2 ASX Small Cap Tech Stocks on Analyst Buy Lists

The Australian technology sector has been buzzing with activity in 2025. While large-cap giants dominate headlines, it’s often the small-cap players that quietly deliver strong growth and capture new opportunities. These companies may not yet be household names, but they are steadily carving out market share and building solid financial momentum.

Two such stocks—Aussie Broadband Ltd (ASX: ABB) and Nuix Ltd (ASX: NXL)—have recently landed on multiple analyst buy lists. Both companies operate in very different spaces: Aussie Broadband in high-speed internet services and Nuix in forensic analytics and AI. Yet, they share one thing in common—analysts see them as high-potential growth stories in the years ahead.

Let’s dive into why ABB and NXL are catching investor attention, the numbers backing their performance, and what risks you should be mindful of.

Aussie Broadband (ASX: ABB): Scaling Up in the Telco Market

Aussie Broadband has long been regarded as the challenger brand in Australia’s telco market. Known for its strong customer service and competitive pricing, ABB has steadily grown from a niche broadband provider to one of the country’s fastest-growing telecom players.

FY25 Performance:

The numbers tell a compelling story:

1. Revenue surged 18.7% year-on-year, reaching $1.19 billion.
2. Underlying EBITDA climbed 14.7% to $138.2 million, hitting the top end of guidance.
3. Net profit after tax jumped 24.5% to $32.8 million, showcasing stronger operational efficiency.

Customer acquisition remains ABB’s crown jewel. On-net broadband connections rose over 15% to 788,400 subscribers, lifting market share to 8.4%, an increase of 1.1 percentage points. This growth isn’t just about adding users—it’s about ABB proving it can consistently take share from bigger incumbents.

The company’s wholesale arm is also building traction. A six-year wholesale contract with MORE Telecom is expected to bring steady revenue streams through FY27, giving ABB additional scale and stability.

Analyst Perspective:

Brokers are optimistic. Forecasts suggest EBITDA could reach $161 million by FY26, with subscriber numbers potentially hitting 800,000 by FY28. Analysts point to ABB’s dual strategy of retail growth and wholesale expansion as key drivers of its long-term upside.

Nuix (ASX: NXL): Riding the AI and Forensics Wave

If Aussie Broadband is about connecting homes and businesses, Nuix is about connecting the dots in data. The company builds investigative analytics and forensic software, with applications ranging from corporate compliance to government investigations.

After a few rocky years post-IPO, Nuix has been quietly regaining investor confidence, especially with the rollout of its AI-powered forensic analytics platform, Nuix Neo.

FY25 Results:

Nuix’s performance this year marks a turning point:

1. Annual Contract Value (ACV) rose 8% overall, but the real standout was Nuix Neo, which delivered a 132% surge in ACV.
2. Cash EBITDA improved 24.5%, reflecting better operational leverage.
3. Operating cash flow remained positive, helping the company strengthen its balance sheet.

Looking forward, management has guided for ACV between $197 million and $205 million in FY25, signaling double-digit growth compared to prior years.

Market Traction:

Nuix is signing multi-year contracts with government agencies and large corporates, a clear indicator of trust in its platform. Its global reach is also expanding, with AI-driven solutions being deployed across North America, Europe, and Asia.

Analyst View:

Analysts argue that Nuix is now a compelling long-term play on the growing demand for digital investigations. As cybercrime, compliance requirements, and corporate litigation rise, Nuix’s solutions are increasingly mission-critical. While valuation multiples are moderate today, analysts believe stronger cash flows could unlock significant upside in the medium term.

Risks Investors Should Watch

Of course, no investment comes without risks. Both companies operate in competitive and fast-moving markets where execution is key.

1. For ABB: Regulatory changes in Australia’s broadband market, including NBN upgrades, could impact margins. Competition from larger telcos also remains intense, forcing ABB to constantly innovate and maintain price competitiveness.
2. For Nuix: Growth depends on scaling its new AI-driven products and maintaining credibility in sensitive industries. Any missteps in data privacy, product performance, or regulatory compliance could set back its progress.

Final Thoughts

When investors think of tech, they often look at giants like Atlassian or Afterpay (before its buyout). But some of the most exciting stories today are unfolding in the ASX small-cap tech space.

Aussie Broadband and Nuix represent two very different but equally dynamic growth stories. ABB is building scale and credibility as a serious telco competitor, while Nuix is tapping into one of the most pressing needs of the digital age—making sense of vast amounts of data through AI and forensics.

Both stocks come with risks, but with strong recent results, improving financials, and clear analyst support, they deserve a closer look from investors seeking exposure to innovation and digital growth in Australia.

For those willing to tolerate some volatility in exchange for the potential of outsized returns, ABB and NXL look like small caps worth keeping on the radar in 2025 and beyond.

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