Unprofitable companies face headwinds as they struggle to keep operating expenses under control. Some may be investing heavily, but the majority fail to convert spending into sustainable growth.
Unprofitable companies face an uphill battle, but not all are created equal. Luckily for you, StockStory is here to separate the promising ones from the weak. That said, here are two unprofitable companies that could turn today’s losses into long-term gains and one best left off your radar.
One Stock to Sell:
TPI Composites (TPIC)
Trailing 12-Month GAAP Operating Margin: -4.7%
Founded in 1968, TPI Composites (NASDAQ:TPIC) manufactures composite wind turbine blades and provides related precision molding and assembly systems.
Why Is TPIC Risky?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.7% annually over the last five years
- Cash-burning history makes us doubt the long-term viability of its business model
- Negative earnings profile makes it challenging to secure favorable financing terms from lenders
TPI Composites is trading at $0.12 per share, or 0.1x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including TPIC in your portfolio.
Two Stocks to Watch:
Braze (BRZE)
Trailing 12-Month GAAP Operating Margin: -20.3%
With its technology powering interactions with 6.2 billion monthly active users across the digital landscape, Braze (NASDAQ:BRZE) provides a platform that helps brands build and maintain direct relationships with their customers through personalized, cross-channel messaging and engagement.
Why Are We Positive On BRZE?
- Average billings growth of 24.4% over the last year enhances its liquidity and shows there is steady demand for its products
- Platform has decent utility and becomes more valuable over time, as seen in its 110% net revenue retention rate
- Forecasted revenue growth of 19.2% for the next 12 months indicates its momentum over the last three years is sustainable
At $30.41 per share, Braze trades at 4.1x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Natera (NTRA)
Trailing 12-Month GAAP Operating Margin: -14.9%
Founded in 2003 as Gene Security Network before rebranding in 2012, Natera (NASDAQ:NTRA) develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using its proprietary cell-free DNA technology.
Why Are We Bullish on NTRA?
- Products are reaching more customers as its tests processed averaged 21% growth over the past two years
- Adjusted operating profits and efficiency rose over the last two years as it benefited from some fixed cost leverage
- Free cash flow margin is now positive, showing the company has crossed a key inflection point
Natera’s stock price of $168.50 implies a valuation ratio of 10.4x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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