TSX Penny Stocks To Watch In September 2026

The Canadian equity markets have shown resilience despite recent economic challenges, with higher interest rates leading to a shift in market leadership favoring larger U.S. technology stocks over smaller companies. Investing in penny stocks, though now more niche than mainstream, can still provide access to growth opportunities typically found in smaller or newer enterprises. These stocks, when supported by robust financial health, may offer potential for significant returns and stability amidst the current economic landscape.

Let's dive into some prime choices out of the screener.

Haivision Systems (TSX:HAI)

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

Overview: Haivision Systems Inc. offers mission-critical, real-time video networking and visual collaboration solutions across Canada, the United States, and internationally, with a market cap of CA$105.22 million.

Operations: The company's revenue primarily comes from the provision of end-to-end video streaming solutions, totaling CA$142.47 million.

Market Cap: CA$105.22M

Haivision Systems Inc., with a market cap of CA$105.22 million, is navigating its unprofitable status by maintaining a strong cash runway exceeding three years due to positive free cash flow. Despite recent earnings showing a net loss of CA$2.1 million for Q3 2026, the company has managed to reduce losses over the past five years at an impressive rate of 41.5% annually. Trading at good value compared to peers and having more cash than total debt, Haivision's short-term assets comfortably cover both short and long-term liabilities, indicating financial resilience amidst volatility in earnings growth forecasts.

• Take a closer look at Haivision Systems' potential here in our financial health report.
• Assess Haivision Systems' future earnings estimates with our detailed growth reports.

BuildDirect.com Technologies (TSXV:BILD)

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

Overview: BuildDirect.com Technologies Inc. operates an online e-commerce platform specializing in wood, vinyl, laminate, and other flooring products across the United States and Canada, with a market cap of CA$125.71 million.

Operations: The company's revenue is derived from two main segments: E-Commerce, contributing $14.82 million, and Pro Centers, generating $53.68 million.

Market Cap: CA$125.71M

BuildDirect.com Technologies Inc., with a market cap of CA$125.71 million, reported Q2 2026 sales of US$19.66 million, an increase from the previous year but recorded a net loss of US$0.188569 million. Despite being unprofitable, the company maintains a positive free cash flow and sufficient cash runway for over three years. Its short-term assets exceed liabilities, though long-term liabilities are not fully covered by current assets. The board and management team are experienced, but high net debt to equity ratio remains a concern alongside negative return on equity as the company works to reduce losses annually by 37%.

• Unlock comprehensive insights into our analysis of BuildDirect.com Technologies stock in this financial health report.
• Examine BuildDirect.com Technologies' past performance report to understand how it has performed in prior years.

Covalon Technologies (TSXV:COV)

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

Overview: Covalon Technologies Ltd. is involved in the research, development, manufacturing, and marketing of medical products focused on infection management, advanced wound care, and surgical procedures across various international markets including the United States and the Middle East, with a market cap of CA$117.10 million.

Operations: The company generates CA$34.35 million in revenue from its biotechnology startup segment.

Market Cap: CA$117.1M

Covalon Technologies Ltd., with a market cap of CA$117.10 million, has shown significant financial improvement, becoming profitable over the past five years with earnings growing by 45.9% annually. The company is debt-free and its short-term assets substantially cover liabilities. Recent earnings reports indicate robust growth, with Q3 revenue rising to CA$10.04 million from CA$8.37 million the previous year and net income reaching CA$2.81 million from just CA$0.064567 million previously. Additionally, Covalon's collagen dressings demonstrated promising results in wound care studies, highlighting potential competitive advantages in their product offerings within international markets.

• Click here and access our complete financial health analysis report to understand the dynamics of Covalon Technologies.
• Examine Covalon Technologies' earnings growth report to understand how analysts expect it to perform.

Where To Now?

• Explore the 346 names from our TSX Penny Stocks screener here.
• Contemplating Other Strategies? The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 18 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com