The 3 Fastest-Growing Tech Stocks You've Never Heard Of

Some companies quietly build powerful businesses while the market focuses somewhere else. The three stocks below stand out to me because they combine growth, durable business models, and real long-term opportunity.

Each of these tickers operates in a different industry, but all three share two things in common: They are considered tech stocks, and they look undervalued compared to the scale of what they're building.

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1. Clearwater Analytics

Clearwater Analytics (NYSE: CWAN) provides a cloud-native platform for investment management covering accounting, reporting, compliance, and risk across more than $10 trillion in client assets. In fourth-quarter 2025, revenue surged 72% to $217.5 million. Annual recurring revenue (ARR) hit $841 million, up 77%.

The growth engine for this ticker is artificial intelligence (AI). In November 2025, Clearwater launched CWAN GenAI, which automates reconciliation, portfolio analysis, and reporting with over 800 AI agents. Clients report 90% less manual work and 80% faster reporting cycles. In January 2026, Clearwater embedded agentic AI into its Beacon risk platform, enabling model validation in hours instead of weeks.

Earlier this month, Tensile Capital sold about 160,000 shares of Clearwater Analytics worth roughly $3.2 million, slightly reducing its position but still keeping the stock as a significant part of its portfolio. I'm not worried about the sale as it doesn't look like a negative signal. Tensile only trimmed part of its position, and the stock is already tied to a pending acquisition, which limits how much it can move anyway.

Clearwater is currently the target of an $8.4 billion buyout effort that would pay shareholders $24.55 per share, slightly above the current trading price. This buyout is a great sign for investors.

2. Karooooo Limited

Karooooo (NASDAQ: KARO) is a Singapore-listed company that owns Cartrack, one of the world's largest connected vehicle platforms. It serves 2.6 million subscribers across Africa, Southeast Asia, and Europe with fleet management, AI video safety, asset tracking, and logistics.

In third-quarter fiscal 2026, subscription revenue grew 22%, and ARR rose 28% in dollar terms to $298 million. Net subscriber additions hit a record 111,478.

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The company has accelerated subscription growth from 14% to 22% in one year. That's a rare feat at this scale.

Karooooo is profitable and cash-generative, with a market cap of $1.4 billion. CEO Zak Calisto is investing heavily in sales capacity while maintaining strong unit economics. The connected vehicle market in emerging markets is enormous and largely untapped. This is the kind of durable compounder that hides in plain sight because it operates far from Silicon Valley.

What I like about this ticker is the quality of the business model. Nearly all of Cartrack's revenue comes from recurring subscriptions (about 98% of revenue), with strong retention of around 95%. That creates predictable cash flow, high margins, and a long runway as fleets digitize across emerging markets.

The company is also founder-led, profitable, and scaling a platform with millions of connected vehicles already installed. This creates real switching costs and makes it difficult for competitors to displace once a fleet is onboarded.

3. Pagaya Technologies

Pagaya Technologies (NASDAQ: PGY) runs an AI-powered network connecting lending partners with institutional investors. Its models evaluate loan applications that traditional credit scoring rejects, processing $1 trillion in applications annually from over 30 partners.

Full-year 2025 revenue reached $1.3 billion (up 26%). Adjusted EBITDA hit $371 million (up 76%), and the company posted $80 million in GAAP net income -- its first profitable year. For 2026, management guided for $100 million to $150 million in net income.

Fee margins expanded from 2.5% to 4% to 5%. The ABS investor base grew to 158 buyers, and new revolving structures provide up to $3 billion in capacity. For a company doing $1.3 billion in revenue with a sub-$2 billion market cap, the valuation gap is hard to ignore.

What I like about this ticker is that Pagaya runs a capital-light, fee-based network rather than a traditional lending business. It earns fees for underwriting and packaging loans without holding most of the credit risk, allowing the model to scale quickly and achieve high margins as more lenders and institutional investors join the platform.

Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Karooooo. The Motley Fool has a disclosure policy.