Running at a loss can be a red flag. Many of these businesses face mounting challenges as competition increases and funding becomes harder to secure.

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 is one unprofitable company with the potential to become an industry leader and two that could struggle to survive.

Two Stocks to Sell:

Procore (PCOR)

Trailing 12-Month GAAP Operating Margin: -12.9%

Used to manage the multi-year expansion of the Panama Canal that began in 2007, Procore (NYSE: PCOR) offers a software-as-service project, finance, and quality management platform for the construction industry.

Why Are We Wary of PCOR?

1. Track record of operating margin losses stem from its decision to pursue growth instead of profits
2. Low free cash flow margin of 9.8% for the last year gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Procore is trading at $64.18 per share, or 7.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than PCOR.

Blink Charging (BLNK)

Trailing 12-Month GAAP Operating Margin: -186%

One of the first EV charging companies to go public, Blink Charging (NASDAQ: BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.

Why Is BLNK Not Exciting?

1. Issuance of new shares over the last five years caused its earnings per share to fall by 10.2% annually while its revenue grew
2. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

At $0.90 per share, Blink Charging trades at 0.8x forward price-to-sales. To fully understand why you should be careful with BLNK, check out our full research report (it’s free).

One Stock to Watch:

Fiverr (FVRR)

Trailing 12-Month GAAP Operating Margin: -4.2%

Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.

Why Are We Fans of FVRR?

1. Customers are spending more money on its platform as its average revenue per buyer has increased by 17.4% annually over the last two years
2. Additional sales over the last three years increased its profitability as the 52.1% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin grew by 9.7 percentage points over the last few years, giving the company more chips to play with

Fiverr’s stock price of $29.70 implies a valuation ratio of 12.4x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 Exlservice (+354% 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