QuinStreet, Inc. (NASDAQ:QNST) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. QuinStreet, Inc., an online performance marketing company, provides customer acquisition services for its clients in the United States and internationally. On 30 June 2024, the US$944m market-cap company posted a loss of US$31m for its most recent financial year. Many investors are wondering about the rate at which QuinStreet 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 QuinStreet

QuinStreet is bordering on breakeven, according to the 6 American Interactive Media and Services analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$1.9m in 2025. So, the company is predicted to breakeven approximately 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 145%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of QuinStreet's upcoming projects, however, take into account that typically 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. QuinStreet currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of 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 too many aspects of QuinStreet to cover in one brief article, but the key fundamentals for the company can all be found in one place – QuinStreet's company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Valuation: What is QuinStreet worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether QuinStreet is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on QuinStreet’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.