When Will electroCore, Inc. (NASDAQ:ECOR) Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at electroCore, Inc.'s (NASDAQ:ECOR) future prospects. electroCore, Inc., a commercial stage bioelectronic medicine and wellness company, provides non-invasive vagus nerve stimulation technology platform in the United States, the United Kingdom, and internationally. The US$71m market-cap company posted a loss in its most recent financial year of US$19m and a latest trailing-twelve-month loss of US$13m shrinking the gap between loss and breakeven. The most pressing concern for investors is electroCore'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.

View our latest analysis for electroCore

Consensus from 5 of the American Medical Equipment analysts is that electroCore is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$4.7m in 2026. Therefore, the company is expected to breakeven roughly 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 70%, 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 electroCore given that this is a high-level summary, but, keep in mind that typically 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 aspect worth mentioning. electroCore currently has no debt on its balance sheet, which is rare for a loss-making 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:

There are key fundamentals of electroCore 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 electroCore, take a look at electroCore's company page on Simply Wall St. We've also compiled a list of relevant aspects you should look at:

1. Valuation: What is electroCore 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 electroCore 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 electroCore’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.