When Can We Expect A Profit From Q-linea AB (publ) (STO:QLINEA)?

With the business potentially at an important milestone, we thought we'd take a closer look at Q-linea AB (publ)'s (STO:QLINEA) future prospects. Q-linea AB (publ) engages in the development of instruments and consumables for infection diagnostics in the United Kingdom. The kr259m market-cap company’s loss lessened since it announced a kr269m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr239m, as it approaches breakeven. The most pressing concern for investors is Q-linea'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.

See our latest analysis for Q-linea

According to the 2 industry analysts covering Q-linea, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of kr43m in 2026. The company is therefore projected to breakeven around 2 years 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 44% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Q-linea's growth isn’t the focus of this broad overview, however, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that Q-linea has no debt on its balance sheet, which is quite unusual for a cash-burning 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 Q-linea 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 Q-linea, take a look at Q-linea's company page on Simply Wall St. We've also put together a list of key factors you should further examine:

1. Historical Track Record: What has Q-linea'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 Q-linea'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.