When Will Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT) Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at Arcturus Therapeutics Holdings Inc.'s (NASDAQ:ARCT) future prospects. Arcturus Therapeutics Holdings Inc., an RNA medicines company, focuses on the development of vaccines for infectious, and liver and respiratory rare diseases in the United States. The US$511m market-cap company announced a latest loss of US$204m on 31 December 2021 for its most recent financial year result. As path to profitability is the topic on Arcturus Therapeutics Holdings' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Arcturus Therapeutics Holdings

Arcturus Therapeutics Holdings is bordering on breakeven, according to the 10 American Biotechs analysts. They expect the company to post a final loss in 2022, before turning a profit of US$39m in 2023. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 59% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

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Given this is a high-level overview, we won’t go into details of Arcturus Therapeutics Holdings' upcoming projects, though, take into account that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 28% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Arcturus Therapeutics Holdings which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Arcturus Therapeutics Holdings, take a look at Arcturus Therapeutics Holdings' company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:

1. Historical Track Record: What has Arcturus Therapeutics Holdings' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Arcturus Therapeutics Holdings' board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.