On August 7, 2025, Shopify (TSX:SHOP) briefly surpassed the Royal Bank of Canada (RBC) to become the largest company by market capitalization on the Toronto Stock Exchange. However, by September 10, RBC had regained its leading position. This shift reflects renewed market interest in the technology sector, though short-term uncertainties remain.
While Shopify’s temporary return to the top has drawn attention back to Canadian tech stocks, investors may find better long-term growth opportunities in two other tech companies.
With a market capitalization of $14.87 billion, Topicus.com is a spin-off from Constellation Software and continues its parent company’s business model—acquiring vertical-market software businesses with stable cash flows. Focused primarily on European markets, the company achieves sustained growth by purchasing mature firms with strong technological capabilities across various niches.
Shares of TOI are currently trading at $180.66, up 63.02% from their 52-week low. By reinvesting free cash flow into strategic acquisitions, Topicus has established a unique competitive edge in the often volatile tech industry.
Descartes Systems, valued at $12.74 billion, provides critical logistics and supply chain software solutions for the global shipping industry. Its platform facilitates seamless collaboration within the sector, which is in high demand amid persistent global supply chain challenges. The company benefits from high recurring revenue, strong profit margins, and robust free cash flow, enabling strategic acquisitions.
With growing global trade tensions, demand for supply chain solutions is expected to rise, positioning Descartes for significant future growth.
Although neither Topicus nor Descartes currently matches the market cap of financial giants like RBC, and Shopify’s total returns at current levels may fall short of elevated investor expectations, both companies offer compelling long-term investment opportunities. Investors with a long-term horizon may consider allocating a portion of their portfolios to these well-structured tech companies with solid growth potential.
