Sasha Jovanovic
5 min read
Gridlock in Washington just rewired the risk mood. With Democrats in Congress and the White House constrained, markets are treating politics as one less wild card and risk assets from global equities to Bitcoin are already reflecting that shift. For investors who have been sitting on the sidelines, this kind of clearing event does not show up often. This article walks through three small and mid cap growth stocks exposed to the same story, and explains why their reaction to the news might matter for your portfolio.
The three examples below are just a starting sample, and the full screen surfaced 14 more U.S. small and mid cap growth companies with similarly compelling stories that are not covered here.
If you want to quickly identify, compare, and analyze those extra ideas alongside the stocks discussed in this article, head straight into the U.S. Small- and Mid-Cap Growth Stocks screener.
Five9 (FIVN)
Five9 fits this small and mid cap growth screen as a pure cloud contact center platform, giving you direct exposure to software driven customer experience and AI as risk appetite improves.
Five9 runs a cloud based contact center platform that supports customer service, sales, and marketing across voice, chat, email, web, social and mobile for sectors from banking to healthcare. The business generated about $1.2b from internet software and services and has a market value of roughly $2.7b.
“AI subscription revenue of about $39 million in Q2 2026 with a run rate above $150 million and at least 60% full year AI growth guidance points to a larger pool of usage based AI contracts than the earlier narrative assumed.”
The real swing factor is how one pressure on future profitability interacts with that expanding AI driven subscription base.
That tension is exactly what the full narrative for Five9 unpacks. It reveals how Five9’s AI subscriptions, capital needs and competitive pressure could be decoupling faster than the headline numbers suggest.
Crexendo (CXDO)
Crexendo brings small cap, software led growth to this screen through its cloud communications and UCaaS platform. This gives you a pure play on recurring communication tools as risk appetite turns back toward higher volatility tech.
Crexendo provides cloud communication and UCaaS software for business customers, offering hosted phone systems, collaboration tools and contact center services, and has a market cap of about $192 million.
“The roll out of AI offerings such as CAIRO and AI call recording, which is already lifting telecom services ARPU by about US$120 per account per month from an average of US$340, sets up AI related upsell and usage based revenue streams that can support both top line growth and higher net margins as adoption broadens.”
