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$1.8b market-cap company posted a loss in its most recent financial year of US$86m and a latest trailing-twelve-month loss of US$73m shrinking the gap between loss and breakeven. 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.

According to the 12 industry analysts covering Genius Sports, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$34m in 2026. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 72% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Genius Sports' growth isn't the focus of this broad overview, but, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we'd like to point out is that The company has managed its capital judiciously, with debt making up 0.005% 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.