With the business potentially at an important milestone, we thought we'd take a closer look at Creative Medical Technology Holdings, Inc.'s (NASDAQ:CELZ) future prospects. Creative Medical Technology Holdings, Inc., a commercial stage biotechnology company, focuses on novel biological therapeutics in the fields of immunotherapy, endocrinology, urology, neurology, and orthopedics in the United States. The US$5.7m market-cap company announced a latest loss of US$5.5m on 31 December 2024 for its most recent financial year result. Many investors are wondering about the rate at which Creative Medical Technology 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.

View our latest analysis for Creative Medical Technology Holdings

Expectations from some of the American Biotechs analysts is that Creative Medical Technology Holdings is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of US$18m in 2027. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 60% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Creative Medical Technology Holdings' growth isn’t the focus of this broad overview, however, keep in mind that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 0.2% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Creative Medical Technology Holdings, so if you are interested in understanding the company at a deeper level, take a look at Creative Medical Technology Holdings' company page on Simply Wall St. We've also compiled a list of key aspects you should look at:

1. Historical Track Record: What has Creative Medical Technology Holdings' 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 Creative Medical Technology Holdings' 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.