Unprofitable companies can burn through cash quickly, leaving investors exposed if they fail to turn things around. Without a clear path to profitability, these businesses risk running out of capital or relying on dilutive fundraising.
A lack of profits can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. Keeping that in mind, here are two unprofitable companies that could turn today’s losses into long-term gains and one that could struggle to survive.
One Stock to Sell:
Upland Software (UPLD)
Trailing 12-Month GAAP Operating Margin: -2%
Operating under the mantra "land and expand," Upland Software (NASDAQ: UPLD) provides cloud-based applications that help organizations manage projects, workflows, and digital transformation across various business functions.
Why Are We Wary of UPLD?
- Annual sales declines of 3.4% for the past five years show its products and services struggled to connect with the market
- Projected sales decline of 11.1% over the next 12 months indicates demand will continue deteriorating
- Poor free cash flow margin of 11.1% for the last year limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Upland Software’s stock price of $1.66 implies a valuation ratio of 0.2x forward price-to-sales. To fully understand why you should be careful with UPLD, check out our full research report (it’s free for active Edge members).
Two Stocks to Watch:
HubSpot (HUBS)
Trailing 12-Month GAAP Operating Margin: -1.7%
Born from the idea that traditional interruptive marketing was becoming less effective, HubSpot (NYSE: HUBS) provides an integrated platform that helps businesses attract, engage, and manage customer relationships through marketing, sales, service, and content management tools.
Why Could HUBS Be a Winner?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 19.8% over the last year
- Projected revenue growth of 16.5% for the next 12 months suggests its momentum from the last two years will persist
- Software is difficult to replicate at scale and results in a stellar gross margin of 84.1%
At $378.80 per share, HubSpot trades at 5.7x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
agilon health (AGL)
Trailing 12-Month GAAP Operating Margin: -6.4%
Transforming how doctors care for seniors by shifting financial incentives from volume to outcomes, agilon health (NYSE: AGL) provides a platform that helps primary care physicians transition to value-based care models for Medicare patients through long-term partnerships and global capitation arrangements.
Why Does AGL Stand Out?
- Impressive 37.2% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Customer growth averaged 23% over the past two years, showing its ability to "land" new contracts and potentially "expand" them later - a powerful one-two punch for sales
- Negative free cash flow margin has improved over the last five years, showing the company is one step closer to financial self-sufficiency
agilon health is trading at $0.66 per share, or 0.1x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% 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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