Dolphin Entertainment, Inc. (NASDAQ:DLPN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Dolphin Entertainment, Inc., together with its subsidiaries, operates as an entertainment marketing and production company in the United States. The US$12m market-cap company announced a latest loss of US$13m on 31 December 2024 for its most recent financial year result. As path to profitability is the topic on Dolphin Entertainment's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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According to some industry analysts covering Dolphin Entertainment, breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$2.4m in 2026. So, the company is predicted to breakeven just over a year from now. 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 139% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

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

See our latest analysis for Dolphin Entertainment

One thing we would like to bring into light with Dolphin Entertainment is its debt-to-equity ratio of 192%. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Dolphin Entertainment 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 Dolphin Entertainment, take a look at Dolphin Entertainment's company page on Simply Wall St. We've also put together a list of essential factors you should further examine:

1. Historical Track Record: What has Dolphin Entertainment'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 Dolphin Entertainment'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.