When Will Agilyx ASA (OB:AGLX) Become Profitable?

With the business potentially at an important milestone, we thought we'd take a closer look at Agilyx ASA's (OB:AGLX) future prospects. Agilyx ASA, a technology company, engages in the chemically recycling of difficult-to-recycle post-use plastic streams. The company’s loss has recently broadened since it announced a US$16m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$20m, moving it further away from breakeven. The most pressing concern for investors is Agilyx's path to profitability – when will it 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 Agilyx

Agilyx is bordering on breakeven, according to the 5 Norwegian Commercial Services analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$6.8m in 2026. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 67% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Agilyx's growth isn’t the focus of this broad overview, however, take into account that generally 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 aspect worth mentioning. Agilyx 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 key fundamentals of Agilyx 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 Agilyx, take a look at Agilyx's company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:

1. Historical Track Record: What has Agilyx's 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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Agilyx'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.