Prophase Labs (PRPH) investor relations material

Executive summary

• Net revenue for Q1 2026 was $0.5 million, down from $1.4 million in Q1 2025, primarily due to lower supplement sales and no diagnostic services revenue in either period.

• The company reported a net loss from continuing operations of $5.4 million ($0.43 per share) in Q1 2026, compared to a $4.7 million loss ($1.33 per share) in Q1 2025.

• Diagnostic subsidiaries ceased COVID-19 testing in May 2025 and filed for Chapter 11 bankruptcy in September 2025; these entities were deconsolidated from financials.

• The company is focusing on genomics, consumer products, and the commercialization of novel diagnostics and supplements.

Financial highlights

• Gross margin was $0.2 million (34.9%) in Q1 2026, down from $0.5 million (36.8%) in Q1 2025, reflecting a less favorable product mix.

• General and administrative expenses decreased to $2.8 million from $4.1 million year-over-year, mainly due to lower personnel and overhead costs.

• Interest expense increased to $651,000 from $539,000, driven by higher outstanding debt.

• EBITDA for Q1 2026 was $(2.4) million and Adjusted EBITDA was $(1.6) million, both similar to the prior year.

• Cash and cash equivalents were $31,000 at March 31, 2026, down from $90,000 at year-end 2025.

• Working capital deficit increased to $53.0 million from $49.9 million at December 31, 2025.

Outlook and guidance

• Management expects continued losses and ongoing liquidity challenges, with plans to seek additional capital, reduce expenses, and pursue strategic alternatives.

• The company estimates it has enough liquidity for at least 12 months but acknowledges significant uncertainties in cash flow projections and receivables collection.

• Commercialization of the BE-Smart™ diagnostic test is targeted for 2026, pending regulatory and market developments.