Pro-Dex reported fiscal 2026 net sales of $77.5 million, up 16% from $66.6 million, as higher revenue from its largest customer’s next-generation orthopedic handpiece helped drive growth.
For the fiscal fourth quarter ended June 30, Pro-Dex generated $20.4 million in net sales, up 17% from $17.5 million in the comparable period. The increase was primarily driven by higher sales of the next-generation orthopedic handpiece.
Fourth-quarter gross profit more than doubled, increasing 103% to $7.1 million from $3.5 million, while gross margin expanded to 35% from 20%. Pro-Dex attributed the improvement to favorable product mix, better absorption of indirect manufacturing costs and margins contributed by Advanced Precision Machining, or APM, which the company acquired during fiscal 2026.
Quarterly operating expenses increased to $3.6 million from $2.2 million, reflecting higher administrative and research and development spending. The increase included a $349,000 allowance for uncollectible receivables, $436,000 of APM administrative expenses and $250,000 in consulting payments to APM’s founder.
Despite the higher expenses, fourth-quarter operating income increased 163% to $3.5 million from $1.3 million. Net income rose to $2.9 million, or $0.87 per diluted share, compared with $1.2 million, or $0.36 per diluted share, a year earlier.
For the full fiscal year, revenue growth reflected a $15.3 million increase in sales to Pro-Dex’s largest customer, primarily related to the next-generation orthopedic handpiece. That increase was partially offset by a $6 million decline in repair revenue. Non-recurring engineering revenue increased by $952,000, while APM contributed $718,000 following its February 9, 2026 acquisition.
Fiscal 2026 gross profit increased 25% to $24.3 million from $19.5 million, and gross margin expanded to 31% from 29%.
Operating income increased 22% to $13 million from $10.7 million, while full-year net income reached $13.7 million, or $4.12 per diluted share, compared with $9 million, or $2.67 per diluted share, in fiscal 2025.
The company’s fiscal 2026 net income included a $5.7 million gain on marketable equity investments, compared with a $2.1 million gain in the prior year.
Pro-Dex ended fiscal 2026 with $8.2 million in cash and cash equivalents, up from $419,000 a year earlier. Net cash provided by operating activities was approximately $7.2 million, compared with $1.7 million of cash used in operating activities in fiscal 2025.
KEY QUOTE:
“We are very pleased with our fiscal 2026 performance including completing the acquisition of APM and increasing sales by 16%,” said the Company’s President and Chief Executive Officer Richard L. (“Rick”) Van Kirk. “I continue to extend my gratitude to the Pro-Dex team for their continued teamwork and focus on execution,” Mr. Van Kirk concluded.
Richard L. “Rick” Van Kirk, President and CEO of Pro-Dex
