When Will CollPlant Biotechnologies Ltd. (NASDAQ:CLGN) Breakeven?

We feel now is a pretty good time to analyse CollPlant Biotechnologies Ltd.'s (NASDAQ:CLGN) business as it appears the company may be on the cusp of a considerable accomplishment. CollPlant Biotechnologies Ltd., a regenerative and aesthetic medicine company, focuses on three-dimensional (3D) bioprinting of tissues and organs, and medical aesthetics in the United States, Canada, Israel, Europe, and internationally. The US$23m market-cap company announced a latest loss of US$17m on 31 December 2024 for its most recent financial year result. As path to profitability is the topic on CollPlant Biotechnologies' 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.

According to some industry analysts covering CollPlant Biotechnologies, breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$1.1m in 2026. So, the company is predicted to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 57% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving CollPlant Biotechnologies' growth isn’t the focus of this broad overview, however, take into account that generally biotechs, 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 CollPlant Biotechnologies

One thing we’d like to point out is that CollPlant Biotechnologies has no debt on its balance sheet, which is rare for a loss-making biotech, which typically has high 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:

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

1. Historical Track Record: What has CollPlant Biotechnologies' 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 CollPlant Biotechnologies' 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.