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.

Laser Focus World is part of Endeavor Business Media, a division of EndeavorB2B.

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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 Cash-Burning Stocks Skating on Thin Ice

SWBI Cover Image

While some companies burn cash to fuel expansion, others struggle to turn spending into sustainable growth. A high cash burn rate without a strong balance sheet can leave investors exposed to significant downside.

Just because a company is spending heavily doesn’t mean it’s on the right track, and StockStory is here to separate the winners from the losers. Keeping that in mind, here are three cash-burning companies that don’t make the cut and some better opportunities instead.

Smith & Wesson (SWBI)

Trailing 12-Month Free Cash Flow Margin: -4.9%

With a history dating back to 1852, Smith & Wesson (NASDAQ: SWBI) is a firearms manufacturer known for its handguns and rifles.

Why Is SWBI Risky?

  1. Flat sales over the last five years suggest it must innovate and find new ways to grow
  2. Cash burn makes us question whether it can achieve sustainable long-term growth
  3. Waning returns on capital imply its previous profit engines are losing steam

At $9.88 per share, Smith & Wesson trades at 17.4x forward P/E. Dive into our free research report to see why there are better opportunities than SWBI.

Fluence Energy (FLNC)

Trailing 12-Month Free Cash Flow Margin: -12.5%

Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ: FLNC) helps store renewable energy sources with battery systems.

Why Does FLNC Worry Us?

  1. Gross margin of 6.4% is below its competitors, leaving less money to invest in areas like marketing and R&D
  2. Free cash flow margin shrank by 12 percentage points over the last five years, suggesting the company stepped up its investments to maintain its competitive edge
  3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

Fluence Energy’s stock price of $5.26 implies a valuation ratio of 12.9x forward P/E. Read our free research report to see why you should think twice about including FLNC in your portfolio.

WEBTOON (WBTN)

Trailing 12-Month Free Cash Flow Margin: -2.8%

Pioneering a vertical-scrolling format optimized for mobile devices, WEBTOON Entertainment (NASDAQ: WBTN) operates a global platform where creators publish serialized web-comics and web-novels that users can read in bite-sized episodes.

Why Is WBTN Not Exciting?

  1. Performance surrounding its monthly active users has lagged its peers
  2. Historically negative EPS is a worrisome sign for conservative investors and obscures its long-term earnings potential
  3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

WEBTOON is trading at $8.58 per share, or 20.8x forward EV-to-EBITDA. If you’re considering WBTN for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.

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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.

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