Liquidity is critically constrained, as evidenced by a current ratio of 0.06 and a highly erratic OCF/NI ratio that reached -2.35 in 2025Q4, indicating an inability to sustain organic cash generation.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | -8.34M | -17.54M | -11.35M | 28.55M | -13.62M | -2.59M | -841K | -2.12M | -2.84M | -472K | -3.5M | -3.22M | 1.14M | -5.73M | -2.11M | -3.55M | 445K | -3.06M | -1.31M | 956.94K | 4.27M | 4.66M | -966.23K | 543.64K | -1.12M | -1.87M | 1.3M | 8.9M | 9M | -1.1M |
| Operating CF Margin % | -192.04% | -259.05% | -25.57% | 23.28% | -17.23% | -17.86% | -8.52% | -16.14% | -28.76% | -2.25% | -16.97% | -14.57% | 4.54% | -25.57% | -12.08% | -24.47% | 2.25% | -14.91% | -3.32% | 2.27% | 7.95% | 10.6% | -2.33% | 1.85% | -4.53% | -9.66% | 5.24% | 24.45% | 12.82% | -137.5% |
| Operating CF Growth % | 52.42% | -54.55% | -139.75% | 309.64% | -425.42% | -208.2% | 60.31% | 25.33% | -501.27% | 86.5% | -8.74% | -382.85% | 119.85% | -171.77% | 40.6% | -897.53% | 114.55% | -133.12% | -237.06% | -77.57% | -8.47% | 582.29% | -277.73% | 148.67% | 40.27% | -243.83% | -85.39% | -1.11% | 918.18% | - |
| Net Income | -23.39M | -49.52M | -16.78M | 18.46M | 6.27M | -2.13M | -3.15M | -1.74M | 41.83M | -2.87M | -3.6M | -7.83M | 405K | -1.09M | -2.71M | -3.5M | -3.84M | -5.53M | -2.46M | -1.75M | 3.22M | 452.86K | 674.57K | -6.45M | 215.96K | -5.2M | -4.2M | 6.8M | 21M | -700K |
| Depreciation & Amortization | 5.06M | 6.64M | 6.7M | 5.06M | 3.56M | 458K | 398K | 383K | 337K | 426K | 367K | 277K | 243K | 252K | 355K | 363K | 522K | 743.67K | 996.16K | 1.33M | 1.4M | 622.35K | 473.59K | 409.07K | 490.24K | 364.92K | 200K | 200K | 100K | 0 |
| Stock-Based Compensation | 1.89M | 3.64M | 3.54M | 3.99M | 3.18M | 1.46M | 744K | 634K | 78K | 1K | 135K | 1.04M | 269K | 246K | 631K | 192K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 7.15M | 0 | -138K | 557K | -1.89M | 12K | 130K | -17.99M | 0 | -144K | -1.05M | -269K | 0 | 2.68M | 3.47M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 400K | 200K | -200K | 0 |
| Other Non-Cash Items | 8.28M | -334K | 896K | 5.52M | -311K | 118K | 40K | 170K | -26.67M | 24K | 135K | 4.62M | 269K | -1.02M | -2.84M | -4.23M | 764K | 234.27K | 39.54K | 26.36K | 94.84K | -695.83K | 71.03K | 2.84M | -254.22K | 355.03K | 100K | 800K | 100K | 1.2M |
| Working Capital Changes | -185K | 14.89M | -5.7M | -4.34M | -26.88M | -608K | 1.11M | -1.7M | -421K | 1.95M | -390K | -274K | 220K | -4.11M | -223K | 158K | 3M | 1.5M | 111.03K | 1.35M | -450.15K | 4.28M | -2.19M | 3.74M | -1.57M | 2.61M | 4.6M | 900K | -13.1M | -500K |
| Change in Receivables | 736K | 4.74M | 718K | -4.5M | -30.47M | -1.04M | 936K | -1.02M | 3.83M | -1.77M | 1.84M | -517K | 90K | -2.19M | 1.62M | -1.19M | 2.48M | 0 | -135.32M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 313K | 1.36M | 135K | 702K | -1.75M | -1.47M | 444K | -372K | 1.21M | 1.59M | -1.04M | -771K | -470K | 637K | -891K | 451K | 963K | 1.13M | -549.52K | -362.04K | -445.38K | 1.2M | 773.86K | 1.56M | 794.85K | -515.07K | 400K | 1.2M | -7.4M | 0 |
| Change in Payables | -722K | 5.07M | 3.48M | -1.12M | 2.45M | 3.34M | -14K | -125K | -1.59M | 1.17M | 323K | -344K | -285K | 411K | 396K | -219K | -212K | 0 | -347.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 920K | 2.42M | -1.37M | -2.08M | -19.67M | -1.02M | 5.54M | 11.86M | 21.77M | -651K | -709K | -306K | -442K | -310K | -134K | -1.15M | 272K | -183.07K | -533.03K | -579.2K | -519.21K | -4.61M | -555.02K | -580.86K | -477.96K | -706.39K | -1.2M | -1.2M | -200K | -300K |
| Capital Expenditures | 0 | -906K | -3.15M | -3.92M | -4.23M | -1.69M | -228K | -140K | -208K | -651K | -718K | -312K | -442K | -310K | -300K | -1.15M | -208K | -199.76K | -533.03K | -697.48K | -531.21K | -310.14K | -555.02K | -580.86K | -368.32K | -393.48K | -1M | -1M | -100K | 0 |
| CapEx % of Revenue | - | 13.38% | 7.11% | 3.2% | 5.35% | 11.64% | 2.31% | 1.07% | 2.11% | 3.1% | 3.48% | 1.41% | 1.77% | 1.38% | 1.72% | 7.95% | 1.05% | 0.97% | 1.35% | 1.66% | 0.99% | 0.71% | 1.34% | 1.97% | 1.49% | 2.03% | 4.03% | 2.75% | 0.14% | - |
| Acquisitions | 0 | 0 | -2.9M | 452K | -9.07M | -2.5M | 228K | 140K | 40.83M | 0 | 9K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.3M | 0 | 0 | 0 | -312.92K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 920K | -46K | 524K | 452K | -700K | 3.89M | -228K | -139K | 40.83M | -651K | 9K | 6K | -442K | -310K | 166K | -1.15M | 480K | 16.7K | -533.03M | 118.28K | 12K | 0 | 0 | 0 | -109.64K | 0 | -200K | -200K | -100K | -300K |
| Cash from Financing | 6.84M | 14.19M | 5.76M | -26.02M | 35.13M | 9.99M | -5.82M | -11.36M | -16.2M | -100K | 2.94M | 4.81M | 371K | 1.07M | -449K | 133K | 127K | 63.91K | 173.16K | 493.85K | -1.23M | 2.92M | 16.25K | 3.25M | -30.13K | -48.44K | -14.4M | -4.9M | 14.2M | 500K |
| Debt Issued (Net) | 3.31M | 5.61M | 10.52M | -7.04M | -45K | 10M | 0 | 0 | -1.5M | -100K | 1.4M | -100K | -100K | 0 | 0 | 0 | 0 | 0 | 0 | -1.46M | -1.43M | 2.89M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 3.56M | 7.59M | -5.97M | -2.15M | 39.72M | 0 | 0 | 0 | -16.28M | 0 | 1.56M | 4.91M | 444K | 1.07M | -449K | 0 | 0 | 63.91K | 173.16K | 1.96M | 201.02K | 26.99K | 16.25K | 3.25M | -30.13K | -48.44K | -14.4M | -8.4M | 2.5M | 500K |
| Dividends Paid | 0 | 0 | 0 | -9.35M | -4.55M | 0 | -5.82M | -11.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -5.97M | -9.63M | -917K | 0 | 0 | 0 | -16.28M | 0 | 0 | 0 | 0 | 0 | -449K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -30.13K | -113.44K | -14.8M | -9.1M | 0 | 0 |
| Other Financing | -35K | 978K | 1.2M | -7.47M | 0 | -10K | 0 | 338K | 1.58M | 0 | -20K | 0 | 27K | 0 | 0 | 133K | 127K | 91 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.5M | 11.7M | 0 |
| Net Change in Cash | -588K | -931K | -6.96M | 451K | 1.84M | 6.38M | -1.12M | -1.62M | 2.73M | -1.22M | -1.26M | 1.29M | 1.07M | -4.97M | -2.69M | -4.57M | 844K | -3.18M | -1.67M | 871.59K | 2.52M | 2.97M | -1.5M | 3.21M | -1.63M | -2.62M | -14.3M | 2.8M | 23M | 200K |
| Free Cash Flow | -8.34M | -18.44M | -14.5M | 24.63M | -17.85M | -4.28M | -1.07M | -2.26M | -3.05M | -1.12M | -4.21M | -3.53M | 695K | -6.04M | -2.41M | -4.7M | 237K | -3.26M | -1.84M | 259.46K | 3.73M | 4.35M | -1.52M | -37.23K | -1.49M | -2.26M | 300K | 7.9M | 8.9M | -1.1M |
| FCF Margin % | -192.04% | -272.44% | -32.68% | 20.08% | -22.58% | -29.5% | -10.82% | -17.21% | -30.87% | -5.34% | -20.46% | -15.99% | 2.78% | -26.95% | -13.8% | -32.42% | 1.2% | -15.88% | -4.67% | 0.62% | 6.96% | 9.9% | -3.67% | -0.13% | -6.02% | -11.69% | 1.21% | 21.7% | 12.68% | -137.5% |
| FCF Growth % | 54.76% | -27.17% | -158.88% | 237.99% | -316.96% | -300.47% | 52.68% | 25.84% | -171.24% | 73.36% | -19.47% | -607.63% | 111.51% | -150.79% | 48.79% | -2083.97% | 107.28% | -76.59% | -810.94% | -93.05% | -14.15% | 385.94% | -3986.61% | 97.49% | 34.38% | -854.42% | -96.2% | -11.24% | 909.09% | - |
| FCF per Share | -0.98 | -9.67 | -8.43 | 13.21 | -9.70 | -3.69 | -0.92 | -1.98 | -1.94 | -0.66 | -2.57 | -2.10 | 0.43 | -4.07 | -1.63 | -3.29 | 0.18 | -2.53 | -1.45 | 0.21 | 2.81 | 3.01 | -1.02 | -0.03 | -1.38 | -2.15 | 0.26 | 5.29 | 6.06 | -0.87 |
| FCF Conversion (FCF/Net Income) | 0.57x | 0.33x | 0.68x | 1.55x | -2.17x | 1.22x | 0.27x | 1.22x | -0.07x | 0.16x | 0.97x | 0.41x | 2.81x | 5.25x | 0.78x | 1.01x | -0.12x | 0.55x | 0.53x | -0.55x | 1.33x | 10.29x | -1.43x | -0.08x | -5.17x | 0.36x | -0.31x | 1.31x | 0.43x | 1.57x |
| Interest Paid | 1.16M | 3.1M | 932K | 763K | 0 | 0 | 0 | 0 | 54K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 1.65M | 1.13M | 3M | 1.7M | 0 | 0 | 103K | 0 | 1.35M | 0 | 0 | 0 | 0 | 0 | 0 | 34K | 43K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and insolvency
As reported in recent financial statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -2.35 to 3.15, suggesting that accruals and non-cash adjustments are masking the underlying instability of the company's core cash generation capabilities.
The extreme divergence between net income and operating cash flow indicates that reported earnings are not a reliable proxy for cash generation. Investors should monitor whether these fluctuations are driven by aggressive revenue recognition or the timing of insurance collections, as the lack of consistent conversion suggests a business model struggling to translate activity into liquidity.
Based on the provided quarterly data, ProPhase Labs' free cash flow trajectory remains deeply inconsistent, with margins fluctuating between -195.8% and 22.2%, highlighting a persistent inability to sustain positive cash flow generation in the post-pandemic diagnostic environment as reported in recent filings.
The volatility in FCF margins suggests that the company is frequently forced to prioritize survival over long-term capital efficiency. The inability to maintain a positive FCF trajectory, even when accounting for minimal capital expenditures, implies that the current cost structure is fundamentally misaligned with the company's revenue-generating potential.
According to historical cash flow data, working capital changes have been highly unpredictable, with a significant $19.9 million swing in 2024Q4, which suggests that the company's cash position is heavily dependent on the timing of receivables and payables rather than organic operational efficiency.
Large, irregular swings in working capital often indicate challenges in managing the cash conversion cycle, particularly in the diagnostic services segment where insurance reimbursement delays are common. This instability warrants further investigation into whether the company is pulling forward cash or delaying obligations to manage its precarious liquidity position.
As evidenced by the persistent stock-based compensation expenses, which have remained a recurring feature in the cash flow statement, the company's reported cash burn may be understated, as these non-cash charges effectively dilute shareholders while failing to address the underlying structural operating losses.
The reliance on stock-based compensation to manage cash outflows suggests that the company is attempting to preserve its limited cash reserves at the expense of equity dilution. Analysts should be wary of the fact that these adjustments do not improve the company's ability to fund its operations, but rather shift the burden of the cash burn onto the shareholder base.
Quick answers to the most common questions about buying PRPH stock.
ProPhase Labs, Inc. (PRPH) generated $-8.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ProPhase Labs, Inc. (PRPH) reported negative free cash flow of $8.3M in 2025, indicating capital requirements exceeded cash from operations.
ProPhase Labs, Inc. (PRPH) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.