Prophase Labs (PRPH) AI Stock Analysis

• Market Cap: $15.18M
• Dividend Yield: N/A
• Average Volume (3M): 2.93M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: -79.66%
• EPS Growth: -141.87%
• Country: US
• Employees: 96
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.13
• Shares Outstanding: 41,541,206
• 10 Day Avg. Volume: 597,559
• 30 Day Avg. Volume: 2,934,499
• PEG Ratio: -0.02
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.08
• Enterprise Value/Market Cap: 2.06
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 38.57
• Enterprise Value/Ebitda: -0.27
• 1Y Price Target: $0.50
• Price Target Upside: 38.89% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: $0.50 ▲(38.89%Upside)

Prophase Labs' overall stock score is driven by significant financial challenges and poor valuation, which are partially offset by strategic initiatives and technical support. Recent corporate events provide some stability, but risks remain.

Prophase Labs Business Overview & Revenue Model

Company Description

ProPhase Labs, Inc. engages in the research, development, manufacture, distribution, marketing, and sale of over the counter (OTC) consumer healthcare products and dietary supplements in the United States. The company operates in two segments, Diagnostic Services and Consumer Products. It offers a range of OTC dietary supplements, including Legendz XL for male sexual health; and Triple Edge XL, an energy and stamina booster. The company also provides contract manufacturing services, such as product development, pre-commercialization, production, warehousing, and distribution; SARS-CoV-2 (COVID-19) and COVID-19 viral mutation polymerase chain reaction tests through saliva and nasal swab methods; and other respiratory pathogen panel molecular testing services, as well as personal genomics products and services. It serves national chain drug, internet-based, and various regional retailers. The company was formerly known as The Quigley Corporation. ProPhase Labs, Inc. was founded in 1989 and is headquartered in Garden City, New York.

How the Company Makes Money

Prophase Labs generates revenue primarily through the sale of its over-the-counter healthcare products. The company markets its products across various distribution channels including retail pharmacies, supermarkets, and online platforms. Key revenue streams include sales of Cold-EEZE and other dietary supplements. Prophase Labs also engages in contract manufacturing services, producing health products for third parties, which provides an additional source of income. Strategic partnerships and collaborations with retailers and other industry players play a crucial role in expanding market reach and enhancing product distribution, contributing significantly to the company's earnings.

Prophase Labs Financial Statement Overview

Summary

Prophase Labs is facing significant financial challenges with a drastic decline in revenue and negative profit margins. The company shows high leverage with a debt-to-equity ratio of 0.93, posing financial risks. Cash flow difficulties are evident, with negative free and operating cash flows, indicating liquidity constraints. Strategic realignments are needed to improve financial stability and performance.

Income Statement

Prophase Labs has seen a significant decline in revenue, with a TTM revenue of $4.57M, down from $67.7M in the previous year, representing a drastic revenue contraction. The gross profit margin has also deteriorated from a negative gross profit previously to $0.81M. The net profit margin is negative due to the substantial net losses reported, indicating profitability challenges. EBIT and EBITDA margins are deeply negative, reflecting operational inefficiencies or high operational costs.

Balance Sheet

The company exhibits a high debt-to-equity ratio of approximately 0.93 in the TTM period, suggesting a relatively high level of leverage. Stockholders' equity has increased over the year, providing some financial stability. However, the equity ratio has decreased, indicating a decline in the proportion of assets financed by equity. High leverage may pose financial risks in a volatile market environment.

Cash Flow

Prophase Labs faces negative free cash flow and operating cash flow, reflecting potential liquidity issues. The free cash flow to net income ratio is not feasible due to negative values, indicating cash flow challenges. The operating cash flow to net income ratio is also negative, highlighting ineffective cash generation from operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.77M	44.38M	122.65M	79.04M	14.51M
Gross Profit	-150.00K	16.24M	70.65M	32.81M	4.61M
EBITDA	-32.34M	-14.83M	28.73M	11.39M	-1.49M
Net Income	-53.36M	-16.78M	18.46M	6.27M	-2.42M
Balance Sheet
Total Assets	63.20M	91.93M	87.65M	89.30M	31.41M
Cash, Cash Equivalents and Short-Term Investments	678.00K	4.74M	17.44M	17.26M	8.46M
Total Debt	24.57M	21.38M	6.96M	14.90M	14.72M
Total Liabilities	55.85M	42.54M	24.02M	30.67M	20.85M
Stockholders Equity	7.35M	49.38M	63.63M	58.63M	10.56M
Cash Flow
Free Cash Flow	-18.44M	-14.50M	24.63M	-17.85M	-4.28M
Operating Cash Flow	-17.54M	-11.35M	28.55M	-13.62M	-2.59M
Investing Cash Flow	2.42M	-1.37M	-2.08M	-19.67M	-1.02M
Financing Cash Flow	14.19M	5.76M	-26.02M	35.13M	9.99M

Prophase Labs Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRPH, the sentiment is Negative. The current price of 0.36 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.36, and below the 200-day MA of 0.73, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 9.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRPH.

Prophase Labs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$7.36B	-0.07	-63.77%	2.36%	16.35%	0.03%
PRPH	52 Neutral	$15.18M	―	-58.71%	―	-79.66%	-141.87%
BFRI	49 Neutral	$8.94M	―	-384.98%	―	14.27%	87.31%
TXMD	47 Neutral	$13.31M	―	-7.72%	―	35.25%	81.05%
TLPH	41 Neutral	$8.40M	―	-106.83%	―	-100.00%	65.76%
SISI	―	$7.44M	―	-58.27%	―	―	―
COSM	46 Neutral	$12.88M	―	-58.30%	―	―	―

Prophase Labs Corporate Events

ProPhase Labs Regains Nasdaq Compliance with New Appointment

ProPhase Labs, Inc. resolved a compliance issue with Nasdaq’s audit committee requirements after a vacancy was created by the resignation of Eleanor McBrier. The company appointed Carolina Abenante to the Board and Audit Committee, regaining compliance with Nasdaq rules as confirmed by Nasdaq on June 25, 2025.

Prophase Labs Secures $1M in New Loan Agreements

On June 22, 2025, ProPhase Labs entered into two identical loan agreements totaling $500,000 each with its CEO, Ted Karkus, and an unaffiliated investor. The loans, which include a 20% original issue discount and a 10% annual interest rate, are secured by the company but subordinate to other lenders up to $6 million. Additionally, the company issued 500,000 unvested warrants for common stock, contingent on future shareholder approval. This move, approved by the Audit Committee, reflects ProPhase Labs’ strategic financial maneuvering to bolster its capital structure.

ProPhase Labs Granted Nasdaq Extension for Compliance

On June 26, 2025, ProPhase Labs announced that it received a 180-day extension from Nasdaq to meet the minimum bid price requirement of $1.00 per share, following an initial period ending on June 24, 2025. This extension allows the company until December 22, 2025, to regain compliance, failing which its stock may face delisting. The company is actively monitoring its stock price and exploring options to meet the requirement, although there is no assurance of compliance within the extended period. This development does not impact ProPhase Labs’ business operations or reporting obligations.

Prophase Labs Appoints Carolina Abenante as Director

On June 20, 2025, ProPhase Labs, Inc. appointed Carolina Abenante as an independent director to fill a vacancy on its Board of Directors. She was also appointed to the Nominating and Corporate Governance Committee and as Chair of the Compensation Committee, with her term set to expire at the 2025 annual meeting of stockholders. The Board intends to nominate her for re-election and plans to appoint her to the Audit Committee following the annual meeting. Ms. Abenante meets the independence and financial literacy requirements set by Nasdaq and the SEC.