Pro-Dex, Inc. Announces Contract Extension With Largest Customer

Rhea-AI Summary

Pro-Dex (NasdaqCM: PDEX) announced a contract amendment with its largest customer executed on December 17, 2025 that extends an agreement scheduled to terminate on December 31, 2025 through December 31, 2028. The amendment includes minimum purchase volumes for 2026 and 2027, and continues a commercial relationship that will total more than fifteen years.

The company makes autoclavable, battery-powered and electric surgical drivers and shavers, licensed torque-limiting software, and sells rotary air motors (described as a de minimis portion of revenue). Management framed the amendment as positioning Pro-Dex for continued revenue growth.

Positive

• Contract extended through December 31, 2028
• Minimum purchase volumes specified for 2026 and 2027
• Over 15 years of ongoing customer relationship secured

Negative

• None.

News Market Reaction

-8.30% 1.5x vol

8 alerts

-8.30% News Effect

+2.6% Peak Tracked

-4.8% Trough Tracked

-$12M Valuation Impact

$131M Market Cap

1.5x Rel. Volume

On the day this news was published, PDEX declined 8.30%, reflecting a notable negative market reaction. Argus tracked a peak move of +2.6% during that session. Argus tracked a trough of -4.8% from its starting point during tracking. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $12M from the company's valuation, bringing the market cap to $131M at that time. Trading volume was above average at 1.5x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Contract extension term: 3 years Original contract end: December 31, 2025 New contract end: December 31, 2028 +2 more

5 metrics

Contract extension term 3 years Amendment with largest customer executed on December 17, 2025

Original contract end December 31, 2025 Previous termination date before amendment

New contract end December 31, 2028 Extended term with largest customer

Minimum purchase years 2026 and 2027 Contract includes minimum purchase volumes for these calendar years

Collaboration duration More than fifteen years Total relationship length with largest customer after amendment

Market Reality Check

Price: $40.03 Vol: Volume 21,515 is below 20...

normal vol

$40.03 Last Close

Volume Volume 21,515 is below 20-day average 30,528 (relative volume 0.7x). normal

Technical Price $42.18 is trading slightly below the 200-day MA at $42.66.

Peers on Argus

PDEX was down 2.11% while several peers like ZJYL and AVR showed gains of 4.10% ...

1 Up 1 Down

PDEX was down 2.11% while several peers like ZJYL and AVR showed gains of 4.10% and 7.68%, respectively. Momentum names STSS and AVR in the scanner moved in opposite directions, reinforcing a stock-specific move rather than a broad sector trend.

Historical Context

3 past events · Latest: Oct 30 (Positive)

Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Oct 30	Earnings release	Positive	-0.3%	Q1 FY26 net sales up 24% with strong income and investment gains.
Oct 16	Corporate clarification	Neutral	-4.8%	Clarified no affiliation with crypto entity using the PDEX symbol.
Sep 04	Earnings release	Positive	-16.5%	FY25 sales and net income up sharply with large backlog reported.

Pattern Detected

Recent history shows positive fundamental updates often followed by negative or flat next‑day price reactions, indicating a tendency for the stock to sell off or stall on good news.

Recent Company History

Over the last few months, Pro-Dex reported strong fiscal results and operational updates. On Sep 4, 2025, full-year net sales rose 24% to $66.6M, with a backlog of $50.4M, yet the stock fell 16.51%. Q1 FY26 results on Oct 30, 2025 showed net sales up 24%, but shares slipped 0.26%. A trading-symbol clarification on Oct 16, 2025 also saw a 4.84% decline. Today’s multi‑year contract extension fits a pattern of solid business news contrasted with weaker immediate price action.

Market Pulse Summary

The stock moved -8.3% in the session following this news. A negative reaction despite the multi-year...

Analysis

The stock moved -8.3% in the session following this news. A negative reaction despite the multi-year extension fits prior patterns where solid updates, including revenue growth and a $50.4M backlog, were followed by declines. Securing the largest customer through 2028 with minimum purchases in 2026 and 2027 strengthened visibility, yet the price previously fell after good news. Such history suggests that expectations, valuation, or profit-taking have often outweighed fundamentals after announcements.

Key Terms

autoclavable, orthopedic, thoracic, torque-limiting software, +1 more

5 terms

autoclavable medical

"design, development, and manufacture of autoclavable, battery-powered and electric"

Able to withstand repeated sterilization in an autoclave, meaning the item can tolerate high-temperature, high-pressure steam without melting, deforming or losing function. For investors, an “autoclavable” label signals that medical devices, lab tools or packaging meet hygiene and regulatory needs, can lower replacement costs, and may be preferred by hospitals and labs—making products more marketable and durable in healthcare and scientific markets.

orthopedic medical

"used primarily in the orthopedic, thoracic, and maxocranial facial markets"

Relating to the prevention, diagnosis and treatment of injuries and disorders of the bones, joints, muscles, tendons and ligaments; commonly associated with surgeries, implants (like joint replacements or screws), braces and rehabilitation. Investors pay attention because orthopedic activity drives demand for medical devices, hospital services and rehab products—like how road repairs create business for construction firms—so changes in procedure volumes, new implant approvals or shifts in care settings can affect revenues and growth prospects for companies in this sector.

thoracic medical

"used primarily in the orthopedic, thoracic, and maxocranial facial markets"

Relating to the chest area of the body, including the lungs, heart-adjacent structures, ribs and the passageways between them. Investors encounter 'thoracic' in descriptions of medical devices, surgeries or diseases affecting the chest; it matters because advances, approvals or setbacks in thoracic care can change demand for treatments, influence clinical trial results and affect revenue for medical companies and hospitals, much like work on a home's central utility room impacts the whole house.

torque-limiting software technical

"We have patented adoptive torque-limiting software and proprietary sealing solutions"

Software that monitors and restricts the twisting force (torque) produced by a motor or tool to predetermined safe or performance limits. Like a speed governor on a car, it prevents components or users from being damaged by excessive force, helping products meet safety rules, reduce warranty claims, and avoid liability. Investors care because it affects regulatory approval, product reliability, manufacturing costs, and brand trust, all of which influence sales and risk.

forward-looking statements regulatory

"may include 'forward-looking statements' within the context of the federal securities laws"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

IRVINE, CA / ACCESS Newswire / December 19, 2025 / PRO-DEX, INC. (NasdaqCM:PDEX) today announced that on December 17, 2025, it executed a contract amendment with its largest customer for an additional three years. The contract, which was scheduled to terminate on December 31, 2025, has now been extended through December 31, 2028. The contract also contains minimum purchase volumes for each of the 2026 and 2027 calendar years.

"We are pleased to secure the business of our largest customer for an additional three years," said Richard L. ("Rick") Van Kirk, the Company's President and Chief Executive Officer. "This amendment will culminate in more than fifteen years of collaboration with this customer and positions us for continued revenue growth. We are committed to delivering long-term value to all of our customers, many of whom we have been serving for over a decade."

About Pro-Dex, Inc.:

Pro-Dex, Inc. specializes in the design, development, and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers and shavers used primarily in the orthopedic, thoracic, and maxocranial facial markets. We have patented adoptive torque-limiting software and proprietary sealing solutions that appeal to our customers, primarily medical device distributors. Additionally, we provide engineering, quality, and regulatory consulting services to our customers. We also manufacture and sell rotary air motors to a wide range of industries; however, these motors comprise a de minimis portion of our business.For more information, visit the Company's website at www.pro-dex.com.

Statements herein concerning the Company's plans, growth and strategies may include 'forward-looking statements' within the context of the federal securities laws. Statements regarding the Company's future events, developments and future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The Company's actual results may differ materially from those suggested as a result of various factors. Interested parties should refer to the disclosure concerning the operational and business concerns of the Company set forth in the Company's filings with the Securities and Exchange Commission.

Contact: Richard L. Van Kirk, Chief Executive Officer
(949) 769-3200

SOURCE: Pro-Dex, Inc.

View the original press release on ACCESS Newswire

FAQ

What did Pro-Dex (PDEX) announce on December 17, 2025 about its largest customer?

Pro-Dex executed a contract amendment on December 17, 2025 extending the agreement through December 31, 2028.

Does the Pro-Dex contract extension (PDEX) include minimum purchase commitments?

Yes. The amendment includes minimum purchase volumes for each of the 2026 and 2027 calendar years.

How long will Pro-Dex and its largest customer have worked together after the PDEX amendment?

The amendment will culminate in more than fifteen years of collaboration with that customer.

What product lines does Pro-Dex (PDEX) supply that relate to this contract extension?

Pro-Dex designs and manufactures autoclavable battery-powered and electric multi-function surgical drivers and shavers used in orthopedic, thoracic, and maxocranial facial markets.

Will the Pro-Dex (PDEX) contract extension likely affect near-term revenue visibility?

The amendment extends the contract through 2028 and sets minimum purchases for 2026–2027, which the company said positions it for continued revenue growth.

Where can investors find more information about Pro-Dex (PDEX)?

Investors can visit the company's website at www.pro-dex.com for more information.