Core Insights - NAPCO Security Technologies, Inc. reported strong financial results for Q1 of fiscal 2026, with net revenues reaching $49.2 million, an increase of 11.7% year-over-year [2][6] - The company experienced double-digit growth in both equipment and service revenue, driven by strong demand for door-locking products and a robust recurring service revenue (RSR) segment [4][6] Financial Highlights - Net Revenue: $49,168,000 in Q1 2026 compared to $44,003,000 in Q1 2025, reflecting an 11.7% increase [2][6] - Gross Profit: $27,846,000, up 13.1% from $24,616,000 in the previous year [2][6] - Gross Profit Margin: Improved to 56.6% from 55.9% year-over-year [2][6] - Net Income: Increased to $12,165,000, an 8.8% rise from $11,185,000 [2][6] - Diluted EPS: Rose to $0.34 from $0.30, marking a 13.3% increase [2][6] - Adjusted EBITDA: $14,942,000, a 21.1% increase from $12,335,000, with an adjusted EBITDA margin of 30.4% compared to 28.0% in Q1 2025 [2][6] Recurring Service Revenue (RSR) - RSR reached $23.4 million, an 11.1% increase year-over-year, with a gross margin exceeding 90% [4][6] - RSR accounted for 48% of total revenue in Q1 2026, with a prospective annual run rate of approximately $95 million based on October 2025 figures [4][6] Dividend Declaration - The Board declared a quarterly dividend of $0.14 per share, payable on January 2, 2026, to shareholders of record on December 12, 2025 [6][7] Strategic Focus - The company aims to expand RSR solutions across various platforms, including wireless fire and intrusion alarms and enterprise access control systems [5][6] - NAPCO is committed to maintaining financial strength, product innovation, and strong profitability for fiscal 2026 and beyond [6][7]