With the business potentially at an important milestone, we thought we'd take a closer look at Xeris Biopharma Holdings, Inc.'s (NASDAQ:XERS) future prospects. Xeris Biopharma Holdings, Inc., a commercial-stage biopharmaceutical company, engages in developing and commercializing therapies for chronic endocrine and neurological diseases in Illinois. On 31 December 2024, the US$659m market-cap company posted a loss of US$55m for its most recent financial year. As path to profitability is the topic on Xeris Biopharma Holdings' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

According to the 6 industry analysts covering Xeris Biopharma Holdings, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$17m in 2026. So, the company is predicted 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 60%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Xeris Biopharma Holdings given that this is a high-level summary, however, take into account that by and large a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

View our latest analysis for Xeris Biopharma Holdings

One thing we would like to bring into light with Xeris Biopharma Holdings is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

This article is not intended to be a comprehensive analysis on Xeris Biopharma Holdings, so if you are interested in understanding the company at a deeper level, take a look at Xeris Biopharma Holdings' company page on Simply Wall St. We've also put together a list of relevant factors you should look at:

1. Valuation: What is Xeris Biopharma Holdings 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 Xeris Biopharma Holdings 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 Xeris Biopharma Holdings’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.