Pro-Dex Reports 24% Revenue Growth to $18.5 Million in Q1 Fiscal 2026

Pro-Dex, Inc. reported a significant increase in financial performance for the first quarter of fiscal 2026, ending September 30, 2025. The company achieved net sales of $18.5 million, a 24% increase from $14.9 million in the same period last year. Gross profit rose to $5.4 million, up from $5.2 million, although the gross margin percentage decreased from 35% to 29%. The net income for the quarter was $4.7 million, compared to $2.5 million in the prior year, resulting in a basic net income per share of $1.43, up from $0.76.

The increase in revenue was primarily driven by a 45% rise in medical device sales, which accounted for 77% of total sales. Notably, orthopedic sales surged by 65% due to the launch of a next-generation handpiece for a major customer. However, repair revenue decreased by 25%, attributed to a shift from repairing legacy handpieces to the new model. The company also reported a backlog of approximately $46.8 million, with $43.6 million scheduled for delivery in the remainder of fiscal 2026.

In terms of operational changes, Pro-Dex has been focusing on expanding its manufacturing capacity. The company began operations at a new facility in Tustin, California, which is expected to support future growth. Additionally, Pro-Dex is negotiating to acquire a supplier to meet anticipated demand from its largest customer. The company has also introduced a new product, the Helios driver, which is expected to enter production in the second quarter of fiscal 2026.

Pro-Dex's financial position remains strong, with total assets increasing to $64.3 million from $61.2 million at the end of the previous quarter. Current liabilities decreased to $13.6 million, down from $14.6 million, contributing to a working capital of $37.1 million. The company reported cash and cash equivalents of $514,000, a slight increase from $419,000. The cash flow from operating activities was $2.3 million, up from $1.9 million in the prior year, indicating improved operational efficiency.

Looking ahead, Pro-Dex remains optimistic about its growth trajectory, focusing on maintaining customer relationships and investing in research and development. The company anticipates continued revenue growth, although it acknowledges that this may not be consistent. Pro-Dex is also evaluating the impact of recent tax law changes on its financial statements and is prepared to seek additional capital if necessary to support its operations and growth initiatives.