When Will Nano-X Imaging Ltd. (NASDAQ:NNOX) Become Profitable?

With the business potentially at an important milestone, we thought we'd take a closer look at Nano-X Imaging Ltd.'s (NASDAQ:NNOX) future prospects. Nano-X Imaging Ltd. develops a commercial-grade tomographic imaging device with a digital X-ray source. The company’s loss has recently broadened since it announced a US$61m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$61m, moving it further away from breakeven. Many investors are wondering about the rate at which Nano-X Imaging will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Nano-X Imaging

Consensus from 3 of the American Healthcare analysts is that Nano-X Imaging is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$57m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. 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 56%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Nano-X Imaging given that this is a high-level summary, though, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 1.8% 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 Nano-X Imaging to cover in one brief article, but the key fundamentals for the company can all be found in one place – Nano-X Imaging's company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:

1. Historical Track Record: What has Nano-X Imaging'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 Nano-X Imaging'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.