Yahoo Finance When Will ReWalk Robotics Ltd. (NASDAQ:LFWD) Turn A Profit?
With the business potentially at an important milestone, we thought we'd take a closer look at ReWalk Robotics Ltd.'s (NASDAQ:LFWD) future prospects. ReWalk Robotics Ltd., a medical device company, designs, develops, and commercializes technologies that enable mobility and wellness in rehabilitation and daily life for individuals with physical and neurological conditions in the United States, Europe, the Asia-Pacific, and internationally. On 31 December 2023, the US$46m market-cap company posted a loss of US$22m for its most recent financial year. As path to profitability is the topic on ReWalk Robotics' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View our latest analysis for ReWalk Robotics
Expectations from some of the American Medical Equipment analysts is that ReWalk Robotics is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$3.9m in 2026. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 68% 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.
Given this is a high-level overview, we won’t go into details of ReWalk Robotics' upcoming projects, however, bear 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’d like to point out is that ReWalk Robotics has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high 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:
This article is not intended to be a comprehensive analysis on ReWalk Robotics, so if you are interested in understanding the company at a deeper level, take a look at ReWalk Robotics' company page on Simply Wall St. We've also put together a list of key aspects you should look at:
Historical Track Record: What has ReWalk Robotics' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on ReWalk Robotics' board and the CEO’s background.
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.
