When Will Complete Solaria, Inc. (NASDAQ:CSLR) Turn A Profit?

Complete Solaria, Inc. (NASDAQ:CSLR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Complete Solaria, Inc. provides custom solar solutions in the United States. The US$79m market-cap company posted a loss in its most recent financial year of US$96m and a latest trailing-twelve-month loss of US$97m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Complete Solaria's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Complete Solaria

Consensus from 2 of the American Electrical analysts is that Complete Solaria is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$18m in 2026. Therefore, the company is expected to breakeven roughly 2 years from now. 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 93% 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 Complete Solaria'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.

Before we wrap up, there’s one issue worth mentioning. Complete Solaria currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

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

1. Historical Track Record: What has Complete Solaria'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 Complete Solaria'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.