Napco Security ( (NSSC) ) has released its Q4 earnings. Here is a breakdown of the information Napco Security presented to its investors.
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NAPCO Security Technologies, Inc. is a prominent manufacturer and designer of high-tech electronic security equipment and wireless communication devices, catering to intrusion and fire alarm systems, and providing school safety solutions. Headquartered in Amityville, New York, the company operates through four divisions and serves a diverse range of applications worldwide.
NAPCO Security Technologies recently released its fiscal fourth quarter and full-year 2025 financial results. The company reported a slight increase in net sales for the fourth quarter compared to the previous year, while full-year sales saw a decline. Recurring service revenue showed significant growth, contributing to a strong gross margin.
Key financial highlights include a 10% increase in recurring service revenue for the fourth quarter and a 14% increase for the full year, with a gross margin of 91%. Equipment sales saw a decline year-over-year but showed a sequential increase from the previous quarter. The company’s gross profit margin slightly decreased for the quarter but improved for the full year. Diluted earnings per share also saw a decrease compared to the previous year.
The company introduced a new cloud-based MVP Access platform, expected to generate future recurring revenue. Despite challenges with equipment revenue, NAPCO remains optimistic about growth in fiscal 2026, supported by a strong cash flow and no debt. The company also declared a quarterly dividend, reflecting its commitment to returning value to shareholders.
Looking ahead, NAPCO Security Technologies remains confident in its financial strength and product innovation. The company aims to maintain strong profitability and continue its dividend program, positioning itself for growth in the evolving security market.