Loss-Making Rubean AG (FRA:R1B) Expected To Breakeven In The Medium-Term

Rubean AG (FRA:R1B) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Rubean AG, a fintech company, provides software point-of-sale solutions to banks, acquirers, and merchants. On 31 December 2023, the €21m market-cap company posted a loss of €1.6m for its most recent financial year. As path to profitability is the topic on Rubean's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Consensus from 2 of the German Software analysts is that Rubean is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of €200k in 2026. Therefore, the company is expected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 49% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Rubean's growth isn’t the focus of this broad overview, though, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for Rubean

Before we wrap up, there’s one aspect worth mentioning. Rubean currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of Rubean 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 Rubean, take a look at Rubean's company page on Simply Wall St. We've also put together a list of important aspects you should look at:

1. Valuation: What is Rubean 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 Rubean 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 Rubean’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.