PRO DEX INC

Pro-Dex, Inc.

What the company does

• Designs, develops, and manufactures autoclavable, battery-powered and electric multi-function surgical drivers and shavers for orthopedic, thoracic, and craniomaxillofacial (CMF) markets.
• Holds patented adaptive torque-limiting technology and proprietary sealing solutions.
• Provides engineering, quality, and regulatory consulting services to customers.
• Manufactures and sells rotary air motors for a range of industries (a smaller portion of the business).
• Began selling precision machined parts and assemblies for aerospace and defense through its acquired subsidiary Advanced Precision Machining, LLC (APM) in February 2026.
• APM serves as a U.S. Government prime contractor and holds ITAR registrations and Joint Certification Program (JCP) certification.

Segment and product mix

• Operates as a single operating segment.
• Revenue mix for the fiscal year ended June 30, 2026:
  • Medical Devices: $62.098 million (80% of revenue)
  • Industrial and Scientific: $1.513 million (2%)
  • NRE & Prototypes: $1.650 million (2%)
  • Repairs: $12.540 million (16%)
  • Discounts & Other: $(0.253) million
  • Total Sales: $77.548 million

Customers

• Top three customers accounted for 92% of sales in fiscal 2026.
• Largest single customer accounted for 78% of sales in fiscal 2026; the next largest accounted for 8%.
• In fiscal 2025, the two largest customers accounted for 75% and 12% of total sales.
• One customer extended a supply agreement through calendar 2028; the APM acquisition was completed to support increased demand from this contract.

Revenues

• Total sales in fiscal 2026: $77.548 million (compared with $66.593 million in 2025).

Backlog and revenue visibility

• Backlog at June 30, 2026: $32.9 million (down from $50.4 million at June 30, 2025).
• Substantially all backlog as of June 30, 2026, and certain orders received after that date, are expected to be delivered in fiscal 2027.
• Backlog represents firm purchase orders.

Employees and locations

• Employees: 206 (as of June 30, 2026), including five part-time; all but four based in California.
• Employees (June 30, 2025): 181 (two part-time).
• Facilities:
  • Irvine, CA — 2361 McGaw Avenue: headquarters and manufacturing, 28,000 sq ft; leased from an unrelated party with base rent of about $45,000 per month and 3% annual escalations through September 2027.
  • Tustin, CA — Franklin Property (14401 Franklin Avenue): 25,000 sq ft; used for assembly and repairs; purchased in 2020.
  • Costa Mesa, CA — APM facilities (1649 Monrovia Avenue): three adjacent facilities totaling approximately 2,500 sq ft each; leased through December 31, 2026.
• The APM acquisition increases machining capacity to support the largest customer and defense/aerospace customers.

Acquisitions and strategic moves

• February 2026: Acquired Advanced Precision Machining, LLC (APM) in Costa Mesa, CA.
• APM provides machined sub-assemblies for Pro-Dex and machined parts for aerospace and defense; holds ITAR registrations and JCP certification.

Regulatory and safety

• FDA establishment registrations and ISO 13485:2016 certification.
• APM holds AS9100D and ISO 9001:2015 certifications and maintains ITAR/JCP registrations for government contracting work.

Markets and competitive position

• Competes with major medical device companies.
• Relies on a small number of large customers, including one customer under an extended contract through 2028.
• Investing in product development, sales and marketing, and selective acquisitions to drive growth and meet customer demand.

Additional notes

• Emphasizes proprietary technology, established supplier relationships, and a multi-year roadmap that includes expansion into aerospace and defense through APM.