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BlinkLab Limited's (ASX:BB1) Path To Profitability

Simply Wall St · 3d ago

With the business potentially at an important milestone, we thought we'd take a closer look at BlinkLab Limited's (ASX:BB1) future prospects. BlinkLab Limited focuses on the development and commercialization of intellectual property related to smartphone-neurobehavioral testing. The AU$122m market-cap company announced a latest loss of AU$5.7m on 30 June 2025 for its most recent financial year result. Many investors are wondering about the rate at which BlinkLab will turn a profit, with the big question being “when will the company 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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According to some industry analysts covering BlinkLab, breakeven is near. They anticipate the company to incur a final loss in 2027, before generating positive profits of AU$21m in 2028. So, the company is predicted to breakeven approximately 3 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 101%, 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.

earnings-per-share-growth
ASX:BB1 Earnings Per Share Growth December 2nd 2025

Given this is a high-level overview, we won’t go into details of BlinkLab's upcoming projects, but, take into account that generally a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Check out our latest analysis for BlinkLab

Before we wrap up, there’s one aspect worth mentioning. BlinkLab currently has no debt on its balance sheet, which is quite unusual for a cash-burning healthcare tech 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 too many aspects of BlinkLab to cover in one brief article, but the key fundamentals for the company can all be found in one place – BlinkLab's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:

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