Micro-X Limited (ASX:MX1) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Micro-X Limited designs, develops, manufactures, and commercializes healthcare and security markets products using micro-X proprietary cold cathode X-ray technology in Australia, the United States, Asia-Pacific, Europe, the Middle East, and Africa. On 30 June 2024, the AU$45m market-cap company posted a loss of AU$9.8m for its most recent financial year. As path to profitability is the topic on Micro-X'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.

See our latest analysis for Micro-X

According to some industry analysts covering Micro-X, breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of AU$3.9m in 2027. So, the company is predicted to breakeven approximately 2 years from today. 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 69% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Micro-X's upcoming projects, however, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that Micro-X has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of Micro-X 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 Micro-X, take a look at Micro-X's company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Historical Track Record: What has Micro-X'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 Micro-X'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.