10 high-profitability small-cap stocks with lowest YTD performance in 2026

[Man looking at currency trading app on his smart phone from his home office]
Alistair Berg

A notable shift is underway in the small-cap market in 2026: profitable Russell 2000 companies are decisively outperforming their non-profitable counterparts, with profitable stocks up approximately 8% year-to-date while non-profitable names are slightly in the red, a sharp reversal from 2025, when non-profitable small caps surged +20% versus only +10% for profitable ones.

This flight to quality within the small-cap universe reflects a more discerning market environment, where investors are increasingly rewarding companies with real earnings rather than speculative growth stories.

Against this backdrop, below is a list of small-cap stocks with top profitability ratings of A or A- that have experienced the lowest year-to-date performance. The list features companies across various sectors including Application Software, Biotechnology, and Human Resource & Employment Services.

The list is led by PagerDuty, Inc. (PD [https://seekingalpha.com/symbol/PD]), with a YTD performance of -56.29%. MannKind Corporation (MNKD [https://seekingalpha.com/symbol/MNKD]) and Upwork Inc. (UPWK [https://seekingalpha.com/symbol/UPWK]) follow, rounding out the bottom of the list despite their high profitability scores.

The stocks represent a variety of sectors, with Application Software and Biotechnology featuring prominently. Blackbaud, Inc. (BLKB [https://seekingalpha.com/symbol/BLKB]) and EverQuote, Inc. (EVER [https://seekingalpha.com/symbol/EVER]) also appear on this list of highly profitable small-cap stocks that have struggled recently.

Here is the list:

*
PagerDuty, Inc. (PD [https://seekingalpha.com/symbol/PD]), YTD perf: -56.29%, Quant rating: 2.70

*
MannKind Corporation (MNKD [https://seekingalpha.com/symbol/MNKD]), YTD perf: -54.67%, Quant rating: 1.18

*
Upwork Inc. (UPWK [https://seekingalpha.com/symbol/UPWK]), YTD perf: -46.22%, Quant rating: 2.75

*
Blackbaud, Inc. (BLKB [https://seekingalpha.com/symbol/BLKB]), YTD perf: -45.88%, Quant rating: 3.05

*
EverQuote, Inc. (EVER [https://seekingalpha.com/symbol/EVER]), YTD perf: -44.11%, Quant rating: 3.22

*
BellRing Brands, Inc. (BRBR [https://seekingalpha.com/symbol/BRBR]), YTD perf: -43.85%, Quant rating: 1.24

*
MiMedx Group, Inc. (MDXG [https://seekingalpha.com/symbol/MDXG]), YTD perf: -42.84%, Quant rating: 1.32

*
TriNet Group, Inc. (TNET [https://seekingalpha.com/symbol/TNET]), YTD perf: -41.43%, Quant rating: 1.29

*
Inspire Medical Systems, Inc. (INSP [https://seekingalpha.com/symbol/INSP]), YTD perf: -41.43%, Quant rating: 2.66

*
Nutex Health Inc. (NUTX [https://seekingalpha.com/symbol/NUTX]), YTD perf: -38.62%, Quant rating: 2.71

Small-Cap ETFs: (IJR [https://seekingalpha.com/symbol/IJR]), (IWM [https://seekingalpha.com/symbol/IWM]), (VB [https://seekingalpha.com/symbol/VB]), (VBR [https://seekingalpha.com/symbol/VBR]), (VBK [https://seekingalpha.com/symbol/VBK]), (SCHA [https://seekingalpha.com/symbol/SCHA]), (SPSM [https://seekingalpha.com/symbol/SPSM]), and (DFAS [https://seekingalpha.com/symbol/DFAS])

MORE ON SMALL CAP STOCKS

* 1999 Vs. 2026: No Contest [https://seekingalpha.com/article/4890322-1999-versus-2026-no-contest]
* Why We Are 'Buying The Dips' [https://seekingalpha.com/article/4890316-why-we-are-buying-the-dips]
* The Best Buying Opportunity Since Liberation Day [https://seekingalpha.com/article/4890308-the-best-buying-opportunity-since-liberation-day]
* 10 high-profitability small-cap stocks that are outperforming in 2026 [https://seekingalpha.com/news/4574561-10-high-profitability-small-cap-stocks-that-are-outperforming-in-2026]
* Value is beating growth across the board this year [https://seekingalpha.com/news/4574467-value-beating-growth-across-the-board-this-year]