We feel now is a pretty good time to analyse BioRestorative Therapies, Inc.'s (NASDAQ:BRTX) business as it appears the company may be on the cusp of a considerable accomplishment. BioRestorative Therapies, Inc. develops therapeutic products and medical therapies using cell and tissue protocols primarily involving adult stem cells. With the latest financial year loss of US$10m and a trailing-twelve-month loss of US$9.6m, the US$16m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which BioRestorative Therapies will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for BioRestorative Therapies

Consensus from 2 of the American Biotechs analysts is that BioRestorative Therapies is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$26m 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 64% 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.

Underlying developments driving BioRestorative Therapies' growth isn’t the focus of this broad overview, but, keep in mind that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one aspect worth mentioning. BioRestorative Therapies currently has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, 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 BioRestorative Therapies, so if you are interested in understanding the company at a deeper level, take a look at BioRestorative Therapies' company page on Simply Wall St. We've also put together a list of key aspects you should further examine:

1. Historical Track Record: What has BioRestorative Therapies' 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 BioRestorative Therapies' 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.