The earnings call presented a mixed picture with strong recurring revenue growth and effective cash and inventory management being offset by declines in equipment sales and operating income. The company demonstrated resilience with strategic investments and shareholder returns, but faced challenges due to external factors like tariffs and decreased equipment demand.

Company Guidance

During the Napco Security Technologies Fiscal Q4 2025 Earnings Conference Call, several key metrics were discussed, highlighting the company's financial performance and strategic initiatives. The call revealed a recurring revenue run rate of $94 million, marking a significant $5 million increase from the previous quarter, with a strong gross margin of 91%. Equipment sales saw a sequential increase of 27% from Q3, despite being 5% lower than last year's Q4. The company reported a net income of $43.4 million, representing 24% of sales, and adjusted EBITDA of $52.1 million, equating to a 29% EBITDA margin. Cash flow from operations for the fiscal year was $53.5 million, and the company ended the year with approximately $100 million in cash and no debt. Price adjustments to offset tariff costs included an 8.5% increase and a standard annual increase of 5%, expected to impact results starting in fiscal 2026 Q1. The company's strong balance sheet and strategic pricing actions position it favorably against competitors, continuing to drive growth and shareholder value.

Strong Recurring Revenue Growth

The recurring revenue run rate reached $94 million, up $5 million from the prior quarter, marking the largest quarterly increase in the past 2 years with a gross margin of 91%.

Cash Flow and Shareholder Returns

Cash flow from operations for the year was $53.5 million. The company paid out $13.6 million in dividends and repurchased $36.8 million of stock, ending the fiscal year with $100 million in cash and no debt.

Inventory Management Success

Inventory levels were reduced by $8.6 million compared to the previous year, indicating improved supply chain and inventory management.

Increased R&D Investment

R&D costs increased by 16.9% for the year, reflecting investments in product development and additional staffing to drive future growth.

Napco Security Technologies (NSSC) Earnings, Revenues Date & History

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NSSC Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 10, 2025	2026 (Q1)	0.30 / -	0.3	―	―	―
Aug 25, 2025	2025 (Q4)	0.27 / 0.33	0.36	-8.33% (-0.03)	―
May 05, 2025	2025 (Q3)	0.27 / 0.28	0.36	-22.22% (-0.08)	―
Feb 03, 2025	2025 (Q2)	0.34 / 0.28	0.34	-17.65% (-0.06)	―
Nov 04, 2024	2025 (Q1)	0.33 / 0.30	0.28	7.14% (+0.02)	―
Aug 26, 2024	2024 (Q4)	0.35 / 0.36	0.28	28.57% (+0.08)
May 06, 2024	2024 (Q3)	0.33 / 0.36	0.29	24.14% (+0.07)	―
Feb 05, 2024	2024 (Q2)	0.26 / 0.34	0.23	47.83% (+0.11)	―
Nov 06, 2023	2024 (Q1)	0.21 / 0.28	0.17	64.71% (+0.11)
Aug 29, 2023	2023 (Q4)	0.27 / 0.28	0.2	40.00% (+0.08)

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
Aug 25, 2025	$31.70	$33.64	+6.12%
May 05, 2025	$23.66	$24.53	+3.68%
Feb 03, 2025	$36.34	$26.67	-26.61%
Nov 04, 2024	$38.09	$34.06	-10.58%

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.