We Might See A Profit From Dolphin Entertainment, Inc. (NASDAQ:DLPN) Soon

We feel now is a pretty good time to analyse Dolphin Entertainment, Inc.'s (NASDAQ:DLPN) business as it appears the company may be on the cusp of a considerable accomplishment. Dolphin Entertainment, Inc., together with its subsidiaries, operates as an independent entertainment marketing and production company in the United States. The US$13m market-cap company’s loss lessened since it announced a US$24m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$20m, as it approaches breakeven. Many investors are wondering about the rate at which Dolphin Entertainment 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.

Check out our latest analysis for Dolphin Entertainment

According to some industry analysts covering Dolphin Entertainment, breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$333k in 2025. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 111% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Dolphin Entertainment given that this is a high-level summary, though, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Dolphin Entertainment is its debt-to-equity ratio of 152%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

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

1. Historical Track Record: What has Dolphin Entertainment'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 Dolphin Entertainment'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.