Pro-Dex, Inc. announced its financial results for the fourth quarter and full fiscal year ended June 30, 2025. For the full fiscal year 2025, net sales increased by a substantial 24% to $66.59 million, up from $53.84 million in fiscal 2024. Net income for the year skyrocketed 322% to $8.98 million, translating to basic EPS of $2.73 compared to $0.61 in the prior year.
The medical device segment, which constitutes 72% of total sales, grew 29% year-over-year to $47.75 million. This impressive performance was primarily driven by a $10.1 million increase in orthopedic sales, specifically attributed to the successful launch of a next-generation handpiece for the company's largest customer. Repair revenue also increased 13% to $18.59 million, though this stream is expected to decline as customers transition to new products.
Despite the strong full-year performance, the company's fourth-quarter earnings and revenue lagged estimates. Gross profit for the full year increased to $19.51 million, with the gross margin expanding from 27% in fiscal 2024 to 29% in fiscal 2025. Operating income rose to $10.69 million, representing a 16% operating margin.
Pro-Dex reported a substantial backlog of $50.4 million as of June 30, 2025, for fiscal 2026, indicating strong future demand. Cash used in operating activities for fiscal 2025 was $1.7 million, primarily due to increased accounts receivable, higher income tax payments, and a strategic $6.9 million increase in inventory to support anticipated demand for the next-generation handpiece. The expanded capacity from the Tustin facility is expected to support future growth.
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