Russell 2000's Earnings Crisis: 39% of Stocks Unprofitable, Worst on Record

Only 61% of Russell 2000 constituents earned money as of mid-2026, down from 85% in 1994. The index admits pre-earnings biotech firms and cash-burning disruptors at IPO, leaving nearly two in five stocks losing money. If rates remain elevated or growth falters, these unprofitable names face acute refinancing risk—a structural vulnerability masked by recent rally strength.