BlinkLab Limited (ASX:BB1) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. BlinkLab Limited focuses on the development and commercialization of intellectual property related to smartphone-neurobehavioral testing. With the latest financial year loss of AU$1.8m and a trailing-twelve-month loss of AU$3.8m, the AU$54m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is BlinkLab's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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BlinkLab is bordering on breakeven, according to the 2 Australian Healthcare Services analysts. They expect the company to post a final loss in 2026, before turning a profit of AU$1.7m in 2027. So, the company is predicted to breakeven approximately 2 years 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 53%, which is extremely buoyant. 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 BlinkLab given that this is a high-level summary, but, bear in mind that typically healthcare tech companies, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Check out our latest analysis for BlinkLab

One thing we’d like to point out is that BlinkLab has no debt on its balance sheet, which is rare for a loss-making healthcare tech company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of BlinkLab 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 BlinkLab, take a look at BlinkLab's company page on Simply Wall St. We've also put together a list of key aspects you should further research:

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.