With the business potentially at an important milestone, we thought we'd take a closer look at Seres Therapeutics, Inc.'s (NASDAQ:MCRB) future prospects. Seres Therapeutics, Inc., a microbiome therapeutics company, develop microbiome therapeutics to treat the modulation of the colonic microbiome. The US$109m market-cap company announced a latest loss of US$126m on 31 December 2024 for its most recent financial year result. As path to profitability is the topic on Seres Therapeutics' 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.

Check out our latest analysis for Seres Therapeutics

Seres Therapeutics is bordering on breakeven, according to the 6 American Biotechs analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$12m in 2027. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 19% year-on-year, on average, which seems realistic. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Seres Therapeutics' growth isn’t the focus of this broad overview, but, bear in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. So, a double-digit growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. Seres Therapeutics currently has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, 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 too many aspects of Seres Therapeutics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Seres Therapeutics' company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:

1. Historical Track Record: What has Seres Therapeutics' 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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Seres Therapeutics' 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.