Pro-Dex, Inc. Announces Fiscal 2027 First Quarter Results

Higher gross margin and operating income contrasted with lower net income as unrealized investment gains fell.

Rhea-AI Summary

Pro-Dex (PDEX) reported fiscal 2027 first-quarter sales growth of 11%, while net income declined from the comparable year-earlier quarter. Sales reached $20.560 million for the three months ended September 30, 2026, versus $18.530 million a year earlier. Medical device revenue increased $3.3 million, including rebates, while legacy handpiece repair revenue declined $1.7 million.

Gross margin rose to 33% from 29%, primarily reflecting favorable product mix. Operating income increased 13% to $3.515 million despite operating expenses rising 48% to $3.342 million. Net income fell to $3.048 million, or $0.92 per diluted share, from $4.680 million, or $1.40 per diluted share. Unrealized investment gains were $73,000 versus $3.299 million. Cash reached $11.759 million, compared with $8.192 million at June 30, 2026. Pro-Dex expects to ship Monogram validation units later in fiscal 2027.

9 points · 0 major

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 7 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointNet sales increased 11% year over year to $20.560 million in fiscal 2027’s first quarter.
• Moderate pointMedical device revenue increased $3.3 million, including rebates; next-generation handpieces for the largest customer contributed $1.8 million.
• Moderate pointGross profit increased 28% year over year to $6.857 million; gross margin rose from 29% to 33%.
• Moderate pointOperating income increased 13% year over year to $3.515 million.
• Minor pointAPM generated $511,000 in revenue, excluding $814,000 of intercompany sales eliminated in consolidation.

4 minor points

• Minor pointCash increased to $11.759 million at September 30, 2026, from $8.192 million at June 30, 2026.
• Minor pointCurrent notes payable declined to $4.171 million from $4.205 million at June 30, 2026.
• Minor pointNon-current notes payable declined to $12.270 million from $13.266 million at June 30, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Validation unit shipments for Monogram are expected by Pro-Dex later in fiscal 2027.

Negative

• Moderate pointNet income fell to $3.048 million from $4.680 million; diluted EPS declined to $0.92 from $1.40 year over year.
• Moderate pointLegacy handpiece repair revenue declined $1.7 million for Pro-Dex’s largest customer.
• Moderate pointSelling, general and administrative expenses increased to $2.132 million from $1.490 million year over year.
• Moderate pointResearch and development costs increased to $1.210 million from $768,000 year over year.
• Minor pointUnrealized investment gains fell to $73,000 from $3.299 million in the year-earlier quarter.

2 minor points

• Minor pointInterest expense increased to $260,000 from $200,000 in the year-earlier quarter.
• Minor pointNon-current lease liabilities increased to $2.089 million from $627,000 at June 30, 2026.

News Explained

At September 30, 2026, Pro-Dex had 3,203,334 common shares issued and outstanding, compared with 3,186,135 at June 30, 2026; for a holder keeping the same number of shares, the higher total represents a smaller ownership fraction.

Key Figures

Net sales: $20.6 million, up 11% Gross profit: Increased $1.5 million, or 28% Gross margin: 33%, up from 29% +5 more

Net sales

$20.6 million, up 11%

Fiscal 2027 first quarter; compared with $18.5 million a year earlier

Gross profit

Increased $1.5 million, or 28%

Fiscal 2027 first quarter versus the year-ago period

Gross margin

33%, up from 29%

Fiscal 2027 first quarter versus the year-ago period

Operating expenses

$3.3 million, up 48%

Fiscal 2027 first quarter; compared with $2.3 million a year earlier

Operating income

$3.5 million, up 13%

Fiscal 2027 first quarter; compared with $3.1 million a year earlier

Net income

$3.0 million, down from $4.7 million

Fiscal 2027 first quarter versus the quarter ended September 30, 2025

Diluted earnings per share

$0.92, down from $1.40

Fiscal 2027 first quarter versus the quarter ended September 30, 2025

Unrealized gains on investments

$73,000 versus $3.3 million

Included in net income for the 2026 and 2025 quarters, respectively

Historical Context

2 past events · Latest: Sep 03

2 events

1. Sep 03

   Quarterly earnings

   24h Move

   +18.9%

   Fiscal Q4 sales rose 17%, gross margin reached 35%, and operating income increased.

2. Apr 30

   Quarterly earnings

   24h Move

   -3.5%

   Q3 net sales rose 15% to $19.9M; reported net income was $3.9M.

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

Key Terms

form 10-q, unrealized gains, fair value

3 terms

form 10-q regulatory

"filed its Quarterly Report on Form 10-Q"

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.

unrealized gains financial

"contains unrealized gains on our marketable equity investments"

An unrealized gain is the increase in value of an asset you still own that hasn’t been sold, so the profit exists on paper but hasn’t been converted into cash. It matters to investors because it changes the apparent wealth of a portfolio and can influence decisions about selling, risk-taking and taxes—like a house that’s worth more now but won’t pay you until you sell it.

View in glossary

fair value financial

"investments are recorded at estimated fair value"

Fair value is an estimate of what an asset or company is really worth today, derived from expected future earnings, comparable market prices and other relevant facts—like agreeing a price for a used car after checking mileage, condition and similar listings. Investors use fair value to decide whether a stock looks overpriced or undervalued, which helps guide buy, hold or sell decisions and sets expectations for potential returns and risk.

View in glossary

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IRVINE, CA / ACCESS Newswire / October 29, 2026 / PRO-DEX, INC. (NASDAQ:PDEX) today announced financial results for its fiscal 2027 first quarter ended September 30, 2026. The Company also filed its Quarterly Report on Form 10-Q for the first quarter of fiscal year 2027 with the Securities and Exchange Commission today.

Quarter Ended September 30, 2026

Net sales for the three months ended September 30, 2026, increased $2.1 million, or 11%, to $20.6 million from $18.5 million for the three months ended September 30, 2025. The increase is driven primarily by a $3.3 million increase in medical device revenue, inclusive of rebates, of which $1.8 million relates to the next-generation handpiece we sell to our largest customer, offset by a $1.7 million decrease in repairs of the legacy handpiece we sell to that customer, coupled with an increase in revenue of $511,000 generated by the Company's newly acquired subsidiary, Advanced Precision Machining, LLC ("APM"), exclusive of inter-company sales in the amount of $814,000 which are eliminated in consolidation.

Gross profit for the three months ended September 30, 2026, increased $1.5 million, or 28%, compared to the year-ago period. Gross margin increased by 4 percentage points to 33% during the three months ended September 30, 2026, compared to 29% during the corresponding year-ago period, due primarily as a result of favorable product mix.

Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended September 30, 2026, increased $1.1 million, or 48%, to $3.3 million compared to $2.3 million for the prior fiscal year's corresponding quarter. The increase relates to a $442,000 increase in engineering and a $642,000 increase in selling, general and administrative expenses. The increase in engineering relates to personnel costs as well as higher internal project expenditures. The increase in selling, general and administrative expense is primarily due to $466,000 of APM's separate operations as well as $195,000 of higher personnel costs specifically related to accounting, mergers and acquisitions, human resources, and information technology.

Our operating income for the quarter ended September 30, 2026, increased $406,000, or 13%, to $3.5 million compared to $3.1 million for the prior fiscal year's corresponding quarter. The increase reflects our increased gross profit, offset by our increased operating expenses, as described above.

Net income for the quarter ended September 30, 2026, decreased to $3.0 million, or $0.92 per diluted share, compared to net income of $4.7 million, or $1.40 per diluted share, for the quarter ended September 30, 2025. Our net income for the quarter ended September 30, 2026, contains unrealized gains on our marketable equity investments of $73,000, while our net income for the quarter ended September 30, 2025, includes unrealized gains on our marketable equity investments of $3.3 million. All of our investments are recorded at estimated fair value, and the period-to-period valuation can be highly volatile. For example, our investment in Monogram Technologies, Inc. was valued as of September 30, 2025 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 continued top line revenue growth." Mr. Van Kirk concluded, "We are also pleased to be working with the Monogram and Zimmer Biomet teams and expect to ship validation units later this fiscal year."

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 technology 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 (including the expected shipment of Monogram validation units) 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.

Contact:
Richard L. Van Kirk,
Chief Executive Officer
(949) 769-3200

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

		September 30, 2026				June 30, 2026
ASSETS
Current Assets:
Cash and cash equivalents		$	11,759			$	8,192
Investments			1,230				1,150
Accounts receivable, net of allowance for credit losses of $285 and $349 at September 30, 2026 and June 30, 2026, respectively			17,507				21,205
Deferred costs			27				70
Inventory			21,899				21,458
Income taxes receivable			1,081				620
Prepaid expenses and other current assets			443				553
Total current assets			53,946				53,248
Land and building, net			5,944				5,967
Equipment and leasehold improvements, net			5,359				5,373
Right-of-use asset, net			2,048				602
Intangibles, net			666				686
Deferred income taxes			1,544				1,544
Investments			497				504
Goodwill			6,525				6,525
Other assets			60				60
Total assets		$	76,589			$	74,509
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable		$	5,321			$	4,262
Accrued liabilities			3,224				4,366
Income taxes payable			124				124
Deferred revenue			44				26
Notes payable.			4,171				4,205
Total current liabilities			12,884				12,983
Lease liabilities, net of current portion			2,089				627
Notes payable, net of current portion			12,270				13,266
Total non-current liabilities			14,359				13,893
Total liabilities			27,243				26,876
Shareholders' Equity:
Common stock; no par value; 50,000,000 shares authorized; 3,203,334 and 3,186,135 shares issued and outstanding at September 30, 2026 and June 30, 2026, respectively			-				-
Retained earnings			49,346				47,633
Total shareholders' equity			49,346				47,633
Total liabilities and shareholders' equity		$	76,589			$	74,509

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

		Three Months Ended September 30,
		2026				2025
Net sales		$	20,560			$	18,530
Cost of sales			13,703				13,163
Gross profit			6,857				5,367
Operating expenses:
Selling, general and administrative expenses			2,132				1,490
Research and development costs			1,210				768
Total operating expenses			3,342				2,258
Operating income			3,515				3,109
Other income (expense):
Interest and dividend income			51				14
Unrealized gain on investments			73				3,299
Interest expense			(260	)			(200	)
Total other income (expense)			(136	)			3,113
Income before income taxes			3,379				6,222
Provision for income taxes			331				1,542
Net income		$	3,048			$	4,680
Basic and diluted net income per share:
Basic net income per share		$	0.95			$	1.43
Diluted net income per share		$	0.92			$	1.40
Weighted-average common shares outstanding:
Basic			3,206,304				3,261,753
Diluted			3,315,415				3,338,805
Common shares outstanding			3,203,334				3,262,004

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’s fiscal 2027 first-quarter sales and earnings?

Pro-Dex recorded $20.560 million in sales and $3.048 million in net income for the quarter ended September 30, 2026. Sales increased 11% year over year, while diluted earnings per share declined to $0.92 from $1.40.

Why did Pro-Dex’s fiscal 2027 first-quarter operating expenses increase?

Operating expenses increased with higher personnel costs, internal engineering project expenditures and APM’s separate operations. Selling, general and administrative expense growth included $466,000 from APM’s separate operations and $195,000 in higher personnel costs related to accounting, mergers and acquisitions, human resources and information technology.