Riot Platforms, Inc.'s (NASDAQ:RIOT) Shift From Loss To Profit

With the business potentially at an important milestone, we thought we'd take a closer look at Riot Platforms, Inc.'s (NASDAQ:RIOT) future prospects. Riot Platforms, Inc., together with its subsidiaries, operates as a bitcoin mining company in North America. With the latest financial year loss of US$510m and a trailing-twelve-month loss of US$289m, the US$2.4b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Riot Platforms' 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 Riot Platforms

Riot Platforms is bordering on breakeven, according to the 11 American Software analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$160m in 2025. Therefore, the company is expected to breakeven roughly 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 77% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Riot Platforms' upcoming projects, but, take into account 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 aspect worth mentioning. Riot Platforms currently has no debt on its balance sheet, which is quite unusual for a cash-burning 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 key fundamentals of Riot Platforms 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 Riot Platforms, take a look at Riot Platforms' company page on Simply Wall St. We've also compiled a list of key factors you should further research:

1. Valuation: What is Riot Platforms 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 Riot Platforms 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 Riot Platforms’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.