Yahoo Finance When Will OptiNose, Inc. (NASDAQ:OPTN) Breakeven?
OptiNose, Inc. (NASDAQ:OPTN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. OptiNose, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of products for patients treated by ear, nose, throat, and allergy specialists in the United States. With the latest financial year loss of US$35m and a trailing-twelve-month loss of US$31m, the US$155m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which OptiNose will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for OptiNose
According to the 4 industry analysts covering OptiNose, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$16m in 2026. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 62% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of OptiNose's upcoming projects, however, keep in mind that typically pharmaceuticals, 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 would like to bring into light with OptiNose is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are key fundamentals of OptiNose 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 OptiNose, take a look at OptiNose's company page on Simply Wall St. We've also compiled a list of key factors you should further research:
Valuation: What is OptiNose worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether OptiNose is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on OptiNose’s board and the CEO’s background.
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.
