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We feel now is a pretty good time to analyse The Glimpse Group, Inc.'s (NASDAQ:VRAR) business as it appears the company may be on the cusp of a considerable accomplishment. The Glimpse Group, Inc., an immersive technology company provides enterprise focused virtual reality (VR), augmented reality (AR), and spatial computing software and services in the United States. With the latest financial year loss of US$6.4m and a trailing-twelve-month loss of US$6.5m, the US$27m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Glimpse Group's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Expectations from some of the American IT analysts is that Glimpse Group is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$730k in 2026. Therefore, the company is expected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 174% year-on-year, on average, 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 Glimpse Group's upcoming projects, however, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Check out our latest analysis for Glimpse Group
Before we wrap up, there’s one aspect worth mentioning. Glimpse Group 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. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
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There are key fundamentals of Glimpse Group 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 Glimpse Group, take a look at Glimpse Group's company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:
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Historical Track Record: What has Glimpse Group'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.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Glimpse Group's board and the CEO’s background.
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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.