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what it is
ProPhase Labs is a biotech, genomics, and consumer products company with diagnostics, antiviral candidates, and lab assets.
how it gets paid
Last year Prophase Labs made $7M in revenue. Consumer products was the main engine at $3.2M, or 46% of sales.
what just happened
Revenue hit $4M in the latest quarter, while EPS stayed negative at -$0.19.
At a glance
C balance sheet — red flag territory — real financial stress
15/100 earnings predictability — expect surprises
28.5% return on capital — every dollar works hard here
-$24.20 fy2024 eps est
$7M fy2024 rev est
xvary composite: 25/100 — weak
What they do
ProPhase Labs is a biotech, genomics, and consumer products company with diagnostics, antiviral candidates, and lab assets.
The company is split between cash-generating consumer products and higher-risk diagnostics. That gives you $3.2M of consumer revenue versus $2.1M from screening work, so the business is not one thing. Leaving is painful because the pieces are tied to different products, not one easy replacement.
How they make money
$7M
annual revenue
Consumer products
$3.2M
flat
Diagnostic screening
$2.1M
up
Lab services
$1.1M
dn
Licensing and other
$0.6M
flat
The products that matter
over-the-counter supplements
Consumer Health Products
$5.1M trailing revenue
this is the only segment with verified trailing sales in the snapshot, and it generated just $5.1M. that's a business line, not a safety net.
current revenue base
diagnostic asset for sale
BE-Smart Esophageal Test
process announced feb 3, 2026
management said it is exploring a sale or partnership for this asset. with only $5.1M in trailing revenue elsewhere, this process matters because the company needs another source of value.
strategic option
transaction path
Reverse Merger Process
LOI signed dec 19, 2025
the non-binding LOI with ABL Diagnostics is not revenue, but it may be the only near-term catalyst bigger than the current business. that's why you watch filings more than sell-through.
equity story
Key numbers
$7M
annual revenue
This is a real company, but only barely. A $7M sales base leaves almost no cushion for mistakes.
n/a
operating margin
Prior margin KPI failed sanity check — verify in filings. For every $1 sold, the business lost $5.71 in operating profit. That is the whole problem in one number.
$1M
long-term debt
The debt load is small in absolute terms, but huge beside a microcap that trades around $1M in value.
31.9%
gross margin
The business keeps 31.9% of sales before overhead. That is not enough when operating losses are still this wide.
Financial health
C
strength
- balance sheet grade C — very weak — significant financial distress
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $1M (52% of capital)
C — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for PRPH right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Revenue hit $4M in the latest quarter, while EPS stayed negative at -$0.19.
EDGAR shows revenue up 303% vs. prior year, but that growth sits on a tiny base. Gross margin was 31.9%, which helps, but it did not stop the quarter from staying unprofitable.
$4.0M
revenue
-$0.19
eps
31.9%
gross margin
the number that mattered
Revenue was $4M because the company is still too small for growth to matter more than survival.
source: company earnings report, 2026
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What could go wrong
the #1 risk here is the reverse merger and BE-Smart process failing to produce real value. with only $5.1M in trailing revenue and a $37.0M net loss, PRPH does not have much operating cushion if the deal path stalls.
med
OTC trading can trap the stock in a liquidity hole
The company disclosed that Nasdaq trading would be suspended and the shares would move to the OTC market. For a stock already at $0.11, that usually means thinner volume and fewer natural buyers.
Lower liquidity can widen spreads, reduce institutional participation, and make capital raises even more painful for existing holders.
med
The ABL Diagnostics reverse merger is only a non-binding LOI
Non-binding is finance-speak for interest, not commitment. If the deal does not close, PRPH is left with the same tiny revenue base and the same loss profile.
The equity story would fall back to a $5.1M revenue operating business that lost $37.0M over the last 12 months. That's the bear case in one sentence.
med
The $10M equity facility can keep the company alive by issuing more stock
An equity facility is financing flexibility. It is also dilution flexibility. When the market cap is only about $1M, a $10M facility is enormous relative to the current equity value.
If heavily used, the facility could reshape ownership and pressure the share price even if it buys the company more time.
med
Material weakness in financial reporting undermines confidence
A prior filing cited the risk of not detecting a material misstatement. For a distressed microcap pursuing transactions, trust in the numbers is not a side issue.
If investors doubt the reporting, the discount rate goes up fast. That can hurt financing terms, deal credibility, and market access all at once.
the combined risk picture is straightforward: the current operating business produced $5.1M in revenue, lost $37.0M, trades OTC, and may need both a successful transaction and outside capital to avoid further value erosion.
source: institutional data · regulatory filings · risk analysis
Pay attention to
deal timeline
ABL Diagnostics reverse merger milestones
The LOI was signed on dec 19, 2025. Watch for a definitive agreement, shareholder approvals, or any language that the process has been terminated.
financial reality
Whether losses stop dwarfing revenue
A n/a net margin means the core business is not remotely self-funding. Any update that narrows that gap matters more than cosmetic press releases.
dilution risk
Use of the $10M equity facility
The facility announced jan 16, 2026 can provide cash. It can also massively dilute a company with an equity value of about $1M. Read the financing disclosures, not just the headline.
asset process
BE-Smart sale or partnership progress
The company started exploring options for BE-Smart on feb 3, 2026. If that process goes quiet, one of the few credible paths to monetize assets gets thinner.
Analyst rankings
earnings predictability
15 / 100
earnings predictability measures how stable reported results tend to be. in human-speak, analysts do not expect a clean, steady pattern here.
risk rank
5
a risk rank of 5 means this stock is safer than only a small slice of the market. that's consistent with an OTC microcap under strategic stress.
source: institutional data
Institutional activity
institutional ownership data for PRPH is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$0
current price
n/a
target midpoint · n/a from current
Want the deeper analysis?
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