NAPCO Security Q1 2027 free cash flow falls 79.8%

The board's quarterly dividend is payable January 4, 2027, to stockholders of record December 14, 2026.

Available on EDGAR 11/02/2026 - 11:04 AM EST Accepted by SEC EDGAR 11/02/2026 - 11:04 AM EST Learn about SEC filing dates

Rhea-AI Filing Summary

NAPCO Security Technologies, Inc. (NSSC) reported fiscal Q1 2027 revenue of $49.980 million for the three months ended September 30, 2026, up 1.7% year over year. Net income rose 6.9% to $13.009 million, and diluted earnings per share increased 5.9% to $0.36. Adjusted EBITDA was $15.509 million, up 3.8%; management described quarterly revenue and Adjusted EBITDA as records.

Free cash flow was $2.317 million, down 79.8% from $11.444 million, while cash provided by operating activities was $2.750 million versus $11.637 million. Management attributed lower equipment revenue to two locking distributors reducing purchases; sell-through at both grew year over year and strengthened sequentially. Management said recurring service revenue had gross margins of over 90% and a prospective run rate of approximately $106 million, $3 million above the run rate reported in July 2026. The board declared a $0.17-per-share cash dividend payable January 4, 2027, to stockholders of record December 14, 2026.

1 point · 0 major

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How the balance works

Positive

• Moderate pointNet income rose 6.9% to $13.009 million.

Negative

• Moderate pointFree cash flow fell 79.8% to $2.317 million.

Filing Explained

At September 30, 2026, NAPCO reported cash and cash equivalents and marketable securities, alongside dividends payable; these balance-sheet figures place the recorded payable in the context of the company’s quarter-end liquid resources.

8-K Event Classification

3 items: 2.02, 7.01, 9.01

3 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Revenue: $49.980 million Net income: $13.009 million Diluted earnings per share: $0.36 per share +3 more

6 metrics

Revenue $49.980 million Three months ended September 30, 2026; up 1.7% year over year

Net income $13.009 million Three months ended September 30, 2026; up 6.9% year over year

Diluted earnings per share $0.36 per share Three months ended September 30, 2026; up 5.9% year over year

Adjusted EBITDA $15.509 million Three months ended September 30, 2026; up 3.8% year over year

Free cash flow $2.317 million Three months ended September 30, 2026; down 79.8% year over year

Quarterly cash dividend $0.17 per share Payable January 4, 2027, to stockholders of record December 14, 2026

Key Terms

Adjusted EBITDA, Free Cash Flow, Non-GAAP, Free Cash Flow Margin, +1 more

5 terms

Adjusted EBITDA financial

"record Q1 Adjusted EBITDA of $15.5 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

Free Cash Flow financial

"We define Free Cash Flow (FCF) as net cash provided by operating activities less capital expenditures"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

Non-GAAP financial

"reported adjusting for certain items (Non-GAAP)"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

Free Cash Flow Margin financial

"Free Cash Flow Margin"

Free cash flow margin is a measure of how much cash a company generates relative to its sales, showing the percentage of revenue that remains after covering operating expenses and investments in growth. It indicates how efficiently a company turns its sales into available cash that can be used for things like paying dividends, reducing debt, or expanding the business. A higher margin suggests better financial health and more flexibility to invest or return value to shareholders.

prospective run rate financial

"has a prospective run rate of approximately $106 million"

Earnings Snapshot

Revenue: $49.980 million

Fiscal Q1 2027 (three months ended September 30, 2026)

Revenue $49.980 million up 1.7%

Net income $13.009 million up 6.9%

Diluted earnings per share $0.36 per share up 5.9%

Adjusted EBITDA $15.509 million up 3.8%

Free cash flow $2.317 million down 79.8%

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much revenue did NSSC report in fiscal Q1 2027?

NAPCO reported revenue of $49.980 million for the three months ended September 30, 2026, up 1.7% from the comparable 2025 quarter. Management described the quarter's revenue as a record.

How much free cash flow did NSSC report in fiscal Q1 2027?

NSSC reported free cash flow of $2.317 million for the three months ended September 30, 2026, compared with $11.444 million in 2025; the release reported a 79.8% decrease. The company defines free cash flow as net cash provided by operating activities less capital expenditures.

Why did NSSC equipment revenue decline?

Management said equipment revenue declined because two locking distributors reduced their purchases during the quarter. Sell-through at both distributors grew year over year and strengthened meaningfully on a sequential basis.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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0000069633false00000696332026-10-292026-10-29

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​

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

​

FORM 8-K

​

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

​

Date of Report (Date of earliest event reported)

October 29, 2026

​

NAPCO SECURITY TECHNOLOGIES, INC.

(Exact name of registrant as specified in charter)

​

Delaware	​ ​ ​	0-10004	​ ​ ​	11-2277818
(State or other jurisdiction of		(Commission File Number)		(IRS Employer Identification No.)
incorporation)	​	​	​	​

​

333 Bayview Avenue, Amityville, New York 11701

(Address of principal executive offices)

​

Registrant’s telephone number, including area code (631) 842-9400

​

(Former name and former address if changed from last report)

​

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

​

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

​

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

​

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

​

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

​

Securities registered pursuant to Section 12(b) of the Act:

​

Title of each class	​ ​ ​	Trading Symbol(s)	​ ​ ​	Name of each exchange on which registered
Common Stock, par value $0.01 per share		NSSC		Nasdaq Stock Market

​

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (section 240.12b-2 of this chapter).

​

Emerging growth company ☐

​

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

​

​

​

​

Item 2.02.    RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On November 2, 2026, the registrant issued a press release to report results for the three months ended September 30, 2026. This press release is furnished as Exhibit 99.1.

The information in this Current Report on Form 8-K, including the exhibit attached hereto, is furnished pursuant to Item 2.02, and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section.

Item 7.01.    REGULATION FD DISCLOSURE

On October 29, 2026, the Company’s Board of Directors declared a cash dividend of $.17 per share payable on January 4, 2027, to stockholders of record on December 14, 2026.

Item 9.01.    FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits:

​

​	​	​
99.1	​ ​	Press Release issued by Napco Security Technologies, Inc. dated November 2, 2026.
10 4	​	Cover Page Interactive Data File (formatted as Inline XBRL).

​

​

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunder duly authorized.

​

	NAPCO SECURITY TECHNOLOGIES, INC.
	(Registrant)
Date: November 2, 2026	By:	/s/ Kevin S. Buchel
		Kevin S. Buchel
		Chief Executive Officer and President

​

Exhibit 99.1

NAPCO Security Technologies, Inc. Reports Fiscal Q1 2027 Results

AMITYVILLE, N.Y., November 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 first quarter of fiscal year 2027.  Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release.  

First Quarter 2027 Financial Results as Compared to First Quarter 2026

● Net revenue increased 1.7% to a First Quarter record $50.0 million

● Recurring service revenue (“RSR”) increased 11.5% to a Quarterly record $26.1 million, with over 90% gross margin

● RSR has a prospective annual run rate of approximately $106 million based on October 2026 recurring service revenues

● Equipment revenue decreased 7.3% to $23.9 million

● Gross profit margin increased to 58.7.% vs 56.6% in prior fiscal year quarter

● Net Income increased 6.9% YoY to a First Quarter record $13.0 million

● Diluted Net Income per share increased 5.9% to $0.36

● Non-GAAP Adjusted EBITDA increased 3.8% to a First Quarter record $15.5 million with an Adjusted EBITDA Margin of 31.0%, compared to $14.9 million with an Adjusted EBITDA Margin of 30.4% in the prior fiscal year quarter

● The board declared a quarterly dividend of $.17 per share, payable on January 4, 2027, to shareholders of record on December 14, 2026.

Kevin Buchel, CEO and President, commented, “Our Fiscal Q1 performance reflects continued positive financial results. We achieved record Q1 revenue of $50.0 million and record Q1 Adjusted EBITDA of $15.5 million, which was bolstered by our recurring service revenue. Our RSR continues to deliver gross margins of over 90% and has a prospective run rate of approximately $106 million, a $3 million increase from the run rate we reported in July 2026. While equipment revenue declined year-over-year, the decrease was driven by two locking distributors reducing their purchases during the quarter. Importantly, sell-through at both distributors grew year-over-year and strengthened meaningfully on a sequential basis. We view sell-through as the truest indicator of end-market demand, and these trends reinforce our confidence in the underlying health of the business.

We are pleased to continue our dividend program of which the quarterly dividend will be $0.17 per share, which will be paid on January 4, 2027, to shareholders of record on December 14, 2026.”

​

​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	Three months ended September 30,							​ ​ ​
​	​	(dollars in thousands)							​
​		​	​		​	​		% Increase/
Financial Highlights	​ ​ ​	2026		​ ​ ​	2025		​ ​ ​	(decrease)	​ ​ ​
GAAP Results	​	​	​	​	​	​	​	​	​
Net Revenue	​	$	49,980	​	$	49,168		1.7	%
Gross Profit	​	$	29,352	​	$	27,846	​	5.4	%
Gross Profit Margin	​	​	58.7	%	​	56.6	%	​	​
Operating Income	​	$	14,117	​	$	13,643	​	3.5	%
Net Income	​	$	13,009	​	$	12,165	​	6.9	%
Diluted Earnings Per Share	​	$	0.36	​	$	0.34	​	5.9	%
​	​	​	​	​	​	​	​	​	​
Non-GAAP Results	​	​	​	​	​	​	​	​	​
Adjusted EBITDA	​	$	15,509	​	$	14,942	​	3.8	%
Adjusted EBITDA Margin	​	​	31.0	%	​	30.4	%	​	​
Adjusted EBITDA Per Share	​	$	0.43	​	$	0.42	​	2.4	%
Free Cash Flows	​	$	2,317	​	$	11,444	​	(79.8)	%
Free Cash Flows Margin	​	​	4.6	%	​	23.3	%	​	​

​

Conference Call Information

Management will conduct a conference call at 11 a.m. ET today, November 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/ndlaQ1yQy3W. Alternatively, interested parties may participate in the call by dialing (US) 1-800-836-8184 or (International) 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, less 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

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

​	​	​	​	​	​	​	​
​	​	​		​	​	​	​
​	​ ​ ​	September 30, 2026		​ ​ ​	June 30, 2026		​ ​ ​
​	​	(in thousands, except share data)					​
Assets	​	​	​	​	​	​	​
Current Assets	​	​	​		​	​	​
Cash and cash equivalents	​	$	123,882	​	$	126,928	​
Marketable securities	​	​	10,734	​	​	10,637	​
Accounts and other receivable, net of allowance for credit losses of $129 and $101 as of September 30, 2026 and June 30, 2026, respectively	​		29,248	​		35,975	​
Inventories	​		34,130	​		30,118	​
Income tax receivable	​	​	1,523	​	​	—	​
Prepaid expenses and other current assets	​		3,838	​		4,325	​
Total Current Assets	​		203,355	​		207,983	​
Inventories - non-current	​		9,195	​		9,256	​
Property, plant and equipment, net	​		9,202	​		9,238	​
Intangible assets, net	​		2,919	​		2,990	​
Deferred income taxes	​	​	1,777	​	​	4,105	​
Operating lease - Right-of-use asset	​	​	4,838	​	​	4,906	​
Other assets	​		185	​		190	​
Total Assets	​	$	231,471	​	$	238,668	​
​	​	​	​	​	​	​	​
Liabilities and Stockholders' Equity	​	​	​	​	​	​	​
Current Liabilities	​	​	​		​	​	​
Accounts payable	​	$	7,749	​	$	6,925	​
Accrued expenses	​		9,275	​		8,546	​
Accrued litigation costs	​	​	—	​	​	16,000	​
Accrued salaries and wages	​		5,036	​		4,484	​
Dividends payable	​	​	6,081	​	​	5,365	​
Accrued income taxes	​		—	​		1,134	​
Total Current Liabilities	​		28,141	​		42,454	​
Accrued income taxes	​		—	​		33	​
Operating lease liability	​	​	5,142	​	​	5,179	​
Total Liabilities	​		33,283	​		47,666	​
Commitments and Contingencies (Note 13)	​		​	​		​	​
Stockholders' Equity	​	​	​	​	​	​	​
Common Stock, par value $0.01 per share; 100,000,000 shares authorized; 39,883,051 shares issued; and 35,768,437 shares outstanding as of both September 30, 2026 and June 30, 2026, respectively.	​	​	399	​	​	399	​
Additional paid-in capital	​		25,628	​		25,355	​
Retained earnings	​		228,331	​		221,403	​
Treasury Stock, at cost, 4,114,614 shares as of both September 30, 2026 and June 30, 2026	​		(56,315)	​		(56,315)	​
Accumulated other comprehensive income	​	​	145	​	​	160	​
Total Stockholders' Equity	​		198,188	​		191,002	​
Total Liabilities and Stockholders' Equity	​	$	231,471	​	$	238,668	​

​

NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

​	​	​	​	​	​	​
​	​ ​ ​	Three Months ended September 30,
​	​ ​ ​	2026		​ ​ ​	2025
​	​	(in thousands, except for share and per share data)
Revenue:		​	​	​	​	​
Equipment revenue	​	$	23,850	​	$	25,739
Service revenue	​		26,130	​		23,429
Total revenue	​		49,980	​		49,168
Cost of Revenue:	​		​	​		​
Cost of equipment revenue	​		18,043	​		19,046
Cost of service revenue	​		2,585	​		2,276
Total cost of revenue	​		20,628	​		21,322
​	​	​	​	​	​	​
Gross Profit	​		29,352	​		27,846
​	​	​	​	​	​	​
Operating Expenses:	​	​	​	​	​	​
Research and development	​		4,053	​		3,240
Selling, general, and administrative	​		12,182	​		10,963
Litigation settlement	​	​	(1,000)	​	​	—
Total operating expenses	​	​	15,235	​	​	14,203
​	​	​	​	​	​	​
Operating Income	​		14,117	​		13,643
​	​	​	​	​	​	​
Other Income:	​		​	​		​
Interest income, net	​		1,117	​		854
Other income, net	​	​	115	​	​	138
Income before Provision for Income Taxes	​		15,349	​		14,635
Provision for Income Taxes	​		2,340	​		2,470
Net Income	​	$	13,009	​	$	12,165
​	​	​	​	​	​	​
Income Per Share:	​		​	​		​
Basic	​	$	0.36	​	$	0.34
Diluted	​	$	0.36	​	$	0.34
​	​	​	​	​	​	​
Weighted Average Number of Shares Outstanding:	​		​	​		​
Basic	​		35,768,000	​		35,658,000
Diluted	​		35,881,000	​		35,865,000

​

NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

​	​	​	​	​	​	​	​
​	​	Three Months ended September 30,					​
​	​ ​ ​	2026		​ ​ ​	2025		​ ​ ​
​	​	(in thousands)					​
Cash Flows from Operating Activities	​	​	​		​	​	​
Net Income	​	$	13,009	​	$	12,165	​
Adjustments to reconcile net income to net cash provided by operating activities:	​	​	​	​		​	​
Depreciation and amortization	​	​	540	​		570	​
Realized gain on sales of marketable securities	​	​	(114)	​	​	(92)	​
Charge (recovery) of credit losses	​	​	28	​		(1)	​
Change to inventory reserve	​	​	(109)	​		(354)	​
Deferred income taxes	​	​	2,328	​		1,681	​
Stock-based compensation expense	​	​	273	​		309	​
Changes in operating assets and liabilities:	​	​	​	​		​	​
Accounts and other receivable	​	​	6,699	​		(561)	​
Inventories	​	​	(3,842)	​		(177)	​
Prepaid expenses and other current assets	​	​	487	​		(305)	​
Income tax receivable	​	​	(1,523)	​	​	(1,993)	​
Other assets	​	​	5	​		4	​
Accounts payable, accrued expenses, accrued litigation costs, accrued salaries and wages, accrued income taxes	​	​	(15,031)	​		391	​
Net Cash Provided by Operating Activities	​	​	2,750	​	​	11,637	​
Cash Flows from Investing Activities	​	​	​	​		​	​
Purchases of property, plant, and equipment	​	​	(433)	​	​	(193)	​
Purchases of marketable securities	​	​	(3,570)	​	​	(2,540)	​
Proceeds from sales of marketable securities	​	​	3,572	​	​	8,407	​
Net Cash (Used In) Provided by Investing Activities	​	​	(431)	​	​	5,674	​
Cash Flows from Financing Activates	​	​	​	​		​	​
Dividends paid	​	​	(5,365)	​	​	(4,992)	​
Net Cash Used in Financing Activities	​	​	(5,365)	​	​	(4,992)	​
​	​	​	​	​	​	​	​
Net (decrease) increase in Cash and Cash Equivalents	​	​	(3,046)	​		12,319	​
Cash and Cash Equivalents - Beginning	​	​	126,928	​		83,081	​
Cash and Cash Equivalents - Ending	​	$	123,882	​	$	95,400	​
Supplemental Cash Flow Information	​		​	​		​	​
Income taxes paid, net of refunds received	​	$	2,701	​	$	3,104	​
Non-Cash Investing and Financing Transactions	​	​	​	​	​	​	​
Dividends declared and not paid	​	$	6,081	​	$	4,992	​

​

NAPCO SECURITY TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL DATA*

(unaudited)

(in thousands, except share and per share data)

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Non-GAAP Adjustments

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Litigation

​

Tax

​

​

​

​

​

GAAP

​

Settlement

​

Adjustments (1)

​

Non-GAAP

​

Three months ended September 30, 2026

​

​

​

​

​

​

​

​

​

​

​

​

Revenue

$

49,980

​

$

—

​

$

—

​

$

49,980

​

Gross Profit

​

29,352

​

​

—

​

​

—

​

​

29,352

​

Operating Expenses

​

15,235

​

​

1,000

​

​

—

​

​

16,235

​

Operating Income

​

14,117

​

​

(1,000)

​

​

—

​

​

13,117

​

Net Income

​

13,009

​

​

(1,000)

​

​

108

​

​

12,117

​

Non-GAAP adjusted net income margin

​

​

​

​

​

​

​

​

​

​

24.2

%

Non-GAAP adjusted net income per share - diluted

​

​

​

​

​

​

​

​

​

$

0.34

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended September 30, 2025

​

​

​

​

​

​

​

​

​

​

​

​

Revenue

$

49,168

​

$

—

​

$

—

​

$

49,168

​

Gross Profit

​

27,846

​

​

—

​

​

—

​

​

27,846

​

Operating Expenses

​

14,203

​

​

—

​

​

—

​

​

14,203

​

Operating Income

​

13,643

​

​

—

​

​

—

​

​

13,643

​

Net Income

​

12,165

​

​

—

​

​

—

​

​

12,165

​

Non-GAAP adjusted net income margin

​

​

​

​

​

​

​

​

​

​

24.7

%

Non-GAAP adjusted net income per share - diluted

​

​

​

​

​

​

​

​

​

$

0.34

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended September30,

​

​

​

​

​

​

​

​

2026

​

2025

​

​

​

​

​

​

​

Denominator:

​

​

​

​

​

​

​

​

​

​

​

​

Weighted average shares outstanding

​

​

​

​

​

​

​

​

​

​

​

​

Basic, as reported

​

35,768,000

​

​

35,658,000

​

​

​

​

​

​

​

Effect of Dilutive Securities

​

113,000

​

​

207,000

​

​

​

​

​

​

​

Diluted, (Denominator)

​

35,881,000

​

​

35,865,000

​

​

​

​

​

​

​

1. The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

​

NAPCO SECURITY TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL DATA*

(unaudited)

(in thousands, except share and per share data)

​	​	​	​	​	​	​
​	Three months ended September 30,					​
​	2026		​	2025		​
Non-GAAP adjusted EBITDA:	​	​	​	​	​	​
Net income, as reported	$	13,009	​	$	12,165	​
Interest income, net	​	(1,117)	​	​	(854)	​
Provision for income taxes	​	2,340	​	​	2,470	​
Depreciation and amortization	​	540	​	​	570	​
Non-GAAP EBITDA	​	14,772	​	​	14,351	​
Adjustments:	​	​	​	​	​	​
Stock based compensation	​	273	​	​	309	​
Nonrecurring legal expense(1)	​	1,464	​	​	282	​
Litigation settlement(2)	​	(1,000)	​	​	—	​
Total adjustments	​	737	​	​	591	​
Non-GAAP adjusted EBITDA	$	15,509	​	$	14,942	​
Non-GAAP adjusted EBITDA margin	​	31.0	%	​	30.4	%
​	​	​	​	​	​	​
Non-GAAP per share data:	​	​	​	​	​	​
Non-GAAP adjusted EBITDA per share - diluted	$	0.43	​	$	0.42	​
​	​	​	​	​	​	​
Denominator:	​	​	​	​	​	​
Weighted average shares outstanding	​	​	​	​	​	​
Basic, as reported	​	35,768,000	​	​	35,658,000	​
Effect of Dilutive Securities	​	113,000	​	​	207,000	​
Diluted, (Denominator)	​	35,881,000	​	​	35,865,000	​

1. 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

2. 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 September 30,
​	​	(dollars in thousands)
​		​	​		​	​
​	​ ​ ​	2026		​ ​ ​	2025		​ ​ ​
Free cash flow:	​	​	​	​	​	​	​
Net Cash Provided by Operating Activities	​	$	2,750	​	$	11,637
Less: Purchases of property, plant, and equipment	​	​	(433)	​	​	(193)	​
Free Cash Flow(1)	​	$	2,317	​	$	11,444	​
Free Cash Flow Margin(1)	​	​	4.6	%	​	23.3	%

1. 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

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 440.3 KB

Other Documents

• EX-101 EX-101.SCH 2.5 KB
• EX-101 EX-101.LAB 14.9 KB
• EX-101 EX-101.PRE 9.3 KB