Investing in growth stocks isn’t all about throwing money into the biggest names on the stock market after they’ve already realized most of the possible gains. Besides the well-established names, the TSX boasts several high-quality growth stocks with smaller market capitalizations.
A small market-cap growth stock with great potential can be a big winner for growth-focused investors. However, not every small-cap stock with potential can fulfill it. If you’re tracking a growth stock to consider investing in, reviewing its performance as a company can help you make a well-informed decision.
Today, I will discuss Kraken Robotics Inc. (TSXV:PNG). As of this writing, the stock boasts a $2.2 billion market capitalization. While this means it has technically moved beyond the small-cap stock category, the development is still recent.
The firm engages in designing, manufacturing, and selling various sensors, thrusters, and robotics systems for the marine industry. Founded in 2012, it isn’t a new company. However, it has recently started gaining mainstream momentum.
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Unleashing the Kraken
The subsea tech market started gaining traction toward the end of 2024, and Kraken Robotics stock saw its share price go on a bull run accordingly. As of this writing, Kraken Robotics stock trades for $7.13 per share. While that might not seem like a lot, it is an over 1,000% uptick since its January 2024 share price levels. This means those who invested in the stock at the start of January 2024 effectively saw tenfold returns.
That said, the past performance is simply historical data. The real key is where the growth stock is heading next. Many investors might feel they slept on the stock for too long and might not see multifold returns at current levels. However, this leading provider in the maritime tech space might have plenty more room to grow.
The wind in its sails
Kraken Robotics is a company that enjoys a unique position, engaging in three industries: maritime commerce, subsea energy, and national security. The batteries, sensors, and robotics products it designs and manufactures have use across all three sectors worldwide.
Amid heightened global geopolitical tensions, NATO is rapidly modernizing fleets, particularly for hunting underwater mines, and moving toward autonomous vehicles. Canada has also been increasing spending on defence. Taken together, these two factors paint a clear picture of a growth runway that Kraken Robotics is only beginning to tap.
Just a couple of months ago, Kraken Robotics signed an agreement with a Turkish defence firm to integrate one of its systems into autonomous marine surface vessels. The deal essentially validates the real-world potential of its technology and shows significant demand for what it can offer.
Foolish takeaway
Typically, smaller-cap companies struggle to achieve profitability for years. Due to the nature of its products and services, and the industries it operates in Kraken Robotics is scaling its business comfortably. In 2025, the company reported a 12% increase in its revenue, owing mostly to a 63.2% surge in revenue for high-margin services. The company expects its organic revenue to surge by up to 71.6% in 2026.
The company has come far from being a speculative pick among a litter of micro-cap stocks on the TSX. Even after substantial gains, it has the potential to deliver much more growth. It can be a good holding for growth-focused investors with a bigger stomach for risk.
