When Will Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) Become Profitable?
With the business potentially at an important milestone, we thought we'd take a closer look at Ekso Bionics Holdings, Inc.'s (NASDAQ:EKSO) future prospects. Ekso Bionics Holdings, Inc. designs, develops, sells, and rents exoskeleton products in the Americas, Europe, the Middle east, Africa, the Asia Pacific, and internationally. With the latest financial year loss of US$15m and a trailing-twelve-month loss of US$15m, the US$42m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Ekso Bionics Holdings' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View our latest analysis for Ekso Bionics Holdings
Expectations from some of the American Medical Equipment analysts is that Ekso Bionics Holdings is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$5.1m in 2026. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 64%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Ekso Bionics Holdings given that this is a high-level summary, however, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one issue worth mentioning. Ekso Bionics Holdings currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Ekso Bionics Holdings' case is 41%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
There are key fundamentals of Ekso Bionics 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 Ekso Bionics Holdings, take a look at Ekso Bionics Holdings' company page on Simply Wall St. We've also put together a list of essential aspects you should further examine:
Historical Track Record: What has Ekso Bionics 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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Ekso Bionics Holdings' 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.
