With the business potentially at an important milestone, we thought we'd take a closer look at Warby Parker Inc.'s (NYSE:WRBY) future prospects. Warby Parker Inc. provides eyewear products in the United States and Canada. The US$2.0b market-cap company's loss lessened since it announced a US$63m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$55m, as it approaches breakeven. The most pressing concern for investors is Warby Parker's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Consensus from 14 of the American Specialty Retail analysts is that Warby Parker is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$13m in 2025. Therefore, the company is expected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 123% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Warby Parker's growth isn't the focus of this broad overview, however, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we'd like to point out is that Warby Parker has no debt on its balance sheet, which is quite unusual for a cash-burning 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 relevant aspects you should look at:

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.