Looking for penny stocks to buy for 2026? Here are three shares that have caught my eye recently and could be worth considering.

Skillcast

First up, we have Skillcast (LSE: SKL). It’s a software company that specialises in compliance solutions and counts the likes of Tesco, Barclays, and Schroders as customers.

There’s a lot to like about this stock as we kick off 2026. For a start, recent results have been strong.

In September, for example, the company reported 18% revenue growth for the first half of 2025. Subscription revenue for the period was up 23%.

Second, profits are rising rapidly. This year, analysts expect net profit to rise about 40%.

Third, the share price is in a strong uptrend. Note that as I write this, it’s near all-time highs meaning that there are going to be no disgruntled long-term holders waiting to break even and sell shares.

I’ll point out that artificial intelligence is possibly a risk here. This technology could help customers develop their own compliance solutions.

All things considered, however, I see a lot of potential.

Made Tech

Another penny stock in the technology space I like the look of right now is Made Tech (LSE: MTEC). This company helps the UK government and regulated industries with digital transformation.

It has also released some good trading updates recently. In December, it told investors that trading for FY26 (the financial year ending 31 May 2026) would be significantly ahead of expectations.

Note that like Skillcast, the company is seeing good results in terms of profitability. This financial year, analysts expect net profit to soar 85%.

A key risk is a cut in tech spending by the UK government. This scenario is a possibility and could lead to less growth for the company.

I think the stock is worth a look though. Note that the company’s valuation is quite low at present.

Ilika

The third stock I want to highlight, Ilika (LSE: IKA), is far more speculative than the first two. Because it doesn’t have any profits.

It could be worthy of further research though. That’s because the company specialises in solid state battery technology – a huge growth market – and it’s aiming to produce batteries for some high-growth markets including miniature medical implants, industrial wireless sensors, and electric vehicles (EVs) in the years ahead.

One thing that interests me is the fact that Ilika says it has very little competition in the miniature battery sector for active implantable medical devices. This could be a big opportunity for the company.

Now, this is the kind of penny stock that could either soar or crash in 2026. For example, if the company signs some major deals for its battery technology, it could do really well. But if it has to raise a ton of money to stay afloat, its share price could sink.

So, it’s not going to be suitable for those who are averse to risk. If an investor has a high risk tolerance, however, I reckon it’s worth a closer look.

The post 3 potentially explosive penny stocks to consider buying for 2026 appeared first on The Motley Fool UK.

A decade ago, savvy shareholders could buy Ideagen stock for under 50p per share. The niche compliance software business subsequently rocketed in value, eventually commanding a £1.1bn takeover price in 2022. Today, Skillcast bears a striking resemblance to that early-stage Ideagen, offering what could be a genuine ‘second chance’ for investors who missed the first opportunity.

Ideagen in 2015

In late 2015, Ideagen was a classic AIM penny stock with an unglamorous but essential proposition. The company operated in the Governance, Risk, and Compliance (GRC) sector — helping businesses navigate regulations through software. For corporate clients, its tools were not luxuries but necessities.

The financials told a compelling story. Trading at around 50p per share with a market capitalisation of roughly £70m, Ideagen generated £14.4m in revenue in 2015. More importantly, the business was transitioning to a recurring SaaS (Software-as-a-Service) model, meaning cash flow was becoming predictable and customer relationships increasingly sticky.

Over the next seven years, it executed a ruthless ‘buy-and-build’ strategy, acquiring smaller rivals and compounding shareholder value more than 600% before its sale. That’s an astounding return in just seven years!

Skillcast today

Fast-forward 10 years, and Skillcast presents an almost identical financial snapshot. The company currently trades around 61p per share with a market-cap of around £55m. Plus, it generated roughly £13.3m in revenue during its latest financial year. Like Ideagen a decade ago, Skillcast operates in the compliance and e-learning space, helping corporate clients manage regulatory training and risk through software.

The parallels run deeper than headline figures. Skillcast has successfully shifted its revenue model towards recurring subscriptions, which now account for over 80% of sales and grew 23% year-on-year. This is actually a higher-quality revenue mix than Ideagen achieved at the same stage (53% in 2015). Equally telling, Skillcast has recently crossed into EBITDA profitability, signalling it has passed the cash-burn start-up phase — precisely where Ideagen stood in 2015.

One critical difference

The main distinction lies in Ideagen’s aggressive expansion strategy. Following several lucrative acquisitions, it achieved growth of 60% in 2015. Skillcast, by contrast, has relied primarily on organic growth, expanding at a more measured 18% pace.

However, with £11m in cash on its balance sheet and no debt, Skillcast has the financial capacity to pivot towards a buy-and-build strategy (if management chooses). But as a micro-cap stock with low liquidity it faces significant volatility risk – even a small mis-step in execution could spell disaster.

My verdict

Skillcast certainly has undeniable similarities to Ideagen but that doesn’t guarantee it’ll achieve the same success. To do so would mean a notable change in strategy — and the economic landscape today is vastly different to 2015.

If it chose to abandon organic growth and pursue a similar strategy of aggressive expansion, could it achieve the same result today? Overall, I think there’s a strong possibility — and at only 61p a share, I think that’s a risk worth considering.

The post This penny stock looks to me like Ideagen 10 years ago (before it sold for £1.1bn!) appeared first on The Motley Fool UK.

Here, I’m going to highlight two penny stocks that are quietly making British investors a fortune. Could they be worth a closer look?

Huge long-term returns

First up, we have SDI Group (LSE: SDI). It’s an acquisitive ‘buy-and-build’ business that’s focused on buying companies that design and manufacture specialist lab equipment, industrial and scientific sensors, and industrial and scientific products.

It currently trades for around 80p. At that share price, its market-cap is about £84m.

This company looks quite interesting from an investment perspective, in my view. For a start, it operates in several growth industries including life sciences, healthcare, and precision optics.

Second, its financials look pretty solid (which is relatively rare in the penny stock space). Not only are revenues trending up but there’s a decent level of profitability.

“While we are cognisant of the ongoing macroeconomic uncertainty, we believe SDI is well-positioned with a strong business model and solid long-term growth drivers in our key markets. Furthermore, we continue to have an active pipeline of acquisition opportunities and the financial strength to continue to execute our inorganic strategy”.
SDI management in July

Turning to the stock’s performance, it has certainly been a good long-term investment. Over the last decade, it has surged about 630% (turning £5,000 into around £36,500).

That said, it hasn’t gone up in a straight line. In 2021 it shot up (due to a boost from Covid-related revenues) and then in 2023 it came crashing down (as these revenues dried up).

At today’s share price, the stock trades on a low price-to-earnings (P/E) ratio of 11. At that earnings multiple, I think the stock’s worth considering.

There are risks though. A slowdown in its major markets (or the global economy as a whole) or botched acquisitions are some to think about.

Fast share price gains

The other penny stock I want to highlight is Skillcast (LSE: SKL). It’s a provider of governance, risk and compliance (GRC) software that serves a range of top businesses including Barclays, Tesco, and Schroders.

It currently trades for 61p. That share price puts its market-cap at £55m.

This stock doesn’t have the longest track record. That’s because it only came to the market in 2021. However, since its IPO, it’s delivered impressive returns. Buying in the IPO, an investor would have seen a gain of around 65%.

Alternatively, had they bought in the growth stock selloff of 2022, they could have tripled their money in just three years. Recently, this stock has soared.

Zooming in on the company’s operational performance, it’s been decent lately. For example, for the first half of 2025, revenue was up 18% to £7.5m while EBITDA was up 2,074% to £0.7m.

Given this momentum, I reckon the stock’s worth a look today. However, I’ll point out that with a stock like this, artificial intelligence is potentially a risk.

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