We feel now is a pretty good time to analyse TeraWulf Inc.'s (NASDAQ:WULF) business as it appears the company may be on the cusp of a considerable accomplishment. TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The US$1.7b market-cap company's loss lessened since it announced a US$74m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$55m, as it approaches breakeven. As path to profitability is the topic on TeraWulf's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts' expectations for the company.

Consensus from 9 of the American Software analysts is that TeraWulf is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$63m in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 49% is expected, 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 TeraWulf's upcoming projects, but, bear in mind that typically 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 aspect worth mentioning. TeraWulf currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of 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 too many aspects of TeraWulf to cover in one brief article, but the key fundamentals for the company can all be found in one place – TeraWulf's company page on Simply Wall St. We've also compiled a list of important factors you should further research:

1. Historical Track Record: What has TeraWulf'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 TeraWulf'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.