Some growth stocks only need a spark. Yet today, we’re looking at two names that already have a fuse burning. Canadian investors hunting for upside over the next year may want to look past the usual mega-cap names. Smaller growth stocks can move faster when earnings momentum, new contracts, and investor attention all line up.
They also carry more risk, of course. A single weak quarter can hit hard. Yet Kraken Robotics (TSXV:PNG) and Propel Holdings (TSX:PRL) both bring the kind of timely growth story that can draw fresh interest if execution stays on track.
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PNG
Defence spending, subsea security, offshore energy, and unmanned systems all sit near the centre of global demand. Kraken stock builds sonar, subsea batteries, imaging systems, and robotic technology for military and commercial customers. That gives it a rare mix of defence exposure with a Canadian tech-growth angle.
The numbers make the story hard to ignore. Kraken stock reported 2025 revenue of $102.2 million, up 12% from 2024. More importantly, management expects 2026 revenue between $165 million and $175 million, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) between $40 million and $50 million, excluding any contribution from its planned Covelya acquisition. Right now, that points to more than 65% revenue growth.
That’s the “skyrocket” case. Yet Kraken stock also announced $87 million of product orders so far in 2026, including defence and SeaPower battery orders. Its new Nova Scotia battery facility should help it meet rising demand. Meanwhile, Covelya could expand its reach in global maritime robotics once the deal closes.
Still, this isn’t a sleepy blue chip. Kraken stock trades on big expectations after a huge multi-year run. Revenue can swing from quarter to quarter because large orders don’t always land neatly. Investors also need to watch integration risk if the Covelya deal closes. Even so, Kraken stock gives investors direct exposure to a market where governments and industry customers keep spending.
PRL
Propel Holdings offers a very different growth setup. Instead of robotics, it uses technology and artificial intelligence (AI) to provide credit products to consumers, mainly through digital platforms and bank partnerships. That makes it a fintech stock, but one with profits, dividends, and a real operating track record.
Consumers still need credit, even in a slower economy. Banks often pull back from riskier borrowers when conditions tighten. Propel steps into that gap with data-driven underwriting and products aimed at underserved customers. This can create strong growth, provided credit quality holds up.
Its latest quarter showed the machine still works. Revenue hit a record US$166.1 million in the first quarter of 2026, up from US$138.9 million a year earlier. Originations funded rose 30% to US$199 million. Adjusted EBITDA reached US$42 million, while loans and advances receivable climbed to a record US$466.4 million. Propel also raised its dividend again, with the quarterly payout moving to $0.24 per share, yielding 4.1%!
The stock adds another twist. At around $21, Propel trades well below its 52-week high of $39. That doesn’t guarantee a rebound, but it does mean investors can buy a fast-growing fintech at a much cooler price than the market once demanded. If earnings growth re-accelerates through 2026, the valuation could look more attractive quickly, especially if investors start rewarding profitable growth again.
The risk sits in the business model. Lending companies can suffer when unemployment rises or borrowers fall behind. Propel’s net income also slipped year over year in the latest quarter, even as revenue grew. Investors should therefore watch credit losses, funding costs, and regulatory changes.
Bottom line
Together, Kraken stock and Propel offer two bold but very different growth stories. Kraken rides defence and subsea robotics. Propel rides fintech, lending demand, and AI-driven underwriting. Neither stock suits cautious investors who hate volatility, but for those willing to accept risk, both could have room to run over the next 12 months — especially if the market keeps chasing profitable Canadian growth with visible earnings momentum building.
