How did PRPH's 2024 earnings trend evolve?

ProPhase Labs Inc. (PRPH) experienced a significant decline in net income and revenue in 2024, reflecting operational challenges and strategic restructuring efforts.

1. **Significant Net Income Decline**: The net income for ProPhase Labs in 2024 was -$53.36 million, which represents a substantial decrease from the previous year's net loss of $16.8 million. This indicates a worsening financial performance over the year.

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|PRPH|PRPH.O|ProPhase Labs|2024 Q1|-1239.090909090909|-6265000|186|
|PRPH|PRPH.O|ProPhase Labs|2024 Q2|-78.86627906976744|-6153000|186|
|PRPH|PRPH.O|ProPhase Labs|2024 Q3|-28.126823575179927|-6587000|186|
|PRPH|PRPH.O|ProPhase Labs|2024 Q4|-292.62941378128215|-3.4359E7|186|

2. **Revenue Decrease**: The company's revenue also plummeted, dropping from $35.0 million in 2023 to $6.8 million in 2024, marking an 80.6% decrease. This decline is attributed to a significant reduction in demand for COVID-19 diagnostic testing services.
3. **Strategic Restructuring Impact**: ProPhase Labs undertook strategic restructuring, including the sale of its Pharmaloz manufacturing operations for approximately $23 million. While this move enhanced financial flexibility, it also reflected the extent of operational challenges the company faced.
4. **Earnings Per Share (EPS) Decrease**: The EPS for 2024 was $(2.61), compared to $(0.98) in the previous year, indicating a deeper loss per share and underscoring the financial distress the company faced.
5. **Gross Margin Decline**: The gross margin for ProPhase Labs declined sharply, dropping to -(2.2)% in 2024 from 44.5% in 2023. This decline is a direct result of the significant decrease in diagnostic services revenue.
6. **Cash Flow Challenges**: The company's cash and cash equivalents decreased from $1.6 million at the end of 2023 to $0.7 million as of December 31, 2024. This reduction highlights the company's liquidity challenges and the need for financial stability.

In conclusion, ProPhase Labs faced a challenging year in 2024, marked by substantial declines in revenue and net income. The company's strategic moves, such as the sale of its manufacturing operations, aimed to mitigate these challenges but could not mask the severity of the operational and financial difficulties faced.