January is when numerous Canadians need a reset. You take a look at your Tax-Free Financial savings Account (TFSA), you take a look at the calendar, and also you suppose, “This 12 months, I need my cash doing one thing.” The difficult half is wanting development and earnings on the similar time. A beginner-friendly compromise is to personal corporations that may compound for years, and let that compounding construct the portfolio worth that may fund earnings later. So, let’s take a look at two tech choices that would present that in January.
TOI
Topicus.com (TSXV:TOI) is a growth-first story constructed round a easy thought: purchase small, mission-critical software program corporations and run them for the lengthy haul. It focuses on vertical market software program, which is commonly the unglamorous software program a distinct segment trade makes use of day by day. But boring software program tends to be sticky. Prospects don’t change frivolously. Over time, that may translate into regular money era that may be redeployed into extra acquisitions and product enhancements.
The newest earnings snapshot helps present whether or not that engine continues to be buzzing. For the third quarter ended Sept. 30, 2025, Topicus reported income of €354.8 million versus €323.2 million a 12 months earlier. Working earnings rose to €81.8 million from €64.6 million, and internet earnings was €28.8 million. It additionally reported larger free money movement within the quarter. For newcomers, that money line fuels future offers with out relying too closely on outdoors financing.
The catch is that Topicus can really feel expensive, and it may possibly swing round. Just lately, it traded with an especially excessive price-to-earnings ratio of 251 occasions earnings, which might occur when accounting earnings are usually not the very best measure of a serial acquirer’s underlying money earnings, or when buyers are pricing in years of development. Nonetheless, it is a long-game inventory. Maintain the place measurement sufficiently small that you would be able to maintain by a nasty month with out panicking. It’s not a dividend title, however reinvested money can turn out to be earnings later.
DSG
Descartes Programs Group (TSX:DSG) is also a software program firm, but it surely serves a distinct on a regular basis want. It sells logistics and trade-compliance instruments that assist corporations transfer items, handle transport networks, and keep onside with cross-border guidelines. That makes it a “pick-and-shovel” enterprise for international commerce. When the software program is embedded in operations, prospects are inclined to renew as a result of ripping it out could be disruptive and dangerous.
Its most up-to-date quarterly launch, for the third quarter of fiscal 2026, ended Oct. 31, 2025, confirmed regular progress. Complete revenues have been US$167.0 million, up from US$156.6 million a 12 months earlier, and companies revenues have been US$150.8 million versus US$140.5 million. Revenue from operations elevated to US$47.6 million from US$43.0 million, and diluted earnings per share (EPS) rose to US$0.44 from US$0.41. It additionally generated US$62.9 million of money from working actions within the quarter. That’s the type of sturdiness newcomers ought to care about.
On valuation and earnings, Descartes is the other of a yield play. Subsequently, you’re counting on it compounding and the market persevering with to reward execution. Market knowledge additionally exhibits it’s priced at a premium, buying and selling at 48 occasions earnings at writing, and a 52-week buying and selling vary of about $110 to $178. That’s not a bargain-bin inventory. It’s priced like an organization anticipated to maintain delivering even when the financial system will get uneven. You may personal it for development, then harvest good points to purchase dividend payers.
Backside line
Collectively, Topicus and Descartes could make a clear, trendy Canadian tech pairing for January. Topicus is the acquisition-driven compounder with extra volatility and extra upside if it retains deploying capital properly. Descartes is the steadier “infrastructure” software program title tied to how items transfer around the globe. Neither is a month-to-month paycheque right this moment, however each will help you construct the portfolio worth that funds future earnings. Newbie buyers win by preserving it easy, shopping for in smart chunks, and giving these companies years, not weeks, to show themselves.
