NAPCO Security Technologies Inc.
02/02/2026 | Press release | Distributed by Public on 02/02/2026 12:55
NAPCO Security Technologies, Inc. Reports Fiscal 2026 Q2 Results (Form 8-K)
NAPCO Security Technologies, Inc. Reports Fiscal 2026 Q2 Results
Fiscal Q2 2026 Highlights
| ● | Record Q2 Net revenues of $48.2 million, a 12.2% YoY increase |
| ● | Equipment revenue increased 12.0% YoY to $24.3 million |
| ● | Recurring service revenue ("RSR") increased 12.5% YoY to $23.8 million with a 90.2% gross margin |
| ● | RSR had a prospective annual run rate of approximately $99 million based on January 2026 recurring service revenues. |
| ● | Gross profit margin for Q2 2026 of 58.6% vs 57.0% in prior fiscal year quarter |
| ● | Diluted EPS increased YoY to $0.38 vs $0.28 |
| ● | The Board declared a quarterly dividend of $0.15 per share, a 7% increase from last quarter, payable on April 3, 2026 to shareholders of record on March 12, 2026. |
AMITYVILLE, N.Y., February 2, 2026 /PRNewswire/ -- NAPCO Security Technologies, Inc. (NASDAQ: NSSC), one of the leading manufacturers and designers of high-tech electronic security equipment, wireless communication devices for intrusion and fire alarm systems and the related recurring service revenues as well as a provider of school safety solutions, today announced financial results for its second quarter of fiscal 2026.
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Three months ended December 31, |
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Six months ended December 31, |
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(dollars in thousands) |
(dollars in thousands) |
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% Increase/ |
% Increase/ |
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Financial Highlights (1) |
|
2025 |
|
2024 |
|
(decrease) |
|
2025 |
|
2024 |
|
(decrease) |
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|
Net Revenue |
$ |
48,172 |
$ |
42,933 |
12.2 |
% |
$ |
97,340 |
$ |
86,936 |
12.0 |
% |
|||||
|
Gross Profit |
$ |
28,238 |
$ |
24,489 |
15.3 |
% |
$ |
56,084 |
$ |
49,105 |
14.2 |
% |
|||||
|
Gross Profit Margin |
58.6 |
% |
57.0 |
% |
57.6 |
% |
56.5 |
% |
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|
Net Income |
$ |
13,503 |
$ |
10,467 |
29.0 |
% |
$ |
25,668 |
$ |
21,652 |
18.5 |
% |
|||||
|
Net Income as a % of Revenue |
28.0 |
% |
24.4 |
% |
26.4 |
% |
24.9 |
% |
|||||||||
|
Diluted EPS |
$ |
0.38 |
$ |
0.28 |
35.7 |
% |
$ |
0.72 |
$ |
0.59 |
22.0 |
% |
|||||
|
Adjusted EBITDA(2) |
$ |
15,350 |
$ |
12,178 |
26.0 |
% |
$ |
30,292 |
$ |
24,716 |
22.6 |
% |
|||||
|
Adjusted EBITDA Margin(2) |
31.9 |
% |
28.4 |
% |
31.1 |
% |
28.4 |
% |
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|
Adjusted EBITDA Per Share(2) |
$ |
0.43 |
$ |
0.33 |
30.3 |
% |
$ |
0.84 |
$ |
0.67 |
% |
25.4 |
% |
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|
Free Cash Flows(2) |
$ |
14,512 |
$ |
12,365 |
17.4 |
% |
$ |
25,956 |
$ |
23,710 |
9.5 |
% |
|||||
|
Free Cash Flows Margin(2) |
30.1 |
% |
28.8 |
% |
26.7 |
% |
27.3 |
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1. In millions except percentages and per share data or as otherwise noted.
2. Represents a non-GAAP financial measure. An explanation and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure are presented in the schedules accompanying this press release.
Richard Soloway, Chairman and CEO, commented, "NAPCO delivered another strong quarter fueled by our recurring service revenue and its consistent year over year double digit growth, and the continued demand for our door-locking products that drove double digit growth in our equipment revenue and improved equipment gross margins. Our RSR continues to see growth quarter over quarter with sustained gross margins of 90%, and represents approximately 50% of total revenue in Q2, and has a prospective run rate of approximately $99 million based on our January 2026 recurring service revenue. As a result of our revenue growth and margin expansion, net income increased 29% year over year to a Q2 record of $13.5 million and our adjusted EBITDA margin was 31.9% as compared to 28.4% in Q2 of Fiscal 2025.
Our focus remains on expanding RSR solutions across all our platforms, including locking products, such as our MVP Access platform which is gaining traction in the marketplace as we are actively supporting and educating our dealers on the benefits of adopting this new solution.
Our fiscal 2026 Q2 results are a continuation of the positive start to the fiscal 2026, and we remain confident that our net income, Adjusted EBITDA* and Free Cash Flow*, will continue to grow throughout the balance of the fiscal year.
As such we are pleased to continue our dividend program and will be paying the next quarterly dividend of $0.15 per share on April 3, 2026 to shareholders of record on March 12, 2026. This is a 7% increase over the dividend we declared last quarter.
Mr. Soloway concluded "Our goal of product innovation, technical superiority and consistent delivery of strong profitability, will continue through the balance of fiscal 2026 and beyond".
Addition of Chief Revenue Officer
The Company announced that Joseph Pipczynski has joined the NAPCO team and was appointed as the Company's Chief Revenue Officer effective January 29, 2026. Mr. Pipczynski will be reporting to the Company's President and Chief Operating Officer, Kevin Buchel. Stephen Spinelli, Senior Vice President of Sales, will continue in his current role and will report to Mr. Pipczynski.
Mr. Soloway commented "We are excited to have Joe join the NAPCO family, and with his 35+ years as a business development executive he will provide the Company strong leadership and vision and will supplement the existing talented sales team at NAPCO."
Conference Call Information
Management will conduct a conference call at 11 a.m. ET today, February 2, 2026, and in order to participate please go to the Investor Relations section of the Company website at https://investor.napcosecurity.com/events-presentations or choose https://app.webinar.net/dMv73PZxKlL Alternatively, interested parties may participate in the call by dialing (US) 1-800-836-8184 or 1-646-357-8785. A replay of the webcast will be available on the Investor Relations section of the Company's website.
About NAPCO Security Technologies, Inc.
NAPCO Security Technologies, Inc., is one of the leading manufacturers and designers of high-tech electronic security devices, wireless recurring communication services for intrusion and fire alarm systems as well as a provider of school safety solutions, The Company consists of four Divisions: NAPCO, plus three wholly owned subsidiaries: Alarm Lock, Continental Instruments, and Marks USA. Headquartered in Amityville, New York, its products are installed by tens of thousands of security professionals worldwide in commercial, industrial, institutional, residential and government applications. NAPCO products have earned a reputation for innovation, technical excellence and reliability, positioning the Company for growth in the multi-billion dollar and rapidly expanding electronic security market. For additional information on NAPCO, please visit the Company's web site at http://www.napcosecurity.com.
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