With the business potentially at an important milestone, we thought we'd take a closer look at Xeris Biopharma Holdings, Inc.'s (NASDAQ:XERS) future prospects. Xeris Biopharma Holdings, Inc., a biopharmaceutical company, engages in developing and commercializing therapies in Illinois. With the latest financial year loss of US$62m and a trailing-twelve-month loss of US$63m, the US$455m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Xeris Biopharma Holdings' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Consensus from 6 of the American Pharmaceuticals analysts is that Xeris Biopharma Holdings is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$6.9m in 2026. So, the company is predicted to breakeven approximately 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 70% is expected, 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 Xeris Biopharma Holdings' upcoming projects, though, take into account that by and large a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. So, a high 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 issue worth mentioning. Xeris Biopharma Holdings currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

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

1. Historical Track Record: What has Xeris Biopharma Holdings' 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 Xeris Biopharma Holdings' 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.