Loss-Making Boxlight Corporation (NASDAQ:BOXL) Expected To Breakeven In The Medium-Term

With the business potentially at an important milestone, we thought we'd take a closer look at Boxlight Corporation's (NASDAQ:BOXL) future prospects. Boxlight Corporation, together with its subsidiaries, designs, produces, and distributes interactive technology solutions for the education, health, corporate, and government sectors in the Americas, Europe, the Middle East, Africa, and internationally. The US$5.8m market-cap company announced a latest loss of US$40m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which Boxlight 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 Boxlight

Consensus from 3 of the American Tech analysts is that Boxlight is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$411k in 2025. 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 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 117% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Boxlight's growth isn’t the focus of this broad overview, though, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Boxlight is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Boxlight's case is 89%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Boxlight to cover in one brief article, but the key fundamentals for the company can all be found in one place – Boxlight's company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:

1. Valuation: What is Boxlight 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 Boxlight is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Boxlight’s 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.