Pro-Dex, Inc. Announces Fiscal 2026 Second Quarter and Six-Month Results

Rhea-AI Summary

Pro-Dex (NasdaqCM: PDEX) reported fiscal 2026 Q2 results for the quarter ended December 31, 2025, with net sales of $18.7M (up 11% YoY) and net income of $2.2M ($0.66 diluted). Six-month sales rose 17% to $37.2M and six-month net income was $6.9M ($2.07 diluted), which included a $6.8M realized gain partially offset by a $3.2M reversal of prior unrealized gains. Management noted a three-year contract extension with its largest customer and a planned acquisition of a local machine shop to secure capacity.

Positive

• Net sales +11% for Q2 to $18.7M
• Six-month net sales +17% to $37.2M
• Six-month net income $6.9M, diluted EPS $2.07
• Cash and cash equivalents increased to $7.95M from $0.42M

Negative

• Six-month gross margin down 2 percentage points to 30%
• Realized gain and reversal volatility: $6.8M gain offset by $3.2M reversal
• Inventory remains high at $21.7M, tightens working capital

News Market Reaction

-0.44%

1 alert

-0.44% News Effect

-$568K Valuation Impact

$129M Market Cap

0.5x Rel. Volume

On the day this news was published, PDEX declined 0.44%, reflecting a mild negative market reaction. This price movement removed approximately $568K from the company's valuation, bringing the market cap to $129M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q2 net sales: $18.7M Q2 gross margin: 31% Q2 operating income: $3.3M +5 more

8 metrics

Q2 net sales $18.7M Three months ended December 31, 2025

Q2 gross margin 31% Three months ended December 31, 2025 (vs. 30% prior-year quarter)

Q2 operating income $3.3M Three months ended December 31, 2025

Q2 diluted EPS $0.66 Three months ended December 31, 2025 (vs. $0.61 prior-year quarter)

Six‑month net sales $37.2M Six months ended December 31, 2025 (up 17% from $31.7M)

Six‑month gross margin 30% Six months ended December 31, 2025 (vs. 32% prior-year period)

Six‑month diluted EPS $2.07 Six months ended December 31, 2025 (vs. $1.33 prior-year period)

Realized gain $6.8M Realized gain related to Monogram Technologies investment in six‑month period

Market Reality Check

Price: $38.45 Vol: Volume 45,229 is 1.79x th...

high vol

$38.45 Last Close

Volume Volume 45,229 is 1.79x the 20-day average of 25,320, indicating elevated trading interest ahead of and around this report. high

Technical Shares at $39.42 are trading below the 200-day moving average of $41.49 and are 43.89% under the 52-week high of $70.2599, while still above the 52-week low of $23.47.

Peers on Argus

PDEX fell 4.39% with above-average volume. Several peers in Medical Instruments ...

PDEX fell 4.39% with above-average volume. Several peers in Medical Instruments & Supplies (e.g., ZTEK, ZJYL, KRMD, UTMD) also showed negative price changes, but no names appeared in the momentum scanner and only 1 peer (UTMD) had same-day news, suggesting the move was more company-specific than a coordinated sector rotation.

Common Catalyst Selective earnings-related updates in the medical instruments space (PDEX and UTMD both reported financial results).

Historical Context

4 past events · Latest: Dec 19 (Positive)

Pattern 4 events

Date	Event	Sentiment	Move	Catalyst
Dec 19	Contract extension	Positive	-8.3%	Extended largest-customer contract with minimum purchase volumes through 2028.
Oct 30	Earnings release	Positive	-0.3%	Fiscal 2026 Q1 sales growth and higher net income aided by investment gains.
Oct 16	Symbol clarification	Neutral	-4.8%	Clarified no affiliation with crypto entity using the same trading symbol.
Sep 04	Full-year results	Positive	-16.5%	Reported strong fiscal 2025 revenue and earnings growth with large backlog.

Pattern Detected

Recent PDEX news over the last six months has generally been followed by negative price reactions, even when the underlying announcements were operationally positive.

Recent Company History

Over the past several months, Pro-Dex reported multiple positive business developments, including a contract extension with its largest customer on Dec 17, 2025 and strong fiscal 2025 results with net sales up 24% to $66.6M. Fiscal 2026 Q1 results on Oct 30, 2025 showed higher sales and earnings, aided by investment gains. Despite these fundamentals-focused updates, the stock posted negative or slightly negative moves after each, framing today’s stronger Q2 and six‑month results against a backdrop of selling into good news.

Market Pulse Summary

This announcement highlighted solid operational momentum, with Q2 net sales of $18.7M, improved quar...

Analysis

This announcement highlighted solid operational momentum, with Q2 net sales of $18.7M, improved quarterly gross margin at 31%, and six‑month diluted EPS of $2.07. At the same time, the six‑month gross margin eased to 30% and results were boosted by a $6.8M realized gain from an investment. Recent history shows the stock has sometimes weakened after positive news, so continued trends in margins, mix, and core operating income are key metrics to watch.

Key Terms

form 10-q, securities and exchange commission, forward-looking statements, autoclavable, +1 more

5 terms

form 10-q regulatory

"The Company also filed its Quarterly Report on Form 10-Q for the second quarter..."

A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.

securities and exchange commission regulatory

"Quarterly Report on Form 10-Q ... with the Securities and Exchange Commission today."

A national government agency that enforces rules for buying, selling and disclosing information about stocks and other investments, acting like a referee and scorekeeper for financial markets. It requires companies to share clear, regular financial and business information and investigates fraud or rule-breaking, which matters to investors because those rules and disclosures help ensure fair prices, reduce hidden risks and make it easier to compare investment choices.

forward-looking statements regulatory

"Statements herein concerning the Company's plans, growth, and strategies may include 'forward-looking statements'..."

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.

autoclavable medical

"design, development, and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers..."

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.

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.

AI-generated analysis. Not financial advice.

IRVINE, CA / ACCESS Newswire / January 29, 2026 / PRO-DEX, INC. (NasdaqCM:PDEX) today announced financial results for its fiscal 2026 second quarter ended December 31, 2025. The Company also filed its Quarterly Report on Form 10-Q for the second quarter of fiscal year 2026 with the Securities and Exchange Commission today.

Quarter Ended December 31, 2025

Net sales for the three months ended December 31, 2025, increased $1.9 million, or 11%, to $18.7 million from $16.8 million for the three months ended December 31, 2024, primarily due to an increase in shipments in the amount of $7.3 million of our largest customer's next generation orthopedic handpiece offset by a decrease of $4.8 million of their legacy handpiece as well as a decrease in repair revenue of $1.7 million similarly generated from our largest customer. We also shipped $1.3 million more of our CMF drivers and batteries to various distributors during the three months ended December 31, 2025 as compared to the corresponding period of the prior fiscal year.

Gross profit for the three months ended December 31, 2025, increased $671,000, or 13%, to $5.7 million from $5.1 million for the same period in fiscal 2025. Gross margin increased by 1 percentage point to 31% for the three months ended December 31, 2025, compared to 30% for the corresponding period of the prior fiscal year. The improvement in gross margin is primarily due to increased sales and favorable product mix.

Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended December 31, 2025, increased $104,000, or 4%, to $2.5 million compared to $2.4 million in the prior fiscal year's corresponding quarter, reflecting increases in selling, general and administrative expenses mostly due to higher personnel related expenses offset by lower research and development expenditures.

Operating income for the quarter ended December 31, 2025, increased $567,000, or 21%, to $3.3 million compared to $2.7 million for the prior fiscal year's corresponding quarter. The increase is attributable to higher sales and improved gross margins.

Net income for the quarter ended December 31, 2025, was $2.2 million or $0.66 per diluted share, compared to $2.0 million, or $0.61 per diluted share, for the corresponding quarter in fiscal 2025.

Six Months Ended December 31, 2025

Net sales for the six months ended December 31, 2025, increased $5.5 million, or 17%, to $37.2 million from $31.7 million for the six months ended December 31, 2024, due primarily to $11.9 million in shipments of the newest generation handpiece we sell our largest customer offset by a decrease of $5.0 million of their legacy handpiece and $3.0 million in decreased repair revenue from their legacy handpiece. We also shipped $1.9 million more of our CMF drivers and batteries to various distributors during the six months ended December 31, 2025, compared to the corresponding period of the prior fiscal year.

Gross profit for the six months ended December 31, 2025,increased $889,000, or 9%, compared to the same period in fiscal 2025 due to increased sales. Our gross margin decreased by 2 percentage points to 30% for the six months ended December 31, 2025, compared to 32% for the corresponding period of the prior fiscal year mostly as a result of a less favorable product mix.

Operating expenses (which include selling, general and administrative, and research and development expenses) for the six months ended December 31, 2025, increased $226,000, or 5%, to $4.7 million compared to $4.5 million in the prior fiscal year's corresponding period. The increase is related to increased selling, general and administrative expenses mostly due to higher personnel-related expenses offset by a decrease in research and development costs.

Operating income for six months ended December 31, 2025, increased $663,000, or 12%, to $6.4 million compared to $5.7 million for the corresponding period of the prior fiscal year. The increase in operating income is attributable to higher sales and gross profit offset by the higher operating expenses described above.

Net income for the six months ended December 31, 2025, was $6.9 million or $2.07 per diluted share, compared to net income of $4.5 million or $1.33 per diluted share for the six months ended December 31, 2024. Our net income for the six months ended December 31, 2025, contains a $6.8 million realized gain offset by the reversal of $3.2 million in unrealized gains recorded in the first quarter of fiscal 2026 related to our investment in Monogram Technologies, Inc. which was acquired by Zimmer Biomet Holdings, Inc. during our second fiscal quarter.

CEO Comments

"We are pleased with our second quarter and year-to-date results," said Richard L. ("Rick") Van Kirk, the Company's President and Chief Executive Officer. "Additionally, as we previously announced, our three-year contract extension with our largest customer provides the foundation for our continued future growth for the next three years and beyond," Mr. Van Kirk continued, "We expect to complete an acquisition of a local machine shop which is also a current significant supplier of ours in the near term and, while it may not be immediately accretive to our earnings, it will secure additional capacity and manufacturing technology as we continue to grow."

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 which appeal to our customers, primarily medical device distributors. Additionally, we provide engineering, quality, and regulatory consulting services to our 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 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, including, without limitation, statements concerning future growth and the anticipated acquisition referenced above, 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.

(tables follow)

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

		December 31, 2025				June 30, 2025
ASSETS
Current assets:
Cash and cash equivalents..........................................		$	7,953			$	419
Investments...............................................................			864				6,740
Accounts receivable, net of allowance for expected credit losses of $19 and $0 at December 31, 2025 and at June 30, 2025, respectively............................			17,883				16,433
Deferred costs............................................................			174				24
Inventory...................................................................			21,710				22,213
Income tax receivable................................................			266				1,056
Prepaid expenses and other current assets....................			336				410
Total current assets.................................................			49,186				47,295
Land and building, net...................................................			6,015				6,061
Equipment and leasehold improvements, net...................			4,757				5,153
Right-of-use asset, net....................................................			830				1,050
Intangibles, net..............................................................			12				26
Deferred income taxes, net.............................................			1,277				1,415
Investments...................................................................			135				148
Other assets...................................................................			44				44
Total assets................................................................		$	62,256			$	61,192
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable.......................................................		$	4,111			$	4,614
Accrued liabilities......................................................			4,258				3,479
Income taxes payable................................................			1,200				186
Deferred revenue......................................................			163				202
Notes payable............................................................			2,469				6,148
Total current liabilities............................................			12,201				14,629
Lease liability, net of current portion.............................			419				685
Notes payable, net of current portion.............................			8,005				9,246
Total non-current liabilities.....................................			8,424				9,931
Total liabilities...........................................................			20,625				24,560
Shareholders' equity:
Common stock; no par value; 50,000,000 shares authorized; 3,209,732 and 3,261,043 shares issued and outstanding at December 31, 2025 and June 30, 2025, respectively..................................................			-				704
Retained earnings ......................................................			41,631				35,928
Total shareholders' equity.......................................			41,631				36,632
Total liabilities and shareholders' equity...............		$	62,256			$	61,192

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

		Three Months Ended December 31,								Six Months Ended December 31,
		2025				2024				2025				2024
Net sales.................................................................		$	18,663			$	16,793			$	37,194			$	31,686
Cost of sales ..........................................................			12,920				11,721				26,083				21,464
Gross profit............................................................			5,743				5,072				11,111				10,222
Operating expenses:
Selling, general and administrative expenses..			1,750				1,438				3,241				2,733
Research and development costs......................			734				942				1,502				1,784
Total operating expenses.......................................			2,484				2,380				4,743				4,517
Operating income..................................................			3,259				2,692				6,368				5,705
Other income (expense), net: Interest expense................................................			(141	)			(204	)			(341	)			(357	)
Gain (loss) on marketable equity investments, net...............................................			(250	)			77				3,049				510
Interest and other income................................			60				21				74				46
Total other income (expense)...............................			(331	)			(106	)			2,782				199
Income before income taxes.................................			2,928				2,586				9,150				5,904
Provision for income taxes...................................			741				546				2,283				1,398
Net income.............................................................		$	2,187			$	2,040			$	6,867			$	4,506
Basic and diluted net income per share:
Basic net income per share...............................		$	0.67			$	0.63			$	2.11			$	1.36
Diluted net income per share............................		$	0.66			$	0.61			$	2.07			$	1.33
Weighted-average common shares outstanding:
Basic...................................................................			3,249,260				3,261,145				3,255,507				3,314,207
Diluted...............................................................			3,304,042				3,337,337				3,317,777				3,378,862
Common shares outstanding.................................			3,209,732				3,260,390				3,209,732				3,260,390

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) Q2 fiscal 2026 results announced on January 29, 2026?

Pro-Dex reported Q2 fiscal 2026 net sales of $18.7M and net income of $2.2M. According to the company, gross margin was 31% and diluted EPS was $0.66 for the quarter.

How did Pro-Dex (PDEX) perform year-to-date through December 31, 2025?

Year-to-date sales increased 17% to $37.2M and net income was $6.9M. According to the company, results include a $6.8M realized gain and a $3.2M reversal of prior unrealized gains.

What drove Pro-Dex (PDEX) revenue growth in Q2 2026?

Revenue growth was driven by increased shipments of the next-generation orthopedic handpiece to the largest customer. According to the company, legacy handpiece declines and lower repair revenue partially offset growth.

Did Pro-Dex (PDEX) announce any strategic actions impacting capacity or supply?

Yes. The company said it expects to acquire a local machine shop that currently supplies Pro-Dex to secure capacity. Management noted the acquisition may not be immediately accretive to earnings.

What is the significance of Pro-Dex's contract extension mentioned in the Jan 29, 2026 release?

The company said a three-year contract extension with its largest customer supports near-term revenue visibility. According to the company, the extension underpins expected growth over the next three years and beyond.