Pro-Dex (PDEX) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 net sales rose 24% year-over-year to $66.6 million, driven by strong demand from the largest customer and successful launch of a next generation handpiece.

• Net income for the year reached $9.0 million, up from $2.1 million in fiscal 2024, aided by $1.5 million in unrealized investment gains.

• Fourth quarter net sales increased 16% year-over-year to $17.5 million, but gross margin fell to 20% due to unfavorable product mix and higher indirect costs.

• Operating income for the year increased 49% to $10.7 million, reflecting higher sales and improved gross profit.

Financial highlights

• Gross profit for fiscal 2025 was $19.5 million, up 34% from the prior year; gross margin improved to 29%.

• Fourth quarter gross profit declined 15% year-over-year to $3.5 million, with gross margin dropping from 27% to 20%.

• Operating expenses for the year rose 20% to $8.8 million, mainly due to increased personnel and R&D costs.

• Diluted EPS for fiscal 2025 was $2.67, compared to $0.60 in fiscal 2024.

• Cash and cash equivalents at year-end were $419,000, down from $2.6 million the previous year.

Outlook and guidance

• Management expects continued revenue and operating income growth in fiscal 2026, supported by a $50.4 million backlog as of June 30.

• Initiatives underway to share tariff costs with customers and improve manufacturing systems.