Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

PowerSchool approaches breakeven point, eyeing profitability in 2025

EditorPollock Mondal
Published 11/09/2023, 07:39 AM
Updated 11/09/2023, 07:39 AM
© Reuters.

PowerSchool Holdings, Inc. (NYSE:PWSC), a prominent provider of cloud-based software for the K-12 education market, is on the verge of reaching its breakeven point, despite reporting a loss of US$21m in the last fiscal year and a trailing-twelve-month loss of US$17m.

The path to profitability for PowerSchool necessitates an ambitious annual growth rate of 103%. Such a high growth rate is not uncommon for companies during their investment phase. However, if these growth estimates turn out to be overly optimistic, the journey towards profitability for PowerSchool might extend beyond the current projections.

Investors are closely monitoring PowerSchool's debt levels, which currently represent a substantial 48% of its equity. This surpasses the generally advised limit of 40%, thereby increasing the risk associated with investing in the company. The company's ability to manage this debt while maintaining its high growth rate will be pivotal to achieving its profitability goals in the coming years.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.