With the business potentially at an important milestone, we thought we'd take a closer look at Flywire Corporation's (NASDAQ:FLYW) future prospects. Flywire Corporation, together with its subsidiaries, operates as a payments enablement and software company in the United States and internationally. On 31 December 2023, the US$2.8b market-cap company posted a loss of US$8.6m for its most recent financial year. Many investors are wondering about the rate at which Flywire 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.

According to the 16 industry analysts covering Flywire, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$9.1m in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 81% year-on-year, on average, 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 Flywire given that this is a high-level summary, however, keep in mind 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. Flywire 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. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

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

1. Valuation: What is Flywire 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 Flywire 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 Flywire'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.