Prophase Labs (PRPH) investor relations material

Executive summary

• Reported $201.2 million in gross claims under the Crown Medical Collections platform, with accelerating settlement activity and active negotiations supporting an estimated $50–$60 million net recovery and near-term cash flow potential.

• Nebula Genomics and DNA Complete platform now operating profitably after cost optimization, positioned for scalable growth.

• BE-Smart esophageal cancer diagnostic nearing commercialization, pending additional working capital and potential strategic partnerships.

Financial highlights

• Net revenue for 2025 decreased 27.6% year-over-year to $4.9 million, primarily due to reduced consumer product sales.

• Gross profit improved to $1.9 million in 2025 from a gross margin loss of $0.2 million in 2024, with overall gross margin at 39.6% versus a loss of 2.2% prior year.

• Net loss for 2025 was $13.4 million ($1.57 per share), a significant improvement from a net loss of $53.4 million ($26.68 per share) in 2024.

• General and administrative expenses decreased by $19.3 million year-over-year, reflecting cost reductions and asset divestitures.

• Interest expense increased to $6.3 million in 2025 due to higher outstanding debt.

Outlook and guidance

• Management expects meaningful cash flow from Crown Medical Collections beginning in Q3 2026, with enhanced liquidity anticipated from both settlements and potential financing secured by receivables.

• Continued focus on stabilizing liquidity, managing liabilities, and advancing key assets, with updates expected as settlement activity progresses.