Arbe Robotics Ltd. (NASDAQ:ARBE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Arbe Robotics Ltd., a semiconductor company, provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in China, Hong Kong, Sweden, Germany, the United States, Israel, and internationally. The US$224m market-cap company posted a loss in its most recent financial year of US$44m and a latest trailing-twelve-month loss of US$46m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Arbe Robotics 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.

According to the 2 industry analysts covering Arbe Robotics, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$16m in 2026. So, the company is predicted to breakeven just over a year from today. 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 68% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Arbe Robotics' growth isn't the focus of this broad overview, but, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there's one issue worth mentioning. Arbe Robotics currently has a debt-to-equity ratio of 179%. Generally, the rule of thumb is debt shouldn't exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Arbe Robotics which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Arbe Robotics, take a look at Arbe Robotics' company page on Simply Wall St. We've also put together a list of essential factors you should further research:

1. Historical Track Record: What has Arbe Robotics' 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 Arbe Robotics' 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.