Natera, Inc. (NASDAQ:NTRA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Natera, Inc., a diagnostics company, develops and commercializes molecular testing services worldwide. The US$21b market-cap company's loss lessened since it announced a US$435m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$215m, as it approaches breakeven. Many investors are wondering about the rate at which Natera 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.

Consensus from 19 of the American Biotechs analysts is that Natera is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$15m in 2026. 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 70%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Natera's growth isn't the focus of this broad overview, though, take into account that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there's one issue worth mentioning. Natera currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn't exceed 40% of your equity, which in Natera's case is 42%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Natera to cover in one brief article, but the key fundamentals for the company can all be found in one place – Natera's company page on Simply Wall St. We've also put together a list of relevant aspects you should further research:

1. Valuation: What is Natera 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 Natera 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 Natera'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.