We feel now is a pretty good time to analyse RumbleOn, Inc.'s (NASDAQ:RMBL) business as it appears the company may be on the cusp of a considerable accomplishment. RumbleOn, Inc. primarily operates as a powersports retailer in the United States. The US$199m market-cap company's loss lessened since it announced a US$214m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$191m, as it approaches breakeven. The most pressing concern for investors is RumbleOn's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts' expectations for the company.

RumbleOn is bordering on breakeven, according to the 4 American Specialty Retail analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$17m in 2026. 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 86% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won't go into details of RumbleOn's upcoming projects, though, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

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:

This article is not intended to be a comprehensive analysis on RumbleOn, so if you are interested in understanding the company at a deeper level, take a look at RumbleOn's company page on Simply Wall St. We've also put together a list of essential factors you should further research:

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.

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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.