Financial Data and Key Metrics Changes - Net sales for Q3 2025 decreased by 10.8% to $44 million compared to $49.3 million in the same period last year [12] - Recurring monthly service revenue grew by 10.6% to $21.6 million, up from $19.5 million year-over-year [12] - Net income for the quarter decreased by 23.3% to $10.1 million, or $0.28 per share, compared to $13.2 million, or $0.36 per diluted share last year [22] - Adjusted EBITDA for the quarter decreased by 15.4% to $13.2 million, representing a 30% adjusted EBITDA margin [24] Business Line Data and Key Metrics Changes - Recurring service revenue accounted for 49% of total revenue this quarter, with an annualized run rate of approximately $89 million, an increase of $3 million from the previous quarter [9][10] - Equipment sales for Q3 decreased by 24.8% to $22.4 million compared to $29.7 million last year [13] - Gross profit for recurring service revenue increased by 9.5% to $19.6 million, with a gross margin of 91% [17] Market Data and Key Metrics Changes - The company noted variability in demand signals in the broader market but remains focused on innovation and product development [10] - The company is experiencing strong engagement in the market, particularly following the ISC West Expo, which drew over 30,000 attendees [32] Company Strategy and Development Direction - The company is focused on expanding its portfolio of high-margin recurring service revenue offerings and enhancing its product development pipeline [10] - New product lines, including cloud-based solutions, are being introduced to generate additional recurring revenue [30] - The company aims to penetrate markets such as school security, healthcare, and retail loss prevention [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strategy and business fundamentals despite external challenges [29] - The company believes its business is recession-resistant, as demand for security remains strong regardless of economic conditions [84] - Management anticipates continued growth in recurring revenue, particularly from the Starlink product line [30] Other Important Information - The company remains debt-free and has substantial cash reserves, ending the quarter with $89.3 million in cash and cash equivalents [26] - A quarterly dividend of $0.14 per share will be issued, representing an increase from the previous dividend [36] Q&A Session Summary Question: Can you discuss the mix of hardware capable of generating recurring services revenue? - Management highlighted that recurring revenue primarily comes from Starlink radios, with new advanced products introduced at ISC West [38] Question: What are you seeing in terms of quoting activities for projects? - Management noted that sell-through stats are encouraging, with increases in various segments, indicating improving demand [46] Question: Can you provide more detail on the weakness in the locking products area? - Management acknowledged that distributor nervousness and inventory management are impacting sales, but sell-through stats remain strong [56] Question: How sensitive is demand for security systems to economic downturns? - Management believes the demand for security is resilient, as people prioritize safety and protection regardless of economic conditions [84] Question: What is the magnitude of the price increases announced? - A surcharge of 8.5% was implemented to cover tariff costs, with a typical annual price increase expected in July [92]

Group 1 - A class action lawsuit has been filed against Napco Security Technologies, Inc. for alleged securities fraud and unlawful business practices [2][4]. - Investors have until June 24, 2025, to request appointment as Lead Plaintiff if they purchased Napco securities during the Class Period [2]. - Napco reported a significant decline in hardware sales attributed to reduced sales from two major distributors, leading to the withdrawal of its long-term 45% EBITDA margin target [4]. Group 2 - Following the announcement of the financial results, Napco's stock price dropped by $9.77 per share, or 26.62%, closing at $26.93 per share on February 3, 2025 [4].

Financial Data and Key Metrics Changes - Net sales for Q3 2025 decreased by 10.8% to $44 million compared to $49.3 million in Q3 2024 [11] - Net income for Q3 2025 decreased by 23.3% to $10.1 million, or $0.28 per share, compared to $13.2 million, or $0.36 per share, in the same period last year [20] - Adjusted EBITDA for Q3 2025 decreased by 15.4% to $13.2 million, equating to a margin of 30% [22] - The company remains debt-free with cash and cash equivalents totaling $89.3 million as of March 31, 2025 [23] Business Line Data and Key Metrics Changes - Recurring monthly service revenue grew by 10.6% in Q3 to $21.6 million, up from $19.5 million in Q3 2024 [12] - Equipment sales for Q3 decreased by 24.8% to $22.4 million compared to $29.7 million in the same period last year [12] - Gross profit for recurring service revenue increased by 9.5% to $19.6 million, maintaining a gross margin of 91% [15] Market Data and Key Metrics Changes - The company reported that recurring service revenue accounted for 49% of total revenue in Q3 2025 [26] - The annualized run rate for recurring service revenue increased to approximately $89 million based on April 2025 results, up from $86 million in January 2025 [27] Company Strategy and Development Direction - The company is focused on accelerating innovation and expanding its product development pipeline, which is described as the strongest ever [9] - New product lines, including cloud-based solutions, are being introduced to enhance recurring revenue opportunities [27] - The company aims to penetrate markets such as school security, healthcare, and retail loss prevention [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strategy despite external challenges, emphasizing the resilience of the operating model [26] - The company anticipates continued growth in recurring revenue, particularly from the Starlink line of products [27] - Management noted that the security industry remains robust despite economic uncertainties, with ongoing demand for security solutions [78][80] Other Important Information - The company plans to issue a quarterly dividend of $0.14 per share, reflecting a sequential increase [33] - The company has engaged in significant stock buybacks, spending $18.8 million in Q3 and $36.7 million for the nine months [25] Q&A Session Summary Question: Can you discuss the mix of hardware capable of generating recurring services revenue? - The recurring revenue primarily comes from Starlink radios, with new advanced products introduced at ISC West [35] Question: What are you seeing in terms of quoting activities for projects? - Sell-through stats are encouraging, with increases in various segments, indicating improved demand [44] Question: Can you provide more detail on the weakness in the locking products area? - The weakness is attributed to tariff-driven issues and inventory management by distributors [54] Question: How sensitive is the demand for security systems to economic downturns? - The company believes its business is recession-resistant, as security needs persist regardless of economic conditions [80] Question: What is the magnitude of the price increases announced? - An 8.5% surcharge was implemented to cover tariff costs, with a typical annual price increase expected in July [89]

NEW YORK, May 5, 2025 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Napco Security Technologies, Inc. (NASDAQ: NSSC).Shareholders who purchased shares of NSSC during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.CONTACT US HERE:https://securitiesclasslaw.com/securities/napco-security-technologies-inc-loss-submission-form/?id=146614&from=4CLA ...

NEW YORK, May 02, 2025 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of securities of NAPCO Security Technologies, Inc. (NASDAQ: NSSC) between February 5, 2024 and February 3, 2025, both dates inclusive (the “Class Period”). If you wish to serve as lead plaintiff, you must move the Court no later than June 24, 2025. SO WHAT: If you purchased NAPCO securities during the Class Period you may be entitled to co ...

NEW YORK, May 02, 2025 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in Napco Security Technologies, Inc. ("Napco" or the "Company") (NASDAQ: NSSC) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Napco investors who were adversely affected by alleged securities fraud between February 5, 2024 and February 3, 2025. Follow the link below to get more information and be contacted by a member of our team: https://zlk.com/pslra-1/napco-securit ...

NEW YORK, May 2, 2025 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Napco Security Technologies, Inc. ("Napco" or the "Company") (NASDAQ: NSSC) of a class action securities lawsuit.CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Napco investors who were adversely affected by alleged securities fraud between February 5, 2024 and February 3, 2025. Follow the link below to get more information and be contacted by a member of our team:https://zlk.com/pslra-1/napco-security-techn ...

NEW YORK, May 01, 2025 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Napco Security Technologies, Inc. (NASDAQ: NSSC). Shareholders who purchased shares of NSSC during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/napco-security-technologies-inc-loss-submission-form/?id=146182&f ...

NEW YORK, May 1, 2025 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Napco Security Technologies, Inc. (NASDAQ: NSSC).Shareholders who purchased shares of NSSC during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.CONTACT US HERE:https://securitiesclasslaw.com/securities/napco-security-technologies-inc-loss-submission-form/?id=146177&from=4 CL ...

Core Viewpoint - A class action lawsuit has been filed against Napco Security Technologies, Inc. for allegedly misleading investors about its growth projections and sales performance during the specified period [1][2]. Allegations - The lawsuit claims that Napco failed to disclose its true ability to forecast product demand and its negotiating position with distributors, leading to inflated long-term growth projections [2]. - Napco attributed its declining hardware sales to one-off setbacks, while the complaint argues that the company's forecasting processes were inadequate [2]. Financial Impact - On February 3, 2025, Napco reported disappointing financial results for Q2 of fiscal 2025, showing a significant drop in hardware sales [3]. - Following this announcement, Napco's stock price fell from $36.70 per share on January 31, 2024, to $26.93 per share on February 3, 2025, marking a decline of approximately 26.62% in one day [3]. Class Action Participation - Shareholders interested in serving as lead plaintiffs must file their papers by June 24, 2025, but participation is not required to be eligible for recovery [4]. - The law firm Robbins LLP operates on a contingency fee basis, meaning shareholders incur no fees or expenses [5].