Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

Our 80,000 qualified print subscribers—and 130,000 12-month engaged online audience—trust us to dive in and provide original journalism you won’t find elsewhere covering key emerging areas such as laser-driven inertial confinement fusion, lasers in space, integrated photonics, chipscale lasers, LiDAR, metasurfaces, high-energy laser weaponry, photonic crystals, and quantum computing/sensors/communications. We cover the innovations driving these markets.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

3 Unprofitable Stocks with Questionable Fundamentals

YEXT Cover Image

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.

Finding the right unprofitable companies is difficult, which is why we started StockStory - to help you navigate the market. Keeping that in mind, here are three unprofitable companiesto avoid and some better opportunities instead.

Yext (YEXT)

Trailing 12-Month GAAP Operating Margin: -7.7%

Founded in 2006 by Howard Lerman, Yext (NYSE: YEXT) offers software as a service that helps their clients manage and monitor their online listings and customer reviews across all relevant databases, from Google Maps to Alexa or Siri.

Why Do We Avoid YEXT?

  1. Underwhelming ARR growth of 4% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
  2. Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
  3. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 6.2 percentage points

At $6.46 per share, Yext trades at 1.8x forward price-to-sales. Read our free research report to see why you should think twice about including YEXT in your portfolio.

Olo (OLO)

Trailing 12-Month GAAP Operating Margin: -6.7%

Founded by Noah Glass, who wanted to get a cup of coffee faster on his way to work, Olo (NYSE: OLO) provides restaurants and food retailers with software to manage food orders and delivery.

Why Do We Think Twice About OLO?

  1. Sky-high servicing costs result in an inferior gross margin of 54.9% that must be offset through increased usage
  2. Operating losses show it sacrificed profitability while scaling the business
  3. Free cash flow margin is expected to remain in place over the coming year

Olo’s stock price of $6.28 implies a valuation ratio of 3.1x forward price-to-sales. Check out our free in-depth research report to learn more about why OLO doesn’t pass our bar.

Paycor (PYCR)

Trailing 12-Month GAAP Operating Margin: -2.7%

Founded in 1990 in Cincinnati, Ohio, Paycor (NASDAQ: PYCR) provides software for small businesses to manage their payroll and HR needs in one place.

Why Are We Hesitant About PYCR?

  1. High servicing costs result in a relatively inferior gross margin of 66% that must be offset through increased usage
  2. Suboptimal cost structure is highlighted by its history of operating losses
  3. Forecasted free cash flow margin suggests the company will fail to improve its cash conversion over the next year

Paycor is trading at $22.49 per share, or 5.2x forward price-to-sales. If you’re considering PYCR for your portfolio, see our FREE research report to learn more.

Stocks We Like More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.

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