Barfresh Food Group, Inc.'s (NASDAQ:BRFH) Shift From Loss To Profit

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. With the latest financial year loss of US$2.7m and a trailing-twelve-month loss of US$3.6m, the US$31m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Barfresh Food Group 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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Consensus from 2 of the American Food analysts is that Barfresh Food Group is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of US$2.0m in 2027. So, the company is predicted to breakeven just over a year from today. 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 169% is expected, 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 Barfresh Food Group's upcoming projects, however, 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.

View our latest analysis for Barfresh Food Group

Before we wrap up, there’s one issue worth mentioning. Barfresh Food Group currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

This article is not intended to be a comprehensive analysis on Barfresh Food Group, so if you are interested in understanding the company at a deeper level, take a look at Barfresh Food Group's company page on Simply Wall St. We've also put together a list of pertinent factors 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.