A clean balance sheet can signal disciplined management and stability. It also means a company can expand and thrive without relying on borrowed capital.
Even among the companies with sound capital structures, only a few stand out, and we’re here to help you identify them. That said, here are three companies with net cash positions that balance growth with stability.
HubSpot (HUBS)
Net Cash Position: $1.39 billion (4.7% of Market Cap)
Started in 2006 by two MIT grad students, HubSpot (NYSE:HUBS) is a software-as-a-service platform that helps small and medium-sized businesses market themselves, sell, and get found on the internet.
Why Could HUBS Be a Winner?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 19.7% over the last year
- Superior software functionality and low servicing costs lead to a top-tier gross margin of 84.8%
- HUBS is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
HubSpot’s stock price of $561 implies a valuation ratio of 9.2x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Lyft (LYFT)
Net Cash Position: $1.04 billion (17.3% of Market Cap)
Founded by Logan Green and John Zimmer as a long-distance intercity carpooling company Zimride, Lyft (NASDAQ: LYFT) operates a ridesharing network in the US and Canada.
Why Do We Like LYFT?
- Active Riders are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 72.9% annually, topping its revenue gains
- Free cash flow margin jumped by 23.3 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Lyft is trading at $14.33 per share, or 11.8x forward EV/EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free.
Arlo Technologies (ARLO)
Net Cash Position: $131.8 million (7.9% of Market Cap)
Originally spun off from networking equipment maker Netgear in 2018, Arlo Technologies (NYSE:ARLO) provides cloud-based smart security devices and subscription services that help consumers and businesses monitor and protect their homes, properties, and loved ones.
Why Is ARLO on Our Radar?
- Operating margin improvement of 15.4 percentage points over the last five years demonstrates its ability to scale efficiently
- Additional sales over the last two years increased its profitability as the 193% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin expanded by 19.7 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $16.19 per share, Arlo Technologies trades at 25.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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 183% over the last five years (as of March 31st 2025).
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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
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