Discover 3 US Penny Stocks With Over $10M Market Cap

In the world of investing, penny stocks often get a bad rap due to their low price points and perceived high risk. However, these small-cap stocks can offer significant growth potential for those willing to take on the extra risk. In this article, we'll explore three US penny stocks with market capitalizations over $10 million that have caught our attention.

1. Lifeward (NasdaqCM:LFWD)
- Market Cap: $15.24M
- Revenue: $25.00M (Medical Products segment)
- Net Loss: $13.66M (for the first nine months of 2024)
- Short-term assets > liabilities
- High share volatility and limited cash runway under one year without debt obligations

Lifeward is a medical device company focused on designing, developing, and commercializing technologies to enhance mobility and wellness for individuals with physical and neurological conditions. Despite reporting a significant net loss for the first nine months of 2024, Lifeward has shown impressive revenue growth, reporting $18.12 million compared to $6.97 million the previous year. The company's strategic moves, such as streamlining U.S. operations and appointing a new director, indicate a focus on improving its financial health. However, Lifeward's high share volatility and limited cash runway pose challenges to its growth prospects.

2. Kaltura (NasdaqGS:KLTR)
- Market Cap: $329.33M
- Revenue: $177.1M - $177.8M (expected for 2024)
- Net Loss: $3.61M (for Q3 2024)
- Cash reserves > debt
- Volatile share price and shareholder dilution
- Free cash flow decreasing slightly annually

Kaltura is a software-as-a-service (SaaS) and platform-as-a-service (PaaS) company that offers solutions for media and telecom, enterprise, education, and technology sectors. Despite its volatile share price and shareholder dilution, Kaltura has demonstrated a reduction in net losses over recent periods, with a third-quarter net loss of $3.61 million compared to $10.73 million the previous year. The company's cash reserves surpass its debt, providing a runway exceeding three years. Recent earnings guidance suggests marginal revenue growth for 2024 between $177.1 million and $177.8 million. However, Kaltura faces challenges with its decreasing free cash flow and the competitive nature of the software sector.

3. Sequans Communications (NYSE:SQNS)
- Market Cap: $87.23M
- Revenue: $30.56M
- Net Income: $72.28M (for Q3 2024)
- Short-term assets > short and long-term liabilities
- Recent impairments of $56.59M
- Earnings forecast to decline sharply over the next three years
- Shareholder dilution occurred last year but was minimal

Sequans Communications is a fabless semiconductor company that designs, develops, and supplies cellular semiconductor solutions for the massive and broadband internet of things markets. The company has shown a turnaround by becoming profitable recently, with a net income of $72.28 million in Q3 2024. Sequans' short-term assets exceed both its short and long-term liabilities, indicating financial stability. However, recent impairments of $56.59 million raise concerns about asset valuation challenges. Despite trading below estimated fair value and having more cash than debt, earnings are forecast to decline sharply over the next three years. Shareholder dilution occurred last year but was minimal.



In conclusion, Lifeward, Kaltura, and Sequans Communications are three US penny stocks with market capitalizations over $10 million that offer potential growth opportunities for investors willing to take on higher risk. While each company faces unique challenges, their strong financial health and growth prospects make them attractive investments in the penny stock space. As always, it's essential to conduct thorough research and consider your risk tolerance before investing in any penny stock.