With the business potentially at an important milestone, we thought we'd take a closer look at i3 Verticals, Inc.'s (NASDAQ:IIIV) future prospects. i3 Verticals, Inc. provides integrated payment and software solutions primarily to the public sector and healthcare markets in the United States. The US$811m market-cap company’s loss lessened since it announced a US$811k loss in the full financial year, compared to the latest trailing-twelve-month loss of US$629k, as it approaches breakeven. Many investors are wondering about the rate at which i3 Verticals 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.

Check out our latest analysis for i3 Verticals

According to the 6 industry analysts covering i3 Verticals, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$9.0m in 2024. Therefore, the company is expected to breakeven roughly a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 83%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of i3 Verticals' upcoming projects, though, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one issue worth mentioning. i3 Verticals currently has a debt-to-equity ratio of 108%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on i3 Verticals, so if you are interested in understanding the company at a deeper level, take a look at i3 Verticals' company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:

1. Historical Track Record: What has i3 Verticals' 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 i3 Verticals' 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.