Executive Summary
ProDex Inc reported QQ2 2025 revenue of $16.793 million, up 33.4% year over year and 12.8% quarter over quarter, supported by a gross profit of $5.072 million and a gross margin of 30.2%. EBITDA stood at $3.103 million with operating income of $2.692 million, and net income of $2.04 million (EPS $0.63). The quarter reflected meaningful profitability gains on higher topline and favorable operating leverage, but cash flow remained negative, driven by a substantial working-capital swing. Net cash from operating activities was a burn of $4.15 million, as accounts receivable and inventories expanded while payables modestly contributed to cash flow. The balance sheet shows a liquid current position (current ratio 2.58, quick ratio 1.44) but material debt levels, and a very light cash balance at period end. The stock trades with a set of valuation metrics that imply a premium to book and sales, consistent with a niche healthcare device supplier with improving earnings power but elevated working-capital needs.
Key Performance Indicators
QoQ: -10.65% | YoY:246.46%
QoQ: -17.27% | YoY:308.00%
QoQ: -17.11% | YoY:350.00%
Key Insights
Revenue: $16.793 million in QQ2 2025, up 33.40% YoY and 12.77% QoQ. Gross Profit: $5.072 million, margin 30.20% (vs. prior periods showing higher margins in some peers). EBITDA: $3.103 million. Operating Income: $2.692 million (operating margin 16.03%). Net Income: $2.04 million (net margin 12.15%). EPS: $0.63 basic, $0.61 diluted (YoY EPS up ~350%, QoQ down ~17%). Liquidity: cash and short-term investments $4.737 million; cash at period end $66k; total current assets $44.3 million; total liabil...
Financial Highlights
Revenue: $16.793 million in QQ2 2025, up 33.40% YoY and 12.77% QoQ. Gross Profit: $5.072 million, margin 30.20% (vs. prior periods showing higher margins in some peers). EBITDA: $3.103 million. Operating Income: $2.692 million (operating margin 16.03%). Net Income: $2.04 million (net margin 12.15%). EPS: $0.63 basic, $0.61 diluted (YoY EPS up ~350%, QoQ down ~17%). Liquidity: cash and short-term investments $4.737 million; cash at period end $66k; total current assets $44.3 million; total liabilities $28.6 million; total debt $17.33 million; net debt around $(17.26) million. Balance sheet strength: current ratio 2.58, quick ratio 1.44. Cash flow: net cash provided by operating activities $(4.15) million; free cash flow $(4.69) million. Capital expenditures reflect modest investment activity. Equity $31.82 million; ROE ~6.41%; ROA ~3.38%. Valuation indicators (as of period): P/B ~4.79, P/S ~9.08, EV/Sales high given the niche profile and cash-flow dynamics.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
16.79M |
33.40% |
12.77% |
| Gross Profit |
5.07M |
81.01% |
-1.51% |
| Operating Income |
2.69M |
246.46% |
-10.65% |
| Net Income |
2.04M |
308.00% |
-17.27% |
| EPS |
0.63 |
350.00% |
-17.11% |
Key Financial Ratios
operatingProfitMargin
16%
operatingCashFlowPerShare
$-1.27
freeCashFlowPerShare
$-1.44
Management Commentary
Notes on transcript coverage: The provided dataset does not include the QQ2 2025 earnings call transcript. As a result, there are no management quotes or call-specific guidance to quote here. Management commentary themes would typically cover product mix, customer concentration, regulatory timing, and operating-expenditure trajectory, which are not extractable from the current data.
Forward Guidance
No formal forward guidance is presented in the data. Given the inputs, the company showed solid quarterly profitability and revenue growth, but continued negative operating cash flow due to working-capital dynamics. Management commentary (if provided externally) would likely address inventory and accounts receivable optimization, potential mix shifts toward higher-margin products, and capital deployment plans. Investors should monitor: (1) trend in days sales outstanding and days inventory outstanding, (2) payable days and supplier terms to improve cash conversion, (3) any explicit guidance on revenue trajectory, product launches, or regulatory milestones, and (4) borrowings or financing plans that could alter liquidity and leverage.