OptimizeRx Corporation's (NASDAQ:OPRX) Shift From Loss To Profit

OptimizeRx Corporation (NASDAQ:OPRX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. OptimizeRx Corporation operates as a digital healthcare technology company. With the latest financial year loss of US$20m and a trailing-twelve-month loss of US$9.9m, the US$338m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on OptimizeRx's 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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According to the 7 industry analysts covering OptimizeRx, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$2.1m in 2026. The company is therefore projected to breakeven just over a year 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 175%, 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 OptimizeRx given that this is a high-level summary, but, bear in mind that generally healthcare tech companies, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

View our latest analysis for OptimizeRx

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 24% 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:

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

1. Valuation: What is OptimizeRx 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 OptimizeRx 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 OptimizeRx’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.