Change Financial Limited (ASX:CCA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Change Financial Limited, a fintech company, offers payment as a service solutions in South East Asia, Oceania, Latin America, the United States, and internationally. The AU$31m market-cap company posted a loss in its most recent financial year of US$2.9m and a latest trailing-twelve-month loss of US$2.5m shrinking the gap between loss and breakeven. The most pressing concern for investors is Change Financial's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Change Financial

Change Financial is bordering on breakeven, according to some Australian Diversified Financial analysts. They expect the company to post a final loss in 2025, before turning a profit of US$1.1m in 2026. The company is therefore projected to breakeven around 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 91%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Change Financial given that this is a high-level summary, however, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. Change Financial currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Change Financial 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 Change Financial, take a look at Change Financial's company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:

1. Historical Track Record: What has Change Financial'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 Change Financial'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.