With the business potentially at an important milestone, we thought we'd take a closer look at Tandem Diabetes Care, Inc.'s (NASDAQ:TNDM) future prospects. Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes technology solutions for people living with diabetes in the United States and internationally. On 31 December 2024, the US$2.2b market-cap company posted a loss of US$96m for its most recent financial year. The most pressing concern for investors is Tandem Diabetes Care's path to profitability – when will it 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 Tandem Diabetes Care

Consensus from 20 of the American Medical Equipment analysts is that Tandem Diabetes Care is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$18m in 2027. The company is therefore projected to breakeven around 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 66%, which is rather optimistic! 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 Tandem Diabetes Care's upcoming projects, though, keep in mind 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 issue worth mentioning. Tandem Diabetes Care currently has a debt-to-equity ratio of 133%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Tandem Diabetes Care 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 Tandem Diabetes Care, take a look at Tandem Diabetes Care's company page on Simply Wall St. We've also put together a list of important aspects you should further examine:

1. Valuation: What is Tandem Diabetes Care 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 Tandem Diabetes Care 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 Tandem Diabetes Care’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.