When Will Rubean AG (FRA:R1B) Turn A Profit?

We feel now is a pretty good time to analyse Rubean AG's (FRA:R1B) business as it appears the company may be on the cusp of a considerable accomplishment. Rubean AG, a fintech company, provides software point-of-sale solutions to banks, acquirers, and merchants. On 31 December 2024, the €35m market-cap company posted a loss of €1.7m for its most recent financial year. Many investors are wondering about the rate at which Rubean 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.

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According to some industry analysts covering Rubean, breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of €700k in 2026. The company is therefore projected to breakeven just over a year from now. 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 101% is expected, which signals high confidence from analysts. 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, bear in mind that generally 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 quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

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

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.