Pro-Dex Reports 16% Revenue Growth to $77.5 Million for Fiscal Year Ending June 30, 2026

Pro-Dex, Inc. reported a significant increase in financial performance for the fiscal year ending June 30, 2026, with net sales reaching $77.5 million, a 16% increase from $66.6 million in the previous fiscal year. The company's gross profit also improved, rising to $24.3 million, or 31% of net sales, compared to $19.5 million, or 29% of net sales, in fiscal 2025. This growth was primarily driven by a 30% increase in medical device sales, which accounted for 80% of total revenue, largely due to the successful launch of a next-generation handpiece for their largest customer.

The company experienced notable changes in its customer concentration, with its top three customers accounting for 92% of sales in fiscal 2026, down from 94% in the previous year. The largest customer alone represented 78% of total sales, an increase from 75% in fiscal 2025. Pro-Dex's acquisition of Advanced Precision Machining, LLC (APM) in February 2026 contributed to its revenue growth, as APM is expected to enhance the company's capabilities in the aerospace and defense sectors while also supporting increased demand from existing medical device contracts.

Operationally, Pro-Dex reported a backlog of $32.9 million as of June 30, 2026, a decrease from $50.4 million the previous year. This backlog reflects firm purchase orders and is expected to be fulfilled primarily in fiscal 2027. The company also noted a decrease in repair revenue, which fell by 33% to $12.5 million, attributed to the transition of its largest customer to the new handpiece model. The total employee headcount increased to 206 from 181, indicating a focus on expanding operational capacity.

Looking ahead, Pro-Dex anticipates continued revenue growth driven by the extended supply agreement with its largest customer through 2028 and the integration of APM into its operations. The company plans to maintain its focus on product development and market expansion, particularly in the orthopedic, thoracic, and craniomaxillofacial markets. However, management acknowledged potential risks, including reliance on a limited number of customers and the impact of market conditions on order variability. The company remains committed to monitoring its operational and financial strategies to navigate these challenges effectively.