We feel now is a pretty good time to analyse iHeartMedia, Inc.'s (NASDAQ:IHRT) business as it appears the company may be on the cusp of a considerable accomplishment. iHeartMedia, Inc. operates as an audio media company in the United States and internationally. The US$332m market-cap company posted a loss in its most recent financial year of US$1.1b and a latest trailing-twelve-month loss of US$1.0b shrinking the gap between loss and breakeven. As path to profitability is the topic on iHeartMedia's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts' expectations for the company.

According to the 5 industry analysts covering iHeartMedia, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$38m in 2026. So, the company is predicted to breakeven approximately 2 years from today. 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 98% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

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

Before we wrap up, there's one issue worth mentioning. iHeartMedia currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are too many aspects of iHeartMedia to cover in one brief article, but the key fundamentals for the company can all be found in one place – iHeartMedia's company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:

1. Valuation: What is iHeartMedia 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 iHeartMedia 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 iHeartMedia'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.