We feel now is a pretty good time to analyse BigCommerce Holdings, Inc.'s (NASDAQ:BIGC) business as it appears the company may be on the cusp of a considerable accomplishment. BigCommerce Holdings, Inc. operates a software-as-a-service ecommerce platform for brands and retailers in the United States, North and South America, Europe, the Middle East, Africa, and the Asia Pacific. The US$426m market-cap company announced a latest loss of US$27m on 31 December 2024 for its most recent financial year result. Many investors are wondering about the rate at which BigCommerce Holdings 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.

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According to the 12 industry analysts covering BigCommerce Holdings, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$10m in 2027. The company is therefore projected to breakeven around 2 years from now. 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 48% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for BigCommerce Holdings given that this is a high-level summary, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for BigCommerce Holdings

Before we wrap up, there’s one issue worth mentioning. BigCommerce Holdings currently has a debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. 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 BigCommerce Holdings 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 BigCommerce Holdings, take a look at BigCommerce Holdings' company page on Simply Wall St. We've also compiled a list of important factors you should further research:

1. Valuation: What is BigCommerce 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 BigCommerce 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 BigCommerce 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.