Pro-Dex, Inc. Announces Fiscal 2026 Fourth Quarter and Full-Year Results

Pro-Dex delivered double-digit fiscal 2026 revenue and earnings growth, supported by margin expansion and contributions from its APM acquisition.

Rhea-AI Summary

Pro-Dex (PDEX) reported fiscal 2026 fourth quarter and full-year results with net sales up 17% in Q4 ended June 30, 2026.

Quarterly net sales rose to $20.4 million from $17.5 million, driven mainly by its largest customer's next generation orthopedic handpiece. Q4 gross profit doubled to $7.1 million, lifting gross margin to 35% from 20%, while operating income rose to $3.5 million and net income to $2.9 million, or $0.87 per diluted share.

For fiscal 2026, net sales increased 16% to $77.5 million and gross profit reached $24.3 million, with gross margin improving to 31% from 29%. Operating income grew to $13.0 million, and net income was $13.7 million, or $4.12 per diluted share, aided by $5.7 million in gains on marketable equity investments. The APM acquisition added $718,000 of revenue and raised goodwill to $6.5 million. At June 30, 2026, cash was $8.2 million, total assets were $74.5 million, and shareholders' equity was $47.6 million.

Positive

• Q4 2026 net sales increased 17% to $20.4 million from $17.5 million, driven primarily by higher shipments of the largest customer's next generation orthopedic handpiece.
• Fiscal 2026 net sales grew 16% to $77.5 million from $66.6 million in fiscal 2025, reflecting higher revenue from the largest customer and increased NRE revenue.
• Gross margins improved from 20% to 35% in Q4 and from 29% to 31% for fiscal 2026, supported by favorable product mix, better overhead absorption, and contributions from APM.
• Fiscal 2026 net income rose to $13.7 million, or $4.12 per diluted share, compared with $9.0 million, or $2.67 per diluted share, in fiscal 2025.
• Cash and cash equivalents increased to $8.2 million at June 30, 2026 from $419,000 a year earlier, while shareholders' equity grew to $47.6 million from $36.6 million.
• Gains on marketable equity investments were $5.7 million in fiscal 2026 versus $2.1 million in fiscal 2025, providing an additional boost to reported net income.

Negative

• Operating expenses for fiscal 2026 increased 29% to $11.3 million from $8.8 million, including higher personnel costs, APM operating expenses, consulting fees, and a $349,000 allowance for uncollectible receivables.
• Q4 2026 operating expenses rose to $3.6 million from $2.2 million in the prior-year quarter, reflecting higher SG&A and research and development spending.
• Repair revenue declined by $6.0 million year over year, primarily from the largest customer, partially offsetting the $15.3 million increase in revenue from that customer.
• Notes payable balances increased, with current notes at $4.2 million and non-current notes at $13.3 million as of June 30, 2026, compared with $6.1 million and $9.2 million, respectively, a year earlier.
• Net income depends partly on marketable equity investment gains of $5.7 million in fiscal 2026, and the company notes that these fair value estimates can be highly volatile.

News Explained

APM was acquired for $6,493 thousand net cash, while debt payments and $3,408 thousand of buybacks shaped fiscal 2026 cash use.

Pro-Dex reports fiscal 2026 ended June 30, 2026 with the APM acquisition completed; its cash-flow statement records $6,493 thousand paid for APM net of cash acquired, adding a completed acquisition cash outlay to the year's results.

Operating activities provided $7,242 thousand during fiscal 2026, while cash and cash equivalents stood at $8,192 thousand at year-end, linking the year's operating cash generation to a much larger point-in-time liquidity balance.

Financing activity used net cash: Pro-Dex received $23,617 thousand from notes and its revolving loan net of fees, paid $23,649 thousand of principal on notes, leases and the revolving loan, repurchased $3,408 thousand of common stock, and reported net financing cash use of $3,382 thousand.

The income statement includes a $5,655 thousand gain on marketable equity investments, and the release says those investments are recorded at estimated fair value whose valuation can be highly volatile; that line item is a named consideration when assessing reported earnings.

Market Context

On April 30, PDEX’s comparable results release provided a historical comparison for this update. The...

Analysis

On April 30, PDEX’s comparable results release provided a historical comparison for this update. The report’s operating improvement remains alongside volatile marketable-equity valuations; monitoring recurring operating income would distinguish core execution from investment effects.

Key Figures

Quarterly net sales: $20.4M (+17%) Quarterly gross margin: 35% Quarterly diluted EPS: $0.87 +5 more

8 metrics

Quarterly net sales $20.4M (+17%) Quarter ended June 30, 2026 vs. $17.5M prior year

Quarterly gross margin 35% Quarter ended June 30, 2026 vs. 20% prior year

Quarterly diluted EPS $0.87 Quarter ended June 30, 2026 vs. $0.36 prior year

Quarterly operating income $3.5M (+163%) Quarter ended June 30, 2026 vs. $1.3M prior year

Full-year net sales $77.5M (+16%) Fiscal year ended June 30, 2026 vs. $66.6M fiscal 2025

Full-year operating income $13.0M (+22%) Fiscal year ended June 30, 2026 vs. $10.7M fiscal 2025

Full-year diluted EPS $4.12 Fiscal year ended June 30, 2026 vs. $2.67 fiscal 2025

Marketable equity investment gains $5.7M Fiscal year ended June 30, 2026 vs. $2.1M fiscal 2025

Historical Context

1 past event · Latest: Apr 30 (Positive)

Pattern 1 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 30	3Q26 earnings	Positive	-3.5%	Strong quarterly sales and income growth accompanied by realized investment gains and APM acquisition.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

The available comparable results release diverged from the stock's positive operating results, with a -3.55% 24-hour reaction.

Key Terms

gross margin, allowance for credit losses, estimated fair value, diluted income per share

4 terms

gross margin financial

"Our gross margin increased from 20% for the three months ended June 30, 2025"

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

View in glossary

allowance for credit losses financial

"Accounts receivable, net of allowance for credit losses of $349 and $0"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

estimated fair value financial

"All of our investments are recorded at estimated fair value"

An estimated fair value is a calculated price that represents what a financial asset, liability, or business would likely sell for between willing, informed parties when no exact market price exists. It uses available data and assumptions — like recent sales, cash‑flow projections, or comparable assets — to produce a best‑guess dollar amount; investors use it as a benchmark to judge whether a security or holding appears under- or overvalued.

diluted income per share financial

"Basic & Diluted income per share: Basic net income per share"

Diluted income per share measures how much of a company’s profit would be allocated to each outstanding share if all potential shares from options, warrants, convertible debt or other claims were turned into actual shares. Investors use it as a conservative, “what if” view of profit per share — like slicing a pie thinner if more people join the table — so it helps compare true per-share earnings and assess the risk of future share dilution.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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IRVINE, CA / ACCESS Newswire / September 3, 2026 / PRO-DEX, INC. (NasdaqCM:PDEX) today announced financial results for its fiscal 2026 fourth quarter and full-year ended June 30, 2026.

Quarter Ended June 30, 2026

Net sales for the three months ended June 30, 2026 increased $2.9 million, or 17%, to $20.4 million from $17.5 million for the three months ended June 30, 2025, due primarily to increased revenue from our largest customer's next generation orthopedic handpiece. Gross profit for the three months ended June 30, 2026 increased $3.6 million, or 103%, to $7.1 million from $3.5 million for the three months ended June 30, 2025 similarly attributable to increased revenue from our largest customer's next generation handpiece. During much of the fourth quarter of fiscal 2025, we were shipping our largest customer its legacy handpiece, until the customer released its product hold on the next generation handpiece late in that quarter, at which point we resumed production and shipment of its next generation handpiece late in the same quarter. Our gross margin increased from 20% for the three months ended June 30, 2025, to 35% for the three months ended June 30, 2026, due to favorable product mix, better absorption of our indirect manufacturing costs and favorable margins derived from our subsidiary, Advanced Precision Machining, LLC ("APM"), which we acquired in the third quarter of fiscal 2026.

Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended June 30, 2026, increased $1.4 million to $3.6 million, compared to $2.2 million for the prior fiscal year's corresponding quarter. Selling, general and administrative expenses increased by $1.3 million, and research and development expenses increased by $111,000 for the quarter ended June 30, 2026, compared to the corresponding quarter in fiscal 2025. The increases relate primarily to a $349,000 allowance for uncollectible receivables, $436,000 of APM's separate administrative expenses, $250,000 in consulting payments paid to the founder of APM to assist with our manufacturing operations, as well as increased personnel and related expenses to support our continued growth.

Our operating income for the quarter ended June 30, 2026, increased $2.2 million, or 163%, to $3.5 million compared to $1.3 million for the prior fiscal year's corresponding quarter. The increase reflects our increased gross profit partially offset by higher operating expenses, as described above.

Net income for the quarter ended June 30, 2026, increased by $1.7 million to $2.9 million, or $0.87 per diluted share, compared to $1.2 million, or $0.36 per diluted share, in the corresponding quarter in 2025.

Year Ended June 30, 2026

Net sales for the fiscal year ended June 30, 2026 increased $10.9 million, or 16%, to $77.5 million from $66.6 million for the fiscal year ended June 30, 2025, due primarily to a of $15.3 million increase in revenue from our largest customer, related primarily to its next generation orthopedic handpiece, offset by a $6.0 million reduction in repair revenue, primarily from our largest customer. Additionally, our NRE revenue increased $952,000 in the fiscal year ended June 30, 2026 compared to the prior fiscal year and APM added $718,000 in revenue since our acquisition of APM on February 9, 2026.

Gross profit for the fiscal year ended June 30, 2026, increased $4.8 million, or 25%, to $24.3 million compared to $19.5 million for fiscal 2025. Our gross margin increased from 29% in fiscal 2025 to 31% in fiscal 2026, due to overall favorable product mix.

Operating expenses (which include selling, general and administrative, and research and development expenses) for the fiscal year ended June 30, 2026, increased $2.5 million or 29% to $11.3 million from $8.8 million in the prior fiscal year. The increase relates primarily to an increase of $1.2 million in personnel costs included in general and administrative expenses to support our continued growth, which amount includes $582,000 of company-wide bonus accruals and non-cash equity compensation expense, as well as $500,000 in non-recurring consulting fees paid to APM's founder, $669,000 of APM's separate operating expenses, and the $349,000 allowance for uncollectible receivables referenced above. The decrease in research and development expenses in fiscal 2026 is primarily related to a decrease in legal expenses related to intellectual property matters.

Our operating income for the year ended June 30, 2026, increased $2.3 million, or 22%, to $13.0 million compared to $10.7 million for the prior fiscal year's corresponding quarter. The increase reflects our increased sales and gross profit, as described above.

Net income for the fiscal year ended June 30, 2026, was $13.7 million, or $4.12 per diluted share, compared to $9.0 million, or $2.67 per diluted share, for fiscal 2025. Our net income for the fiscal years ended June 30, 2026 and 2025 contains gains on our marketable equity investments of $5.7 million and $2.1 million, respectively. All of our investments are recorded at estimated fair value, and the valuation can be highly volatile.

CEO Comments

"We are very pleased with our fiscal 2026 performance including completing the acquisition of APM and increasing sales by 16%," said the Company's President and Chief Executive Officer Richard L. ("Rick") Van Kirk. "I continue to extend my gratitude to the Pro-Dex team for their continued teamwork and focus on execution," Mr. Van Kirk concluded.

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 adaptive 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. Our APM subsidiary manufactures parts and assemblies for the aerospace and defense industries in addition to providing several machined components to support Pro-Dex's customers. Pro-Dex, Inc. also sells rotary air motors to a wide range of industries; however, these air motors comprise a de minimis portion of our business. Pro-Dex's products are found in hospitals and medical engineering labs around the world. For more information, visit the Company's websites at www.pro-dex.com and www.advanced-precision.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 risks of the Company set forth in the Company's filings with the Securities and Exchange Commission, including its Annual Report of Form 10-K. The Company undertakes no obligation to update any forward-looking statement, except as required by law.

(tables follow)

PRO-DEX, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)

		June 30,
		2026				2025
ASSETS
Current assets:
Cash and cash equivalents.........................................................		$	8,192			$	419
Investments............................................................................			1,150				6,740
Accounts receivable, net of allowance for credit losses of $349 and $0 at June 30, 2026 and 2025, respectively................			21,205				16,433
Deferred costs.........................................................................			70				24
Inventory................................................................................			21,458				22,213
Income taxes receivable...........................................................			620				1,056
Prepaid expenses.....................................................................			553				410
Total current assets............................................................			53,248				47,295
Land and building, net...................................................................			5,967				6,061
Equipment and improvements, net..................................................			5,373				5,153
Right of use asset, net.....................................................................			602				1,050
Intangibles, net..............................................................................			686				26
Deferred income taxes, net.............................................................			1,544				1,415
Investments...................................................................................			504				148
Goodwill.......................................................................................			6,525				-
Other assets...................................................................................			60				44
Total assets........................................................................		$	74,509			$	61,192
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable....................................................................		$	4,262			$	4,614
Accrued liabilities....................................................................			4,366				3,479
Income taxes payable..............................................................			124				186
Deferred revenue.....................................................................			26				202
Notes payable.........................................................................			4,205				6,148
Total current liabilities.......................................................			12,983				14,629
Non-current liabilities:
Lease liability, net of current portion........................................			627				685
Notes payable, net of current portion........................................			13,266				9,246
Total non-current liabilities.................................................			13,893				9,931
Total liabilities...................................................................			26,876				24,560
Commitments and Contingencies:
Shareholders' equity:
Common stock, no par value, 50,000,000 shares authorized; 3,186,135 and 3,261,043 shares issued and outstanding at June 30, 2026 and 2025, respectively...............................			-				704
Retained earnings.....................................................................			47,633				35,928
Total shareholders' equity..................................................			47,633				36,632
Total liabilities and shareholders' equity..............................		$	74,509			$	61,192

PRO-DEX, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share data)

		Three Months Ended June 30, (Unaudited)								Years Ended June 30,
		2026				2025				2026				2025
Net sales..................................................		$	20,405			$	17,494			$	77,548			$	66,593
Cost of sales ............................................			13,314				14,004				53,213				47,083
Gross profit..............................................			7,091				3,490				24,335				19,510
Operating expenses: Selling, general and administrative expenses...............................................			2,546				1,241				7,999				5,185
Research and development costs..............			1,016				905				3,345				3,636
Total operating expenses...........................			3,562				2,146				11,344				8,821
Operating income.....................................			3,529				1,344				12,991				10,689
Interest expense........................................			(271	)			(226	)			(812	)			(829	)
Gain on marketable equity investments, net			212				460				5,655				2,116
Interest and dividend income.....................			55				21				181				82
Income before income taxes......................			3,525				1,599				18,015				12,058
Income tax expense..................................			668				403				4353				3,080
Net income...............................................		$	2,857			$	1,196			$	13,662			$	8,978
Basic & Diluted income per share:
Basic net income per share....................		$	0.90			$	0.37			$	4.24			$	2.73
Diluted net income per share..................		$	0.87			$	0.36			$	4.12			$	2.67
Weighted average shares outstanding:
Basic.................................................			3,189,727				3,261,043				3,225,884				3,287,844
Diluted..............................................			3,294,325				3,350,449				3,317,064				3,361,207

PRO-DEX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

	Years Ended June 30,
	2026			2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income............................................................................................	$	13,662		$	8,978
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization.............................................................		1,394			1,239
Unrealized loss (gain) on equity investments........................................		3,434			(1,521	)
Gain on sale of investments.................................................................		(9,089	)		(595	)
Non-cash straight-line lease amortization.............................................		(49	)		(33	)
Allowance for credit losses..................................................................		368			-
Amortization of loan fees, net..............................................................		12			9
Share-based compensation...................................................................		688			555
Deferred income taxes.........................................................................		(129	)		140
Changes in operating assets and liabilities:
Accounts receivable........................................................................		(4,713	)		(2,546	)
Deferred costs.................................................................................		(46	)		238
Inventory........................................................................................		1,630			(6,944	)
Prepaid expenses and other assets.....................................................		(105	)		(67	)
Accounts payable and accrued expenses...........................................		(12	)		179
Deferred revenue.............................................................................		(176	)		188
Income taxes...................................................................................		373			(1,502	)
Net cash provided by (used in) operating activities...................................		7,242			(1,682	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of equipment and improvements...........................................		(483	)		(1,246	)
Purchase of APM, net of cash acquired................................................		(6,493	)		-
Purchases of investments.....................................................................		(350	)		(899	)
Proceeds from sale of investments ......................................................		11,239			1,907
Net cash provided by (used in) investing activities....................................		3,913			(238	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on notes payable, leases, and revolving loan............		(23,649	)		(11,528	)
Proceeds from notes and revolving loan, net of fees..............................		23,617			15,003
Repurchases of common stock.............................................................		(3,408	)		(3,504	)
Payments of employee taxes on net issuance of common stock..............		(27	)		(305	)
Proceeds from exercise of stock options and ESPP contributions...........		85			42
Net cash used in financing activities........................................................		(3,382	)		(292	)
Net increase (decrease) in cash and cash equivalents.................................		7,773			(2,212	)
Cash and cash equivalents, beginning of year...........................................		419			2,631
Cash and cash equivalents, end of year....................................................	$	8,192		$	419

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 were Pro-Dex (PDEX) net sales in Q4 of fiscal 2026 and how did they change year over year?

For the quarter ended June 30, 2026, Pro-Dex reported net sales of $20.4 million, an increase of $2.9 million, or 17%, compared to $17.5 million in the same quarter of fiscal 2025, mainly due to higher revenue from its largest customer's next generation orthopedic handpiece.

How did Pro-Dex (PDEX) full-year fiscal 2026 revenue and net income compare to fiscal 2025?

For fiscal 2026, Pro-Dex recorded net sales of $77.5 million, up 16% from $66.6 million in 2025. Net income increased to $13.7 million from $9.0 million in fiscal 2025, reflecting higher sales, improved gross profit, and larger gains on marketable equity investments.

What earnings per share did Pro-Dex (PDEX) report for fiscal 2026 and Q4 2026?

Pro-Dex reported diluted net income per share of $4.12 for fiscal 2026, compared with $2.67 in fiscal 2025. For the fourth quarter ended June 30, 2026, diluted net income per share was $0.87, up from $0.36 in the prior-year quarter.

How did Pro-Dex (PDEX) gross margins change in Q4 and full-year fiscal 2026?

Gross margin for Q4 fiscal 2026 improved to 35%, up from 20% in Q4 2025, as gross profit rose to $7.1 million. For the full fiscal year, gross margin increased to 31% from 29% in fiscal 2025, driven by favorable product mix and APM contributions.

What role did the APM acquisition play in Pro-Dex (PDEX) fiscal 2026 results?

After acquiring APM on February 9, 2026, Pro-Dex reported that APM contributed $718,000 in revenue during fiscal 2026 and incurred $669,000 of separate operating expenses. The acquisition also added goodwill of $6.5 million to the balance sheet and improved gross margins through favorable manufacturing contributions.

What were Pro-Dex (PDEX) cash, investments, and debt levels as of June 30, 2026?

At June 30, 2026, Pro-Dex held $8.2 million in cash and cash equivalents, plus current investments of $1.2 million and non-current investments of $504,000. Current notes payable were $4.2 million and non-current notes payable were $13.3 million, with total assets of $74.5 million.

How much did Pro-Dex (PDEX) gain on marketable equity investments in fiscal 2026, and what risk did it highlight?

Pro-Dex recorded $5.7 million in gains on marketable equity investments in fiscal 2026, compared with $2.1 million in fiscal 2025. The company states that these investments are carried at estimated fair value and that their valuations can be highly volatile, affecting reported earnings.