Business
NAPCO Security Technologies, Inc. Reports Fiscal 2026 Q2 Results
Fiscal Q2 2026 HighlightsRecord Q2 Net revenues of $48.2 million, a 12.2% YoY increaseEquipment revenue increased 12.0% YoY to $24.3 millionRecurring service
About this update from Napco Security Technologies, Inc.
[{"type":"text","content":"Fiscal Q2 2026 HighlightsRecord Q2 Net revenues of $48.2 million, a 12.2% YoY increaseEquipment revenue increased 12.0% YoY to $24.3 millionRecurring service revenue (\"RSR\") increased 12.5% YoY to $23.8 million with a 90.2% gross marginRSR had a prospective annual run rate of approximately $99 million based on January 2026 recurring service revenues.Gross profit margin for Q2 2026 of 58.6% vs 57.0% in prior fiscal year quarterDiluted EPS increased YoY to $0.38 vs $0.28The Board declared a quarterly dividend of $0.15 per share, a 7% increase from last quarter, payable on April 3, 2026 to shareholders of record on March 12, 2026.AMITYVILLE, N.Y., Feb. 2, 2026 /PRNewswire/ -- NAPCO Security Technologies, Inc. (NASDAQ: NSSC), one of the leading manufacturers and designers of high-tech electronic security equipment, wireless communication devices for intrusion and fire alarm systems and the related recurring service revenues as well as a provider of school safety solutions, today announced financial results for its second quarter of fiscal 2026.\nThree months ended December 31, Six months ended December 31, (dollars in thousands)(dollars in thousands)% Increase/% Increase/Financial Highlights (1)20252024(decrease)20252024 (decrease)Net Revenue$48,172$42,93312.2%$97,340$86,93612.0%Gross Profit$28,238$24,48915.3%$56,084$49,10514.2%Gross Profit Margin58.6%57.0%57.6%56.5%Net Income$13,503$10,46729.0%$25,668$21,65218.5%Net Income as a % of Revenue28.0%24.4%26.4%24.9%Diluted EPS$0.38$0.2835.7%$0.72$0.5922.0%Adjusted EBITDA(2)$15,350$12,17826.0%$30,292$24,71622.6%Adjusted EBITDA Margin(2)31.9%28.4%31.1%28.4%Adjusted EBITDA Per Share(2)$0.43$0.3330.3%$0.84$0.67% 25.4%Free Cash Flows(2)$14,512$12,36517.4%$25,956$23,7109.5%Free Cash Flows Margin(2)30.1%28.8%26.7%27.31. In millions except percentages and per share data or as otherwise noted.2. Represents a non-GAAP financial measure. An explanation and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure are presented in the schedules accompanying this press release.Richard Soloway, Chairman and CEO, commented, \"NAPCO delivered another strong quarter fueled by our recurring service revenue and its consistent year over year double digit growth, and the continued demand for our door-locking products that drove double digit growth in our equ...