What was the impact of Monogram-related gains on Pro-Dex (PDEX) results in 2026?

Realized gains substantially boosted reported net income in 2026. According to the company, Q3 included a $2.3M realized gain and the nine-months included a $9.1M realized gain offset by a $3.2M unrealized gain reversal.

Pro-Dex, Inc. Announces Fiscal 2026 Third Quarter and Nine Month Results

Q: What were Pro-Dex (PDEX) revenue and net income figures for Q3 fiscal 2026?

Pro-Dex reported Q3 net sales of $19.9M and net income of $3.9M ($1.20 diluted). According to the company, sales rose 15% year-over-year driven by shipments of a next-generation orthopedic handpiece, partially offset by lower repair revenue.

Q: What is Pro-Dex's cash and liquidity position as of March 31, 2026?

Pro-Dex reported cash and cash equivalents of $9.99M at March 31, 2026. According to the company, cash rose from $419k at June 30, 2025, alongside increased accounts receivable and use of notes payable.

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).

Rhea-AI Impact

(High)

Rhea-AI Sentiment

(Very Positive)

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.

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

Argus May 1 session

-3.55% close to close Open Argus

Details

News Market Reaction – PDEX

In the May 1 session, PDEX declined 3.55%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights record Q3 revenue of $19.9M and nine‑month net income of $10.8M, alongs...

Analysis

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 Figures

Q3 net sales: $19.9M Q3 gross margin: 31% Q3 operating income: $3.1M +5 more

Q3 net sales: $19.9M; Three months ended March 31, 2026 vs $17.4M in 2025 (15% increase)
Q3 gross margin: 31%; Three months ended March 31, 2026 vs 33% in prior year
Q3 operating income: $3.1M; Quarter ended March 31, 2026 vs $3.6M in prior-year quarter
Q3 diluted EPS: $1.20; Quarter ended March 31, 2026 vs $0.98 in fiscal 2025
9M net sales: $57.1M; Nine months ended March 31, 2026 vs $49.1M in 2025 (16% increase)
9M net income: $10.8M; Nine months ended March 31, 2026 vs $7.8M in 2025
Q3 realized gain: $2.3M; Realized gain from contingent value rights tied to Monogram acquisition
9M realized gain: $9.1M; Nine-month realized gain on Monogram investment, partly offset by $3.2M reversal

Historical Context

4 past events · Latest: Feb 12

4 events

Feb 12
APM acquisition

24h Move

+3.6%

Completion of APM acquisition to expand machining capacity and revenue base.
Jan 29
Q2 2026 earnings

24h Move

-0.4%

Higher Q2 and six-month sales and income, aided by realized Monogram gain.
Dec 19
Contract extension

24h Move

+10.3%

Extension of largest-customer contract with minimum purchase volumes through 2028.
Oct 30
Q1 2026 earnings

24h Move

+18.3%

Strong Q1 sales growth and sizable unrealized gains from Monogram investment.

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

Key Terms

contingent value rights, autoclavable, forward-looking statements, form 10-q

4 terms

contingent value rights financial

"includes a realized gain in the amount of $2.3 million from the payment of non-tradeable contingent value rights we hold"

Contingent value rights are special financial instruments that give their holder the potential to receive additional payments if certain future events or conditions happen, such as the achievement of specific business milestones. They are like a promise of extra rewards that depend on how well a project or company performs later on. Investors care about them because they offer a chance for extra gains but also carry uncertainty, as the extra payments are not guaranteed.

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.

forward-looking statements regulatory

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

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.

form 10-q regulatory

"filed its Quarterly Report on Form 10-Q for the third quarter of fiscal year 2026"

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.

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

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04/30/2026 - 04:00 PM

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 $2.5 million, or 15%, to $19.9 million from $17.4 million for the three months ended March 31, 2025, primarily due to an increase in shipments in the amount of $4.7 million of our largest customer's next generation orthopedic handpiece offset by a decrease in repair revenue of $2.4 million similarly generated from our largest customer. We also recognized $345,000 more NRE and prototype revenue during the three months ended March 31, 2026 as compared to the corresponding period of the prior fiscal year.

Gross profit for the three months ended March 31, 2026, increased $335,000, or 6%, to $6.1 million from $5.8 million for the same period in fiscal 2025. Gross margin decreased by 2 percentage points to 31% for the three months ended March 31, 2026, compared to 33% for the corresponding period of the prior fiscal year. The decrease in gross margin is primarily due to an unfavorable product mix.

Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended March 31, 2026, increased $881,000, or 41%, to $3.0 million compared to $2.2 million in the prior fiscal year's corresponding quarter, reflecting increases in selling, general and administrative expenses mostly due to higher expenses related to the acquisition of Advanced Precision Machining, LLC ("APM") as well as increased personnel related expenses and includes approximately $200,000 in non-recurring legal and consulting fees related to the APM acquisition offset by lower research and development expenditures.

Operating income for the quarter ended March 31, 2026, decreased $546,000, or 15%, to $3.1 million compared to $3.6 million for the prior fiscal year's corresponding quarter. The decrease is attributable to higher general and administrative expenses related to increased personnel costs, professional fees incurred related to our APM acquisition (which are non-recurring), as well as the inclusion of APM's separate and continuing general and administrative expenses.

Net income for the quarter ended March 31, 2026, was $3.9 million or $1.20 per diluted share, compared to $3.3 million, or $0.98 per diluted share, for the corresponding quarter in fiscal 2025. The net income for the quarter ended March 31, 2026, includes a realized gain in the amount of $2.3 million from the payment of non-tradeable contingent value rights we hold in Monogram Technologies, Inc., related to its previous acquisition by Zimmer Biomet Holdings, Inc.

Nine Months Ended March 31, 2026

Net sales for the nine months ended March 31, 2026, increased $8.0 million, or 16%, to $57.1 million from $49.1 million for the nine months ended March 31, 2025, due primarily to an increase of $16.6 million in shipments of the next generation handpiece we sell to our largest customer offset by a decrease of $5.2 million of their legacy handpiece and $5.5 million in decreased repair revenue from their legacy handpiece. We also shipped $2.1 million more of our CMF drivers and batteries to various distributors during the nine months ended March 31, 2026, compared to the corresponding period of the prior fiscal year.

Gross profit for the nine months ended March 31, 2026, increased $1.2 million, or 8%, compared to the same period in fiscal 2025 due to increased sales. Our gross margin decreased by 3 percentage points to 30% for the nine months ended March 31, 2026, compared to 33% 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 nine months ended March 31, 2026, increased $1.1 million, or 17%, to $7.8 million compared to $6.7 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 nine months ended March 31, 2026, increased $117,000, or 1%, to $9.5 million compared to $9.4 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 nine months ended March 31, 2026, was $10.8 million or $3.27 per diluted share, compared to net income of $7.8 million, or $2.31 per diluted share, for the nine months ended March 31, 2025. Our net income for the nine months ended March 31, 2026, includes a $9.1 million realized gain offset by the reversal of $3.2 million in unrealized gains related to our investment in Monogram Technologies, Inc. which was acquired by Zimmer Biomet Holdings, Inc. during our second fiscal quarter.

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, 2026		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		6,061
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 March 31,						Nine Months Ended March 31,
	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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Pro-Dex (PDEX) revenue and net income figures for Q3 fiscal 2026?

Pro-Dex reported Q3 net sales of $19.9M and net income of $3.9M ($1.20 diluted). According to the company, sales rose 15% year-over-year driven by shipments of a next-generation orthopedic handpiece, partially offset by lower repair revenue.

How did the APM acquisition affect Pro-Dex (PDEX) financials in Q3 2026?

The APM acquisition increased operating expenses and added goodwill to the balance sheet. According to the company, higher SG&A and one-time legal and consulting fees (~$200k) contributed to a 41% quarterly rise in operating expenses.

What is Pro-Dex's cash and liquidity position as of March 31, 2026?

Pro-Dex reported cash and cash equivalents of $9.99M at March 31, 2026. According to the company, cash rose from $419k at June 30, 2025, alongside increased accounts receivable and use of notes payable.

Why did Pro-Dex (PDEX) gross margin decline in Q3 and year-to-date 2026?

Gross margin declined due to an unfavorable product mix. According to the company, increased shipments of the next-generation handpiece and reduced higher-margin repair revenue led margins to fall about 2–3 percentage points versus prior periods.

Pro-Dex, Inc. Announces Fiscal 2026 Third Quarter and Nine Month Results