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]

Core Insights - NAPCO Security Technologies, Inc. reported its financial results for the fourth quarter of fiscal 2025, highlighting a slight increase in net sales but a decrease in net income and earnings per share compared to the previous year [2][6]. Financial Performance - Net sales for Q4 2025 were $50.7 million, a 0.8% increase from $50.3 million in Q4 2024, while total net sales for the fiscal year were $181.6 million, down 3.8% from $188.8 million in the previous year [3][6]. - Gross profit for Q4 was $26.8 million, representing a gross profit margin of 52.8%, down from 55.3% in Q4 2024. For the full year, gross profit was $101 million with a margin of 55.6%, compared to 53.9% in the prior year [3][6]. - Net income for Q4 was $11.6 million, a 14.1% decrease from $13.5 million in Q4 2024, and for the full year, net income was $43.4 million, down 12.9% from $49.8 million [3][6]. - Diluted earnings per share (EPS) for Q4 was $0.33, down 8.3% from $0.36, and for the full year, diluted EPS was $1.19, a decrease of 11.2% from $1.34 [3][6]. Recurring Service Revenue - Recurring service revenue (RSR) increased by 10% in Q4 to $22.4 million and by 14% for the full year to $86.3 million, maintaining a gross margin of 91% for both periods [5][6]. - RSR accounted for 44% of total revenue in Q4 and 48% for the full year, with a prospective annual run rate of approximately $94 million based on July 2025 figures [5][6]. Equipment Sales - Equipment sales for Q4 were $28.3 million, a 5% decrease year-over-year but a 27% increase sequentially from Q3. For the full year, equipment sales totaled $95.3 million, down 16% from the previous year [6][5]. - The company faced challenges in equipment revenue due to distributor destocking and project timing but is optimistic about future growth in equipment sales for fiscal 2026 [5][6]. Cash Flow and Dividends - Cash flows from operating activities for the fiscal year were $53.5 million, an 18% increase from $45.4 million in the previous year [3][6]. - The Board declared a quarterly dividend of $0.14 per share, payable on October 3, 2025, to shareholders of record on September 12, 2025 [6][8]. Strategic Developments - The company introduced a new cloud-based MVP Access platform aimed at enhancing security management capabilities for users [6][7]. - NAPCO successfully reduced inventory levels by $8.6 million during fiscal 2025 and repurchased $36.8 million of its common stock [7][6].