Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended June 30, 2025 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Transition period from _ to___ Commission File Number 0-10004 NAPCO SECURITY TECHNOLOGIES, INC. (Exact name of Registrant as specified in its charter) Delaware 11-2277818 ( ...

Exhibit 99.1 NAPCO Security Technologies, Inc. Reports Fiscal Q4 and Full Year 2025 Results Fiscal 2025 Highlights AMITYVILLE, N.Y., August 25, 2025 /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 fou ...

Financial Data and Key Metrics Changes - The company reported net sales for Q4 increased by 0.8% to $50.7 million compared to $50.3 million for the same period last year [17] - For the fiscal year, net sales decreased by 3.8% to $181.6 million from $188.8 million [17] - Recurring monthly service revenue increased by 10% in Q4 to $22.4 million compared to $20.4 million last year [17] - Recurring revenue run rate reached $94 million, up $5 million from the prior quarter, marking the largest quarterly increase in two years [12] - Net income for Q4 decreased by 14% to $11.6 million, or $0.33 per diluted share, compared to $13.5 million, or $0.36 per diluted share, last year [23] Business Line Data and Key Metrics Changes - Equipment sales for Q4 decreased by 5.5% to $28.3 million compared to $29.9 million last year, while for the fiscal year, equipment sales decreased by 15.7% to $95.3 million [18] - Gross profit for recurring service revenue increased by 10.3% to $20.3 million with a gross margin of 91% [18] - Gross profit for equipment revenue in Q4 decreased by 31.2% to $6.4 million with a gross margin of 23% [18] Market Data and Key Metrics Changes - The company experienced a strong rebound in hardware sales in Q4, increasing 27% sequentially from Q3 [28] - The recurring revenue now represents nearly half of total sales, reflecting a strong demand for StarLink radios [27] Company Strategy and Development Direction - The company is focused on maintaining operational discipline and investing for sustainable growth despite macroeconomic uncertainties [7] - Pricing adjustments have been implemented to protect margins, with an 8.5% increase to offset rising tariff costs and a standard annual increase of 5% [15] - The company is committed to expanding its recurring revenue opportunities through new product developments, including the MVP platform for cloud-based access control systems [32] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future growth, emphasizing the importance of adapting to tariff policies and market conditions [29] - The company aims to leverage its strong balance sheet for potential strategic acquisitions while continuing to return capital to shareholders [30] Other Important Information - The company ended the fiscal year with approximately $100 million in cash and no debt, providing significant flexibility for future investments [14] - The company returned $13.6 million in dividends and repurchased $36.8 million of its stock during the fiscal year [14] Q&A Session Summary Question: Concerns about channel inventories due to distributor destocking - Management indicated that inventory bought pre-tariff increase was expected to lead to more purchases, with strong sell-through stats observed [36][37] Question: Potential for further increases in recurring service revenue - Management expects continued growth in recurring revenue, driven by strong radio sales, although the timing of revenue recognition may vary [41][43] Question: Impact of price increases on equipment sales growth - Management believes that the pricing increases will support double-digit growth in equipment sales, especially given easier comparisons from the previous year [45] Question: Churn rates and pricing impact on recurring revenues - Management reported negligible churn in commercial accounts and noted that pricing increases have not faced pushback from customers [67][70] Question: Future dividend and buyback plans - Management indicated that there is room for future dividend increases and is always looking for opportunities to repurchase shares [72]

Financial Data and Key Metrics Changes - The company reported net sales for Q4 increased by 0.8% to $50.7 million compared to $50.3 million for the same period last year [17] - For the fiscal year, net sales decreased by 3.8% to $181.6 million from $188.8 million [17] - Recurring monthly service revenue grew by 10% in Q4 to $22.4 million, up from $20.4 million year-over-year [17] - Gross profit for Q4 decreased by 3.8% to $26.8 million, with a gross margin of 53% compared to 55% last year [18] - Net income for Q4 decreased by 14% to $11.6 million, or $0.33 per diluted share [25] Business Line Data and Key Metrics Changes - Recurring revenue run rate reached $94 million, up $5 million from the previous quarter, marking the largest quarterly increase in two years [13] - Equipment sales for Q4 decreased by 5.5% to $28.3 million compared to $29.9 million last year, while annual equipment sales decreased by 15.7% [18] - Gross profit for recurring service revenue increased by 10.3% to $20.3 million with a gross margin of 91% [19] Market Data and Key Metrics Changes - The company experienced a strong rebound in hardware sales in Q4, increasing 27% sequentially from Q3 [31] - The tariff landscape remains uncertain, but the company has taken proactive steps to protect margins and ensure competitiveness [10] Company Strategy and Development Direction - The company focuses on maintaining operational discipline and investing for sustainable growth while delivering best-in-class solutions [8] - The strategy includes diversifying the distribution base and enhancing the StarLink platform to drive sustainable growth [31] - The company is committed to returning capital to shareholders while maintaining a debt-free balance sheet [30] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about future performance despite ongoing tariff and market uncertainties [31] - The company anticipates continued growth in recurring revenue driven by the success of the StarLink fire radio platform [29] - Management highlighted the importance of school security as a critical market opportunity and emphasized ongoing investments in R&D [33] Other Important Information - The company ended the fiscal year with approximately $100 million in cash and no debt, providing flexibility for future opportunities [14] - The company returned significant value to shareholders, paying out $13.6 million in dividends and repurchasing $36.8 million of stock [14] Q&A Session Summary Question: Concerns about channel inventories due to distributor behavior - Management noted that inventory bought pre-tariff increase was expected to lead to more purchases, with strong sell-through stats indicating real demand [40][41] Question: Potential for further increases in recurring service revenue - Management indicated that while they expect continued growth, the timing of radio sales impacts the realization of recurring revenue [46] Question: Impact of price increases on equipment sales growth - Management expressed confidence that equipment sales could grow double digits due to recent price increases and favorable comparisons [49] Question: Churn rates and pricing impacts on recurring revenues - Management reported negligible churn in commercial accounts and noted that pricing increases have not faced pushback [71][72] Question: Future dividend and buyback plans - Management acknowledged the potential for future dividend increases and indicated ongoing evaluation of buyback opportunities [75]

AMITYVILLE, N.Y., July 29, 2025 /PRNewswire/ -- NAPCO Security Technologies, Inc. (NASDAQ: NSSC), one of the leading designers and manufacturers of high-tech electronic security devices, wireless recurring communication services for intrusion, fire alarm, access control and locking systems as well as a leading provider of school safety solutions today announced that its CEO and Founder, Richard "Dick" Soloway, has been named a 2025 Security Innovator by Security Business magazine.The annual Security Innovat ...

Company Overview - NAPCO is a leader in commercial & residential security products with over 10,000 dealers, integrators & distributors in the US[5] - The company has two dozen patents and proprietary software[5] - The company is shifting towards recurring revenue and school security[5] Financial Highlights - Fiscal Fourth Quarter 2018 sales reached a record of $27.3 million, a 6% increase[48] - Recurring revenue increased by 49%[48] - Recurring revenue annual run rate is $14.7 million as of July 2018[48, 67] - TTM Revenue of $91.7 million with zero debt[67] - EPS up from $0.17 to $0.20[48] Market Opportunity - The company addresses both commercial (80%) and residential (20%) markets[8] - The company provides solutions for school security, addressing a market of 100,000 K-12 schools and 10,000 campuses[41] Stock Information - Market Capitalization is $284.0 million[66] - Insider Ownership is 38%[66, 67]

Protecting America's Businesses, Homes, Schools NASDAQ:NSSC September 2019 Corporate Presentation 1 Forward Looking Statements | --- | --- | |---------------------------------------------------------------------|-------| | | | | This presentation may contain forward-looking statements that | | | involve numerous risks and uncertainties. Actual results, | | | performance or achievements could differ materially from those | | | anticipated in such forward-looking statements as a result of | | | certain factor ...

Company Overview - NAPCO is a leader in designing and manufacturing commercial & residential security products, selling through 10,000+ dealers, integrators & distributors in the US [5] - The company has two major growth drivers: recurring revenue and school security [5] - NAPCO is the only company with products in all three security verticals: Alarms & Connectivity, Locking, and Access Control [34] Financial Performance - FY 2020 sales reached $101.3 million [43] - FY 2020 recurring revenue increased by 38% [43] - Recurring Revenue Annual Run Rate is at $27.5 million [43] - FY 2020 RMR Gross Margin was 82% [43] - The company has a cash balance of $18.2 million and zero debt [43] - Adjusted EBITDA for FY 2020 was $14.7 million [43] Market and Growth Opportunities - The company estimates a commercial market of 5 million buildings [39] - The company estimates a residential market of 120 million homes [41] - School security is a major growth driver, with increased funding, for example, Florida $500 million and Wisconsin $100 million [18, 21]

Financial Performance - NAPCO achieved record quarterly sales of $50.3 million in FQ4 2024, representing a 13% year-over-year growth[8,60] - Recurring revenue in FQ4 2024 grew by 27% year-over-year to $20.4 million[8,60] - The annual run-rate for recurring revenue is $84 million[8] - Adjusted EBITDA for FQ4 2024 was $15.4 million, an 18% increase year-over-year[60] - FQ4 2024 net income reached a quarterly record of $13.5 million, a 28% increase year-over-year[60] - The company has a strong balance sheet with $97.7 million in cash, marketable securities, and other investments, and no debt[60,65] Market and Growth Drivers - The company estimates the residential security U S market size to grow from $5 billion in 2021 to $9 billion in 2026[16] - The company estimates the commercial security North America market size to grow from $83.5 billion in 2021 to $121.4 billion in 2026[12] - The company estimates the school security market size to grow with a CAGR of 11.3% from 1.5 billion in 2020 to 3.1 billion in 2027[13] Long-Term Goals - The company aims to achieve total revenue of over $300 million in the long term[64] - The company aims to achieve recurring revenue of approximately $150 million, representing around 50% of total revenue in the long term[64]

Core Viewpoint - Kuehn Law, PLLC is investigating potential breaches of fiduciary duties by officers and directors of Napco Security Technologies, Inc. related to misrepresentation of the company's growth and hardware division performance [1][2]. Group 1: Legal Investigation - Kuehn Law is looking into whether certain insiders at Napco Security misrepresented the company's expected growth and strength in its hardware division [2]. - The investigation is prompted by a federal securities lawsuit alleging that insiders caused the company to misrepresent its ability to meet fiscal 2026 growth projections [2]. Group 2: Shareholder Information - Shareholders who purchased NSSC shares prior to February 5, 2024, are encouraged to contact Kuehn Law for potential legal action [3]. - Kuehn Law covers all case costs and does not charge its investor clients, emphasizing the importance of shareholder participation in maintaining market integrity [4].