RumbleOn, Inc. (NASDAQ:RMBL): When Will It Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at RumbleOn, Inc.'s (NASDAQ:RMBL) future prospects. RumbleOn, Inc. provides powersports dealership and vehicle transportation services in the United States. The US$77m market-cap company posted a loss in its most recent financial year of US$79m and a latest trailing-twelve-month loss of US$78m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which RumbleOn 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.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Consensus from 2 of the American Specialty Retail analysts is that RumbleOn is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$3.8m in 2027. The company is therefore projected to breakeven around 2 years from today. 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 73% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for RumbleOn given that this is a high-level summary, but, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for RumbleOn

One thing we would like to bring into light with RumbleOn is its debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is RumbleOn 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 RumbleOn 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 RumbleOn’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.