NAPCO Security Technologies(NSSC) - 2025 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 2025 were $43.96 million, a decrease of 10.8% year-over-year[3] - Net income for Q3 2025 was $10.12 million, down 23.3% from $13.20 million in Q3 2024[3] - Diluted EPS decreased to $0.28 from $0.36 in the prior fiscal year quarter, representing a decline of 22.2%[3] - Adjusted EBITDA for the quarter was $13.16 million, a decrease of 15.5% year-over-year[3] - Operating income for the three months ended March 31, 2025, was $11,146,000, down from $14,494,000 in 2024, a decrease of approximately 23.4%[16] - Net income for the three months ended March 31, 2025, was $10,122,000, compared to $13,196,000 in 2024, representing a decline of about 23.4%[16] - Adjusted EBITDA for the nine months ended March 31, 2025, was $37,877,000, down from $43,519,000 in 2024, a decrease of approximately 13.0%[20] Revenue Breakdown - Recurring service revenue (RSR) increased by 10.6% to $21.6 million, while equipment sales decreased by 24.8% to $22.4 million[7] - RSR represented 49% of total revenue in Q3, with a prospective annual run rate of approximately $89 million based on April 2025 figures[5] - For the three months ended March 31, 2025, net sales decreased to $43,961,000 from $49,267,000 in the same period of 2024, representing a decline of approximately 10.4%[16] - Equipment revenues for the nine months ended March 31, 2025, were $66,993,000, down from $83,133,000 in 2024, a decrease of about 19.4%[17] - Service revenues increased to $63,904,000 for the nine months ended March 31, 2025, compared to $55,357,000 in 2024, reflecting an increase of approximately 15.5%[17] Profitability Metrics - Gross profit margin improved to 57.2%, compared to 53.8% in the same quarter of the previous fiscal year[3] - Gross profit for the nine months ended March 31, 2025, was $74,232,000, slightly up from $73,909,000 in 2024, indicating a growth of about 0.4%[17] Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended March 31, 2025, increased to $38,903,000 from $31,032,000 in 2024, an increase of approximately 25.5%[18] - The ending cash and cash equivalents balance as of March 31, 2025, was $73,413,000, up from $55,518,000 in 2024, reflecting an increase of about 32.2%[18] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.14 per share, an increase from the previous dividend of $0.125 per share[7] Strategic Initiatives - The company introduced a new cloud-based MVP Access platform aimed at enhancing security management capabilities[6] - The company plans to implement a price increase on all equipment products in response to tariff uncertainties[6]