With the business potentially at an important milestone, we thought we'd take a closer look at Xeris Biopharma Holdings, Inc.'s (NASDAQ:XERS) future prospects. Xeris Biopharma Holdings, Inc., a biopharmaceutical company, engages in developing and commercializing therapies in Illinois. With the latest financial year loss of US$62m and a trailing-twelve-month loss of US$63m, the US$455m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Xeris Biopharma Holdings will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Xeris Biopharma Holdings is bordering on breakeven, according to the 6 American Pharmaceuticals analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$6.9m in 2026. 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 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 70% 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 Xeris Biopharma Holdings' growth isn’t the focus of this broad overview, but, take into account that generally pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Xeris Biopharma Holdings is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

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

1. Historical Track Record: What has Xeris Biopharma 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 Xeris Biopharma 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.

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.