iCAD, Inc. (NASDAQ:ICAD) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. iCAD, Inc. engages in the provision of cancer detection and therapy solutions in the United States. On 31 December 2024, the US$65m market-cap company posted a loss of US$5.6m for its most recent financial year. Many investors are wondering about the rate at which iCAD 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.

iCAD is bordering on breakeven, according to the 4 American Healthcare Services analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$2.8m in 2027. 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 51%, which signals high confidence from analysts. 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 iCAD's upcoming projects, however, take into account that typically a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

View our latest analysis for iCAD

Before we wrap up, there’s one aspect worth mentioning. iCAD currently has no debt on its balance sheet, which is quite unusual for a cash-burning healthcare tech 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:

There are key fundamentals of iCAD 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 iCAD, take a look at iCAD's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:

1. Historical Track Record: What has iCAD's 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 iCAD'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.

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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.