Short answer
PRO DEX INC (PDEX) filed its fiscal 2026 10-K annual report with the SEC on Sep 3, 2026. It reported revenue of $78M (+16.5% year over year) and net income of $14M.
- Top risk flagged: Regulatory risk from U.S. Government export controls (ITAR, EAR) and government contracting post-APM acquisition in Feb 2026, with risk of penalties or contract loss
FY2026 key financial metrics · XBRL
- Revenue
- $78M
- +16.5% YoY
- Net income
- $14M
- +52.2% YoY
- Operating margin
- 16.8%
- +0.7 pp YoY
- Gross margin
- 31.4%
- +2.1 pp YoY
- EPS (diluted)
- $4.12
- +54.3% YoY
- ROE
- 28.7%
- +4.2 pp YoY
- Operating cash flow
- $7M
- +530.6% YoY
Source: XBRL data from the PRO DEX INC (PDEX) FY2026 10-K on SEC EDGAR. USD.
PRO DEX INC FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: design, development, manufacture of autoclavable, battery-powered surgical drivers and shavers primarily for orthopedic, thoracic, and CMF markets
- New segment introduced: precision machined parts and assemblies for aerospace and defense via acquired subsidiary Advanced Precision Machining, LLC (APM) in Feb 2026
- Strategic shift: acquisition of APM to support increased demand from largest customer and expand machined parts business into aerospace/defense sectors
- Employee count increased to 206 in FY 2026 from 181 in FY 2025, with employee turnover rising to 21% vs 16% prior year
- Notable decline in backlog to $32.9 million at June 30, 2026 from $50.4 million at June 30, 2025 reflecting order variability and timing
Management Discussion & Analysis
- Revenue $77.5M, up 16% YoY from $66.6M; medical device sales best performer, up $14.4M (30%) to $62.1M; repairs down 33% to $12.5M
- Operating income $13.0M (16.8% margin) vs $10.7M (16.1% margin); net income $13.7M vs $9.0M; gross margin 31.4% vs 29.3%
- Medical Devices segment best with $62.1M sales, +30%; Repairs worst, down $6.0M (33%) to $12.5M due to product transition
- Operating cash flow $7.2M vs negative $1.7M; investing cash inflow $3.9M due to $11.2M proceeds from Monogram sale offset by $6.5M APM acquisition; $3.4M used in share repurchases (79,898 shares)
- Backlog declined to $32.9M from $50.4M due to timing, orthopedic sales expected stable through 2028; FY27 repair revenue from new handpiece to begin but volumes uncertain
Risk Factors
- Regulatory risk from U.S. Government export controls (ITAR, EAR) and government contracting post-APM acquisition in Feb 2026, with risk of penalties or contract loss
- Geopolitical/macro risk from U.S. tariff increases starting Q1 2025 impacting costs due to complex international supply chain and raw material imports
- Operational risk from customer concentration: top 3 customers make up 92% sales; largest customer 78%, with purchase commitments only through 2028
- Competitive risk from larger surgical device firms and customers' internal development teams potentially eroding market share and pricing power
- Financial risk from dependence on key personnel in product development and senior management, risking disruption if lost due to small employee base
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