7 Best Small Company Stocks To Invest In

5. Smartsheet Inc. (NYSE:SMAR)

Market Capitalization as of September 27: $7.69 billion

Number of Hedge Fund Holders: 57

Smartsheet Inc. (NYSE:SMAR) offers a SaaS platform for collaboration and work management, used to assign tasks, track project progress, manage calendars, share documents, and manage other work, using a tabular user interface. It’s a leading provider of cloud-based work management and automation platform, used by businesses of all sizes across various industries, including technology, healthcare, and finance.

It signed new customers like Intuit, Skechers, and City National Bank. There was a recent large deal in FQ2 2o25 with a Big 4 consulting firm to use Smartsheet Inc. (NYSE:SMAR). This customer estimates that Smartsheet Inc. (NYSE:SMAR) saved their team 39,000 working hours, reduced their project delivery costs by ~12%, and grew Smartsheet demand across their organization with users increasing by 120% year-over-year.

This quarter, the company was also able to expand its relationship with a major enterprise customer during its annual renewal. With 150,000+ Smartsheet users, the success was due to differentiated features and enterprise-grade security. Its corporate-level IT and security approval has enabled widespread adoption across the company.

In FQ2 2025, it grew revenue by 17.33% year-over-year, attributed to 77 customers spending over $1 million per year, which is a 50% increase from last year. The annual recurring revenue grew by 17%, and subscription revenue by 19% — revenue from capabilities made up 35% of subscription revenue.

The company also launched its share buyback program and repurchased 918,000 shares for a total of $40 million in the quarter. Strong growth, innovative features, and dedication to customer satisfaction make Smartsheet Inc. (NYSE:SMAR) a promising investment.

TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Smartsheet Inc. (NYSE:SMAR) in its Q2 2024 investor letter:

“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that closely tie to increasing shares of corporate IT budgets. Smartsheet Inc. (NYSE:SMAR) offers an enterprise platform to plan, capture, manage, automate, and report on work for teams and organizations. They reported a strong quarter with upsides to revenues, subscriptions, and free cash flow. Smartsheet is simplifying its pricing model by collapsing creator and editor license types into a singular member license. Product innovation appears to be gaining traction with new user interfaces and Generative AI tools. These positive developments served to lift Smartsheet by 14%.”