Pro-Dex (PDEX) investor relations material

Executive summary

• Net sales for Q3 FY2026 were $19.9 million, up 15% year-over-year; nine-month sales reached $57.1 million, up 16% year-over-year.

• Net income for Q3 FY2026 was $3.9 million, including a $2.3 million realized gain from Monogram Technologies; nine-month net income was $10.8 million, up from $7.8 million year-over-year.

• Acquisition of Advanced Precision Machining (APM) completed in February 2026, supporting business expansion and increased demand from a major customer contract extension.

• Backlog at March 31, 2026, was approximately $39.0 million, with $15.6 million scheduled for Q4 delivery.

Financial highlights

• Gross profit for Q3 FY2026 was $6.1 million (31% margin), up 6% year-over-year; nine-month gross profit was $17.2 million (30% margin), up 8% year-over-year.

• Q3 operating income was $3.1 million; nine-month operating income was $7.8 million.

• Realized gains of $6.8 million from the Zimmer Biomet acquisition of Monogram and an additional $2.3 million milestone gain in Q3.

• Cash and cash equivalents increased to $10.0 million at March 31, 2026, from $419,000 at June 30, 2025.

• Working capital at March 31, 2026, was $39.1 million.

Outlook and guidance

• Expect continued strong orthopedic sales through 2028 due to contract extension with the largest customer.

• Management expects sustained success for the remainder of FY2026 and beyond, citing expanded revenue streams and machining capacity from the APM acquisition.

• New product (Helios driver for CMF applications) expected to launch later in fiscal 2026.

• Management anticipates sufficient liquidity for at least the next 12 months, with $11.0 million available on the revolving loan.