With the business potentially at an important milestone, we thought we'd take a closer look at Bakkt, Inc.'s (NYSE:BKKT) future prospects. Bakkt, Inc. engages in building financial infrastructure. The US$347m market-cap company’s loss lessened since it announced a US$47m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$42m, as it approaches breakeven. As path to profitability is the topic on Bakkt's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

According to some industry analysts covering Bakkt, breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$21m in 2026. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 160% 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.

Underlying developments driving Bakkt's growth isn’t the focus of this broad overview, but, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. Bakkt currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of Bakkt 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 Bakkt, take a look at Bakkt's company page on Simply Wall St. We've also put together a list of relevant factors you should look at:

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

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.