We feel now is a pretty good time to analyse XpresSpa Group, Inc.'s (NASDAQ:XSPA) business as it appears the company may be on the cusp of a considerable accomplishment. XpresSpa Group, Inc., a health and wellness services company, provides spa services at airports. With the latest financial year loss of US$91m and a trailing-twelve-month loss of US$16m, the US$178m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which XpresSpa Group 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.

View our latest analysis for XpresSpa Group

According to some industry analysts covering XpresSpa Group, breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of US$22m in 2022. The company is therefore projected to breakeven just over a year from now. 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 219%, 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 XpresSpa Group's growth isn’t the focus of this broad overview, however, take into account that generally 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 5.4% 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:

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

1. Historical Track Record: What has XpresSpa Group'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 XpresSpa Group'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.