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Napco Security Technologies (NSSC)
NASDAQ:NSSC
Earnings Data
Report Date
May 11, 2026Before Open (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
0.33Last Year’s EPS
0.28Same Quarter Last Year
Strong Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong operational and financial momentum: record Q2 revenue (+12.2%), double-digit growth in both equipment and recurring revenue, expanding gross margins, robust profitability (operating income +32%, net income +29%, adjusted EBITDA +26%), rising free cash flow, and a debt-free balance sheet with $115M in cash. Key strategic initiatives — including continued StarLink adoption, door-locking strength, and the MVP cloud platform — position the company for continued high-margin recurring revenue growth. Minor headwinds include a modest decline in recurring gross margin (driven by one-time comparative effects and higher data costs), higher tax provision, lower interest income, elevated SG&A on a six-month basis, and that MVP and ADI-driven locking contributions will take more time to scale. Overall, positives (record revenue, margin expansion, strong cash and profitability, strategic product momentum) substantially outweigh the limited operational and timing challenges, implying an upbeat outlook with manageable risks.Company Guidance
Record Q2 Revenue and Year-over-Year Growth
Net revenue of $48.2 million in Q2, a record for the quarter, representing a 12.2% increase versus prior-year Q2; net revenue for the first six months rose 12% to $97.3 million.
Equipment Revenue Growth and Margin Expansion
Equipment revenue grew 12% year-over-year to $24.3 million. Equipment gross margin improved to 27.6% (vs. 23.6% prior year) and equipment gross profit increased 3.2% to $6.7 million for the quarter, driven by pricing actions, favorable mix and lower discounting.
Recurring Revenue Growth and Strong Run Rate
Recurring monthly service revenue increased 12.5% year-over-year to $23.8 million in Q2; recurring revenue now represents nearly half of total sales with a prospective annual run rate of approximately $99 million (up $4 million from $95 million last quarter).
High-Margin Recurring Profitability
Recurring service gross margin remains very high at ~90.2% in Q2 (gross profit $21.5 million), underscoring the high-margin nature of the subscription/modelled revenue stream despite a small year-over-year margin dip.
Strong Profitability and Operating Leverage
Operating income rose 32.1% year-over-year to $14.8 million; net income increased 29% to $13.5 million (28% of revenue) and EPS was $0.38 diluted vs. $0.28 prior year. Adjusted EBITDA increased 26% to $15.3 million with an EBITDA margin of 31.9% (vs. 28.4% prior year).
Robust Free Cash Flow and Capital Allocation
Free cash flow for the quarter increased 17.4% to $14.5 million (free cash flow margin 30.1%). Cash and marketable securities totaled $115.4 million as of December 31, 2025 (up 16.3% since June 2025) and the company is debt-free.
Returning Capital to Shareholders
Board increased the quarterly dividend to $0.15 per share, a 7% increase, reflecting confidence in cash generation and commitment to shareholder returns.
Product & Go-to-Market Momentum (Locking, StarLink, MVP)
Door locking solutions and intrusion/alarm segments showed double-digit growth and strong margins; StarLink commercial fire radios continue to drive recurring revenue growth and remain positioned for further market adoption. The new MVP cloud-based access control platform has received positive dealer interest and is expected to begin contributing meaningfully in the back half of calendar 2026 / into fiscal 2027.
NSSC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
NSSC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 02, 2026 | $36.89 | $41.02 | +11.20% |
Nov 03, 2025 | $44.01 | $40.63 | -7.68% |
Aug 25, 2025 | $31.49 | $33.42 | +6.12% |
May 05, 2025 | $23.51 | $24.37 | +3.66% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Napco Security Technologies (NSSC) report earnings?
Napco Security Technologies (NSSC) is schdueled to report earning on May 11, 2026, Before Open (Confirmed).
What is Napco Security Technologies (NSSC) earnings time?
Napco Security Technologies (NSSC) earnings time is at May 11, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is NSSC EPS forecast?
NSSC EPS forecast for the fiscal quarter 2026 (Q3) is 0.33.
