Five AIM growth shares for your ISA in 2026

Here are five potential growth investments either for your ISA in the 2026-27 tax year, or for anyone who has put money in their stocks & shares ISA before the end of the current tax year and has to decide where to invest it.

All five companies have cash in the bank or low levels of net debt with continuing cash generation. Some have been trading on much higher multiples in the past. They all have potential to grow over the long term.

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Dotdigital

46.4p

Former highly rated shares have been losing their premium rating in recent years even if growth has continued. This is true of digital marketing services provider dotDigital Group (LSE:DOTD), and a relatively weak first half has not helped. The second half is set to be much better, but investors do not appear to be confident that that will happen. There is a good track record, and indications are that the second half will benefit from the additional investment that’s been made.  

In the six months to December 2025, Dotdigital revenues rose 4% to £44.2 million, after low margin work was shed and gross margins improved. Excluding exceptionals and acquired intangibles amortisation, pre-tax profit declined from £9.5 million to £8.9 million as admin costs increased due to investment in Social Snowball. Net cash was £36.1 million at the end of last December.

Dotdigital is a strong cash generator, and it has been reinvesting some of that cash in acquisitions. It paid an initial $30 million (£22.5 million) for Alia, which provides services to Shopify clients so that they can improve conversion of client leads. Alia’s technology can be used for non-Shopify customers, so there is plenty of cross-selling potential when it is integrated into the Dotdigital platform.

Canaccord Genuity forecasts an improvement in full-year pre-tax profit from £19 million to £19.8 million. Next year, with full contributions from Social Snowball and Alia, there has been an upgrade from £21.2 million to £21.7 million. Net cash could recover to £23 million by the end of June 2027.

There has been director buying since the interim results. Executive chair John Conoley acquired10,000 shares at 52.556p each and finance director Tom Mullan bought 19,081 shares at 52.02p each. Follow their example.

Itaconix

107.5p

Plant-based detergent ingredients developer Itaconix (LSE:ITX) is the only one of these five companies not making a profit. There is cash in the bank and that should be sufficient to reach breakeven. New business has been won, but it can take time for the revenues to flow through.

Itaconix produces ingredients that improve performance as well as being sustainable. Customers are involved in detergents and odour neutralisation. Large companies can take a long time to decide to change a product formulation, but once an ingredient is included sales will build up.

The decision to end low margin business in the US hit revenues in 2024, but it has improved margins. Last year, revenues jumped from $6.5 million to $10.5 million, which is well above the previous peak of $7.9 million in 2023. This indicates strong underlying growth over the past two years.

The loss was reduced from $1.8 million to $1.1 million with a $1.2 million cash outflow from operated activities.

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European revenues doubled and new business in North America will flow through into revenues in 2026, particularly in 2027. There is capacity for revenues to increase to more than $25 million.

Itaconix is working on products in additional sectors that will broaden the scope for the group. There is more than $4 million in cash in the bank, which is more than enough to get to cash flow positive. That should happen next year and Itaconix should still have net cash at the end of 2027.

On the face of it, this is a riskier investment, but the positive trend is obvious and there is no worry about any share issue to cover further losses. Once Itaconix passes breakeven, profit and cash will grow. Buy to benefit from the future growth of the business.

Tracsis

300p

Transport software and services provider Tracsis (LSE:TRCS) has tended to trade on high multiples and has consistently grown its cash pile. A slowing of profit growth has led to a dip in the share price, but prospects remain good.

Leeds-based Tracsis provides software and services that enable train operators to operate efficiently. It also provides ticketing and automated delay repay services, plus safety monitoring equipment. Another part of the group collects and analyses road traffic data and provides transport planning services for events.

There has been uncertainty in the UK rail system while it is being restructured. Even so, there is still significant growth potential for Tracsis, particularly in areas such as smart ticketing. Dependence on the UK is being reduced.

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The second half will benefit from the early phase of a newly won multi-year contract in North America. This is with a shortline freight railroad to implement Train Despatch software, the second implementation of Train Despatch in the US. Full operation of the software will be in 2026-27 and from then on it will generate recurring income. The US could become an important market.

Net cash reached £25.8 million at the end of January 2026, and this figure should continue to rise. It could be near to the equivalent of one-third of the current market capitalisation by the end of July.

Tracsis is on course to improve underlying pre-tax profit from £10.2 million to £11.1 million, which puts the shares on 11 times prospective earnings. The three-year average multiple is 20, so this shows how the share price has fallen back. Growth should be steady, but if conditions improve it could accelerate. Buy.

Leeds-based Tracsis provides software and services that enable train operators to operate efficiently.

Airea

20.5p

Carpet tiles manufacturer AIREA (LSE:AIEA) has been constrained by a lack of capacity. The company has been investing in new manufacturing facilities, and the commissioning of the facilities is getting near. There has been a delay while management makes sure that it has up-to-date artificial intelligence (AI) to make it even more efficient.

Manufacturing capacity will double and larger contracts can be serviced.  Other parts of the business, such as warehousing can be made more efficient. Getting rid of off-site storage will improve profitability.

Delays in orders at the time of the Budget meant that 2025 revenues were flat at £21.4 million. Operating profit before non-recurring items fell from £1.56 million to £1.15 million, although that partly reflects the loss of income from an investment property sold to help finance the increased manufacturing capacity.

Net cash was £1.2 million at the end of 2025 and that will be enough to fund the remaining capital investment on the new facility. The dividend was raised from 0.6p/share to 1p/share.

Orders that were delayed form last year are coming through in the early months of 2026. International markets were weak in 2025, but there are signs of improvement despite the Middle East conflict.

There is no forecast for 2026. There will be benefits from additional capacity this year, but the full benefits of this are likely to come through in 2027. There is also the bonus of a growing dividend, currently providing a near-5% yield. The historic multiple is eight, which should come down over the next couple of years. Buy for long-term growth.

Ten Lifestyle

65p

Concierge technology platform provider Ten Lifestyle Group (LSE:TENG)continues to win new contracts and generate cash. This is a highly scalable international business with substantial growth potential. Investment in digital services is making the business more efficient.

Ten Lifestyle has developed a software platform that can provide concierge services to high-net-worth individuals. Corporate clients, such as banks and brands, employ Ten Lifestyle to provide services, such as booking restaurants and theatre tickets that are difficult to obtain, to their customers. Ten Lifestyle has expertise and can access better rates and benefits.

Contracts are viewed by annual revenues: extra large (>£5 million), large (£2 million-£5 million) and medium (£250,000-£2 million).

There were 65 contracts at the end of August 2025, with 31 classed as extra large, large or medium. Eight were in Europe, 10 in the Americas, 12 in AMEA and one was classed as global. The latest multi-year contract with a large financial services provider in Africa, Middle East and Asia is expected to be classed as large.

In the year to August 2025, revenues increased from £62.4 million to £65.7 million, while pre-tax profit jumped from £3.1 million to £4.6 million.

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First-half EBITDA (profit) improved 16% to £1 million despite unfavourable foreign exchange movements. Active members are 23% higher at 436,000.

This year pre-tax profit could rise to £5.7 million and then to £7.2 million in 2026-27. Net cash was £9.8 million at the end of August 2025, and it could rise to £13.5 million by the end of this year.

The prospective multiple is 12, falling to just over 11 next year. The current situation in the Middle East could be a concern, but it should not prevent growth. Long-term buy.

Andrew Hore is a freelance contributor and not a direct employee of interactive investor.