Barfresh Food Group, Inc. (NASDAQ:BRFH) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Barfresh Food Group, Inc., together with its subsidiaries, manufactures and distributes ready-to-drink and ready-to-blend frozen beverages in the United States. The US$37m market-cap company announced a latest loss of US$2.8m on 31 December 2024 for its most recent financial year result. The most pressing concern for investors is Barfresh Food 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.

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Barfresh Food Group is bordering on breakeven, according to the 2 American Food analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$392k in 2026. Therefore, the company is expected to breakeven just over a year from now. 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 94% year-on-year, on average, 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.

We're not going to go through company-specific developments for Barfresh Food Group given that this is a high-level summary, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

View our latest analysis for Barfresh Food Group

One thing we would like to bring into light with Barfresh Food Group is its debt-to-equity ratio of 144%. 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 around investing in the loss-making company.

Next Steps:

There are too many aspects of Barfresh Food Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Barfresh Food Group's company page on Simply Wall St. We've also put together a list of important aspects you should further examine:

1. Historical Track Record: What has Barfresh Food 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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Barfresh Food Group'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.