#NAPCO Security #Amityville #fiscal results #NSSC

NAPCO Security Technologies' Fiscal Q1 Report: A Strong Start to 2026

NAPCO Security Technologies, Inc. (NASDAQ: NSSC) has announced its financial results for the first quarter of the fiscal year 2026, revealing an impressive performance. The company reported net revenues of $49.2 million, reflecting a substantial 11.7% year-over-year increase. This positive trend showcases NAPCO's strong position in the electronic security industry, as it continues to innovate and expand its product offerings.

Revenue Breakdown

Breaking down the revenue figures, equipment sales rose to $25.7 million, marking a 12.3% increase compared to the same quarter last year. This growth is primarily driven by the increasing demand for NAPCO's advanced door-locking systems, which are vital in ensuring security across various sectors, including commercial and residential applications.

Recurring service revenue (RSR) also showed impressive growth, totaling $23.4 million, which is an 11.1% increase year-over-year. The RSR segment boasts a remarkable gross margin of 90%, indicating the efficiency and profitability of NAPCO's service offerings. With a prospective annual run rate of approximately $95 million, based on current trends, the company is well-positioned for future growth in this area.

Financial Highlights

• - Gross Profit Margin: NAPCO's gross profit margin for Q1 was 56.6%, an increase from 55.9% in the same quarter last year. This improvement illustrates the company's ability to manage costs effectively while driving revenue growth.
• - Net Income: The net income stood at $12.2 million, an 8.8% year-over-year increase, highlighting the company’s consistent profitability despite market challenges.
• - Earnings Per Share (EPS): The diluted EPS improved to $0.34, up from $0.30 in the previous year.

Dividends and Future Outlook

In light of these robust results, NAPCO's Board of Directors has declared a quarterly dividend of $0.14 per share, payable on January 2, 2026, to shareholders on record by December 12, 2025. This move not only demonstrates the company’s solid cash flow but also its commitment to returning value to shareholders amidst growth.

Richard Soloway, Chairman and CEO of NAPCO Security Technologies, stated, “We've achieved year-over-year double-digit growth in both our equipment and service revenue. Our strong demand for door-locking products has significantly contributed to the revenue growth.