When Will PointsBet Holdings Limited (ASX:PBH) Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at PointsBet Holdings Limited's (ASX:PBH) future prospects. PointsBet Holdings Limited provides sports, racing, and iGaming betting products and services through its cloud-based technology platform in Australia. The AU$264m market-cap company’s loss lessened since it announced a AU$108m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$87m, as it approaches breakeven. Many investors are wondering about the rate at which PointsBet Holdings will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for PointsBet Holdings

Consensus from 5 of the Australian Hospitality analysts is that PointsBet Holdings is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of AU$24m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. 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 74% 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 PointsBet Holdings' growth isn’t the focus of this broad overview, though, take into account that generally 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. PointsBet Holdings currently has no debt on its balance sheet, which is quite unusual for a cash-burning 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 too many aspects of PointsBet Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – PointsBet Holdings' company page on Simply Wall St. We've also compiled a list of important aspects you should further examine:

1. Valuation: What is PointsBet Holdings 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 PointsBet Holdings 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 PointsBet Holdings’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.