Wisr Limited's (ASX:WZR) Shift From Loss To Profit

We feel now is a pretty good time to analyse Wisr Limited's (ASX:WZR) business as it appears the company may be on the cusp of a considerable accomplishment. Wisr Limited engages in the lending business in Australia. The company’s loss has recently broadened since it announced a AU$7.3m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$9.0m, moving it further away from breakeven. Many investors are wondering about the rate at which Wisr 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.

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According to the 2 industry analysts covering Wisr, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of AU$5.2m in 2027. So, the company is predicted to breakeven just over a year 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 81%, 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.

Given this is a high-level overview, we won’t go into details of Wisr's upcoming projects, however, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for Wisr

Before we wrap up, there’s one issue worth mentioning. Wisr currently has a debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Wisr 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 Wisr, take a look at Wisr's company page on Simply Wall St. We've also put together a list of essential aspects you should further research:

1. Historical Track Record: What has Wisr'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 Wisr'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.