquisition deal set to supercharge revenue and earnings and a major first-quarter earnings catalyst just days away, PNG is potentially a top growth stock to buy now for long-term investors looking to beat the market.
