Warby Parker Inc. (NYSE:WRBY) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Warby Parker Inc. provides eyewear products. With the latest financial year loss of US$110m and a trailing-twelve-month loss of US$64m, the US$1.6b market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Warby Parker's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Warby Parker

Consensus from 15 of the American Specialty Retail analysts is that Warby Parker is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$15m in 2025. The company is therefore projected to breakeven around 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 98%, 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 Warby Parker's growth isn't the focus of this broad overview, though, keep in mind that by and large 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. Warby Parker currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of 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 Warby Parker 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 Warby Parker, take a look at Warby Parker's company page on Simply Wall St. We've also put together a list of key aspects you should further research:

1. Valuation: What is Warby Parker 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 Warby Parker 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 Warby Parker'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.