BrightSpring Health Services, Inc. (NASDAQ:BTSG) Could Be Less Than A Year Away From Profitability

BrightSpring Health Services, Inc. (NASDAQ:BTSG) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. BrightSpring Health Services, Inc. operates as a home and community-based healthcare services platform in the United States. On 31 December 2024, the US$3.2b market-cap company posted a loss of US$18m for its most recent financial year. Many investors are wondering about the rate at which BrightSpring Health Services will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

According to the 13 industry analysts covering BrightSpring Health Services, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$106m in 2025. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 39% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for BrightSpring Health Services given that this is a high-level summary, however, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

View our latest analysis for BrightSpring Health Services

Before we wrap up, there’s one issue worth mentioning. BrightSpring Health Services currently has a debt-to-equity ratio of 158%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on BrightSpring Health Services, so if you are interested in understanding the company at a deeper level, take a look at BrightSpring Health Services' company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Valuation: What is BrightSpring Health Services 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 BrightSpring Health Services 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 BrightSpring Health Services’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.