Rapid spending isn’t always a sign of progress. Some cash-burning businesses fail to convert investments into meaningful competitive advantages, leaving them vulnerable.

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 is one high-risk, high-reward company investing aggressively to carve out a leadership position and two that may struggle to stay afloat.

Trailing 12-Month Free Cash Flow Margin: -3.3%

Known for mattresses that can be adjusted with regards to firmness, Sleep Number (NASDAQ:SNBR) manufactures and sells its own brand of bedding products such as mattresses, bed frames, and pillows.

Why Do We Think SNBR Will Underperform?

Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand

Sales were less profitable over the last three years as its earnings per share fell by 43.2% annually, worse than its revenue declines

Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

At $10.51 per share, Sleep Number trades at 15.5x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than SNBR.

Trailing 12-Month Free Cash Flow Margin: -3.5%

Founded in 1991, Graphic Packaging (NYSE:GPK) is a provider of paper-based packaging solutions for a wide range of products.

Why Are We Out on GPK?

Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy

Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment

Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

Graphic Packaging Holding’s stock price of $15.47 implies a valuation ratio of 9.1x forward P/E. Check out our free in-depth research report to learn more about why GPK doesn’t pass our bar.

Trailing 12-Month Free Cash Flow Margin: -83.4%

Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ:FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors.

Why Could FIP Be a Winner?

Annual revenue growth of 19% over the past two years was outstanding, reflecting market share gains this cycle

Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 73.5%

FTAI Infrastructure is trading at $6.20 per share, or 12x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Check out the high-quality names we’ve flagged in 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 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.