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.
A lack of profits can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. That said, 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:
Ibotta (IBTA)
Trailing 12-Month GAAP Operating Margin: -3.5%
Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta (NYSE: IBTA) is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts.
Why Are We Hesitant About IBTA?
- Annual sales declines of 1.3% for the past two years show its products and services struggled to connect with the market during this cycle
- Revenue base of $343.2 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
Ibotta’s stock price of $40.96 implies a valuation ratio of 25.6x forward P/E. If you’re considering IBTA for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
iRhythm (IRTC)
Trailing 12-Month GAAP Operating Margin: -3%
Pioneering the shift from bulky, short-term heart monitors to sleek, wire-free patches, iRhythm Technologies (NASDAQ: IRTC) provides wearable cardiac monitoring devices and AI-powered analysis services that help physicians detect and diagnose heart rhythm disorders.
Why Should IRTC Be on Your Watchlist?
- Market share has increased this cycle as its 24% annual revenue growth over the last two years was exceptional
- Earnings per share grew by 17.4% annually over the last five years and trumped its peers
- Free cash flow turned positive over the last five years, showing the company has crossed a key inflection point
iRhythm is trading at $107.24 per share, or 156.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
IonQ (IONQ)
Trailing 12-Month GAAP Operating Margin: -408%
Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.
Why Are We Positive on IONQ?
- Impressive 181% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Notable projected revenue growth of 166% for the next 12 months hints at market share gains
- Adjusted operating margin improvement of 428.5 percentage points over the last five years demonstrates its ability to scale efficiently
At $43.60 per share, IonQ trades at 24.1x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
