ProPhase Labs 2025 Q3 Earnings Narrowed Losses Amid 37.6% Revenue Decline

ProPhase Labs reported Q3 2025 earnings with a 54.3% improvement in per-share losses year-over-year, though revenue fell sharply. The CEO provided no quantitative guidance, emphasizing operational restructuring and receivables resolution. Shareholders face a critical proxy vote deadline to enable strategic actions, including a potential reverse stock split for NASDAQ compliance.

Revenue

ProPhase Labs’ total revenue declined 37.6% to $883,000 in Q3 2025, with the Consumer Products segment accounting for the entire figure, as Diagnostic Services and Unallocated Corporate segments reported $0. This represents a stark contrast to the $1.42 million in revenue from the same period in 2024. The absence of diagnostic services revenue underscores the ongoing challenges in the company’s core testing operations.

Earnings/Net Income

The company narrowed its per-share loss to $0.16 in Q3 2025 from $0.35 in the prior-year period, a 54.3% improvement. However, the net loss widened to $6.84 million from $6.59 million, reflecting higher operating expenses despite cost-cutting measures. While the EPS improvement signals progress, the overall net loss remains a concern for investors.

Post-Earnings Price Action Review

The stock price of ProPhase Labs experienced a significant downturn following the earnings release, plummeting 16.61% in a single trading day and 55.86% month-to-date. This sharp decline highlights market skepticism despite the CEO’s optimism about Crown Medical’s receivables and the BE-Smart test’s commercialization potential. The prolonged bearish trend suggests investors are pricing in the company’s liquidity risks and uncertain revenue streams.

CEO Commentary

Ted Karkus emphasized urgency in shareholder votes for a reverse stock split and strategic deals to ensure NASDAQ compliance. He highlighted Crown Medical’s $150 million receivables and the BE-Smart test’s $7–14 billion market potential. While cash constraints persist, Karkus expressed confidence in near-term cash inflows and the test’s hockey-stick growth trajectory.

Guidance

The CEO declined to provide explicit financial guidance for Q3 2025, citing operational restructuring and reliance on receivables resolution. Forward-looking statements focused on qualitative expectations, including potential $50 million collections from $150 million receivables and BE-Smart’s market potential. No reconciliation to non-GAAP measures was provided.

Additional News

In the three weeks preceding the earnings report, ProPhase Labs announced that its three COVID-19 testing subsidiaries filed for Chapter 11 bankruptcy to expedite $150 million in unpaid insurance claims. The company also secured a $6 million private placement through ThinkEquity and published a peer-reviewed study validating its BE-Smart esophageal cancer test in Clinical and Translational Gastroenterology. Shareholders were reminded of an upcoming special meeting to approve strategic initiatives, including a reverse stock split.

The company’s focus on litigation to recover receivables and the commercialization of the BE-Smart test remains central to its value proposition. However, ongoing liquidity challenges and the need for shareholder approval underscore the high-stakes environment for ProPhase Labs.