Operating margins reached 15.5% in 2026Q3 as the company scaled output, though gross margins remain structurally capped near 30.7%.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Sales/Revenue | 74.64M | 66.59M | 53.84M | 46.09M | 42.04M | 42.04M | 34.83M | 27.17M | 22.46M | 21.94M | 20.16M | 13.38M | 10.81M | 12.25M | 17.26M | 27.11M | 23.21M | 21.12M | 25.13M | 21.56M | 17.06M | 13.83M | 14.2M | 11.99M | 10.53M | 14.84M | 26.67M | 18.34M | 22.65M | 19.2M | 20.8M |
| Revenue Growth % | 16.39% | 23.68% | 16.83% | 9.62% | 0% | 20.69% | 28.2% | 20.95% | 2.38% | 8.86% | 50.62% | 23.78% | -11.73% | -29.02% | -36.34% | 16.79% | 9.89% | -15.94% | 16.52% | 26.39% | 23.33% | -2.58% | 18.43% | 13.91% | -29.09% | -44.34% | 45.4% | -19.01% | 17.96% | -7.69% | 131.11% |
| Cost of Goods Sold | 53.9M | 47.08M | 39.29M | 33.34M | 28.91M | 28.91M | 21.69M | 17.39M | 14.52M | 14.76M | 14.76M | 9.68M | 7.85M | 8.53M | 11.84M | 16.57M | 14.85M | 14.37M | 16.92M | 14.2M | 10.48M | 6.75M | 7.39M | 7.08M | 6.43M | 8.09M | 12.13M | 9.76M | 10.02M | 8.2M | 7.8M |
| COGS % of Revenue | - | 70.7% | 72.98% | 72.34% | 68.76% | 68.76% | 62.27% | 64.01% | 64.64% | 67.25% | 73.2% | 72.32% | 72.57% | 69.66% | 68.62% | 61.13% | 63.97% | 68.05% | 67.33% | 65.83% | 61.46% | 48.82% | 52.08% | 59.01% | 61.05% | 54.5% | 45.46% | 53.23% | 44.23% | 42.71% | 37.5% |
| Gross Profit | 20.73M | 19.51M | 14.55M | 12.75M | 13.13M | 13.13M | 13.14M | 9.78M | 7.94M | 7.19M | 5.4M | 3.7M | 2.97M | 3.72M | 5.42M | 10.54M | 8.36M | 6.75M | 8.21M | 7.37M | 6.58M | 7.08M | 6.8M | 4.92M | 4.1M | 6.75M | 14.54M | 8.58M | 12.63M | 11M | 13M |
| Gross Margin % | 27.78% | 29.3% | 27.02% | 27.66% | 31.24% | 31.24% | 37.73% | 35.99% | 35.36% | 32.75% | 26.8% | 27.68% | 27.43% | 30.34% | 31.38% | 38.87% | 36.03% | 31.95% | 32.67% | 34.16% | 38.54% | 51.18% | 47.92% | 40.99% | 38.95% | 45.5% | 54.54% | 46.77% | 55.77% | 57.29% | 62.5% |
| Gross Profit Growth % | - | 34.08% | 14.13% | -2.92% | 0% | -0.08% | 34.38% | 23.13% | 10.53% | 33% | 45.87% | 24.88% | -20.18% | -31.39% | -48.6% | 25.97% | 23.95% | -17.8% | 11.43% | 12.03% | -7.12% | 4.04% | 38.45% | 19.88% | -39.3% | -53.56% | 69.54% | -32.08% | 14.82% | -15.38% | 96.97% |
| Operating Expenses | 9.93M | 8.82M | 7.38M | 6.99M | 8.01M | 8.01M | 6.08M | 4.79M | 4.54M | 4.34M | 4.63M | 4.61M | 3.78M | 5.61M | 6.78M | 7.29M | 7.15M | 7.24M | 7.75M | 6.53M | 5.43M | 4.79M | 4.97M | 4.61M | 6.24M | 7.97M | 10.81M | 18.83M | 11.24M | 10.9M | 10.5M |
| OpEx % of Revenue | - | 13.25% | 13.7% | 15.16% | 19.05% | 19.05% | 17.46% | 17.62% | 20.2% | 19.77% | 22.98% | 34.42% | 34.96% | 45.81% | 39.29% | 26.9% | 30.8% | 34.29% | 30.86% | 30.26% | 31.83% | 34.61% | 35.01% | 38.44% | 59.23% | 53.71% | 40.55% | 102.68% | 49.64% | 56.77% | 50.48% |
| Selling, General & Admin | 6.69M | 5.18M | 4.19M | 4.18M | 4.99M | 4.99M | 3.77M | 2.91M | 2.65M | 3.11M | 2.78M | 2.94M | 2.3M | 3.82M | 4.71M | 4.88M | 4.67M | 4.45M | 5.02M | 4.05M | 3.42M | 3.05M | 3.18M | 3.12M | 4.2M | 4.68M | 8.66M | 8.96M | 8.93M | 8.5M | 8.6M |
| SG&A % of Revenue | - | 7.79% | 7.78% | 9.08% | 11.88% | 11.88% | 10.81% | 10.7% | 11.77% | 14.19% | 13.79% | 21.95% | 21.25% | 31.19% | 27.31% | 17.99% | 20.12% | 21.08% | 19.98% | 18.79% | 20.05% | 22.03% | 22.41% | 26.02% | 39.91% | 31.51% | 32.46% | 48.85% | 39.42% | 44.27% | 41.35% |
| Research & Development | 3.23M | 3.64M | 3.19M | 2.8M | 2.98M | 2.98M | 2.31M | 1.88M | 1.89M | 1.23M | 1.85M | 1.67M | 1.48M | 1.79M | 2.07M | 2.42M | 2.48M | 2.79M | 2.73M | 2.47M | 2.01M | 1.74M | 1.79M | 1.46M | 1.54M | 1.67M | 1.67M | 1.7M | 1.41M | 1.1M | 600K |
| R&D % of Revenue | - | 5.46% | 5.92% | 6.08% | 7.09% | 7.09% | 6.65% | 6.93% | 8.43% | 5.58% | 9.19% | 12.46% | 13.71% | 14.61% | 11.98% | 8.91% | 10.68% | 13.21% | 10.87% | 11.47% | 11.78% | 12.58% | 12.61% | 12.15% | 14.68% | 11.26% | 6.25% | 9.27% | 6.22% | 5.73% | 2.88% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 35K | 35K | 0 | 45K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 32K | 489K | 1.62M | 489K | 8.17M | 905.44K | 1.3M | 1.3M |
| Operating Income | 10.81M | 10.69M | 7.17M | 5.76M | 5.12M | 5.12M | 7.07M | 5M | 2.39M | 2.73M | 526K | -902K | -814K | -1.9M | -1.36M | 3.24M | -3.23M | -1.49M | 456K | 842K | 1.15M | 2.29M | 1.83M | 306K | -2.13M | -1.22M | 3.73M | -10.25M | 1.39M | 100K | 2.5M |
| Operating Margin % | 14.48% | 16.05% | 13.32% | 12.5% | 12.19% | 12.19% | 20.28% | 18.39% | 10.65% | 12.46% | 2.61% | -6.74% | -7.53% | -15.47% | -7.91% | 11.97% | -13.92% | -7.06% | 1.81% | 3.9% | 6.72% | 16.57% | 12.91% | 2.55% | -20.28% | -8.21% | 13.99% | -55.9% | 6.12% | 0.52% | 12.02% |
| Operating Income Growth % | - | 49.02% | 24.49% | 12.47% | 0% | -27.5% | 41.38% | 108.95% | -12.51% | 419.77% | 158.31% | -10.81% | 57.04% | -38.83% | -142.08% | 200.43% | -116.49% | -427.19% | -45.84% | -26.53% | -50% | 25.04% | 499.02% | 114.33% | -75.14% | -132.68% | 136.38% | -839.5% | 1286.61% | -96% | 177.78% |
| EBITDA | 12.72M | 11.93M | 8.33M | 6.62M | 5.85M | 5.85M | 7.68M | 5.44M | 2.95M | 3.29M | 1.13M | -324K | -287K | -1.31M | -718K | 3.94M | -2.5M | -682K | 994K | 1.33M | 1.5M | 2.64M | 2.19M | 681K | -1.27M | -261K | 4.93M | -8.82M | 2.9M | 1.6M | 3.8M |
| EBITDA Margin % | 17.05% | 17.91% | 15.48% | 14.36% | 13.91% | 13.91% | 22.05% | 20.01% | 13.13% | 14.99% | 5.6% | -2.42% | -2.65% | -10.72% | -4.16% | 14.54% | -10.79% | -3.23% | 3.96% | 6.16% | 8.8% | 19.08% | 15.46% | 5.68% | -12.07% | -1.76% | 18.47% | -48.11% | 12.82% | 8.33% | 18.27% |
| EBITDA Growth % | 6.48% | 43.14% | 25.9% | 13.16% | 0% | -23.84% | 41.28% | 84.33% | -10.34% | 191.32% | 448.46% | -12.89% | 78.14% | -82.87% | -118.22% | 257.39% | -267.16% | -168.61% | -25.21% | -11.52% | -43.11% | 20.27% | 222.32% | 153.62% | -386.59% | -105.3% | 155.82% | -403.98% | 81.42% | -57.89% | 245.45% |
| D&A (Non-Cash Add-back) | 1.92M | 1.24M | 1.16M | 857K | 726K | 726K | 614K | 438K | 557K | 555K | 603K | 578K | 527K | 582K | 647K | 697K | 726K | 810K | 538K | 487K | 356K | 348K | 362K | 375K | 865K | 958K | 1.2M | 1.43M | 1.52M | 1.5M | 1.3M |
| EBIT | 11.81M | 12.89M | 3.19M | 9.96M | 6.16M | 6.16M | 8.14M | 4.99M | 3.4M | 2.85M | 1.17M | -440K | -747K | -1.89M | -1.36M | 3.48M | -3.19M | -1.48M | 499K | 842K | 1.15M | 2.29M | 1.83M | 306K | -2.13M | -1.22M | 1.67M | -10.25M | 1.39M | 100K | 2.5M |
| Net Interest Income | -473K | -747K | -414K | -239K | -388K | -226K | -141K | 48K | 218K | 15K | -37K | 0 | 4K | -8K | -36K | -148K | -202K | -226K | -164K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 95K | 82K | 144K | 294K | 76K | 126K | 95K | 268K | 225K | 27K | 0 | 6K | 12K | 3K | 0 | 0 | 2K | 2K | 17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 367K | 829K | 558K | 533K | 464K | 352K | 236K | 220K | 7K | 12K | 37K | 6K | 8K | 11K | 36K | 148K | 204K | 228K | 181K | 0 | 0 | 21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 5.28M | 1.37M | -4.54M | 3.67M | 571K | 571K | 836K | 449K | 218K | 15K | 602K | 456K | 59K | -8K | -36K | -382K | -4.6M | -1.21M | -138K | -267K | 7K | 138K | 69K | -51K | -240K | -907K | -1.02M | -971K | -881.98K | -1.2M | -1M |
| Pretax Income | 16.09M | 12.06M | 2.63M | 9.43M | 5.69M | 5.69M | 7.9M | 5.45M | 2.61M | 2.75M | 847K | -446K | -755K | -1.9M | -1.4M | 3.1M | -3.39M | -1.7M | 318K | 575K | 1.15M | 2.43M | 1.9M | 255K | -2.38M | -2.13M | 2.6M | -11.22M | 504.63K | -1.1M | 1.5M |
| Pretax Margin % | 21.56% | 18.11% | 4.89% | 20.46% | 13.54% | 13.54% | 22.68% | 20.05% | 11.62% | 12.54% | 4.2% | -3.33% | -6.98% | -15.54% | -8.12% | 11.42% | -14.6% | -8.07% | 1.27% | 2.67% | 6.76% | 17.57% | 13.39% | 2.13% | -22.56% | -14.32% | 9.74% | -61.2% | 2.23% | -5.73% | 7.21% |
| Income Tax | 4.09M | 3.08M | 507K | 2.35M | 1.12M | 1.12M | 1.79M | 1.3M | 989K | -2.09M | 25K | -44K | -104K | -39K | -441K | 456K | -420K | 1.14M | 1K | 69K | 326K | 581K | 782K | 122K | -1.21M | -829K | 1.06M | -2.29M | 151.07K | -300K | 300K |
| Effective Tax Rate % | 25.41% | 25.54% | 19.25% | 24.97% | 19.7% | 19.7% | 22.65% | 23.85% | 37.89% | -75.91% | 2.95% | 9.87% | 13.77% | 2.05% | 31.48% | 14.73% | 12.4% | -66.96% | 0.31% | 12% | 28.27% | 23.91% | 41.11% | 47.84% | 50.95% | 38.99% | 40.71% | 20.41% | 29.94% | 27.27% | 20% |
| Net Income | 12M | 8.98M | 2.13M | 7.07M | 4.57M | 4.57M | 6.11M | 4.15M | 1.62M | 5.08M | 822K | -365K | -488K | -1.78M | -876K | 2.64M | -2.97M | -2.85M | 317K | 506K | 827K | 1.85M | 1.12M | 133K | -1.57M | 2.85M | 1.54M | -8.93M | 353.56K | -1.6M | 1.2M |
| Net Margin % | 16.08% | 13.48% | 3.95% | 15.35% | 10.88% | 10.88% | 17.55% | 15.27% | 7.22% | 23.17% | 4.08% | -2.73% | -4.51% | -14.56% | -5.08% | 9.74% | -12.79% | -13.47% | 1.26% | 2.35% | 4.85% | 13.37% | 7.89% | 1.11% | -14.88% | 19.18% | 5.78% | -48.71% | 1.56% | -8.33% | 5.77% |
| Net Income Growth % | 28.11% | 322.1% | -69.93% | 54.72% | 0% | -25.2% | 47.35% | 155.89% | -68.12% | 518.49% | 325.21% | 25.2% | 72.65% | -103.65% | -133.18% | 188.95% | -4.32% | -997.48% | -37.35% | -38.81% | -55.27% | 65.09% | 742.11% | 108.49% | -155.01% | 84.75% | 117.25% | -2626.87% | 122.1% | -233.33% | 300% |
| Net Income (Continuing) | 12M | 8.98M | 2.13M | 7.07M | 4.57M | 4.57M | 6.11M | 4.15M | 1.62M | 4.84M | 1.1M | -402K | -651K | -1.86M | -960K | 2.8M | -2.97M | -2.85M | 317K | 506K | 827K | 1.85M | 1.12M | 133K | -1.17M | -1.3M | 389K | -8.93M | 353.56K | -900K | 1.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 243K | 0 | 37K | 163K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.67 | 2.67 | 0.60 | 1.95 | 1.21 | 1.13 | 1.50 | 0.97 | 0.37 | 1.25 | 0.20 | -0.09 | -0.14 | -0.54 | -0.27 | 0.80 | -0.92 | -0.88 | 0.10 | 0.16 | 0.25 | 0.57 | 0.36 | 0.04 | -0.53 | 0.97 | 0.52 | -3.05 | 0.12 | -0.53 | 0.43 |
| EPS Growth % | 29.29% | 345% | -69.23% | 61.16% | 7.08% | -24.67% | 54.64% | 162.16% | -70.4% | 525% | 328.57% | 37.5% | 74.07% | -100% | -133.75% | 186.96% | -4.55% | -1018.58% | -40.13% | -36% | -56.14% | 58.33% | 716.33% | 108.32% | -154.64% | 86.54% | 117.05% | -2641.67% | 122.64% | -223.26% | 186.67% |
| EPS (Basic) | - | 2.73 | 0.61 | 1.98 | 1.26 | 1.17 | 1.56 | 0.99 | 0.38 | 1.26 | 0.20 | -0.09 | -0.14 | -0.54 | -0.27 | 0.81 | -0.92 | -0.88 | 0.10 | 0.16 | 0.26 | 0.61 | 0.38 | 0.05 | -0.53 | 0.97 | 0.53 | -3.06 | 0.12 | -0.53 | 0.43 |
| Diluted Shares Outstanding | 3.27M | 3.36M | 3.57M | 3.64M | 3.76M | 3.94M | 4.08M | 4.3M | 4.34M | 4.08M | 4.17M | 4.17M | 3.49M | 3.32M | 3.27M | 3.29M | 3.23M | 3.24M | 3.31M | 3.25M | 3.33M | 3.22M | 3.11M | 3.01M | 2.93M | 2.93M | 2.98M | 2.93M | 2.97M | 3.03M | 2.82M |
| Basic Shares Outstanding | 3.2M | 3.29M | 3.5M | 3.57M | 3.64M | 3.8M | 3.91M | 4.19M | 4.3M | 4.04M | 4.14M | 4.02M | 3.49M | 3.32M | 3.27M | 3.26M | 3.23M | 3.24M | 3.25M | 3.19M | 3.17M | 3.04M | 2.93M | 2.91M | 2.93M | 2.93M | 2.93M | 2.92M | 2.95M | 3M | 2.82M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 0.55% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Extreme customer concentration risk
According to the provided quarterly income statements, PDEX has demonstrated consistent top-line growth, culminating in a 14.6% year-over-year revenue increase to $19.9 million in 2026Q3, suggesting that the company's integration into OEM surgical platforms is successfully driving sustained demand for its specialized medical components.
The revenue trajectory appears to be supported by the multi-year lifecycles of the surgical systems PDEX supports, which provides a degree of insulation from broader industrial cyclicality. However, investors should monitor the lumpiness in quarterly growth rates, which may reflect the timing of specific engineering milestones or OEM product launch cycles rather than purely organic volume expansion.
As reported in financial statements, PDEX maintains a gross margin profile of approximately 30%, which, while stable, remains significantly lower than pure-play medtech peers, indicating that the company's role as a specialized contract manufacturer limits its ability to capture the full premium pricing of end-market surgical devices.
The gross margin volatility observed in 2025Q4, where it dipped to 19.9%, highlights the sensitivity of the cost structure to production inefficiencies or potential supply chain disruptions. Without a shift toward higher-margin proprietary intellectual property, the current margin ceiling appears to be a structural feature of the OEM-partner business model.
Based on the income statement data, PDEX has successfully managed its SG&A expenses relative to revenue growth, with operating margins reaching 15.5% in 2026Q3, suggesting that the company is achieving meaningful operating leverage as it scales its specialized manufacturing output for its primary medical OEM partners.
The ability to keep SG&A growth below the rate of revenue expansion indicates disciplined overhead management, which is critical given the company's relatively thin gross margin profile. Continued monitoring of this relationship is warranted to ensure that future revenue gains are not eroded by rising administrative or compliance-related costs.
Analysis of the reported figures reveals a significant discrepancy between net income and cash availability, as the company reported $3.9 million in net income for 2026Q3 while maintaining a cash balance of only $419,000, which warrants further investigation into the company's working capital and cash conversion cycle.
The high net income relative to the minimal cash position suggests that earnings may be heavily tied to accounts receivable or inventory buildup, which could pose liquidity risks if OEM payment cycles extend. Investors should be cautious of the quality of these earnings, as they may not be fully representative of the company's immediate ability to fund operations without external financing.
While PDEX exhibits strong growth, the combination of extreme customer concentration and a razor-thin cash buffer of $419,000, as noted in recent filings, suggests that the company is highly vulnerable to any sudden shifts in OEM order volumes or delays in the regulatory clearance of partner products.
Short-term volatility in earnings, such as the 56.2% EPS decline observed in 2024Q4, underscores the potential for rapid margin compression if production volumes fall below the threshold required to cover fixed manufacturing costs. The lack of a substantial cash cushion leaves little room for error in managing the working capital requirements of its high-precision manufacturing operations.
Quick answers to the most common questions about buying PDEX stock.
For fiscal year 2025, Pro-Dex, Inc. (PDEX) reported total revenue of $66.6M. This represents a 220.2% increase compared to $20.8M in 1996.
Pro-Dex, Inc. (PDEX) is profitable, generating $9.0M in net income for the fiscal year ending 2025 with a net profit margin of 13.5%.
Pro-Dex, Inc. (PDEX) reported an operating income of $10.7M, resulting in an operating profit margin of 16.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Pro-Dex, Inc. (PDEX) generated $19.5M in gross profit for the year, representing a gross profit margin of 29.3%. This demonstrates the company's core pricing power and production efficiency.