Analysts Expect Breakeven For TNL Mediagene (NASDAQ:TNMG) Before Long

TNL Mediagene (NASDAQ:TNMG) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. TNL Mediagene operates as a media company in Taiwan and Japan. The US$9.8m market-cap company posted a loss in its most recent financial year of US$85m and a latest trailing-twelve-month loss of US$83m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which TNL Mediagene will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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TNL Mediagene is bordering on breakeven, according to the 2 American Media analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$156k in 2026. Therefore, the company is expected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 137% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of TNL Mediagene's upcoming projects, but, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for TNL Mediagene

One thing we would like to bring into light with TNL Mediagene is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in TNL Mediagene's case is 44%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of TNL Mediagene to cover in one brief article, but the key fundamentals for the company can all be found in one place – TNL Mediagene's company page on Simply Wall St. We've also compiled a list of important aspects you should look at:

1. Historical Track Record: What has TNL Mediagene'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 TNL Mediagene'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.