Russell 2000 Unprofitable Companies Surge 154% Since Mid-2025, vs. 34% for Profitable Firms

According to The Kobeissi Letter, unprofitable Russell 2000 companies surged 154% since mid-2025, while profitable firms in the same index gained only 34% over the period.

Year-to-date, loss-making small-cap stocks in the Russell 2000 are up 45%, compared to 18% for profitable companies. The Russell 2000 index itself is up 20% this year, on pace for its best annual performance since 2003.