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.

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 is one unprofitable company that could turn today’s losses into long-term gains and two that could struggle to survive.

Two Stocks to Sell:

Bumble (BMBL)

Trailing 12-Month GAAP Operating Margin: -67%

Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ:BMBL) is a leading dating app built with women at the center.

Why Does BMBL Fall Short?

Decision to emphasize platform growth over monetization has contributed to 4.9% annual declines in its average revenue per buyer Forecasted revenue decline of 11.1% for the upcoming 12 months implies demand will fall off a cliff Free cash flow margin dropped by 4.4 percentage points over the last few years, implying the company became more capital intensive as competition picked up

At $5.76 per share, Bumble trades at 2.5x forward EV/EBITDA. To fully understand why you should be careful with BMBL, check out our full research report (it’s free).

Chegg (CHGG)

Trailing 12-Month GAAP Operating Margin: -135%

Started as a physical textbook rental service, Chegg (NYSE:CHGG) is now a digital platform addressing student pain points by providing study and academic assistance.

Why Do We Think CHGG Will Underperform?

Struggled with new customer acquisition as its services subscribers averaged 13.4% declines Overall productivity fell over the last few years as its plummeting sales were accompanied by a decline in its EBITDA margin Sales were less profitable over the last three years as its earnings per share fell by 30.8% annually, worse than its revenue declines

Chegg is trading at $1.01 per share, or 1.7x forward EV/EBITDA. Read our free research report to see why you should think twice about including CHGG in your portfolio, it’s free.

One Stock to Watch:

Workiva (WK)

Trailing 12-Month GAAP Operating Margin: -10.8%

Founded in 2010, Workiva (NYSE:WK) offers software as a service product that makes financial and compliance reporting easier, especially for publicly traded corporations.

Why Does WK Stand Out?

Ability to secure long-term commitments with customers is evident in its 19.5% ARR growth over the last year Forecasted revenue growth of 16.9% for the next 12 months suggests stronger momentum versus most peers Superior software functionality and low servicing costs are reflected in its stellar gross margin of 76.7%

Story Continues

Workiva’s stock price of $68.61 implies a valuation ratio of 4.3x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even 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 6 Stocks for this week. 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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