Evolus, Inc. (NASDAQ:EOLS): When Will It Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at Evolus, Inc.'s (NASDAQ:EOLS) future prospects. Evolus, Inc., a performance beauty company, delivers products in the cash-pay aesthetic market in the United States, Canada, Europe, and Australia. The company’s loss has recently broadened since it announced a US$50m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$62m, moving it further away from breakeven. Many investors are wondering about the rate at which Evolus 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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Consensus from 7 of the American Pharmaceuticals analysts is that Evolus is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$43m in 2027. Therefore, the company is expected to breakeven roughly 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 70% 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 Evolus' growth isn’t the focus of this broad overview, however, keep in mind that generally a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business 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 Evolus

One thing we would like to bring into light with Evolus is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

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

1. Valuation: What is Evolus 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 Evolus 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 Evolus’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.