When Will Genius Sports Limited (NYSE:GENI) Breakeven?

We feel now is a pretty good time to analyse Genius Sports Limited's (NYSE:GENI) business as it appears the company may be on the cusp of a considerable accomplishment. Genius Sports Limited engages in the development and sale of technology-led products and services to the sports, sports betting, and sports media industries. The US$3.0b market-cap company posted a loss in its most recent financial year of US$63m and a latest trailing-twelve-month loss of US$78m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Genius Sports' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Consensus from 18 of the American Hospitality analysts is that Genius Sports is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$33m in 2026. Therefore, the company is expected to breakeven just over a year 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 68% year-on-year, on average, 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 Genius Sports' growth isn’t the focus of this broad overview, though, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for Genius Sports

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 0.001% 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 too many aspects of Genius Sports to cover in one brief article, but the key fundamentals for the company can all be found in one place – Genius Sports' company page on Simply Wall St. We've also put together a list of key aspects you should further examine:

1. Valuation: What is Genius Sports 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 Genius Sports 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 Genius Sports’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.