Prophase Labs (PRPH) AI Stock Analysis

• Market Cap: $15.25M
• Dividend Yield: N/A
• Average Volume (3M): 3.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• 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: 7,648,749
• 30 Day Avg. Volume: 3,722,579
• PEG Ratio: -0.02
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.97
• Enterprise Value/Market Cap: 1.91
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 36.05
• Enterprise Value/Ebitda: -0.26
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: $0.50 ▲(35.14%Upside)

ProPhase Labs' overall stock score is primarily constrained by its weak financial performance, characterized by declining revenue and high leverage. While the earnings call suggests potential future improvements, current valuation metrics and mixed technical signals present ongoing challenges.

Prophase Labs Business Overview & Revenue Model

Company Description

Prophase Labs, Inc. (PRPH) is a diversified health and wellness company that operates in the consumer products sector. The company is primarily known for its over-the-counter healthcare and dietary supplement products. Prophase Labs develops, markets, and sells a range of products that focus on health and wellness, including cold and flu remedies, dietary supplements, and other consumer health products. The company is dedicated to providing high-quality solutions to enhance the well-being of its customers.

How the Company Makes Money

Prophase Labs makes money through the sale of its consumer health products. The company's revenue is primarily generated from its flagship product line, which includes over-the-counter remedies such as Cold-EEZE, a zinc gluconate lozenge formulated to reduce the duration of the common cold. In addition to Cold-EEZE, Prophase Labs offers various dietary supplements and health products that contribute to its revenue streams. The company sells its products through multiple distribution channels, including retail stores, pharmacies, and online platforms, which help it reach a broad consumer base. Significant partnerships with retailers and distributors enhance its market presence and facilitate the availability of its products to a wide audience.

Prophase Labs Financial Statement Overview

Summary

ProPhase Labs is facing severe financial challenges with a dramatic decline in revenue, negative profitability margins, and high leverage. The company's balance sheet reveals high debt levels, and negative cash flows suggest liquidity constraints. These factors indicate a need for substantial strategic realignment to improve financial stability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.57M	6.77M	44.38M	122.65M	79.04M	14.51M
Gross Profit	809.00K	-150.00K	16.24M	70.65M	32.81M	4.61M
EBITDA	-28.35M	-32.34M	-14.83M	28.73M	11.39M	-1.49M
Net Income	-43.13M	-53.36M	-16.78M	18.46M	6.27M	-2.42M
Balance Sheet
Total Assets	50.11M	63.20M	91.93M	87.65M	89.30M	31.41M
Cash, Cash Equivalents and Short-Term Investments	88.00K	678.00K	4.74M	17.44M	17.26M	8.46M
Total Debt	14.01M	24.57M	21.38M	6.96M	14.90M	14.72M
Total Liabilities	34.99M	55.85M	42.54M	24.02M	30.67M	20.85M
Stockholders Equity	15.12M	7.35M	49.38M	63.63M	58.63M	10.56M
Cash Flow
Free Cash Flow	-15.77M	-18.44M	-14.50M	24.63M	-17.85M	-4.28M
Operating Cash Flow	-15.80M	-17.54M	-11.35M	28.55M	-13.62M	-2.59M
Investing Cash Flow	840.00K	2.42M	-1.37M	-2.08M	-19.67M	-1.02M
Financing Cash Flow	13.85M	14.19M	5.76M	-26.02M	35.13M	9.99M

Prophase Labs Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRPH, the sentiment is Positive. The current price of 0.37 is above the 20-day moving average (MA) of 0.36, above the 50-day MA of 0.34, and below the 200-day MA of 0.87, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.81 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRPH.

Prophase Labs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.41B	0.36	-61.88%	2.33%	16.99%	1.69%
TXMD	47 Neutral	$12.96M	―	-7.72%	―	35.25%	81.05%
COSM	47 Neutral	$12.48M	―	-58.30%	―	―	―
PRPH	46 Neutral	$15.25M	―	-58.71%	―	-79.66%	-141.87%
BFRI	46 Neutral	$5.68M	―	-384.98%	―	14.27%	87.31%
TLPH	41 Neutral	$9.60M	―	-106.83%	―	-100.00%	65.76%

Prophase Labs Corporate Events

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.