3 Unprofitable Stocks with Open Questions

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.

Finding the right unprofitable companies is difficult, which is why we started StockStory - to help you navigate the market. Keeping that in mind, here are three unprofitable companiesto avoid and some better opportunities instead.

Intel (INTC)

Trailing 12-Month GAAP Operating Margin: -4.2%

Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ:INTC) is a leading manufacturer of computer processors and graphics chips.

Why Is INTC Risky?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.2% annually over the last five years
2. Sales were less profitable over the last five years as its earnings per share fell by 40.1% annually, worse than its revenue declines
3. 18.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

Intel is trading at $44.01 per share, or 98.5x forward P/E. Check out our free in-depth research report to learn more about why INTC doesn’t pass our bar.

OneWater (ONEW)

Trailing 12-Month GAAP Operating Margin: -4.7%

A public company since early 2020, OneWater Marine (NASDAQ:ONEW) sells boats, yachts, and other marine products.

Why Do We Think ONEW Will Underperform?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
2. Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 53.6% annually
3. 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

At $12.16 per share, OneWater trades at 26.2x forward P/E. Dive into our free research report to see why there are better opportunities than ONEW.

Xponential Fitness (XPOF)

Trailing 12-Month GAAP Operating Margin: -7.6%

Owner of CycleBar, Rumble, and Club Pilates, Xponential Fitness (NYSE:XPOF) is a boutique fitness brand offering diverse and specialized exercise experiences.

Why Should You Dump XPOF?

1. Sales trends were unexciting over the last two years as its 2.5% annual growth was below the typical consumer discretionary company
2. Poor free cash flow margin of 2.3% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Xponential Fitness’s stock price of $8.28 implies a valuation ratio of 13.3x forward P/E. If you’re considering XPOF for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.