We feel now is a pretty good time to analyse Eos Energy Enterprises, Inc.'s (NASDAQ:EOSE) business as it appears the company may be on the cusp of a considerable accomplishment. Eos Energy Enterprises, Inc. designs, manufactures, and markets zinc-based energy storage solutions for utility-scale, microgrid, and commercial and industrial (C&I) applications in the United States. The US$518m market-cap company posted a loss in its most recent financial year of US$230m and a latest trailing-twelve-month loss of US$125m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Eos Energy Enterprises 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.

See our latest analysis for Eos Energy Enterprises

Eos Energy Enterprises is bordering on breakeven, according to the 6 American Electrical analysts. They expect the company to post a final loss in 2025, before turning a profit of US$48m in 2026. Therefore, the company is expected to breakeven roughly 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 64%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Eos Energy Enterprises' growth isn’t the focus of this broad overview, but, keep in mind that generally 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 Eos Energy Enterprises is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of Eos Energy Enterprises to cover in one brief article, but the key fundamentals for the company can all be found in one place – Eos Energy Enterprises' company page on Simply Wall St. We've also compiled a list of relevant factors you should further examine:

1. Historical Track Record: What has Eos Energy Enterprises' 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 Eos Energy Enterprises' 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.