Executive Summary
ProDex Inc delivered a solid QQ3 2025 performance with meaningful top-line growth and margin stability. Revenue reached $17.414 million, up 21.8% year over year (YoY) and 3.7% quarter over quarter (QoQ), supported by a favorable product mix and ongoing demand in powered surgical instruments used in orthopedic and craniofacial procedures. Gross profit rose to $5.798 million, yielding a gross margin of 33.3%, while EBITDA stood at $3.64 million and operating income was $3.64 million, translating to an operating margin of approximately 20.9%. Net income was $3.275 million with basic EPS of $1.00, and diluted EPS of $0.98, underscoring meaningful profitability even as the company remains in a growth phase.
From a liquidity and balance sheet perspective, ProDex shows a cautious but healthy liquidity profile. Cash and equivalents totaled $4.473 million, and management reports $5.418 million in short-term investments, bringing total cash and short-term investments to about $9.89 million. Total debt stood at $19.10 million with stockholders’ equity of roughly $35.28 million, resulting in a debt-to-equity ratio around 0.54 and a current ratio of 2.73. Operating cash flow was $0.754 million for the quarter, with free cash flow of $0.574 million. The cash flow dynamics benefited from a positive working capital swing (notably an inflow from other working capital items and a sizable reduction in inventory), but the company also faces a relatively extended working capital cycle (DSO of ~82 days, DIO ~182 days, CCC ~264 days), implying continued capital intensity tied to receivables and inventory.
Given the absence of an earnings call transcript in the provided data, forward guidance and management commentary are not captured in this dataset. The near-term outlook therefore rests on the quantified results and industry context. Investors should monitor OEM demand cycles, product mix evolution, and any changes in regulatory/compliance requirements, as well as the pace of cash conversion and potential shifts in working capital that could influence quarterly earnings trajectory.
Key Performance Indicators
QoQ: 60.54% | YoY:400.00%
QoQ: 58.73% | YoY:426.32%
Key Insights
Revenue: 17.414 million for Q3-2025, YoY +21.84%, QoQ +3.70%. Gross Profit: 5.798 million, Gross Margin 33.295% (0.3330). YoY Gross Profit +41.28%, QoQ +14.31%. Operating Income: 3.64 million, Operating Margin 20.90% (0.2090). YoY Operating Income +64.48%, QoQ +35.22%. Net Income: 3.275 million, Net Margin 18.81% (0.1881). YoY Net Income +400.00%, QoQ +60.54%. EPS: 1.00 (Diluted 0.98); YoY EPS +426.32%, QoQ +58.73%.
Cash Flow and liquidity: Net cash provided by operating activities 0.754 millio...
Financial Highlights
Revenue: 17.414 million for Q3-2025, YoY +21.84%, QoQ +3.70%. Gross Profit: 5.798 million, Gross Margin 33.295% (0.3330). YoY Gross Profit +41.28%, QoQ +14.31%. Operating Income: 3.64 million, Operating Margin 20.90% (0.2090). YoY Operating Income +64.48%, QoQ +35.22%. Net Income: 3.275 million, Net Margin 18.81% (0.1881). YoY Net Income +400.00%, QoQ +60.54%. EPS: 1.00 (Diluted 0.98); YoY EPS +426.32%, QoQ +58.73%.
Cash Flow and liquidity: Net cash provided by operating activities 0.754 million; capital expenditure -0.18 million; free cash flow 0.574 million. Cash at end of period 4.473 million; cash and short-term investments total 9.89 million. Net change in cash +4.407 million for the quarter. Working capital dynamics: accounts receivable +2.632 million; inventory decrease of -3.821 million; accounts payable decrease -1.429 million; other working capital +9.761 million; other non-cash items -10.132 million.
Balance sheet and leverage: Total assets 64.273 million; total liabilities 28.991 million; total stockholders’ equity 35.283 million. Total debt 19.102 million; net debt 14.629 million. Liquidity ratios: current 2.73, quick 1.447, cash ratio 0.244.
Valuation and efficiency: Price-to-sales ~9.28x, Price-to-book ~4.58x, Price-to-earnings ~12.34x. EBITDA margin 21.0% (EBITDA 3.64 million). Asset turnover ~0.271; receivables turnover ~1.098; inventory turnover ~0.496; CCC remains elevated at roughly 263 days, indicating working capital intensity typical for a small-cap medical device supplier.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
17.41M |
21.84% |
3.70% |
| Gross Profit |
5.80M |
41.28% |
14.31% |
| Operating Income |
3.64M |
64.48% |
35.22% |
| Net Income |
3.28M |
400.00% |
60.54% |
| EPS |
1.00 |
426.32% |
58.73% |
Key Financial Ratios
operatingProfitMargin
20.9%
operatingCashFlowPerShare
$0.23
freeCashFlowPerShare
$0.18
Management Commentary
Earnings call transcript not provided in the dataset. No management quotes or call-specific commentary are available to summarize sender strategy, operational updates, or market commentary. If a transcript becomes available, we can extract themes around strategy, operational execution, and market conditions.
Forward Guidance
No explicit forward guidance is included in the provided data. Consequently, there is no management-targeted forecast to assess achievability. Given the quarterly trajectory and margin stability, a qualitative outlook would emphasize: (1) continued demand for powered surgical instruments in orthopedic and craniofacial applications; (2) potential margin expansion through product mix and cost control; (3) ongoing working capital needs given a relatively long operating cycle; (4) regulatory and competitive dynamics in the medical devices OEM ecosystem. Investors should monitor quarterly cadence of orders from OEM partners, any color on international growth, regulatory approvals for new instruments, R&D intensity, and changes in working capital efficiency that could impact cash flow generation in upcoming quarters.