Pro-Dex, Inc. ( PDEX ) manufactures surgical drivers and shavers, used mostly in orthopedic medical devices. I covered the name a few years ago, since when its situation has not changed meaningfully, in a consistent trendLong-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competit ...

Pro-Dex, Inc. ( PDEX ) manufactures surgical drivers and shavers, used mostly in orthopedic medical devices. I covered the name a few years ago, since when its situation has not changed meaningfully, in a consistent trendLong-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competit ...

IRVINE, CA / ACCESS Newswire / December 19, 2025 / PRO-DEX, INC. (NasdaqCM:PDEX) today announced that on December 17, 2025, it executed a contract amendment with its largest customer for an additional three years. ...

Core Insights - Long Cast Advisers reported a cumulative net return improvement of 4% in Q3 2025, with a total cumulative return of 266% net of fees since inception in November 2015, translating to a 14% CAGR [1] Company Summary - Pro-Dex, Inc. (NASDAQ:PDEX) is highlighted as a key stock in Long Cast Advisers' Q3 2025 investor letter, specializing in powered surgical instruments for medical device OEMs [2] - The stock of Pro-Dex, Inc. experienced a one-month return of 1.50% but has seen a significant decline of 25.65% over the past 52 weeks, closing at $36.44 per share with a market capitalization of $119.523 million as of November 28, 2025 [2] - Pro-Dex, Inc. issued a press release in mid-September addressing a significant stock decline, clarifying that it is not associated with a blockchain platform sharing the same ticker, and added a risk disclosure regarding potential AI-related errors affecting the stock [3]

Core Insights - Pro-Dex, Inc. (PDEX) reported quarterly earnings of $0.62 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, but down from $0.75 per share a year ago, indicating an earnings surprise of +24.00% [1] - The company generated revenues of $18.53 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 21.11% and up from $14.89 million year-over-year [2] - Pro-Dex shares have declined approximately 34.3% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] Earnings Outlook - The future performance of Pro-Dex's stock will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $17.3 million, and for the current fiscal year, it is $2.38 on revenues of $70 million [7] Industry Context - The Medical - Dental Supplies industry, to which Pro-Dex belongs, is currently ranked in the top 21% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Performance - Net sales for the first quarter of fiscal 2026 increased by $3.6 million, or 24%, to $18.5 million compared to $14.9 million in the same period last year[3]. - Gross profit rose by $217,000, or 4%, but gross margin decreased by 6 percentage points to 29% due to higher costs, including tariffs[4]. - Operating expenses increased by $121,000, or 6%, to $2.3 million, primarily due to higher personnel costs in general and administrative expenses[5]. - Operating income for the quarter increased by $96,000, or 3%, to $3.1 million compared to $3.0 million in the prior year[6]. - Net income for the quarter increased to $4.7 million, or $1.40 per diluted share, compared to $2.5 million, or $0.75 per diluted share, in the same quarter last year[7]. Investment and Assets - The company reported unrealized gains on marketable equity investments of $3.3 million for the quarter, compared to $433,000 in the prior year[7]. - Cash and cash equivalents increased to $514,000 from $419,000 at the end of the previous quarter[13]. - Total assets rose to $64.3 million from $61.2 million at the end of the previous quarter[13]. - Shareholders' equity increased to $41.5 million from $36.6 million at the end of the previous quarter[13]. - The company is considering strategic uses for the cash generated from its investment in Monogram Technologies, Inc.[8].

Financial Performance - For the three months ended September 30, 2025, net sales increased to $18,530,000, a 24% increase from $14,892,000 in the same period of 2024[88] - Gross profit for the same period was $5,367,000, representing 29% of net sales, down from 35% in 2024[88] - Operating income for the three months ended September 30, 2025, was $3,109,000, which is 17% of net sales, compared to 20% in 2024[88] - Net income increased to $4,680,000, or 25% of net sales, compared to $2,466,000 or 17% in the prior year[88] Sales Breakdown - Medical device sales accounted for 77% of total net sales, increasing by $4,470,000 or 45% compared to the prior year[89] - Orthopedic sales specifically rose by $4,400,000 or 65%, primarily due to the launch of the next generation handpiece[90] - Repair revenue decreased by $1,300,000 or 25% due to fewer repairs of legacy orthopedic handpieces[92] Costs and Expenses - Research and development costs were $768,000, representing 4% of net sales, down from 6% in the previous year[88] - For the three months ended September 30, 2025, cost of sales increased by $3.4 million, or 35%, consistent with a 24% increase in revenue for the same period[95] - Gross profit increased by approximately $217,000, or 4%, while gross margin as a percentage of sales decreased by six percentage points due to higher costs[96] - Operating expenses totaled $2.3 million for the three months ended September 30, 2025, reflecting a 6% increase from the prior year[97] - Selling expenses rose by $25,000, or 52%, primarily due to personnel costs related to business development[98] - General and administrative expenses increased by $171,000, or 14%, attributed to higher payroll and personnel expenses from new hires[99] - Research and development costs decreased by $75,000, or 9%, due to lower internal project spending, but a new product is expected to be released in Q2 of fiscal 2026[100] Cash Flow and Liquidity - Cash and cash equivalents increased to $514,000 as of September 30, 2025, from $419,000 at June 30, 2025[106] - Net cash provided by operating activities was $2.3 million for the three months ended September 30, 2025, with a net income of $4.7 million[108] - The company expects to derive liquidity from cash flows from operations and has an available balance of $8.8 million on its revolving loan as of September 30, 2025[114] Future Outlook - The company is negotiating to extend a supply agreement with its largest customer through calendar 2028[84] - The Helios driver for CMF applications, featuring adaptive torque-limiting software, is expected to be released for production in the second quarter of the fiscal year[85] - As of September 30, 2025, the company had a backlog of approximately $46.8 million, with $43.6 million scheduled for delivery during fiscal 2026[94]

Core Viewpoint - Pro-Dex, Inc. aims to clarify potential confusion in the marketplace regarding its common stock trading under the symbol PDEX on the Nasdaq Capital Market, distinguishing it from Polkadex, which also trades under the same symbol on various crypto exchanges [1] Company Summary - Pro-Dex, Inc. is listed on the Nasdaq Capital Market with the ticker symbol PDEX [1] - The company is addressing market confusion between its stock and that of Polkadex, which operates on certain crypto exchanges [1]

Group 1 - Pro-Dex, Inc. reported quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.47 per share, and down from $0.46 per share a year ago, representing an earnings surprise of -23.40% [1] - The company posted revenues of $17.49 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.27%, compared to year-ago revenues of $15.02 million [2] - Pro-Dex shares have lost about 0.6% since the beginning of the year, while the S&P 500 has gained 9.6% [3] Group 2 - The current consensus EPS estimate for the coming quarter is $0.50 on $15.3 million in revenues, and for the current fiscal year, it is $2.38 on $70 million in revenues [7] - The Zacks Industry Rank indicates that the Medical - Dental Supplies sector is currently in the bottom 30% of over 250 Zacks industries, which may impact stock performance [8]

[Fiscal 2025 Fourth Quarter Results](index=1&type=section&id=Quarter%20Ended%20June%2030%2C%202025) PRO-DEX, INC. saw increased net sales in Q4 FY2025, but gross profit and net income declined due to unfavorable product mix and rising costs Fiscal 2025 Fourth Quarter Financial Highlights (YoY) | Metric | Q4 2025 (in thousands) | Q4 2024 (in thousands) | Change | % Change | | :-------------------------- | :--------------------- | :--------------------- | :----- | :------- | | Net sales | $17,494 | $15,025 | +$2,469 | +16% | | Gross profit | $3,490 | $4,089 | -$599 | -15% | | Gross margin | 20% | 27% | -7 pp | - | | Operating expenses | $2,146 | $1,737 | +$409 | +24% | | Operating income | $1,344 | $2,352 | -$1,008 | -43% | | Net income | $1,196 | $1,587 | -$391 | -25% | | Diluted EPS | $0.36 | $0.46 | -$0.10 | -22% | - Gross margin decreased from **27%** to **20%** due to unfavorable product mix and higher indirect manufacturing costs, including initial tariff costs[3](index=3&type=chunk) - Operating expenses increased primarily due to higher personnel costs in selling, general and administrative, and engineering to support continued growth[4](index=4&type=chunk) [Fiscal 2025 Full-Year Results](index=2&type=section&id=Year%20Ended%20June%2030%2C%202025) Full-year FY2025 net sales and profitability grew substantially, driven by a key product and favorable mix Fiscal 2025 Full-Year Financial Highlights (YoY) | Metric | FY 2025 (in thousands) | FY 2024 (in thousands) | Change | % Change | | :-------------------------- | :--------------------- | :--------------------- | :----- | :------- | | Net sales | $66,593 | $53,844 | +$12,749 | +24% | | Gross profit | $19,510 | $14,551 | +$4,959 | +34% | | Gross margin | 29% | 27% | +2 pp | - | | Operating expenses | $8,821 | $7,378 | +$1,443 | +20% | | Operating income | $10,689 | $7,173 | +$3,516 | +49% | | Net income | $8,978 | $2,127 | +$6,851 | +322% | | Diluted EPS | $2.67 | $0.60 | +$2.07 | +345% | - Net sales increase primarily due to **$12.0 million** in sales of the next-generation handpiece to the largest customer[7](index=7&type=chunk) - Net income for FY2025 includes **$1.5 million** in unrealized gains on marketable equity investments, contrasting with **$4.1 million** in unrealized losses in FY2024, significantly impacting net income growth[11](index=11&type=chunk) [Management Commentary](index=2&type=section&id=CEO%20Comments) CEO satisfied with FY2025 performance, expects continued revenue and operating income growth in FY2026 - CEO pleased with fiscal 2025 performance, including a **24%** increase in sales and a **$3.5 million** increase in operating income[12](index=12&type=chunk) - Fiscal 2025 included disruption during the transition to the largest customer's next-generation handpiece, but customer requests were met by adapting assembly schedules[12](index=12&type=chunk) - Expects continued revenue and operating income growth in fiscal 2026, supported by a June 30 backlog of **$50.4 million**, and is working on tariff cost sharing and manufacturing system improvements[12](index=12&type=chunk) [About Pro-Dex, Inc.](index=3&type=section&id=About%20Pro-Dex%2C%20Inc.) Pro-Dex, Inc. specializes in surgical drivers and shavers for orthopedic markets, serving distributors - Specializes in the design, development, and manufacture of autoclavable, battery-powered, and electric multi-function surgical drivers and shavers[13](index=13&type=chunk) - Products are primarily used in orthopedic, thoracic, and maxocranial facial markets, featuring patented adoptive torque-limiting software and proprietary sealing solutions[13](index=13&type=chunk) - Primary customers are medical device distributors; rotary air motors represent a de minimis portion of total revenue[13](index=13&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) Forward-looking statements are subject to risks and uncertainties; refer to SEC filings for details [Consolidated Financial Statements](index=4&type=section&id=Financial%20Statements%20Overview) Presents audited consolidated Balance Sheets, Income Statements, and Cash Flows for fiscal years 2025 and 2024 [Consolidated Balance Sheets](index=4&type=section&id=PRO-DEX%2C%20INC.%20AND%20SUBSIDIARY%20CONSOLIDATED%20BALANCE%20SHEETS) The Balance Sheets detail the company's financial position, showing increases in total assets, liabilities, and equity Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | June 30, 2024 | Change | | :-------------------------- | :------------ | :------------ | :----- | | Total assets | $61,192 | $52,477 | +$8,715 | | Total liabilities | $24,560 | $21,610 | +$2,950 | | Total shareholders' equity | $36,632 | $30,867 | +$5,765 | | Cash and cash equivalents | $419 | $2,631 | -$2,212 | | Investments (total) | $6,888 | $5,780 | +$1,108 | | Inventory | $22,213 | $15,269 | +$6,944 | | Accounts receivable | $16,433 | $13,887 | +$2,546 | [Consolidated Income Statements](index=5&type=section&id=PRO-DEX%2C%20INC.%20AND%20SUBSIDIARY%20CONSOLIDATED%20INCOME%20STATEMENTS) Income Statements show strong annual sales and profitability growth, but a quarterly decline due to cost and mix factors Consolidated Income Statement Summary (in thousands, except per share data) | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | Net sales | $17,494 | $15,025 | $66,593 | $53,844 | | Cost of sales | $14,004 | $10,936 | $47,083 | $39,293 | | Gross profit | $3,490 | $4,089 | $19,510 | $14,551 | | Total operating expenses | $2,146 | $1,737 | $8,821 | $7,378 | | Operating income | $1,344 | $2,352 | $10,689 | $7,173 | | Income before income taxes | $1,599 | $1,930 | $12,058 | $2,634 | | Net income | $1,196 | $1,587 | $8,978 | $2,127 | | Diluted net income per share | $0.36 | $0.46 | $2.67 | $0.60 | [Consolidated Statements of Cash Flows](index=6&type=section&id=PRO-DEX%2C%20INC.%20AND%20SUBSIDIARY%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Cash Flow Statements detail cash sources and uses, showing a net cash outflow from operating activities in FY2025 Consolidated Statements of Cash Flows Summary (in thousands) | Metric | FY 2025 | FY 2024 | Change | | :----------------------------------- | :------ | :------ | :----- | | Net cash provided by (used in) operating activities | $(1,682) | $6,224 | -$7,906 | | Net cash used in investing activities | $(238) | $(2,233) | +$1,995 | | Net cash used in financing activities | $(292) | $(4,296) | +$4,004 | | Net increase (decrease) in cash and cash equivalents | $(2,212) | $(305) | -$1,907 | | Cash and cash equivalents, end of year | $419 | $2,631 | -$2,212 | - Operating activities shifted from providing **$6.2 million** in cash in FY2024 to using **$1.7 million** in FY2025, largely due to changes in working capital, including a significant increase in inventory[21](index=21&type=chunk)