Pro-Dex(NASDAQ) PDEX

Pro-Dex makes powered surgical tools for hospitals and device makers. Hospitals and medical companies rely on these tools for orthopedic and facial surgeries.

Toolbox Breakdown: What Pro-Dex Sells

• Medical device products (69% of revenue): Battery-powered and electric surgical drivers and shavers for orthopedic, chest, and facial surgeries.
• Repair services (29% of net sales for the three months ended March 31, 2025): Maintenance and repair of surgical handpieces and devices for hospitals and clinics.
• Industrial and scientific (2% of net sales for the three months ended March 31, 2025): Rotary air motors for use in laboratory and industrial equipment.
• Engineering and consulting: Design, quality, and regulatory support for medical device manufacturers.
• Dental and components (negligible): Remaining inventory of dental products, now being phased out.
• Prototyping and NRE (1% of net sales for the three months ended March 31, 2025): Custom engineering and prototype services for new device development.

Growth Moves: Pro-Dex’s Expansion Playbook

• Expanded manufacturing with the Franklin Property facility in Tustin, California in 2023.
• Extended long-term supply agreement with its largest customer through 2025.
• Invested in in-house battery production and new product development since 2023.
• Active management of surplus cash, including $5.5M in public equity securities as of March 2025.

What Makes Pro-Dex Stand Out

Pro-Dex focuses on custom, U.S.-made surgical tools for large medical device companies. Its patented torque-limiting software helps prevent over-tightening during surgery. The company’s long-term supply deals and in-house engineering support stable relationships with major clients.

Five Things You Need to Know

• Revenue was $19M in QQ1 2026, up 24.4% from QQ1 2025.
• Net income was $5M in QQ1 2026, up 89.8% year-over-year.
• Medical device products made up 69% of sales in the nine months to March 2025.
• Top two customers accounted for 88% of sales in the latest quarter.
• Gross margin rose to 33% in the three months to March 2025, up from 28% prior year.

Bottom Line

Pro-Dex has grown by focusing on specialized surgical tools and strong customer partnerships. Its adaptability and investment in technology support its position in the medical device supply chain.