Pro-Dex, Inc. Announces Fiscal 2026 First Quarter Results

Rhea-AI Summary

Pro-Dex (Nasdaq: PDEX) reported fiscal 2026 first quarter results for the period ended September 30, 2025. Net sales rose 24% to $18.5M, driven mainly by resumption of shipments of a next-generation handpiece to the company's largest customer. Gross margin fell 6 percentage points to 29% due to higher costs and tariffs. Operating income was $3.1M and net income was $4.68M ($1.40 diluted), which included $3.3M of unrealized investment gains. The company received $8.9M cash from the sale of Monogram shares and filed its Form 10-Q on October 30, 2025.

Positive

• Net sales +24% to $18.5M for Q1 FY2026
• Received $8.9M cash proceeds from Monogram acquisition
• Investments balance increased to $10.04M at Sept 30, 2025

Negative

• Gross margin down 6 percentage points to 29% in Q1
• Operating expenses rose 6% to $2.26M due to higher personnel costs
• Cash and cash equivalents remain modest at $0.51M at Sept 30, 2025

Insights

Financial Results Analyst

Strong quarter with revenue up 24% and net income boosted by sizable investment gains and cash proceeds.

Revenue rose to $18.5 million, a 24% increase from the prior year quarter, driven primarily by resumed shipments of the customer's next‑generation handpiece; operating income edged up to $3.1 million reflecting higher sales despite a 6 point gross margin decline to 29% from 35%, which the company attributes to higher costs and tariffs not yet passed to customers.

The quarter's net income of $4.7 million (diluted EPS $1.40) includes an $3.3 million unrealized gain on marketable equity investments and $8.9 million cash proceeds from Monogram shares upon acquisition; these items materially inflated net income versus operating results and introduce earnings volatility given fair‑value accounting.

Key dependencies and near‑term items to watch include whether the resumed shipment cadence holds into the second fiscal quarter and beyond, the company's ability to recover higher input costs in margins, and any deployment plans for the $8.9 million cash received; monitor results and disclosures over the next two quarters for confirmation of sustained sales and margin trends (Q2 FY2026 timeframe).

IRVINE, CA / ACCESS Newswire / October 30, 2025 / PRO-DEX, INC. (NasdaqCM:PDEX) today announced financial results for its fiscal 2026 first quarter ended September 30, 2025. The Company also filed its Quarterly Report on Form 10-Q for the first quarter of fiscal year 2026 with the Securities and Exchange Commission today.

Quarter Ended September 30, 2025

Net sales for the three months ended September 30, 2025, increased $3.6 million, or 24%, to $18.5 million from $14.9 million for the three months ended September 30, 2024. The increase is driven primarily by a $4.4 million increase in revenue related to the resumption of the next-generation handpiece we sell to our largest customer, offset by a $1.3 million decrease in repairs of the legacy handpiece we sell to that customer. During the fourth quarter of fiscal 2025, at the customer's request, we resumed production and shipment of the customer's next generation handpiece. Because certain of the sub-assemblies included in the handpiece take several weeks of internal machining, the process to resume shipments at the requested levels has taken several months. By September 2025, our shipments reached the recurring level that the customer has requested.

Gross profit for the threemonths ended September 30, 2025, increased $217,000, or 4%, compared to the year-ago period. Gross margin decreased by 6 percentage points to 29% during the three months ended September 30, 2025, compared to 35% during the corresponding year-ago period, due primarily as a result of higher costs, including tariffs, which have not been fully passed on to our customers.

Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended September 30, 2025, increased $121,000, or 6%, to $2.3 million compared to $2.1 million for the prior fiscal year's corresponding quarter. The increase relates primarily to increased general and administrative expenses relating to higher personnel costs specifically related to human resources, information technology and facilities.

Our operating income for the quarter ended September 30, 2025, increased $96,000, or 3%, to $3.1 million compared to $3.0 million for the prior fiscal year's corresponding quarter. The increase reflects our increased sales, as described above.

Net income for the quarter ended September 30, 2025, increased to $4.7 million, or $1.40 per diluted share, compared to net income of $2.5 million, or $0.75 per diluted share, for the quarter ended September 30, 2024. Our net income for the quarter ended September 30, 2025, contains unrealized gains on our marketable equity investments of $3.3 million while our net income for the quarter ended September 30, 2024, includes unrealized gains on investments of $433,000. All of our investments are recorded at estimated fair value, and the period-to-period valuation can be highly volatile. Specifically, our investment in Monogram Technologies, Inc. was valued at the cash price we received in October 2025, upon its acquisition by Zimmer Biomet Holdings, Inc. We received $4.04 per share for each of the common shares we owned of Monogram, for a total of $8.9 million in cash proceeds.

CEO Comments

Richard L. ("Rick") Van Kirk, the Company's President and Chief Executive Officer, commented, "We are pleased with our first quarter results and excited to have resumed shipment of our largest customer's next generation handpiece at the recurring levels we expect to deliver in our second fiscal quarter and beyond." Mr. Van Kirk concluded, "We are also pleased with the recent cash infusion generated from our investment in Monogram and are thoughtfully considering how to best utilize it for our continued growth and strategic objectives."

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. Pro-Dex also sells compact pneumatic air motors for a variety of industrial applications. Pro-Dex's products are found in hospitals and medical engineering labs around the world. 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 risk factors and other disclosures concerning the operational and business concerns of the Company set forth in the Company's filings with the Securities and Exchange Commission.

(tables follow)

PRO-DEX, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share amounts)

		September 30, 2025				June 30, 2025
ASSETS
Current Assets:
Cash and cash equivalents..............................................		$	514			$	419
Investments...................................................................			10,038				6,740
Accounts receivable, net of allowance for credit losses of $2 and $0 at September 30, 2025 and at June 30, 2025, respectively...............................................................			18,234				16,433
Deferred costs...............................................................			32				24
Inventory......................................................................			21,564				22,213
Income taxes receivable.................................................			106				1,056
Prepaid expenses and other current assets.......................			235				410
Total current assets....................................................			50,723				47,295
Land and building, net.......................................................			6,038				6,061
Equipment and leasehold improvements, net.......................			4,969				5,153
Right-of-use asset, net.......................................................			941				1,050
Intangibles, net..................................................................			19				26
Deferred income taxes.......................................................			1,415				1,415
Investments......................................................................			149				148
Other assets......................................................................			44				44
Total assets...................................................................		$	64,298			$	61,192
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable..........................................................		$	3,965			$	4,614
Accrued liabilities..........................................................			4,127				3,479
Income taxes payable.....................................................			776				186
Deferred revenue...........................................................			122				202
Notes payable................................................................			4,612				6,148
Total current liabilities...............................................			13,602				14,629
Lease liability, net of current portion.................................			555				685
Notes payable, net of current portion.................................			8,628				9,246
Total non-current liabilities.........................................			9,183				9,931
Total liabilities..............................................................			22,785				24,560
Shareholders' Equity:
Common stock; no par value; 50,000,000 shares authorized; 3,262,004 and 3,261,043 shares issued and outstanding at September 30, 2025 and June 30, 2025, respectively...............................................................			905				704
Retained earnings..........................................................			40,608				35,928
Total shareholders' equity..........................................			41,513				36,632
Total liabilities and shareholders' equity..................		$	64,298			$	61,192

PRO-DEX, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share amounts)

		Three Months Ended September 30,
		2025				2024
Net sales....................................................................................		$	18,530			$	14,892
Cost of sales...............................................................................			13,163				9,742
Gross profit................................................................................			5,367				5,150
Operating expenses:
Selling expenses......................................................................			73				48
General and administrative expenses........................................			1,417				1,246
Research and development costs..............................................			768				843
Total operating expenses.............................................................			2,258				2,137
Operating income.......................................................................			3,109				3,013
Other income (expense):
Interest and dividend income....................................................			14				25
Unrealized gain on investments................................................			3,299				433
Interest expense......................................................................			(200	)			(152	)
Total other income......................................................................			3,113				306
Income before income taxes........................................................			6,222				3,319
Provision for income taxes..........................................................			1,542				853
Net income.................................................................................		$	4,680			$	2,466
Basic and diluted net income per share:
Basic net income per share..........................................................		$	1.43			$	0.76
Diluted net income per share.......................................................		$	1.40			$	0.75
Weighted-average common shares outstanding:
Basic..............................................................................			3,261,753				3,259,742
Diluted...........................................................................			3,338,805				3,292,142
Common shares outstanding .......................................................			3,262,004				3,297,510

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 drove Pro-Dex (PDEX) revenue growth in Q1 FY2026?

Revenue growth was driven primarily by resumption of shipments of the customer's next-generation handpiece, raising net sales to $18.5M.

How did Pro-Dex (PDEX) report profitability for Q1 ended Sept 30, 2025?

Pro-Dex reported $3.1M operating income and $4.68M net income ($1.40 diluted), including $3.3M unrealized investment gains.

What caused Pro-Dex (PDEX) gross margin to decline in Q1 FY2026?

Gross margin fell to 29% from 35% due primarily to higher costs, including tariffs not fully passed to customers.

How much cash did Pro-Dex (PDEX) receive from its Monogram investment in October 2025?

The company received $8.9M in cash proceeds from the sale of its Monogram shares.

What is Pro-Dex (PDEX) cash and investments position at Sept 30, 2025?

Cash and cash equivalents were $0.51M and investments totaled $10.04M as of Sept 30, 2025.

Did Pro-Dex (PDEX) file its SEC report for Q1 FY2026 and when?

Yes; Pro-Dex filed its Quarterly Report on Form 10-Q with the SEC on October 30, 2025.