With the business potentially at an important milestone, we thought we'd take a closer look at Waldencast plc's (NASDAQ:WALD) future prospects. Waldencast plc operates in the beauty and wellness business. The US$897m market-cap company announced a latest loss of US$96m on 31 December 2022 for its most recent financial year result. Many investors are wondering about the rate at which Waldencast will turn a profit, with the big question being "when will the company breakeven?" We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Waldencast

Consensus from 2 of the American Personal Products analysts is that Waldencast is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$29m in 2024. Therefore, the company is expected to breakeven roughly a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 142%, which is rather optimistic! 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 Waldencast's upcoming projects, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we'd like to point out is that The company has managed its capital judiciously, with debt making up 22% 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 Waldencast, so if you are interested in understanding the company at a deeper level, take a look at Waldencast's company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:

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