Aldeyra Therapeutics, Inc. (NASDAQ:ALDX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Aldeyra Therapeutics, Inc., a biotechnology company, discovers and develops therapies designed to treat immune-mediated and metabolic diseases. On 31 December 2024, the US$113m market-cap company posted a loss of US$56m for its most recent financial year. As path to profitability is the topic on Aldeyra Therapeutics' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Consensus from 6 of the American Biotechs analysts is that Aldeyra Therapeutics is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$3.2m in 2027. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 62% year-on-year, on average, 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 Aldeyra Therapeutics' upcoming projects, but, take into account that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. So, 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 Aldeyra Therapeutics

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 21% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Aldeyra Therapeutics, so if you are interested in understanding the company at a deeper level, take a look at Aldeyra Therapeutics' company page on Simply Wall St. We've also put together a list of essential aspects you should further examine:

1. Valuation: What is Aldeyra Therapeutics 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 Aldeyra Therapeutics 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 Aldeyra Therapeutics’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.