Prophase Labs (PRPH) Q2 2026 earnings summary

Executive summary

• Net revenue for Q2 2026 was $1.0M, down from $1.2M in Q2 2025, mainly due to lower consumer product sales; no diagnostic services revenue was recorded in either period.

• Net loss from continuing operations for Q2 2026 was $3.0M ($0.22/share), improved from $4.5M ($1.08/share) in Q2 2025, reflecting reduced general/admin expenses.

• For the six months ended June 30, 2026, net revenue was $2.2M (vs. $2.7M in 2025), with a net loss of $8.2M ($0.62/share), compared to $9.2M ($2.38/share) in 2025.

• The company ceased COVID-19 diagnostic testing in 2024 and deconsolidated its diagnostic subsidiaries after their Chapter 11 bankruptcy filing in September 2025.

Financial highlights

• Gross margin for Q2 2026 was 22.4% ($0.2M), down from 58.9% ($0.7M) in Q2 2025, due to product mix and lower sales.

• General and administrative expenses decreased to $2.9M in Q2 2026 from $4.6M in Q2 2025, mainly from lower personnel and overhead costs.

• Interest expense rose to $791K in Q2 2026 from $587K in Q2 2025, driven by increased debt discount amortization.

• Cash and cash equivalents were $20K at June 30, 2026, down from $90K at year-end 2025; working capital deficit increased to $55.3M.

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 is focusing on genomics, biotechnology, and consumer products, while exploring asset monetization and partnerships.