3 Cash-Burning Stocks We Keep Off Our Radar

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.

Negative cash flow can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. Keeping that in mind, here are three cash-burning companies that don’t make the cut and some better opportunities instead.

Bark (BARK)

Trailing 12-Month Free Cash Flow Margin: -4.1%

Making a name for itself with the BarkBox, Bark (NYSE:BARK) specializes in subscription-based, personalized pet products.

Why Do We Steer Clear of BARK?

1. Products and services aren't resonating with the market as its revenue declined by 5.3% annually over the last two years
2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Bark is trading at $0.86 per share, or 125.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than BARK.

ChargePoint (CHPT)

Trailing 12-Month Free Cash Flow Margin: -20%

The most prominent EV charging company during the COVID bull market, ChargePoint (NYSE:CHPT) is a provider of electric vehicle charging technology solutions in North America and Europe.

Why Are We Wary of CHPT?

1. Annual sales declines of 15.6% for the past two years show its products and services struggled to connect with the market during this cycle
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

ChargePoint’s stock price of $10.68 implies a valuation ratio of 0.6x forward price-to-sales. If you’re considering CHPT for your portfolio, see our FREE research report to learn more.

PAR Technology (PAR)

Trailing 12-Month Free Cash Flow Margin: -4.5%

Originally founded in 1968 as a defense contractor for the U.S. government, PAR Technology (NYSE:PAR) provides cloud-based software, payment processing, and hardware solutions that help restaurants manage everything from point-of-sale to customer loyalty programs.

Why Do We Think Twice About PAR?

1. Cash-burning history makes us doubt the long-term viability of its business model
2. Push for growth has led to negative returns on capital, signaling value destruction
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

At $43.84 per share, PAR Technology trades at 114.5x forward P/E. To fully understand why you should be careful with PAR, check out our full research report (it’s free).

High-Quality Stocks for All Market Conditions

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Take advantage of the rebound by checking out 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).

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