ProDex Inc (PDEX) Q1 2025 Earnings Report

Executive metrics (QQ1 2025):
- Revenue: $14.892 million; YoY +24.74%; QoQ -0.89%.
- Gross Profit: $5.15 million; YoY +40.79%; QoQ +22.79%; Gross Margin: 34.58%.
- Operating Income: $3.013 million; YoY +64.38%; Operating Margin: 20.23%; EBITDAR 25.34%.
- Net Income: $2.467 million; YoY +500.98%; Net Margin: 16.56%; EPS: $0.76; Diluted EPS: $0.75; Weighted avg shares outs: 3.259 million (diluted 3.292 million).
- EBITDA: $3.773 million; EBITDA Margin: 25.33%.
- Cash flow: Net cash provided by operating activities $1.887 million; Free cash flow $1.456 million; Operating cash flow yield and capex indicate positive cash generation.
- Balance sheet (end of QQ1 2025): Total assets $54.31 million; Total liabilities $23.43 million; Total stockholders’ equity $30.88 million.
- Liquidity and leverage: Current ratio 3.41; Quick ratio 1.94; Cash and short-term investments $7.82 million; Total debt $14.55 million; Net debt $11.47 million; Debt to equity 0.471; Debt ratio 0.268.
- Stockholder capital actions: Net cash used for financing activities around $1.01 million; share repurchases (common stock) ~$2.31 million reducing cash; debt repayments ~$1.56 million; cash balance ended QQ1 ~ $3.08 million.

Transcript highlights unavailable: No earnings transcript data were provided in the materials. Consequently, no management quotes or thematic quotes could be grouped by strategy, operations, or market conditions for QQ1 2025.

Quantitatively, QQ1 2025 shows a compelling combination of YoY revenue growth, margin expansion, and positive cash generation, with an implied annualized earnings trajectory consistent with a small-cap healthcare supplier gaining scale. Valuation indicators (P/E around 9.9, P/S around 6.5, P/B near 3.1) suggest the stock trades at a reasonable multiple for a profitable, cash-generative player with modest balance-sheet risk. Qualitatively, the near-term catalyst set includes potential expansion of high-margin services and instrument line enhancements, while risks include OEM customer dependence and macro-driven variability in hospitals’ capex. Overall, the investment thesis centers on continued margin improvement, cash generation, and strategic monetization of services beyond device sales, with a cautious stance on execution risk at a small scale.