These ASX small-cap shares have BIG potential

These small businesses could deliver compelling returns.

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Key points

  • Discover the potential in ASX small-cap shares by exploring two promising companies within WAM Microcap Ltd's portfolio.
  • Ai-Media Technologies Ltd stands out for its innovative LEXI AI suite, as it targets a tech-focused business model with ambitious revenue and profit goals by FY29.
  • COG Financial Services Ltd demonstrates strategic growth through acquisitions in the novated leasing sector, attracting increased investor interest and indicating promising future earnings outlooks.

The ASX small-cap share space is a very exciting place to hunt for opportunities. Unknown names could become tomorrow's winners.

By sifting through hundreds of smaller names, investors can find hidden gems worth investing in.

In this article, we're going to look at two businesses that are in the portfolio of the listed investment company (LIC) WAM Microcap Ltd (ASX: WMI), which focuses on the smallest growing businesses on the ASX where the fund manager can see a catalyst that could send the share price higher.

While the following two businesses may not become the next Commonwealth Bank of Australia (ASX: CBA), the fund manager Wilson Asset Management is bullish on these ASX small-cap shares with their prospects.

Ai-Media Technologies Ltd (ASX: AIM)

WAM describes AI-Media Technologies as a business that provides the full suite of technology and services needed to accurately caption live broadcasts, in-venue displays and over-the-top (directly to the customer through the internet) content in multiple languages.

The fund manager noted that in September, the company benefited from utilising the annual general meeting (AGM) webcast to feature a live demonstration of LEXI Voice, an AI-powered, real-time multi-lingual voice translation solution.

On 26 September 2025, the ASX small-cap share released the chair and CEO addresses, which highlighted its pivot to a tech-led model and noted the adoption of the LEXI AI suite.

This followed the company's strong full-year results where management spelled out the continued shift towards technology product revenue and reiterated the long-term aspirational targets of $150 million in revenue and $60 million of operating profit (EBITDA) by FY29.

COG Financial Services Ltd (ASX: COG)

The other ASX small-cap share that the fund manager highlighted was COG Financial Services, which it described as Australia's largest aggregator of finance brokers and equipment leasing businesses.

WAM noted the company saw a positive rise gain in September largely due to contract wins and result-driven momentum.

In early September 2025, it announced the $40 million acquisition of EasiFleet, a salary packaging and novated leasing business.

The fund manager highlighted that the acquisition aligns with the company's growth plan being expanding the ASX small-cap share's scale and geographic reach in novated leasing, salary-packaged car leases arranged through employers, while adding complementary customer exposure across its existing brand portfolio.

The company has already been growing consistently in this segment, with FY25 revenue from novated leasing up 22% on the prior year. On top of that, the FY25 result remains a focus for investors after an updated result presentation was announced and fresh substantial holder filings suggested rising institutional investor interest.

WAM concluded about the ASX small-cap share:            

While cyclical factors have weighed on COG's recent earnings, we continue to see long-term upside as management executes a more focused strategy, with the annual general meeting on 6 November 2025 representing the next potential catalyst.

Motley Fool contributor Tristan Harrison has positions in Wam Microcap. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Ai-Media Technologies Ltd. The Motley Fool Australia has positions in and has recommended Ai-Media Technologies Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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