BioRestorative Therapies, Inc.'s (NASDAQ:BRTX) Profit Outlook

With the business potentially at an important milestone, we thought we'd take a closer look at BioRestorative Therapies, Inc.'s (NASDAQ:BRTX) future prospects. BioRestorative Therapies, Inc. develops therapeutic products and medical therapies using cell and tissue protocols primarily involving adult stem cells. The company’s loss has recently broadened since it announced a US$9.0m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$11m, moving it further away from breakeven. Many investors are wondering about the rate at which BioRestorative Therapies 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.

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BioRestorative Therapies is bordering on breakeven, according to the 2 American Biotechs analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$17m in 2027. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 74% year-on-year, on average, 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 BioRestorative Therapies' growth isn’t the focus of this broad overview, however, keep in mind that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. So, 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 BioRestorative Therapies

Before we wrap up, there’s one aspect worth mentioning. BioRestorative Therapies currently has no debt on its balance sheet, which is rare for a loss-making biotech, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

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There are key fundamentals of BioRestorative Therapies 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 BioRestorative Therapies, take a look at BioRestorative Therapies' company page on Simply Wall St. We've also compiled a list of pertinent factors you should further examine:

1. Historical Track Record: What has BioRestorative Therapies' 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 BioRestorative Therapies' 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.