Pro-Dex, Inc. Announces Fiscal 2026 Third Quarter and Nine Month Results
Rhea-AI Summary
Pro-Dex (Nasdaq:PDEX) reported fiscal 2026 third-quarter results for the period ended March 31, 2026, with Q3 net sales $19.9M (+15% YoY) and Q3 net income $3.9M ($1.20 diluted). Nine-month net sales were $57.1M (+16% YoY) and net income $10.8M ($3.27 diluted). The quarter included a $2.3M realized gain and the nine-month results included a $9.1M realized gain and $3.2M reversal related to Monogram Technologies. Pro-Dex completed the acquisition of Advanced Precision Machining (APM), increasing operating expenses and adding goodwill.
AI-generated analysis. Not financial advice.
Positive
- Q3 net sales +15% to $19.9M
- Nine-month net sales +16% to $57.1M
- Q3 net income $3.9M ($1.20 diluted)
- Nine-month net income $10.8M ($3.27 diluted)
- Realized gains $9.1M (YTD) from Monogram-related transactions
- Completed acquisition of APM, adding machining capacity and revenue streams
Negative
- Gross margin down ~2–3 percentage points (Q3 31% vs 33%; YTD 30% vs 33%)
- Operating expenses increased Q3 +41% and YTD +17%, driven by APM transaction and personnel costs
- Q3 includes non-recurring legal/consulting fees (~$200k) related to the APM acquisition
- Notes payable increased (current + non-current) to $18.5M total outstanding at March 31, 2026
- Inventory remains elevated at $22.4M, similar to prior year level
News Market Reaction – PDEX
On the day this news was published, PDEX declined 3.55%, reflecting a moderate negative market reaction. Argus tracked a trough of -5.4% from its starting point during tracking. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $5M from the company's valuation, bringing the market cap to $146.93M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
PDEX was down 3.24%. Several medical-instrument peers also traded lower (e.g., ZTEK -4.08%, ZJYL -3.49%, KRMD -2.22%, UTMD -1.74%), while AVR rose 5.55%, pointing to mixed, stock-specific action rather than a clear sector-wide move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 12 | APM acquisition | Positive | +3.6% | Completion of APM acquisition to expand machining capacity and revenue base. |
| Jan 29 | Q2 2026 earnings | Positive | -0.4% | Higher Q2 and six-month sales and income, aided by realized Monogram gain. |
| Dec 19 | Contract extension | Positive | +10.3% | Extension of largest-customer contract with minimum purchase volumes through 2028. |
| Oct 30 | Q1 2026 earnings | Positive | +18.3% | Strong Q1 sales growth and sizable unrealized gains from Monogram investment. |
Recent fundamental news (earnings, major contracts, acquisition) has more often seen positive price reactions, with one mild divergence on Q2 results.
Over the past few quarters, Pro-Dex has reported steadily rising sales and profits, driven by next-generation handpiece shipments and CMF driver demand. A key milestone was the Dec 17, 2025 contract extension with its largest customer through Dec 31, 2028, which drew a strong positive reaction. Fiscal 2026 Q1 and Q2 results also showed higher revenue and meaningful gains from Monogram investment sales. The APM acquisition announced in Feb 2026 added capacity and diversification, setting the stage for the record Q3 revenue highlighted in the latest release.
Market Pulse Summary
This announcement highlights record Q3 revenue of $19.9M and nine‑month net income of $10.8M, alongside margin compression to 31% and higher operating expenses from the APM acquisition and related fees. A sizable $2.3M realized gain from Monogram contingent value rights also contributed to quarterly earnings. In context of earlier contract extensions and prior Monogram gains, investors may focus on how product mix, integration of APM, and recurring profitability metrics evolve over coming quarters.
Key Terms
contingent value rights financial
autoclavable medical
forward-looking statements regulatory
form 10-q regulatory
AI-generated analysis. Not financial advice.
IRVINE, CA / ACCESS Newswire / April 30, 2026 / PRO-DEX, INC. (NasdaqCM:PDEX) today announced financial results for its fiscal 2026 third quarter ended March 31, 2026. The Company also filed its Quarterly Report on Form 10-Q for the third quarter of fiscal year 2026 with the Securities and Exchange Commission today.
Quarter Ended March 31, 2026
Net sales for the three months ended March 31, 2026, increased
Gross profit for the three months ended March 31, 2026, increased
Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended March 31, 2026, increased
Operating income for the quarter ended March 31, 2026, decreased
Net income for the quarter ended March 31, 2026, was
Nine Months Ended March 31, 2026
Net sales for the nine months ended March 31, 2026, increased
Gross profit for the nine months ended March 31, 2026, increased
Operating expenses (which include selling, general and administrative, and research and development expenses) for the nine months ended March 31, 2026, increased
Operating income for nine months ended March 31, 2026, increased
Net income for the nine months ended March 31, 2026, was
CEO Comments
"Our third quarter revenue reflects a new quarterly record." said Richard L. ("Rick") Van Kirk, the Company's President and Chief Executive Officer. "Additionally, as we previously announced, we completed the acquisition of APM this quarter and remain excited about both the additional revenue streams created as well as the expanded machining capacity and technology provided by this subsidiary." Mr. Van Kirk continued, "I want to thank the Pro-Dex family for their efforts and execution. We are well positioned for sustained success for the remainder of this fiscal year and beyond."
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. 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, including, without limitation, statements concerning future growth 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 SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share amounts)
March 31, | June 30, 2025 | |||||||
ASSETS |
|
| ||||||
Current assets: |
|
| ||||||
Cash and cash equivalents.......................................... | $ | 9,993 | $ | 419 | ||||
Investments............................................................... | 986 | 6,740 | ||||||
Accounts receivable................................................... | 19,473 | 16,433 | ||||||
Deferred costs............................................................ | 40 | 24 | ||||||
Inventory................................................................... | 22,357 | 22,213 | ||||||
Income tax receivable................................................ | 301 | 1,056 | ||||||
Prepaid expenses and other current assets.................... | 560 | 410 | ||||||
Total current assets................................................. | 53,710 | 47,295 | ||||||
Land and building, net................................................... | 5,991 |
| ||||||
Equipment and leasehold improvements, net................... | 5,530 | 5,153 | ||||||
Right-of-use asset, net.................................................... | 716 | 1,050 | ||||||
Intangibles, net.............................................................. | 712 | 26 | ||||||
Deferred income taxes, net............................................. | 1,277 | 1,415 | ||||||
Investments................................................................... | 456 | 148 | ||||||
Goodwill....................................................................... | 6,525 | - | ||||||
Other assets................................................................... | 60 | 44 | ||||||
Total assets................................................................ | $ | 74,977 | $ | 61,192 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable....................................................... | $ | 5,246 | $ | 4,614 | ||||
Accrued liabilities...................................................... | 4,319 | 3,479 | ||||||
Income taxes payable................................................. | 736 | 186 | ||||||
Deferred revenue....................................................... | 144 | 202 | ||||||
Notes payable............................................................ | 4,191 | 6,148 | ||||||
Total current liabilities............................................ | 14,636 | 14,629 | ||||||
Lease liability, net of current portion............................... | 838 | 685 | ||||||
Notes payable, net of current portion............................... | 14,305 | 9,246 | ||||||
Total non-current liabilities..................................... | 15,143 | 9,931 | ||||||
Total liabilities........................................................... | 29,779 | 24,560 | ||||||
Shareholders' equity: | ||||||||
Common stock; no par value; 50,000,000 shares authorized; 3,196,611 and 3,261,043 shares issued and outstanding at March 31, 2026 and June 30, 2025, respectively.................................................. | - | 704 | ||||||
Retained earnings ...................................................... | 45,198 | 35,928 | ||||||
Total shareholders' equity....................................... | 45,198 | 36,632 | ||||||
Total liabilities and shareholders' equity............... | $ | 74,977 | $ | 61,192 | ||||
PRO-DEX, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share amounts)
Three Months Ended | Nine Months Ended | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
|
|
|
| |||||||||||||
Net sales................................................................. | $ | 19,949 | $ | 17,414 | $ | 57,143 | $ | 49,099 | ||||||||
Cost of sales .......................................................... | 13,816 | 11,616 | 39,899 | 33,080 | ||||||||||||
Gross profit............................................................ | 6,133 | 5,798 | 17,244 | 16,019 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative expenses.. | 2,212 | 1,211 | 5,454 | 3,943 | ||||||||||||
Research and development costs...................... | 827 | 947 | 2,328 | 2,731 | ||||||||||||
Total operating expenses....................................... | 3,039 | 2,158 | 7,782 | 6,674 | ||||||||||||
Operating income.................................................. | 3,094 | 3,640 | 9,462 | 9,345 | ||||||||||||
Other income (expense), net: Interest expense................................................ | (201 | ) | (246 | ) | (542 | ) | (602 | ) | ||||||||
Gain on equity investments, net...................... | 2,394 | 1,145 | 5,443 | 1,655 | ||||||||||||
Interest and other income................................ | 53 | 15 | 127 | 61 | ||||||||||||
Total other income (expense)............................... | 2,246 | 914 | 5,028 | 1,114 | ||||||||||||
Income before income taxes................................. | 5,340 | 4,554 | 14,490 | 10,459 | ||||||||||||
Provision for income taxes................................... | 1,402 | 1,279 | 3,685 | 2,678 | ||||||||||||
Net income............................................................. | $ | 3,938 | $ | 3,275 | $ | 10,805 | $ | 7,781 | ||||||||
Basic and diluted net income per share: | ||||||||||||||||
Basic net income per share............................... | $ | 1.23 | $ | 1.00 | $ | 3.34 | $ | 2.36 | ||||||||
Diluted net income per share............................ | $ | 1.20 | $ | 0.98 | $ | 3.27 | $ | 2.31 | ||||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic................................................................... | 3,201,480 | 3,261,043 | 3,237,761 | 3,296,744 | ||||||||||||
Diluted............................................................... | 3,269,657 | 3,337,312 | 3,302,115 | 3,366,099 | ||||||||||||
Common shares outstanding................................. | 3,196,611 | 3,261,043 | 3,196,611 | 3,261,043 | ||||||||||||
CONTACT:
Richard L. Van Kirk, Chief Executive Officer
(949) 769-3200
SOURCE: Pro-Dex, Inc.
View the original press release on ACCESS Newswire