1 Stock That Hasn't Delivered Profits for Years and 2 We Tend to Overlook

Challenges Facing Unprofitable Companies

Businesses that are not yet profitable often encounter significant obstacles, particularly when it comes to managing their operating costs. While some may be channeling resources into future growth, most are unable to transform their expenditures into lasting success.

Although operating at a loss presents difficulties, not every unprofitable company is in the same position. StockStory aims to help you distinguish between those with real potential and those at risk. With that in mind, let’s look at one company that could turn its fortunes around—and two others that may continue to struggle.

Two Stocks to Consider Selling

Kulicke and Soffa (KLIC)

12-Month GAAP Operating Margin: -10.5%

Kulicke & Soffa (NASDAQ: KLIC), based in Singapore, specializes in manufacturing equipment and tools for assembling semiconductor products.

Reasons for Caution with KLIC:

• Over the past five years, annual revenue has dropped by 1.6%, indicating the company’s offerings have not resonated with the market in this period.
• The company failed to adapt its cost structure as sales declined, resulting in a 40.3 percentage point decrease in operating margin over five years.
• Earnings per share have fallen faster than revenue, suggesting diminishing profitability per sale.

Currently priced at $65.50 per share, Kulicke and Soffa trades at a forward price-to-earnings ratio of 22.4.

PlayStudios (MYPS)

12-Month GAAP Operating Margin: -14.8%

PlayStudios (NASDAQ: MYPS), founded by former gaming industry leaders, develops free-to-play digital casino games.

Why We’re Wary of MYPS:

• Sales have declined by an average of 1.2% annually over the last five years, reflecting unfavorable consumer trends.
• Consistently negative earnings per share raise red flags for cautious investors and make future profitability uncertain.
• With a free cash flow margin of just 14.2% over the past two years, the company has limited ability to reinvest or return capital to shareholders.

At $0.50 per share, PlayStudios is valued at just 0.3 times forward price-to-sales.

One Stock Worth Buying

Lyft (LYFT)

12-Month GAAP Operating Margin: -3%

Lyft (NASDAQ: LYFT), originally launched as Zimride by Logan Green and John Zimmer, operates a ridesharing platform serving the United States and Canada.

What Sets LYFT Apart:

• Active riders have increased by 12.2% annually over the past two years, giving Lyft opportunities to introduce new features and premium services to boost revenue.
• Over the last three years, earnings per share have surged by 64.1% annually, outpacing revenue growth and indicating strong profitability from additional sales.
• Free cash flow margin has improved by 26.3 percentage points in recent years, providing more financial flexibility.

Lyft is currently trading at $13.21 per share, equating to a forward EV/EBITDA ratio of 7.

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The most successful stocks often share one trait: explosive revenue growth. Companies like Meta, CrowdStrike, and Broadcom were all identified by our AI before their massive runs, delivering returns of 315%, 314%, and 455%, respectively.

Discover which five stocks are on our radar this month—absolutely free.

Our 2020 picks included well-known names like Nvidia (up 1,326% from June 2020 to June 2025) and lesser-known companies such as Comfort Systems, which delivered a 782% five-year return.