NAPCO Security Technologies, Inc. (NASDAQ: NSSC) Surpasses Earnings Estimates

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]