ProDex Inc delivered a robust Q4 2024 performance, highlighted by a 41.2% year-over-year revenue increase to $15.03 million and a solid gross margin of 27.9%. The quarter produced operating income of $2.35 million and net income of $1.59 million, translating to basic EPS of $0.47. The result set marks meaningful top-line acceleration on a base that benefited from demand for powered surgical instruments and related services, coupled with disciplined cost management that kept operating expenses in check.
Profitability remained favorable with an operating margin of 15.6% and a net margin of 10.6%, supported by EBITDA of $2.66 million and an interest-coverage ratio of 15.8x. Cash flow remains positive, with $1.02 million generated from operations and free cash flow of $0.913 million in the quarter. The company ended the period with roughly $2.63 million in cash and equivalents and a total cash-and-equivalents plus short-term investments position of about $6.85 million. Total debt stands at $13.55 million, leaving net debt at approximately $10.92 million and a relatively conservative debt profile (debt-to-equity ~0.44, debt ratio ~0.25).
From a balance-sheet and working-capital perspective, ProDex exhibits a strong current position (current ratio 2.82; quick ratio 1.64), though operating-cycle metrics indicate a relatively extended cash conversion cycle (CCC ≈ 210 days) driven by higher days sales outstanding and inventory days. Management commentary (when available) will be critical to understanding whether this leverage on working capital is a near-term artifact of OEM production lags or a structural characteristic of the business model. Overall, the QQ4 results reinforce a constructive investment thesis: scalable profitability, a lean cost structure, and sufficient liquidity to fund ongoing product development and potential market expansion. Based on the data, we outline growth opportunities, risks, and an actionable investment outlook for investors to monitor going into 2025 and beyond.