Analysts Expect Breakeven For MicroVision, Inc. (NASDAQ:MVIS) Before Long

With the business potentially at an important milestone, we thought we'd take a closer look at MicroVision, Inc.'s (NASDAQ:MVIS) future prospects. MicroVision, Inc. develops and sells lidar sensors and software used in automotive safety and autonomous driving applications. The company’s loss has recently broadened since it announced a US$83m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$85m, moving it further away from breakeven. The most pressing concern for investors is MicroVision's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for MicroVision

Consensus from 3 of the American Electronic analysts is that MicroVision is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$30m in 2027. The company is therefore projected to breakeven around 2 years 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 55% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for MicroVision given that this is a high-level summary, however, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. MicroVision currently has no debt on its balance sheet, which is rare for a loss-making growth company, 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:

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

1. Historical Track Record: What has MicroVision'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 MicroVision'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.