2 top ASX growth shares for explosive potential in 2025

These stocks look exciting and compelling to me.

| More on:
happy investor, share price rise, increase, up

Image source: Getty Images

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

The ASX growth share space is a great hunting ground for businesses that could beat the market. With interest rate cuts possibly around the corner, it could be a good time to look at stocks before their next phase of growth.

Companies that are growing their earnings at a fast rate can lead to a compounding of earnings and good shareholder returns.

I'm going to talk about two ASX growth shares that have grown significantly in the last 12 months and plan to grow even further in the coming years.

Siteminder Ltd (ASX: SDR)

Siteminder provides software to hotels worldwide, helping them maximise their revenue potential and operations. The ASX growth share says it generates more than 120 million reservations worth over A$75 billion in revenue for its hotel customers each year.

The FY24 result was pleasing for a few different reasons, with total revenue growing 26% to $190.7 million and annualised recurring revenue (ARR) growing 21.3% to $209 million. Most excitingly to me, the underlying operating profit (EBITDA) turned positive, improving by $22.8 million to $0.9 million.

Siteminder attributed its underlying EBITDA improvement to operating leverage and cost discipline. In other words, expenses are growing at a much slower pace than revenue, leading to a rapid increase in profit and profit margins.

Given how its revenue and operating leverage are playing out, the ASX growth share's underlying EBITDA could jump again in FY25. It also expects to be underlying free cash flow positive in FY25.

This exciting company is targeting 30% organic annual revenue growth in the medium term.

Gentrack Group Ltd (ASX: GTK)

Gentrack provides software for airports and utility companies (water and energy) around the world.

Some of its software customers include E-On, NPower, London Gatwick Airport, Sydney Airport, and Auckland International Airport Limited (ASX: AIA). Software is essential for almost any business' operations, and Gentrack offers a valuable service.

FY24 was a good year for the ASX growth share, with revenue growth of 25.5% to $213.2 million and underlying EBITDA growth of 42% to $40.9 million.

The defensive revenue, expectations of revenue growth, and EBITDA growth are very compelling to me.

The ASX growth share is growing revenue at a compound annual growth rate (CAGR) of more than 15%, with an EBITDA margin of between 15% and 20% after expensing all development costs.

In FY25, it's expecting both its utilities and airport divisions to show continued revenue growth and EBITDA improvement. When it released its FY25 result, it said:

We've had four new Utilities customer wins in the year including in two new countries, Saudi Arabia and the Philippines. Veovo has added top tier airports in Saudi Arabia and the UK to its portfolio. Across water, energy and airports our pipeline continues to strengthen and mature. We expect growth in our base and further expansion with new customer wins in the year. Overall, things are looking very positive for this ASX growth share.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Gentrack Group and SiteMinder. The Motley Fool Australia has positions in and has recommended Gentrack Group and SiteMinder. 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

happy investor, share price rise, increase, up
Growth Shares

Where to invest $5,000 into ASX growth shares now

These shares could be destined for big things according to analysts.

Read more »

ETF spelt out with a piggybank.
ETFs

Want to buy ASX growth shares? Consider these ETFs instead

Growth ETFs can be easier to invest in than shares.

Read more »

A businessman compares the growth trajectory of property versus shares.
Growth Shares

Are these 2 top ASX growth shares buys?

ASX growth shares can deliver strong results. Should these stocks be in your portfolio?

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Growth Shares

These ASX growth stocks could rise 80% to 100%

Let's see what brokers are tipping as buys with big return potential.

Read more »

Man holding a tray of burritos, symbolising the Guzman share price.
Share Market News

Wingstop mania hits Sydney — is Guzman y Gomez next in line to soar?

Can Guzman y Gomez be Australia’s next fast food success story on the ASX?

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
Growth Shares

3 ASX shares for beginners to buy with $500

These shares are highly rated by analysts. Let's see why they could be top picks for beginners.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Growth Shares

Invest $5,000 into these excellent ASX growth shares

These shares could be top picks for growth investors. Let's find out why.

Read more »

three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.
Growth Shares

3 ASX 200 shares that are up more than 30% in a month. Can they go higher?

Are there more gains ahead for these shares? Let's find out.

Read more »