These two penny stocks sit at the intersection of innovation and ambition. Priced under $5, they are tied to emerging tech companies that are still carving out market niches. 

These tiny titans have the potential to deliver outsized returns for investors willing to stomach the risk. Penny stocks are prone to volatility, with price swings driven by sentiment, speculation, and the slightest bits of news. The hope for investors is that the rewards will outweigh the risks. 

With Wall Street analysts eyeing serious upside potential for these two penny stocks, investors should give Expensify (EXFY) and Bridgeline Digital (BLIN) a serious look here. 

Penny Stock #1: Expensify

Expensify (EXFY) delivers a slick cloud-based platform for managing expenses, bills, corporate cards, and travel. Serving individuals and enterprises, it streamlines everything from invoicing to reimbursements.

Valued at a market cap of $239 million, shares of Expensify climbed 85% over the past 52 weeks. 

On Feb. 27, Expensify released its Q4 earnings report, surprising investors with stellar results. The market reacted, sending the stock soaring 20.3% the next day. Revenue climbed 5% year-over-year to $37 million, while non-GAAP net income hit $8.7 million or $0.10 per share. Adjusted EBITDA surged 111.7% to a remarkable $12.4 million.

In Q4, the company flexed its financial muscle, generating a solid $7.2 million in adjusted operating cash flow and $6.2 million in free cash flow. 

Looking ahead, management is forecasting free cash flow between $16 million and $20 million for 2025, setting the stage for game-changing transformation. Expensify plans to roll out “Concierge everywhere,” shifting from a chat-first model to an AI-first experience. This shift allows users to simply ask Concierge for anything, from adjusting settings to analyzing expenses. 

Analysts monitoring Expensify project the company’s profit to reach $0.03 per share in fiscal 2025, while revenue is anticipated to be roughly $148.8 million.

Overall, EXFY has a solid “Moderate Buy” consensus rating, reflecting analysts’ bullishness on the stock. Out of the five analysts in coverage, two recommend a “Strong Buy,” while the remaining three are playing it safe with a “Hold” rating.

The stock’s mean price target of $4.25 suggests that it could rally as much as 44% from the current levels. 

Penny Stock #2: Bridgeline Digital

Bridgeline Digital (BLIN) delivers AI-powered marketing tech. Its product suite includes HawkSearch, Celebros, Woorank, Unbound, TruPresence, and OrchestraCMS, tools built for personalized search, SEO, content management, and digital transformation.

Serving industries from finance to health to manufacturing, Bridgeline helps brands boost digital engagement and e-commerce performance. Its market cap currently stands at $17.86 million.

Shares of Bridgeline have ridden a rough wave, down 38% from their YTD high of $2.80. Yet if you zoom out, the penny stock still boasts a 41.5% gain over the past 52 weeks, hinting that beneath the volatility, there's resilience. 

On Feb. 13, Bridgeline reported its fiscal Q1 earnings report, pulling in $3.8 million in revenue, slightly up from last year. Loss per share held steady at $0.06.

Digging deeper into Bridgeline’s Q1, subscription and licenses revenue dipped 1% year-over-year but picked up sequentially, signaling a possible rebound. Core products showed stronger momentum, with both total and subscription revenues growing over 10% compounded annually. 

Bridgeline landed 28 new subscription deals worth $2.7 million in total contract value, fueling over $800,000 in fresh annual recurring revenue. 

Analysts predict Bridgeline’s loss per share to shrink by 10.5% year over year to $0.17 in fiscal 2025, with the losses projected to narrow by another 29.4% to $0.12 per share in fiscal 2026.

BLIN stock has a consensus “Strong Buy” rating overall – an upgrade from the “Moderate Buy” three months back. Out of the three analysts covering the stock, two suggest a “Strong Buy,” and one recommends a “Moderate Buy.”

The mean price target of $3.96 suggests that the tech stock has upside potential of 127% from current prices. The Street-high target of $4.62 implies that the penny tech stock could rally as much as 165%.