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.