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.

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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

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