Quantum Base Holdings PLC's (LON:QUBE) Shift From Loss To Profit

Quantum Base Holdings PLC (LON:QUBE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Quantum Base Holdings PLC engages in the quantum science business. The company’s loss has recently broadened since it announced a UK£1.3m loss in the full financial year, compared to the latest trailing-twelve-month loss of UK£3.3m, moving it further away from breakeven. The most pressing concern for investors is Quantum Base Holdings' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Expectations from some of the British Electronic analysts is that Quantum Base Holdings is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of UK£2.9m in 2027. Therefore, the company is expected to breakeven roughly 2 years 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 93% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Quantum Base Holdings' upcoming projects, however, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for Quantum Base Holdings

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 0.6% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Quantum Base 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 Quantum Base Holdings, take a look at Quantum Base Holdings' company page on Simply Wall St. We've also put together a list of key factors you should look at:

1. Valuation: What is Quantum Base Holdings 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 Quantum Base Holdings 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 Quantum Base Holdings’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.