Genius Sports Limited (NYSE:GENI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Genius Sports Limited engages in the development and sale of technology-led products and services to the sports, sports betting, and sports media industries. The US$2.3b market-cap company announced a latest loss of US$63m on 31 December 2024 for its most recent financial year result. Many investors are wondering about the rate at which Genius Sports will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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According to the 14 industry analysts covering Genius Sports, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$6.5m in 2025. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 57% year-on-year, on average, which is rather optimistic! 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 Genius Sports' upcoming projects, though, take into account that by and large 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 Genius Sports

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.003% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Genius Sports, so if you are interested in understanding the company at a deeper level, take a look at Genius Sports' company page on Simply Wall St. We've also compiled a list of important aspects you should further examine:

1. Valuation: What is Genius Sports 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 Genius Sports 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 Genius Sports’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.