Delcath Systems, Inc. (NASDAQ:DCTH) Is Expected To Breakeven In The Near Future

We feel now is a pretty good time to analyse Delcath Systems, Inc.'s (NASDAQ:DCTH) business as it appears the company may be on the cusp of a considerable accomplishment. Delcath Systems, Inc., an interventional oncology company, focuses on the treatment of primary and metastatic liver cancers in the United States and Europe. The US$425m market-cap company announced a latest loss of US$26m on 31 December 2024 for its most recent financial year result. As path to profitability is the topic on Delcath Systems' 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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Delcath Systems is bordering on breakeven, according to the 6 American Medical Equipment analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$32m in 2026. Therefore, the company is expected to breakeven just over a year from now. 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 52% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Delcath Systems' growth isn’t the focus of this broad overview, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

View our latest analysis for Delcath Systems

Before we wrap up, there’s one aspect worth mentioning. Delcath Systems currently 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. 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:

This article is not intended to be a comprehensive analysis on Delcath Systems, so if you are interested in understanding the company at a deeper level, take a look at Delcath Systems' company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:

1. Valuation: What is Delcath Systems 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 Delcath Systems 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 Delcath Systems’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.