Huge Tech giants, together with Nvidia, Alphabet, Amazon, Microsoft, Meta, and Oracle, have dominated the unreal intelligence (AI) narrative in recent times. Nonetheless, a number of different corporations are rapidly gaining traction on this extremely disruptive area, however are flying below the radar.
Listed below are two such little-known Canadian AI shares you should buy and maintain in October 2025.
Is that this Canadian AI inventory purchase?
Valued at a market cap of $4.9 billion, Kinaxis (TSX:KXS) gives cloud-based subscription software program for provide chain operations in america, Europe, Asia, and Canada. It affords RapidResponse, an AI-infused end-to-end provide chain orchestration resolution that encompasses concurrency, AI, superior analytics, consumer expertise, developer studio, integration, and safety.
Kinaxis serves aerospace and defence, automotive, client merchandise, high-tech and electronics, industrial, life sciences, logistics, and retail industries.
Kinaxis delivered sturdy second-quarter (Q2) outcomes that topped firm information throughout a number of metrics. The availability chain software program firm reported its finest Q2 ever when it comes to new enterprise wins. Income climbed 15% to $136.4 million whereas SaaS (software-as-a-revenue) jumped 17% to $88.4 million.
The AI entity’s annual recurring income reached $391 million, representing a 15% year-over-year progress. Half of this progress was attributed to new prospects, whereas the opposite half resulted from present prospects buying further companies.
Kinaxis reported that its adjusted EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) rose 54% to a file $33.7 million, indicating a margin of 25%, up from 19% final yr. It was the fourth straight quarter of the Rule of 40 efficiency, which mixes progress and profitability metrics.
Kinaxis raised its SaaS income steerage to 13-15% progress for the complete yr. Administration cited improved win charges and stronger pipeline conversion below new gross sales management.
Kinaxis is rolling out new synthetic intelligence options referred to as Maestro that assist automate provide chain selections. Three of Gartner’s 4 “Masters of Provide Chain” for 2025 are already Kinaxis prospects, and the corporate is working with early adopter shoppers to refine these AI instruments earlier than broader market launch.
Kinaxis elevated working money circulate by 72% to $22.6 million and ended Q2 with $329 million in money. Analysts monitoring the TSX tech inventory forecast it to extend free money circulate from $107 million in 2025 to $255 million in 2029.
Furthermore, its adjusted earnings per share are anticipated to extend to $7.80 in 2029, up from $2.36 in 2024. If the TSX inventory is priced at 35 occasions ahead FCF, it ought to acquire 80% inside the subsequent 4 years.
Is that this TSX tech inventory undervalued?
Down 67% from all-time highs, Docebo (TSX:DCBO) is one other AI inventory that ought to be in your watchlist in 2025. Docebo gives enterprise-facing e-learning options and exceeded estimates throughout key metrics in Q2.
The training administration software program firm raised its full-year income steerage pushed by momentum in mid-market prospects. Furthermore, the corporate added a serious growth take care of a Huge 5 tech buyer, which entails buyer coaching use instances and represents a big six-figure contract.
Know-how corporations proceed to steer adoption, adopted by sectors equivalent to healthcare and monetary companies. Docebo landed 65% of recent prospects with a number of use instances, exhibiting patrons need complete options.
Docebo launched Concord, its new agentic AI platform, forward of schedule. Prospects can now search the platform utilizing pure language queries, and extra automated options will roll out by year-end. Early utilization metrics look promising, with prospects creating over 20,000 minutes of AI-generated video content material.
Furthermore, Docebo acquired FedRAMP certification sooner than anticipated, unlocking a US$2.7 billion market throughout federal, state, and native companies.
Analysts monitoring DCBO inventory forecast its free money circulate to extend from US$28 million in 2024 to US$157.40 million in 2029. If the AI inventory is priced at 15 occasions ahead FCF, it may virtually triple over the following 4 years.
