ProPhase Labs, Inc. reported its financial results for the second quarter of 2025, revealing a net revenue of $1.25 million, a decrease from $1.50 million in the same period last year. For the first half of 2025, the company generated $2.68 million in revenue, down from $3.86 million in the first half of 2024. The decline in revenue is attributed to the cessation of diagnostic services, which had previously contributed to the company's income. The cost of revenues for the second quarter was $0.51 million, significantly lower than the $1.66 million reported in the prior year, leading to a gross profit of $0.73 million compared to a gross loss of $0.16 million in Q2 2024.
The company’s operating expenses for the second quarter were $4.63 million, down from $6.93 million in the same quarter last year, primarily due to reduced personnel costs and professional fees following the divestiture of Pharmaloz Manufacturing, Inc. ProPhase reported a net loss from continuing operations of $4.47 million, or $(0.11) per share, an improvement from a loss of $5.46 million, or $(0.29) per share, in the prior year. The total loss for the first half of 2025 was $9.15 million, compared to $10.99 million in the same period of 2024.
In terms of strategic developments, ProPhase completed the sale of its subsidiary Pharmaloz Manufacturing, Inc. in January 2025, which resulted in a gain of approximately $8.7 million. This transaction allowed the company to extinguish about $10 million in debt and provided $2 million in cash. The company is now focusing on its consumer products segment, which includes dietary supplements and genomics services, while also pursuing new acquisition opportunities.
Operationally, ProPhase has seen a significant shift in its business model, with diagnostic services no longer contributing to revenue. The company is now concentrating on its consumer products, which include the TK Supplements brand and the BE-Smart Esophageal Pre-Cancer Diagnostic Screening Test. The latter has shown promising results in validation studies, with plans for commercialization in late 2025. As of June 30, 2025, ProPhase had cash and cash equivalents of $169,000, down from $678,000 at the end of 2024, reflecting ongoing operational costs and debt repayments.
Looking ahead, ProPhase Labs anticipates continued challenges in generating revenue from its diagnostic services, which have been significantly impacted by changes in market demand and reimbursement rates. The company is focused on enhancing its consumer product offerings and exploring new business lines to replace lost revenue streams. Management believes that with its current cash position and access to financing, it can sustain operations for at least the next 12 months while pursuing growth opportunities in the biotech and consumer health sectors.
About ProPhase Labs, Inc.
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