NEW YORK, Feb. 12, 2026 (GLOBE NEWSWIRE) -- Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of NAPCO Security Technologies, Inc. (NASDAQ: NSSC) breached their fiduciary duties to shareholders. If you currently own NAPCO stock and are a long-term shareholder, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to learn mo ...

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Napco (NSSC) identified as a promising candidate due to its favorable growth metrics and strong Zacks Rank [1][2]. Earnings Growth - Napco has a historical EPS growth rate of 45%, with projected EPS growth of 24.4% this year, significantly surpassing the industry average of 18.1% [5]. Asset Utilization Ratio - The company's asset utilization ratio stands at 0.95, indicating that Napco generates $0.95 in sales for every dollar in assets, outperforming the industry average of 0.77 [6]. Sales Growth - Napco's sales are expected to grow by 10.3% this year, slightly above the industry average of 10% [7]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Napco, with the Zacks Consensus Estimate for the current year increasing by 4.2% over the past month [8]. Overall Positioning - Napco has achieved a Growth Score of B and a Zacks Rank of 2, positioning it well for potential outperformance in the growth stock sector [10].

Core Insights - NAPCO Security Technologies, Inc. is participating in investor meetings at two upcoming conferences, indicating active engagement with institutional investors [1] - The company is recognized as a leading designer and manufacturer of high-tech electronic security devices and services, including school safety solutions [2] Company Overview - NAPCO Security Technologies operates four divisions: NAPCO, Alarm Lock, Continental Instruments, and Marks USA, and is headquartered in Amityville, New York [2] - The company’s products are widely installed across various sectors, including commercial, industrial, institutional, residential, and government applications, showcasing its broad market reach [2] - NAPCO has established a reputation for innovation, technical excellence, and reliability, positioning itself for growth in the expanding electronic security market, which is valued in the multi-billion dollar range [2] Upcoming Events - NAPCO will conduct one-on-one meetings with institutional investors at the Barclays 43rd Annual Industrial Select Conference on February 17, 2026, and the Citi 2026 Global Industrial Tech & Mobility Conference on February 19, 2026 [5]

Core Viewpoint - Napco Security Technologies (NSSC) has experienced a significant boost due to a strong second-quarter earnings report and an increase in dividends, positioning the stock for a potential weekly gain of 15% or more [1] Group 1: Financial Performance - Napco reported a second-quarter earnings beat, contributing to its stock performance [1] - The company has announced a dividend hike, further enhancing investor confidence [1] Group 2: Stock Performance - Napco's stock has formed a 14-week consolidation pattern, indicating a proper buy point for investors [1] - The stock is highlighted as a selection for IBD 50 Stocks To Watch, reflecting its strong market position [1] Group 3: Technical Ratings - Napco Security Technologies has received a Relative Strength Rating upgrade, indicating improved technical performance [1] - The company is noted for outperforming the S&P 500 among security companies, showcasing its competitive edge [1]

Core Insights - NSSC reported earnings per share (EPS) of $0.38, surpassing estimates of $0.33, and showing a year-over-year increase from $0.28 [2][6] - The company achieved record net revenues of $48.2 million for Q2 fiscal 2026, a 12.2% increase compared to the same period last year [3][6] - Recurring Service Revenue (RSR) accounted for approximately 50% of total revenue, with RSR increasing by 12.5% to $23.8 million [3] Financial Performance - The gross profit margin improved to 58.6%, up from 57% in the previous fiscal year's quarter, indicating strong demand for NSSC's products [4][6] - NSSC's current ratio stands at 6.74, reflecting strong liquidity and the ability to cover short-term liabilities [4][6] - The company has a price-to-earnings (P/E) ratio of 33.32 and a price-to-sales ratio of 7.89, indicating market valuation of its earnings and revenue [5] Revenue Breakdown - Equipment revenue rose by 12% year-over-year to $24.3 million, contributing to the overall revenue growth [3] - RSR's growth to $23.8 million highlights the increasing importance of service offerings in NSSC's revenue model [3] Capital Structure - NSSC maintains a low debt-to-equity ratio of 0.033, demonstrating a conservative approach to debt in its capital structure [5]

Core Insights - Emergent Metals Corp. has appointed Robert Kiesman as an independent director and Andrew MacRitchie as Lead Director, enhancing the board's expertise in mining and finance [1][2][3] Group 1: Board Appointments - Robert Kiesman brings extensive experience in corporate law and finance, having served as Vice Chair of the Provincial Health Services Authority with a budget exceeding $4 billion [1] - Andrew MacRitchie has over 25 years of leadership experience in publicly listed mining companies and has raised over $1.5 billion in capital throughout his career [2] - The board now consists of five members, with four being independent directors, collectively holding over 100 years of experience in the mining industry [3] Group 2: Company Strategy and Operations - Emergent is focused on gold and base metal exploration in Nevada and Quebec, aiming for quality acquisitions and value creation through exploration and monetization strategies [3] - The Golden Arrow Property in Nevada is an advanced-stage gold and silver property, with a major drilling program planned [4] - Emergent's properties include the Casa South Property in Quebec, adjacent to significant mining operations, and other exploration properties in both regions [5][6]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Revenue Growth - Total revenue increased by 12.2% to $48.2 million for the three months ended December 31, 2025, and by 12.0% to $97.3 million for the six months ended December 31, 2025[133]. - Equipment revenue rose by 12.0% to $24.3 million for the three months and by 12.1% to $50.1 million for the six months, while recurring service revenues increased by 12.5% to $23.8 million for the three months and by 11.8% to $47.3 million for the six months[133]. - The increase in net equipment revenue for the three months was driven by door locking products, which rose by $1.8 million (12.6%), and intrusion and access products, which increased by $817,000 (10.8%) due to pricing increases and sales volume growth[143]. - Net service revenues for the three months increased by $2.6 million (12.5%) due to a rise in the number of activated cellular communication devices[144]. Profitability - Gross profit margin improved from 57.0% to 58.6% for the three months and from 56.5% to 57.6% for the six months ended December 31, 2025[141]. - Operating income surged by 32.1% to $14.8 million for the three months and by 23.3% to $28.4 million for the six months ended December 31, 2025[141]. - Net income increased by 29.0% to $13.5 million for the three months and by 18.5% to $25.7 million for the six months ended December 31, 2025[141]. - Gross profit on service revenues for the six months ended December 31, 2025, increased to $56,084,000, or 57.6% of net revenue, compared to $49,105,000, or 56.5% for the same period last year[151]. - Gross profit from equipment revenue rose to $13,409,000, or 26.8% of equipment revenue, up from $10,526,000, or 23.6% for the comparable period, driven by product mix and increased volume[152]. Expenses - Research and development expenses increased by 11.8% to $3.5 million for the three months ended December 31, 2025[141]. - Research and development expenses for the six months ended December 31, 2025, increased to $6,713,000, or 6.9% of net revenue, from $6,164,000, or 7.1% for the same period last year[155]. - Selling, general and administrative expenses decreased by 1.9% to $10.0 million for the three months ended December 31, 2025, as a percentage of net revenue, this represented a reduction from 23.8% to 20.8%[141]. - Selling, general and administrative expenses for the six months ended December 31, 2025, increased to $20,975,000, compared to $19,914,000 for the same period last year, primarily due to increased legal fees and commission expenses[157]. Cash Flow and Financial Position - Cash and cash equivalents increased by $21,838,000 during the six months ended December 31, 2025, totaling $104,919,000 as of December 31, 2025[164]. - Net cash provided by operating activities was $26.7 million for the six months ended December 31, 2025, driven by net income of $25.7 million[166]. - Cash used in financing activities was $10.0 million for the six months ended December 31, 2025, primarily for stockholder dividends[169]. - The company had no material commitments for capital expenditures or inventory purchases as of December 31, 2025[170]. Tax and Interest - The provision for income taxes for the three months ended December 31, 2025, increased to $2,236,000, with an effective tax rate of 14.2%, up from 13.4% for the same period last year[160]. - Interest income decreased by 5% for the three months ended December 31, 2025, to $884,000, and by 7% for the six months ended December 31, 2025, to $1,738,000, primarily due to lower interest rates[158]. Market Impact - The company is actively monitoring the impact of U.S. tariff measures on its financial position, although no material impact has been experienced to date[136].

Financial Performance - Record Q2 net revenues of $48.2 million, a 12.2% year-over-year increase[8] - Net income rose 29% year-over-year to a Q2 record of $13.5 million, representing 28.0% of total revenue[5][8] - Total revenue for the three months ended December 31, 2025, was $48,172,000, representing a 12.3% increase from $42,933,000 in the same period of 2024[17] - Net income for the six months ended December 31, 2025, was $25,668,000, up 18.5% from $21,652,000 in 2024[18] - Gross profit for the three months ended December 31, 2025, was $28,238,000, a 15.3% increase compared to $24,489,000 in 2024[17] - Operating income for the six months ended December 31, 2025, increased to $28,396,000, up 23.0% from $23,027,000 in 2024[18] - Basic income per share for the three months ended December 31, 2025, was $0.38, compared to $0.29 in 2024, reflecting a 31.0% increase[17] Revenue Breakdown - Equipment revenue increased 12.0% year-over-year to $24.3 million[8] - Recurring service revenue ("RSR") increased 12.5% year-over-year to $23.8 million with a 90.2% gross margin[8] - RSR represents approximately 50% of total revenue in Q2, with a prospective annual run rate of approximately $99 million[5][8] Cash Flow and Dividends - Free cash flows for Q2 were $14.5 million, a 17.4% increase year-over-year[3][8] - Free cash flow for the six months ended December 31, 2025, was $25,957,000, an increase from $23,710,000 in 2024, with a free cash flow margin of 26.7%[22] - The company announced a quarterly dividend of $0.15 per share, a 7% increase from the previous quarter[7][8] Operational Efficiency - Adjusted EBITDA margin improved to 31.9% from 28.4% in Q2 of Fiscal 2025[5][8] - Adjusted EBITDA for the six months ended December 31, 2025, was $30,291,000, compared to $24,716,000 in 2024, indicating a strong operational performance[21] Expenses and Cash Position - Total operating expenses for the three months ended December 31, 2025, were $13,485,000, slightly up from $13,318,000 in 2024[17] - Cash and cash equivalents at the end of December 31, 2025, were $104,919,000, compared to $86,019,000 at the end of 2024[19] - Research and development expenses for the six months ended December 31, 2025, were $6,713,000, up from $6,164,000 in 2024[18] Leadership Changes - Joseph Pipczynski appointed as Chief Revenue Officer to enhance leadership and sales strategy[10][11]

Core Insights - NAPCO Security Technologies reported strong financial performance with total revenue rising 12.2% year over year to a record $48.2 million in fiscal Q2, driven by growth in both equipment and recurring revenue streams [5][4]. Financial Performance - Equipment gross margin improved to 28%, up from 24% a year ago, with gross profit increasing 31.2% to $6.7 million [1] - Gross profit for the quarter reached $28.2 million, a 15.3% increase year over year, with a gross margin of 58.6% compared to 57.0% in the prior-year period [2] - Operating income increased 32.1% to $14.8 million, while net income rose 29% to $13.5 million, equating to $0.38 per diluted share [8] - Recurring monthly service revenue for the first half rose 11.8% to $47.3 million, while equipment revenue increased 12.1% to $50.1 million [4] Revenue Streams - The company's prospective annual recurring revenue run rate increased to approximately $99 million, up from $95 million last quarter, driven by a higher number of activated cellular radio communication devices [3] - Recurring service gross margin was 90.2% in Q2, down from 91.3% in the prior-year period, attributed to one-time credits and marginal increases in data costs [7] Strategic Focus - Management emphasized the importance of recurring service revenue, which represents nearly half of total sales and has sustained gross margins above 90% [13] - The company is focusing on strategic areas such as StarLink radios, door locking, and the MVP cloud-based access control platform, with expectations for significant contributions in the latter half of fiscal 2026 [12][16] Dividend and Cash Position - NAPCO ended the quarter with $115 million in cash and marketable securities, up from $99.2 million at the end of June 2025, after paying $10 million in dividends [18] - The board approved a quarterly dividend increase to $0.15 per share, representing a 7% increase [19] Management and Operations - The company appointed Joseph Paczynski as Chief Revenue Officer to oversee sales, channel strategy, pricing, and go-to-market execution [21] - Management discussed the relationship with distributor ADI, highlighting its role in introducing larger dealers and the strong performance in fire radios [17]