We think now is a good time to analyze Predictive Oncology Inc. (NASDAQ:POAI) business as it appears that the company is on the verge of considerable success. Predictive Oncology Inc., a knowledge and science-based company, uses artificial intelligence (AI) to aid in the discovery and development of optimal cancer therapies. With a loss of $14 million in the last fiscal year and a loss of $14 million in the trailing twelve months, the $5.8 million market cap company has widened its loss by moving further away from its break-even target. Many investors are wondering how quickly Predictive Oncology will turn a profit, and the big question is, “When will the company break even?” Below we provide a high-level summary of industry analysts’ expectations for the company.

Check out our latest analysis for Predictive Oncology

According to some American Medical Equipment analysts, Predictive Oncology is close to breaking even. They expect the company to report a final loss in 2025 before making a profit of $1.0 million in 2026. Therefore, the company is expected to break even in about 2 years. To meet this break-even date, we calculated the rate at which the company needs to grow year-on-year. It turns out that a compound annual growth rate of 72% is expected, which indicates high analyst confidence. If this rate proves to be too aggressive, the company may become profitable much later than analysts predict.

Since this is a high-level summary, we will not go into detail about company-specific developments at Predictive Oncology here. However, keep in mind that a high forecast growth rate is, by and large, not unusual for a company that is currently in an investment phase.

Before we conclude, there is one more aspect worth mentioning. The company has managed its capital prudently, with debt representing 6.8% of equity. This means that it has funded its operations mostly from equity, and its low debt load reduces the risk of investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis of Predictive Oncology, so if you want to gain a deeper understanding of the company, take a look at Predictive Oncology’s company page on Simply Wall St. We have also compiled a list of key factors that you should examine in more detail:

1. Historical performance record: How has Predictive Oncology performed in the past? Go deeper into the analysis of its past track record and take a look at the free visual representations of our analysis to gain more clarity.

2. Management Team: Having an experienced management team at the top gives us confidence in the company – see who sits on Predictive Oncology’s board of directors and the CEO’s background.

3. Other high-performing stocks: Are there other stocks with better prospects and proven track records? Discover our free list of these great stocks here.

Do you have feedback on this article? Are you concerned about the content? Contact us directly from us. Alternatively, send an email to editorial-team (at) simplywallst.com.

This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.