TSX Penny Stocks To Watch In September 2026

As oil prices briefly surged past $100 a barrel, concerns over rising inflation and potential interest rate hikes have captured the attention of investors across Canada. In such a climate, penny stocks—typically representing smaller or newer companies—remain an intriguing option for those seeking growth opportunities at lower price points. Despite being considered somewhat outdated, these stocks can still offer significant potential when backed by strong financials and solid fundamentals.

Let's explore several standout options from the results in the screener.

Coveo Solutions (TSX:CVO)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Coveo Solutions Inc. offers a software-as-a-service AI platform across Canada, the United States, and internationally, with a market cap of CA$401.92 million.

Operations: The company's revenue is primarily derived from its Software & Programming segment, totaling $151.34 million.

Market Cap: CA$401.92M

Coveo Solutions Inc. is navigating the penny stock landscape with a market cap of CA$401.92 million, primarily driven by its Software & Programming segment, generating US$151.34 million in revenue. Despite being unprofitable with a negative return on equity of -23.11%, Coveo has shown progress by reducing losses over five years at 3.8% annually and maintaining a positive cash flow runway for over three years due to growing free cash flow. Recent earnings reported a net loss reduction from US$15.05 million to US$5.81 million year-over-year, while revenue increased to US$38.55 million, reflecting operational improvements amidst stable weekly volatility.

• Click here and access our complete financial health analysis report to understand the dynamics of Coveo Solutions.
• Evaluate Coveo Solutions' prospects by accessing our earnings growth report.

Quarterhill (TSX:QTRH)

Simply Wall St Financial Health Rating: ★★★★☆☆

Overview: Quarterhill Inc. operates in the tolling and mobility systems sector, offering solutions across various countries including the United States, Thailand, and Germany, with a market cap of CA$311.95 million.

Operations: The company generates revenue primarily from its Intelligent Transportation Systems segment, which accounts for $159.33 million.

Market Cap: CA$311.95M

Quarterhill Inc. is navigating the penny stock landscape with a CA$311.95 million market cap, primarily driven by its Intelligent Transportation Systems segment, generating US$159.33 million in revenue. Despite being unprofitable and having a negative return on equity of -66.43%, Quarterhill maintains a positive cash flow runway for over three years and has not experienced significant shareholder dilution recently. The company secured new contracts, including a $4.6 million deal with Pennsylvania's Department of Transportation and a $5.25 million contract with Oklahoma's Department of Transportation, indicating ongoing demand for its tolling and mobility solutions across North America.

• Get an in-depth perspective on Quarterhill's performance by reading our balance sheet health report here.
• Assess Quarterhill's future earnings estimates with our detailed growth reports.

Hemisphere Energy (TSXV:HME)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Hemisphere Energy Corporation acquires, explores, develops, and produces petroleum and natural gas properties in Canada with a market cap of CA$211.12 million.

Operations: The company's revenue is generated entirely from its petroleum and natural gas interests, amounting to CA$83.69 million.

Market Cap: CA$211.12M

Hemisphere Energy, with a market cap of CA$211.12 million, has shown resilience in the Canadian penny stock sector despite recent challenges. The company is debt-free and maintains strong financials with a net profit margin of 38.8% and a high return on equity of 36.2%. Its earnings growth over the past year was modest at 1.6%, but it has achieved significant profitability over five years, growing earnings by 26% annually. However, recent operational disruptions due to a fire at its largest oil battery have temporarily suspended production guidance and may impact future cash flows despite insurance coverage efforts underway.

• Navigate through the intricacies of Hemisphere Energy with our comprehensive balance sheet health report here.
• Learn about Hemisphere Energy's historical performance here.

Turning Ideas Into Actions

• Investigate our full lineup of 340 TSX Penny Stocks right here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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