ProPhase Labs, Inc.

ProPhase Labs presents a distressed capital structure with total liabilities of $59.3 million exceeding total assets of $58.7 million, resulting in a negative equity position of $0.6 million. The current ratio stands at 0.06, indicating severe liquidity constraints as current liabilities of $56.1 million dwarf current assets of $3.1 million. Cash and equivalents are minimal at $31,000, while the company carries $3.2 million in short-term debt and $2.9 million in long-term debt. The debt-to-equity ratio is negative 9.99, reflecting the equity deficit. Operating cash flow for Q1 2026 was negative $748,000, further straining liquidity.

Profitability metrics are deeply negative, with a net loss of $5.4 million in Q1 2026 against revenue of $478,000. The operating income was negative $2.6 million, and the gross profit was $167,000, yielding a gross margin of approximately 35%. Return on assets is negative 25.1%, and return on equity is reported as 24.0% due to the negative equity base, which distorts standard profitability comparisons. The company trades at an EV/Revenue multiple of 1.57, but the negative EV/EBITDA of -0.52 reflects the lack of earnings.

Revenue concentration is heavily impacted by the cessation of diagnostic services. The company previously operated Diagnostic Services and Consumer Products segments. With diagnostic testing halted since Q4 2024, revenue generation is now reliant on consumer products and other minor streams. The filing observations note significant fluctuations in diagnostic services revenues previously driven by COVID-19 testing demand. Geographic exposure is primarily domestic, with operations in New Jersey and New York.

The growth trajectory is negative. Q1 2026 revenue of $478,000 represents a significant decline from prior periods. In Q1 2025, the company reported net income of $3.9 million, but this was an anomaly driven by specific events rather than operational sustainability. The recent trend shows a sharp contraction in top-line performance as the core diagnostic business winds down. The share count has increased from 8.97 million at the start of 2026 to 14.02 million by Q1 2026, indicating aggressive dilution to fund operations.

Risk factors are elevated. Liquidity risk is high, with current liabilities exceeding current assets and net cash being negative after subtracting total debt. Dilution risk is medium, driven by recent issuances of common stock for cash, commitment fees, and debt conversions. Key flags include the negative equity position and the reliance on convertible notes and future receipts financing agreements. The company has issued multiple convertible notes and promissory notes in 2025 and 2026, including agreements with Labrys and other lenders, which carry conversion features that further dilute shareholders.

Recent events include the issuance of common stock for cash and as commitment fees for future financing in Q1 2026. The company also issued shares to convert outstanding debt, adding 4.18 million shares. Filing observations indicate partial coverage with backfilled data for short-term investments and debt. News events show the stock printing a new 52-week low of $0.06 on elevated volume in July 2026, reflecting market pessimism. The company has also entered into various future receipts financing agreements and convertible note issuances in late 2025 and early 2026 to secure funding.

ProPhase Labs, Inc. (PRPH) has recorded its first notable holder change, with an investor adding 64,299 shares to their position as of June 30, 2024. This acquisition represents a portfolio weight of approximately 0.000006% and a total value of $0.27 million. The signal was detected on June 28, 2026, marking a distinct shift in the company's ownership structure. This development is significant as it establishes the initial baseline for tracking institutional or significant holder activity for the ticker. Prior to this event, there was no prior basis for computing delta changes in holder positions, making this the first data point for analyzing investor sentiment and accumulation trends for ProPhase Labs. The addition of this holder brings the total count of top holders for the company to two. Despite this change in ownership, the company currently maintains zero analyst coverage and zero index memberships, indicating that the stock remains largely outside the scope of mainstream financial analysis and major market indices. With no officer count data available and no cross-source signals or sagas reported, the primary material change for ProPhase Labs remains this specific holder addition. Investors should monitor this position for future changes, as it serves as the foundational reference point for all subsequent holder activity analysis.

The company exhibits a negative debt-to-equity ratio of -9.99, ranking as best-in-class within the pharmaceutical sector.

Revenue growth of 55.8% year-over-year in FY2025 suggests potential momentum despite overall negative long-term trends.

ProPhase Labs faces high liquidity risk with a critically low current ratio of 0.0593 as of late 2025.

The company recorded a net loss of $53.4 million in FY2025, reflecting severe profitability challenges and negative margins.

Operating and net margins rank in the bottom quartile of the pharmaceutical cohort, indicating poor operational efficiency.

The firm carries a medium dilution risk flag, suggesting potential equity value erosion for existing shareholders.

Revenue $478.0k; Operating income -$2.6M.

• ▍Revenue $478.0k
• ▍Operating income -$2.6M
• ▍Net margin -1120.1%

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• ▍Operating income -$12.3M
• ▍Net margin -206.3%

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• ▍Revenue $2.7M
• ▍Operating income -$7.6M
• ▍Net margin -18.9%

Revenue $4.3M; Operating income -$18.0M.

• ▍Revenue $4.3M
• ▍Operating income -$18.0M
• ▍Net margin -339.3%

Revenue $6.8M; Operating income -$38.6M.

• ▍Revenue $6.8M
• ▍Operating income -$38.6M
• ▍Net margin -788.2%

Revenue $6.8M; Operating income -$38.6M.

• ▍Revenue $6.8M
• ▍Operating income -$38.6M
• ▍Net margin -788.2%

Revenue $44.4M; Operating income -$21.6M.

• ▍Revenue $44.4M
• ▍Operating income -$21.6M
• ▍Net margin -37.8%

Revenue $35.0M; Operating income -$21.2M.

• ▍Revenue $35.0M
• ▍Operating income -$21.2M
• ▍Net margin -48.0%