2 high-growth ASX shares to buy today

I think these businesses have a lot of growth potential.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • High-growth ASX shares, such as Temple & Webster and the VanEck MSCI International Small Cos Quality ETF, offer substantial long-term returns through the power of compounding.
  • Despite a 19% share price drop from August 2025, Temple & Webster demonstrated strong financial growth with a 20.7% revenue increase and a significant rise in earnings and operating cash flow in FY25.
  • The VanEck MSCI International Small Cos Quality ETF invests in high-quality small companies with strong returns, offering an average annual return of nearly 19% over the past three years, highlighting its growth potential.

High-growth ASX shares can deliver the strongest returns over time because of how powerful a financial force compounding is.

As the great scientist Albert Einstein once said:

Compound interest is the eighth wonder of the world. He who understands it, earns it, he who doesn't, pays it.

The market can underestimate how much a rapidly growing business can grow over the long term. I think the below two high-growth ASX shares are worth buying for the years ahead.

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today

Image source: Getty Images

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a leading online retailer of furniture and homewares in Australia. It sells hundreds of thousands of products, with a large majority of those products shipped by suppliers. This allows the company to operate with a capital-light model and sell a much wider range of items.

After initial excitement following the company's FY25 result, the Temple & Webster share price has fallen around 20% from 14 August 2025, as the below chart shows.

The report included lots of things I wanted to see, including strong growth.

Revenue grew 20.7% to $600.7 million, earnings before interest and tax (EBIT) jumped 301.4% to $10.4 million, and operating cash flow increased 89.6% to $45.9 million. The home improvement segment saw revenue rise 42.5% to $42 million.

As an online business, it's able to take advantage of new tools. The company is utilising technology (including AI) to improve the customer experience, boost conversion, lower costs, and improve efficiencies across the business.  

In FY25, the operating profit (EBITDA) margin achieved was 3.1%. This is expected by the company to be between 3% to 5% in FY26 and reach at least 15% in the long term. This, combined with its $1 billion revenue goal in the medium term, suggests significant profit growth in the longer term for the high-growth ASX share, in my opinion.

VanEck MSCI International Small Cos Quality ETF (ASX: QSML)

This is one of the exchange-traded funds (ETFs) I'm most excited about because it's focused on faster-growing, smaller international businesses.

It has 150 high-quality small companies in the portfolio that are based on three key fundamentals – a high return on equity (ROE), earnings stability, and low financial leverage.

In other words, they earn a high level of profit on retained shareholder money, profits don't typically go down, and debt levels are low. This is a powerful combination and ensures only the best small businesses are invested in the QSML ETF.

Past performance is not a guarantee of future performance, but the QSML ETF has returned an average of almost 19% per year in the last three years. I think this fund and the underlying businesses have very compelling futures.

Motley Fool contributor Tristan Harrison has positions in Temple & Webster Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

A group of people in suits watch as a man puts his hand up to take the opportunity.
Growth Shares

A rare buying opportunity to buy 1 of Australia's top shares?

This stock has a lot to offer for investors wanting to beat the market…

Read more »

Red buy button on an Apple keyboard with a finger on it.
Growth Shares

2 little-known ASX shares that could make big returns

Experts are bullish about the potential of these stocks.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face.
Growth Shares

2 high-quality ASX stocks to buy and hold long term

Brokers see the dip as a compelling long-term buy with 33% to 44% upside.

Read more »

a man wearing casual clothes fans a selection of Australian banknotes over his chin with an excited, widemouthed expression on his face.
Growth Shares

3 fantastic ASX shares that could help build long-term wealth

Analysts think these shares are in the buy zone right now.

Read more »

A fit woman in workout gear flexes her muscles with two bigger people flexing behind her, indicating growth.
Growth Shares

2 ASX 200 shares I rate as top buys for growth

These sizeable businesses could scale significantly from here…

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Growth Shares

Where to invest $7,000 in ASX shares during April

I’m optimistic that these ASX shares could beat the stock market.

Read more »

Happy shareholders clap and smile as they listen to a company earnings report.
Growth Shares

3 ASX 200 shares that could quietly compound for years

Let's see what sets these shares apart from the crowd.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Growth Shares

3 ASX shares tipped to grow 100% or more in the next 12 months

Here’s how much these exciting stocks could rise in the year ahead.

Read more »