Analysts Expect Breakeven For MoneyHero Limited (NASDAQ:MNY) Before Long

MoneyHero Limited (NASDAQ:MNY) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. MoneyHero Limited operates as a personal finance company. The US$48m market-cap company’s loss lessened since it announced a US$173m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$127m, as it approaches breakeven. As path to profitability is the topic on MoneyHero's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for MoneyHero

According to the 2 industry analysts covering MoneyHero, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$1.2m 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 87%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving MoneyHero's growth isn’t the focus of this broad overview, but, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that MoneyHero 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 MoneyHero 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 MoneyHero, take a look at MoneyHero's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further research:

1. Valuation: What is MoneyHero 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 MoneyHero 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 MoneyHero’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.