Pro-Dex (PDEX) Q2 2026 earnings summary

Executive summary

• Net sales for the quarter ended December 31, 2025, increased 11% year-over-year to $18.7 million, with six-month sales up 17% to $37.2 million, driven by strong growth in orthopedic and CMF device sales and next-generation handpiece shipments.

• Net income for the quarter was $2.2 million, up 7% year-over-year, and $6.9 million for the six months, a 52% increase, reflecting higher sales and a significant realized gain on investment.

• Gross margin for the quarter was 31%, up 1 percentage point year-over-year, while the six-month margin was 30%, down 2 points due to increased inventory and warranty charges and less favorable product mix.

• Operating income rose to $3.3 million for the quarter and $6.4 million for the six months, reflecting improved sales and cost control.

Financial highlights

• Orthopedic device sales rose 27% for the quarter and 43% for the six months, driven by the launch of a next-generation handpiece for the largest customer.

• CMF device sales increased 69% for the quarter and 47% for the six months, while thoracic sales declined 83% and 67%, respectively.

• Repair revenue declined 35% for the quarter and 30% for the six months due to fewer repairs of legacy products.

• Realized a $6.8 million gain from the sale of Monogram Technologies shares following its acquisition by Zimmer Biomet, with a $3.2 million reversal of unrealized gains.

• Cash and cash equivalents increased to $8.0 million at December 31, 2025, from $419,000 at June 30, 2025.

Outlook and guidance

• Backlog at December 31, 2025, was $37.4 million, with $32.5 million scheduled for delivery in fiscal 2026.

• Management expects continued growth in orthopedic sales for the remainder of the fiscal year and is pursuing the acquisition of a key supplier to meet demand.

• A three-year contract extension with the largest customer is expected to support continued growth.

• The company is focused on expanding manufacturing capacity and launching new products, including the Helios driver for CMF applications.