NAPCO Security Technologies, Inc. Reports Fiscal Q4 and Full Year 2026 Results
Rhea-AI Summary
NAPCO Security Technologies (NASDAQ:NSSC) reported record fiscal Q4 2026 revenue of $55.8 million, up 10% year over year, driven by 12.9% growth in recurring service revenue to $25.3 million (over 90% gross margin) and 7.7% higher equipment revenue of $30.5 million. Q4 gross margin was 61.3%, aided by about 600 bps of tariff refunds. Net income rose 52.7% to $17.8 million, or $0.50 diluted EPS, and Adjusted EBITDA increased 44.3% to $20.6 million (36.8% margin).
For fiscal 2026, revenue grew 11.4% to a record $202.3 million, with recurring service revenue up 13.0% to $97.5 million and an estimated annual run rate of about $103 million. GAAP net income was $43.0 million, down 0.9% year over year due to a $16 million litigation settlement charge, while non-GAAP net income rose 32.0% to $57.3 million. Free cash flow reached $59.2 million, cash and equivalents ended at $126.9 million, and the Board increased the quarterly dividend by 13.3% to $0.17 per share, payable October 2, 2026.
Positive
- Q4 2026 revenue up 10.0% year over year to $55.8 million
- Recurring service revenue up 13.0% for FY 2026 to $97.5 million, >90% margin
- Q4 2026 net income up 52.7% year over year to $17.8 million
- FY 2026 non-GAAP net income up 32.0% to $57.3 million
- FY 2026 Adjusted EBITDA up 27.9% to $66.7 million with 33.0% margin
- Free cash flow FY 2026 up 15.2% to $59.2 million; cash balance $126.9 million
- Quarterly dividend increased 13.3% to $0.17 per share
Negative
- FY 2026 GAAP net income declined 0.9% year over year to $43.0 million
- $16.0 million litigation settlement cost recorded in FY 2026 operating expenses
- Accrued litigation costs of $16.0 million added to current liabilities at June 30, 2026
News Explained
The fiscal 2026 results reported on
Market Reaction – NSSC
Following this news, NSSC has gained 19.74%, reflecting a significant positive market reaction. Our momentum scanner has triggered 20 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $45.61.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Fourth Quarter 2026 Financial Results as Compared to Fourth Quarter 2025
- Net revenue increased
10.0% to a quarterly record$55.8 million $50.7 million - Recurring service revenue ("RSR") increased
12.9% to$25.3 million 90% gross margin, as compared to$22.4 million - Equipment revenue increased
7.7% to$30.5 million $28.3 million - Gross profit margin of
61.3% , which included a benefit of approximately 600 basis points from tariff refunds, vs52.8% in prior fiscal year quarter - Net Income increased
52.7% YoY to a quarterly record$17.8 million $11.6 million - Diluted Net Income per share increased
51.5% to$0.50 $0.09 $0.33 - Non-GAAP Adjusted EBITDA increased
44.3% to a quarterly record$20.6 million 36.8%
Full Year 2026 Financial Results as Compared to Full Year 2025
- Net revenue increased
11.4% to a record$202.3 million $181.6 million - RSR increased
13.0% to$97.5 million 90% gross margin, as compared to$86.3 million - RSR has a prospective annual run rate of approximately
$103 million - Equipment revenue increased
10.0% to$104.8 million $95.3 million - Gross profit margin of
59.2% , which included a benefit of approximately 50 basis points from tariff refunds, vs55.6% in prior fiscal year - Net Income decreased (.
9% ) to$43.0 million $43.4 million $16 million - Diluted Net Income per share increased
0.8% YoY to$1.20 $0.03 $0.40 $1.19 - Non-GAAP Net Income increased
32.0% to$57.3 million $43.4 million - Non-GAAP Diluted Net Income per share increased
34.5% YoY to$1.60 $1.19 - Non-GAAP Adjusted EBITDA increased
27.9% YoY to a record$66.7 million 33.0% - The Board declared a quarterly dividend of
$0.17
Kevin Buchel, CEO and President, commented, "Our Fiscal Q4 performance completes a strong close to our fiscal year end and reflects continued positive financial results. We achieved record Q4 revenue and Adjusted EBITDA of
As such we are pleased to continue our dividend program and will be increasing the quarterly dividend by
Three months ended June 30, | Year ended June 30, | |||||||||||||||||
(dollars in thousands) | (dollars in thousands) | |||||||||||||||||
% Increase/ | % Increase/ | |||||||||||||||||
Financial Highlights | 2026 | 2025 | (decrease) | 2026 | 2025 | (decrease) | ||||||||||||
GAAP Results | ||||||||||||||||||
Net Revenue | $ | 55,809 | $ | 50,724 | 10.0 | % | $ | 202,316 | $ | 181,621 | 11.4 | % | ||||||
Gross Profit | $ | 34,218 | $ | 26,798 | 27.7 | % | $ | 119,791 | $ | 101,030 | 18.6 | % | ||||||
Gross Profit Margin | 61.3 | % | 52.8 | % | 59.2 | % | 55.6 | % | ||||||||||
Operating Income | $ | 18,430 | $ | 12,086 | 52.5 | % | $ | 45,638 | $ | 46,259 | (1.3) | % | ||||||
Net Income | $ | 17,767 | $ | 11,632 | 52.7 | % | $ | 43,027 | $ | 43,406 | (0.9) | % | ||||||
Diluted Earnings Per Share | $ | 0.50 | $ | 0.33 | 51.5 | % | $ | 1.20 | $ | 1.19 | 0.8 | % | ||||||
Non-GAAP Results | ||||||||||||||||||
Operating Income | $ | 18,430 | $ | 12,086 | 52.5 | % | $ | 61,638 | $ | 46,259 | 33.2 | % | ||||||
Net Income | $ | 17,767 | $ | 11,632 | 52.7 | % | $ | 57,294 | $ | 43,406 | 32.0 | % | ||||||
Net Income Margin | 31.8 | % | 22.9 | % | 28.3 | % | 23.9 | % | ||||||||||
Diluted Earnings Per Share | $ | 0.50 | $ | 0.33 | 51.5 | % | $ | 1.60 | $ | 1.19 | 34.5 | % | ||||||
Adjusted EBITDA | $ | 20,559 | $ | 14,249 | 44.3 | % | $ | 66,670 | $ | 52,126 | 27.9 | % | ||||||
Adjusted EBITDA Margin | 36.8 | % | 28.1 | % | 33.0 | % | 28.7 | % | ||||||||||
Adjusted EBITDA Per Share | $ | 0.57 | $ | 0.40 | 42.5 | % | $ | 1.86 | $ | 1.43 | 30.1 | % | ||||||
Free Cash Flows | $ | 17,249 | $ | 14,387 | 19.9 | % | $ | 59,228 | $ | 51,411 | 15.2 | % | ||||||
Free Cash Flows Margin | 30.9 | % | 28.4 | % | 29.3 | % | 28.3 | % | ||||||||||
Conference Call Information
Management will conduct a conference call at 11 a.m. ET today, August 24, 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/OM3bGdQ8gY1. 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.
Safe Harbor Statement
This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, but are not limited to, statements relating to supply chain challenges and developments; the growth of recurring service revenues and annual run rate; the strength of our balance sheet; our expectations regarding future results; the introduction of new access control and locking products; the opportunities for school security products; the opportunities for fire alarm products; and our ability to execute our business strategies. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements because of certain factors, including those risk factors set forth in the Company's filings with the Securities and Exchange Commission, such as our annual report on Form 10-K and quarterly reports on Form 10-Q. Other unknown or unpredictable factors or underlying assumptions subsequently proved to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and the Company undertakes no duty to update such information, except as required under applicable law.
*Non-GAAP Financial Measures
Certain non-GAAP measures are included in this press release, including non-GAAP operating income, non-GAAP net income, non-GAAP net income per share (diluted), non-GAAP net income margin, Adjusted EBITDA, Adjusted EBITDA per share (diluted), Adjusted EBITDA per share margin, Free Cash Flow and Free Cash Flow margin. We define non-GAAP net income as GAAP net income plus litigation settlement costs. We define Adjusted EBITDA as GAAP net income plus income tax expense, net interest income (expense), stock-based compensation, non-recurring legal expenses, litigation settlement costs, and depreciation and amortization expenses. Non-GAAP net income margin is non-GAAP net income divided by revenue. Adjusted EBITDA margin is Adjusted EBITDA divided by revenue. We define Free Cash Flow (FCF) as net cash provided by operating activities less capital expenditures. FCF margin is the FCF divided by revenue. These non-GAAP measures are provided to enhance the user's overall understanding of our financial performance. By excluding these charges our non-GAAP results provide information to management and investors that is useful in assessing NAPCO's core operating performance and in comparing our results of operations on a consistent basis from period to period. Our use of non-GAAP financial measures has certain limitations in that such non-GAAP financial measures may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as Adjusted EBITDA, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. The presentation of this information is not meant to be a substitute for the corresponding financial measures prepared in accordance with generally accepted accounting principles. Investors are encouraged to review the reconciliation of GAAP to non-GAAP financial measures set forth above.
NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||
June 30, 2026 | June 30, 2025 | |||||
(in thousands, except share data) | ||||||
Assets | ||||||
Current Assets | ||||||
Cash and cash equivalents | $ | 126,928 | $ | 83,081 | ||
Marketable securities | 10,637 | 16,095 | ||||
Accounts and other receivable, net of allowance for credit losses of | 35,975 | 30,108 | ||||
Inventories | 30,118 | 29,962 | ||||
Prepaid expenses and other current assets | 4,325 | 3,198 | ||||
Total Current Assets | 207,983 | 162,444 | ||||
Inventories - non-current | 9,256 | 11,313 | ||||
Property, plant and equipment, net | 9,238 | 9,233 | ||||
Intangible assets, net | 2,990 | 3,287 | ||||
Deferred income taxes | 4,105 | 6,476 | ||||
Operating lease - Right-of-use asset | 4,906 | 5,188 | ||||
Other assets | 190 | 200 | ||||
Total Assets | $ | 238,668 | $ | 198,141 | ||
Liabilities and Stockholders' Equity | ||||||
Current Liabilities | ||||||
Accounts payable | $ | 6,925 | $ | 5,742 | ||
Accrued expenses | 8,546 | 8,712 | ||||
Accrued litigation costs | 16,000 | — | ||||
Accrued salaries and wages | 4,484 | 4,398 | ||||
Dividends payable | 5,365 | 4,992 | ||||
Accrued income taxes | 1,134 | 213 | ||||
Total Current Liabilities | 42,454 | 24,057 | ||||
Accrued income taxes | 33 | 143 | ||||
Operating lease liability | 5,179 | 5,335 | ||||
Total Liabilities | 47,666 | 29,535 | ||||
Commitments and Contingencies (Note 13) | ||||||
Stockholders' Equity | ||||||
Common Stock, par value | 399 | 398 | ||||
Additional paid-in capital | 25,355 | 25,280 | ||||
Retained earnings | 221,403 | 199,083 | ||||
Treasury Stock, at cost, 4,114,614 shares as of both June 30, 2026 and June 30, 2025 | (56,315) | (56,315) | ||||
Accumulated other comprehensive income | 160 | 160 | ||||
Total Stockholders' Equity | 191,002 | 168,606 | ||||
Total Liabilities and Stockholders' Equity | $ | 238,668 | $ | 198,141 | ||
NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES | |||||||||
Three Months ended June 30, | |||||||||
2026 | 2025 | 2024 | |||||||
(in thousands, except for share and per share data) | |||||||||
Revenue: | |||||||||
Equipment revenue | $ | 30,488 | $ | 28,298 | $ | 29,938 | |||
Service revenue | 25,321 | 22,426 | 20,392 | ||||||
Total revenue | 55,809 | 50,724 | 50,330 | ||||||
Cost of Revenue: | |||||||||
Cost of equipment revenue | 19,089 | 21,827 | 20,530 | ||||||
Cost of service revenue | 2,502 | 2,099 | 1,955 | ||||||
Total cost of revenue | 21,591 | 23,926 | 22,485 | ||||||
Gross Profit | 34,218 | 26,798 | 27,845 | ||||||
Operating Expenses: | |||||||||
Research and development | 3,660 | 3,232 | 3,027 | ||||||
Selling, general, and administrative | 12,128 | 11,480 | 10,854 | ||||||
Total operating expenses | 15,788 | 14,712 | 13,881 | ||||||
Operating Income | 18,430 | 12,086 | 13,964 | ||||||
Other Income: | |||||||||
Interest income, net | 969 | 725 | 712 | ||||||
Other income, net | 251 | 158 | 50 | ||||||
Income before Provision for Income Taxes | 19,650 | 12,969 | 14,726 | ||||||
Provision for Income Taxes | 1,883 | 1,337 | 1,192 | ||||||
Net Income | $ | 17,767 | $ | 11,632 | $ | 13,534 | |||
Income Per Share: | |||||||||
Basic | $ | 0.50 | $ | 0.33 | $ | 0.37 | |||
Diluted | $ | 0.50 | $ | 0.33 | $ | 0.36 | |||
Weighted Average Number of Shares Outstanding: | |||||||||
Basic | 35,747,000 | 35,656,000 | 36,939,000 | ||||||
Diluted | 35,883,000 | 35,764,000 | 37,232,000 | ||||||
NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES | |||||||||
Year Ended June 30, | |||||||||
2026 | 2025 | 2024 | |||||||
(in thousands, except for share and per share data) | |||||||||
Revenue: | |||||||||
Equipment revenue | $ | 104,788 | $ | 95,291 | $ | 113,071 | |||
Service revenue | 97,528 | 86,330 | 75,749 | ||||||
Total revenue | 202,316 | 181,621 | 188,820 | ||||||
Cost of Revenue: | |||||||||
Cost of equipment revenue | 73,031 | 72,795 | 79,862 | ||||||
Cost of service revenue | 9,494 | 7,796 | 7,204 | ||||||
Total cost of revenue | 82,525 | 80,591 | 87,066 | ||||||
Gross Profit | 119,791 | 101,030 | 101,754 | ||||||
Operating Expenses: | |||||||||
Research and development | 13,791 | 12,581 | 10,763 | ||||||
Selling, general, and administrative expenses | 44,362 | 42,190 | 37,173 | ||||||
Litigation settlement cost | 16,000 | — | — | ||||||
Total operating expenses | 74,153 | 54,771 | 47,936 | ||||||
Operating Income | 45,638 | 46,259 | 53,818 | ||||||
Other Income: | |||||||||
Interest income, net | 3,587 | 3,356 | 2,375 | ||||||
Other income, net | 597 | 454 | 193 | ||||||
Income before Provision for Income Taxes | 49,822 | 50,069 | 56,386 | ||||||
Provision for Income Taxes | 6,795 | 6,663 | 6,568 | ||||||
Net Income | $ | 43,027 | $ | 43,406 | $ | 49,818 | |||
Income Per Share: | |||||||||
Basic | $ | 1.21 | $ | 1.20 | $ | 1.35 | |||
Diluted | $ | 1.20 | $ | 1.19 | $ | 1.34 | |||
Weighted Average Number of Shares Outstanding: | |||||||||
Basic | 35,690,000 | 36,298,000 | 36,812,000 | ||||||
Diluted | 35,891,000 | 36,499,000 | 37,066,000 | ||||||
NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES | |||||||||
Fiscal Year ended June 30, | |||||||||
2026 | 2025 | 2024 | |||||||
(in thousands) | |||||||||
Cash Flows from Operating Activities | |||||||||
Net Income | $ | 43,027 | $ | 43,406 | $ | 49,818 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 2,208 | 2,276 | 2,163 | ||||||
Change in accrued interest on other investments | — | — | 31 | ||||||
Unrealized gain on marketable securities | — | (177) | (56) | ||||||
Realized gain on sales of marketable securities | (407) | (56) | — | ||||||
Charge (recovery) of credit losses | 76 | (7) | (99) | ||||||
Change to inventory reserve | (444) | 643 | 1,691 | ||||||
Deferred income taxes | 2,371 | (1,048) | (2,776) | ||||||
Stock-based compensation expense | 989 | 1,513 | 1,733 | ||||||
Changes in operating assets and liabilities: | |||||||||
Accounts and other receivable | (5,943) | 1,797 | (5,730) | ||||||
Inventories | 2,344 | 7,995 | (3,255) | ||||||
Prepaid expenses and other current assets | (1,127) | 1,071 | (867) | ||||||
Income tax receivable | (1) | 48 | 2 | ||||||
Other assets | 11 | 86 | 25 | ||||||
Accounts payable, accrued expenses, accrued litigation costs, accrued salaries and wages, accrued income taxes | 18,041 | (4,020) | 2,688 | ||||||
Net Cash Provided by Operating Activities | 61,145 | 53,527 | 45,368 | ||||||
Cash Flows from Investing Activities | |||||||||
Purchases of property, plant, and equipment | (1,917) | (2,116) | (1,594) | ||||||
Purchases of marketable securities | (11,370) | (12,835) | (206) | ||||||
Proceeds from sales of marketable securities | 17,236 | 2,556 | — | ||||||
Purchases of other investments | — | — | (1,351) | ||||||
Redemption of other investments | — | 26,980 | — | ||||||
Net Cash Provided by (Used in) Investing Activities | 3,949 | 14,585 | (3,151) | ||||||
Cash Flows from Financing Activates | |||||||||
Proceeds from stock option exercises | 628 | 54 | 427 | ||||||
Dividends paid | (20,334) | (13,632) | (13,258) | ||||||
Purchase of treasury shares | — | (36,794) | — | ||||||
Payment of tax withholdings related to stock option exercises | (1,541) | — | — | ||||||
Net Cash Used in Financing Activities | (21,247) | (50,372) | (12,831) | ||||||
Net increase in Cash and Cash Equivalents | 43,847 | 17,740 | 29,386 | ||||||
Cash and Cash Equivalents - Beginning | 83,081 | 65,341 | 35,955 | ||||||
Cash and Cash Equivalents - Ending | $ | 126,928 | $ | 83,081 | $ | 65,341 | |||
Supplemental Cash Flow Information | |||||||||
Interest paid | $ | — | $ | — | $ | 14 | |||
Income taxes paid, net of refunds received | $ | 3,505 | $ | 8,427 | $ | 9,330 | |||
Non-Cash Investing and Financing Transactions | |||||||||
Dividends declared and not paid | $ | 5,365 | 4,992 | — | |||||
NAPCO SECURITY TECHNOLOGIES, INC. | ||||||||||||
Non-GAAP Adjustments | ||||||||||||
Litigation | ||||||||||||
Settlement | Tax | |||||||||||
GAAP | Cost | Adjustments (1) | Non-GAAP | |||||||||
Three months ended June 30, 2026 | ||||||||||||
Revenue | $ | 55,809 | $ | — | $ | — | $ | 55,809 | ||||
Gross Profit | 34,218 | — | — | 34,218 | ||||||||
Operating Expenses | 15,788 | — | — | 15,788 | ||||||||
Operating Income | 18,430 | — | — | 18,430 | ||||||||
Net Income | 17,767 | — | - | 17,767 | ||||||||
Non-GAAP adjusted net income margin | 31.8 | % | ||||||||||
Non-GAAP adjusted net income per share - diluted | $ | 0.50 | ||||||||||
Three months ended June 30, 2025 | ||||||||||||
Revenue | $ | 50,724 | $ | — | $ | — | $ | 50,724 | ||||
Gross Profit | 26,798 | — | — | 26,798 | ||||||||
Operating Expenses | 14,712 | — | — | 14,712 | ||||||||
Operating Income | 12,086 | — | — | 12,086 | ||||||||
Net Income | 11,632 | — | — | 11,632 | ||||||||
Non-GAAP adjusted net income margin | 22.9 | % | ||||||||||
Non-GAAP adjusted net income per share - diluted | $ | 0.33 | ||||||||||
Year ended June 30, 2026 | ||||||||||||
Revenue | $ | 202,316 | $ | — | $ | — | $ | 202,316 | ||||
Gross Profit | 119,791 | — | — | 119,791 | ||||||||
Operating Expenses | 74,153 | (16,000) | — | 58,153 | ||||||||
Operating Income | 45,638 | 16,000 | — | 61,638 | ||||||||
Net Income | 43,027 | 16,000 | (1,733) | 57,294 | ||||||||
Non-GAAP adjusted net income margin | 28.3 | % | ||||||||||
Non-GAAP adjusted net income per share - diluted | $ | 1.60 | ||||||||||
Year ended June 30, 2025 | ||||||||||||
Revenue | $ | 181,621 | $ | — | $ | — | $ | 181,621 | ||||
Gross Profit | 101,030 | — | — | 101,030 | ||||||||
Operating Expenses | 54,771 | — | — | 54,771 | ||||||||
Operating Income | 46,259 | — | — | 46,259 | ||||||||
Net Income | 43,406 | — | — | 43,406 | ||||||||
Non-GAAP adjusted net income margin | 23.9 | % | ||||||||||
Non-GAAP adjusted net income per share - diluted | $ | 1.19 | ||||||||||
Three months ended June 30, | Fiscal year ended June 30, | |||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||
Denominator: | ||||||||||||
Weighted average shares outstanding | ||||||||||||
Basic, as reported | 35,747,000 | 35,656,000 | 35,690,000 | 36,298,000 | ||||||||
Effect of Dilutive Securities | 136,000 | 108,000 | 201,000 | 201,000 | ||||||||
Diluted, (Denominator) | 35,883,000 | 35,764,000 | 35,891,000 | 36,499,000 | ||||||||
1. The 'with or without' method is utilized to determine the income tax effect of all Non-GAAP adjustments.
NAPCO SECURITY TECHNOLOGIES, INC. | ||||||||||||
Three months ended June 30, | Year ended June 30, | |||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||
Non-GAAP adjusted EBITDA: | ||||||||||||
Net income, as reported | $ | 17,767 | $ | 11,632 | $ | 43,027 | $ | 43,406 | ||||
Interest income, net | (969) | (725) | (3,587) | (3,356) | ||||||||
Provision for income taxes | 1,883 | 1,337 | 6,795 | 6,663 | ||||||||
Depreciation and amortization | 539 | 571 | 2,208 | 2,276 | ||||||||
Non-GAAP EBITDA | 19,220 | 12,815 | 48,443 | 48,989 | ||||||||
Adjustments: | ||||||||||||
Stock based compensation | 205 | 370 | 989 | 1,513 | ||||||||
Nonrecurring legal expense(1) | 1,134 | 1,064 | 1,238 | 1,624 | ||||||||
Litigation settlement cost(2) | — | — | 16,000 | — | ||||||||
Total adjustments | 1,339 | 1,434 | 18,227 | 3,137 | ||||||||
Non-GAAP adjusted EBITDA | $ | 20,559 | $ | 14,249 | $ | 66,670 | $ | 52,126 | ||||
Non-GAAP adjusted EBITDA margin | 36.8 | % | 28.1 | % | 33.0 | % | 28.7 | % | ||||
Non-GAAP per share data: | ||||||||||||
Non-GAAP adjusted EBITDA per share - diluted | $ | 0.57 | $ | 0.40 | $ | 1.86 | $ | 1.43 | ||||
Denominator: | ||||||||||||
Weighted average shares outstanding | ||||||||||||
Basic, as reported | 35,747,000 | 35,656,000 | 35,690,000 | 36,298,000 | ||||||||
Effect of Dilutive Securities | 136,000 | 108,000 | 201,000 | 201,000 | ||||||||
Diluted, (Denominator) | 35,883,000 | 35,764,000 | 35,891,000 | 36,499,000 | ||||||||
- Nonrecurring Legal Expenses, which are net of any insurance reimbursements, are legal fees that are determined not to be of a normal recuring nature and expenses necessary to operate the business
- Litigation settlement costs, which are net of any insurance reimbursements, were determined not to be of a recurring nature and costs that are not in the normal cost of business or necessary to operate the business
Three months ended June 30, | Year ended June 30, | |||||||||||||
(dollars in thousands) | (dollars in thousands) | |||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||
Free cash flow: | ||||||||||||||
Net Cash Provided by Operating Activities | $ | 17,654 | $ | 14,624 | $ | 61,145 | $ | 53,527 | ||||||
Less: Purchases of property, plant, and equipment | (405) | (237) | (1,917) | (2,116) | ||||||||||
Free Cash Flow(1) | $ | 17,249 | $ | 14,387 | $ | 59,228 | $ | 51,411 | ||||||
Free Cash Flow Margin(1) | 30.9 | % | 28.4 | % | 29.3 | % | 28.3 | % | ||||||
- Free cash flow is calculated as net cash provided by operating activities less capital expenditures. Free cash flow margin is the free cash flow divided by revenue.
Contacts:
Francis J. Okoniewski
Vice President of Investor Relations
NAPCO Security Technologies, Inc.
Office 800-645-9445 x 374
Mobile 516-404-3597
fokoniewski@napcosecurity.com
View original content:https://www.prnewswire.com/news-releases/napco-security-technologies-inc-reports-fiscal-q4-and-full-year-2026-results-302857743.html
SOURCE NAPCO Security Technologies, Inc.