Pro-Dex Reports 10.4% Revenue Growth to $18.7 Million in Q2 Fiscal 2026

Pro-Dex, Inc. reported a notable increase in financial performance for the second quarter of fiscal 2026, with net sales reaching $18.7 million, a 10.4% increase from $16.8 million in the same period last year. For the six months ending December 31, 2025, total revenue was $37.2 million, up 17.8% from $31.7 million in the prior year. The company achieved a net income of $2.2 million for the quarter, compared to $2.0 million in the previous year, resulting in a basic net income per share of $0.67, up from $0.63. The gross profit margin for the quarter was 30.7%, slightly higher than the 30.2% reported in the same quarter last year.

The company experienced significant growth in its medical device segment, with sales increasing by 24% for the three months and 33% for the six months compared to the previous fiscal year. This growth was primarily driven by the launch of a next-generation handpiece for its largest customer, which contributed to a 27% increase in orthopedic sales. However, repair revenue saw a decline of 35% for the quarter, attributed to a shift from repairs of legacy products to new product replacements. Pro-Dex's backlog stood at approximately $37.4 million, indicating strong future revenue potential.

Operationally, Pro-Dex has made strategic moves to enhance its market position, including the potential acquisition of a significant supplier to meet increased demand. The company is also focused on expanding its product offerings, with plans to launch the Helios driver for cranio-maxillofacial applications later this fiscal year. The company’s investment in research and development remains a priority, although R&D expenses decreased slightly due to a shift in focus towards billable projects.

In terms of financial health, Pro-Dex reported total assets of $62.3 million as of December 31, 2025, up from $61.2 million at the end of the previous fiscal year. Current liabilities decreased significantly to $12.2 million from $14.6 million, reflecting improved cash management and operational efficiency. The company ended the quarter with cash and cash equivalents of $8.0 million, a substantial increase from $0.4 million at the end of June 2025, bolstered by proceeds from the sale of investments and effective cash flow management.

Looking ahead, Pro-Dex anticipates continued revenue growth driven by its expanding product line and strong customer relationships. The company is optimistic about maintaining its growth trajectory, although it acknowledges potential fluctuations in order bookings due to market conditions and customer inventory management. The management remains committed to leveraging its technological advancements and operational capabilities to capitalize on emerging opportunities in the medical device market.