We feel now is a pretty good time to analyse Genius Sports Limited's (NYSE:GENI) business as it appears the company may be on the cusp of a considerable accomplishment. Genius Sports Limited engages in the development and sale of technology-led products and services to the sports, sports betting, and sports media industries. The US$1.6b market-cap company posted a loss in its most recent financial year of US$86m and a latest trailing-twelve-month loss of US$97m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Genius Sports 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.

Consensus from 13 of the American Hospitality analysts is that Genius Sports is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$28m in 2026. Therefore, the company is expected to breakeven roughly 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 76%, which is rather optimistic! 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 Genius Sports' upcoming projects, but, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we'd like to point out is that The company has managed its capital prudently, with debt making up 0.006% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Genius Sports 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 Genius Sports, take a look at Genius Sports' company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Valuation: What is Genius Sports 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 Genius Sports 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 Genius Sports'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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.