Napco Security (NSSC) lifts dividend as cash pile grows

Rhea-AI Filing Summary

NAPCO Security Technologies, Inc. (NSSC) reported strong results for the quarter and year ended June 30, 2026 and announced a higher dividend. For fiscal Q4 2026, net revenue was $55.8 million, up 10.0% year over year, with net income of $17.8 million, up 52.7%. Gross margin improved to 61.3% from 52.8%, and Adjusted EBITDA reached $20.6 million, up 44.3%, for a margin of 36.8%.

For full-year 2026, revenue was $202.3 million, an 11.4% increase, while GAAP net income was $43.0 million, slightly below 2025 due largely to a $16.0 million litigation settlement cost. On a non-GAAP basis, net income rose 32.0% to $57.3 million, and Adjusted EBITDA rose 27.9% to $66.7 million. Recurring service revenue carried gross margins over 90%, represented about 45% of Q4 revenue, and had a prospective run rate of approximately $103 million.

Cash generation remained solid, with free cash flow of $59.2 million for the year and cash and cash equivalents of $126.9 million at June 30, 2026. The Board declared a $0.17 per share cash dividend payable October 2, 2026 to stockholders of record on September 11, 2026, described as a 13.3% increase in the quarterly dividend.

Positive

• Q4 revenue grew 10.0% to $55.8 million, with net income up 52.7% and gross margin expanding to 61.3%, indicating significantly stronger quarterly profitability.
• Full-year revenue increased 11.4% to $202.3 million, while non-GAAP net income rose 32.0% to $57.3 million and Adjusted EBITDA grew 27.9% to $66.7 million.
• High-margin recurring service revenue delivered gross margins over 90%, represented about 45% of Q4 revenue, and had a prospective run rate of approximately $103 million based on July 2026 levels.
• Free cash flow was $59.2 million in fiscal 2026, up 15.2%, and cash and cash equivalents increased to $126.9 million, strengthening the balance sheet.
• The Board increased the quarterly cash dividend by 13.3% to $0.17 per share, reflecting a higher direct cash return to shareholders.

Negative

• Despite revenue growth, GAAP net income for 2026 declined 0.9% to $43.0 million and operating income decreased 1.3%, reflecting the impact of higher operating expenses.
• The company recorded a $16.0 million litigation settlement cost and an associated $16.0 million accrued litigation costs current liability, which reduced GAAP profitability and increased current obligations.

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

Q4 2026 Net Revenue: $55,809,000 Q4 2026 Net Income: $17,767,000 Fiscal 2026 Revenue: $202,316,000 +5 more

8 metrics

Q4 2026 Net Revenue $55,809,000 Three months ended June 30, 2026; up 10.0% from Q4 2025

Q4 2026 Net Income $17,767,000 Three months ended June 30, 2026; up 52.7% from Q4 2025

Fiscal 2026 Revenue $202,316,000 Year ended June 30, 2026; 11.4% higher than 2025

Fiscal 2026 GAAP Net Income $43,027,000 Year ended June 30, 2026; down 0.9% versus 2025

Fiscal 2026 Non-GAAP Net Income $57,294,000 Year ended June 30, 2026; 32.0% increase from 2025

Fiscal 2026 Adjusted EBITDA $66,670,000 Year ended June 30, 2026; up 27.9% year over year

Cash and Cash Equivalents $126,928,000 Balance at June 30, 2026

Quarterly Dividend per Share $0.17 Cash dividend declared payable October 2, 2026

Key Terms

Adjusted EBITDA, Free Cash Flow, recurring service revenue, Non-GAAP, +2 more

6 terms

Adjusted EBITDA financial

"Adjusted EBITDA of $55.8 and $20.6 million, respectively, which was bolstered"

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"

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.

recurring service revenue financial

"Our RSR continues to deliver gross margins of over 90%, and represents"

Revenue that a company earns on a steady, repeat basis from ongoing services—typically subscriptions, maintenance contracts, or usage-based fees—rather than one-time sales. Investors care because it acts like a predictable paycheck for the business: it smooths cash flow, signals customer loyalty, and makes future earnings easier to forecast, which often supports higher valuations and lower investment risk. Think of it as the monthly subscription fee that keeps the lights on.

Non-GAAP financial

"Results are reported in accordance with U.S. generally accepted accounting principles"

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.

litigation settlement cost regulatory

"Litigation settlement cost | 16,000 | — | — Total operating expenses"

Free Cash Flow Margin financial

"Free Cash Flow Margin (1) | 30.9 % | 28.4 % | 29.3 % | 28.3 %"

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.

Offering Details

earnings

Offering

Offering Type earnings

FAQ

How did NSSC perform financially in Q4 2026?

In Q4 2026, NSSC reported net revenue of $55.8 million, up 10.0% year over year, and net income of $17.8 million, up 52.7%. Gross margin improved to 61.3%, and Adjusted EBITDA was $20.6 million, a 44.3% increase.

What were NSSC’s full-year 2026 revenue and earnings?

For fiscal 2026, NSSC generated revenue of $202.3 million, an 11.4% increase from 2025. GAAP net income was $43.0 million, slightly below 2025, while non-GAAP net income rose 32.0% to $57.3 million.

How important is recurring service revenue to NSSC?

Recurring service revenue had gross margins over 90%, represented approximately 45% of Q4 2026 revenue, and had a prospective run rate of about $103 million based on July 2026 service revenue, making it a major high-margin component.

What dividend did NSSC declare and when will it be paid?

NSSC’s Board declared a $0.17 per share cash dividend, described as a 13.3% quarterly increase. It is payable on October 2, 2026, to stockholders of record on September 11, 2026.

How strong is NSSC’s cash flow and cash position after fiscal 2026?

For fiscal 2026, NSSC generated free cash flow of $59.2 million, up 15.2%. Cash and cash equivalents were $126.9 million at June 30, 2026, compared with $83.1 million a year earlier.

What impact did litigation have on NSSC’s 2026 results?

NSSC recorded a $16.0 million litigation settlement cost in 2026, included in operating expenses. This reduced GAAP operating income to $45.6 million and GAAP net income to $43.0 million, while non-GAAP measures add back this cost.

How did NSSC’s equipment and service revenues trend in 2026?

For 2026, equipment revenue was $104.8 million versus $95.3 million in 2025, and service revenue was $97.5 million versus $86.3 million. Total revenue increased 11.4% year over year to $202.3 million.

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Understanding 8-K Material Events →

Available on EDGAR 08/24/2026 - 09:30 AM Accepted by SEC EDGAR 08/24/2026 - 09:30 AM Learn about SEC filing dates

0000069633false00000696332026-08-202026-08-20

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 8-K

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CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

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Date of Report (Date of earliest event reported)

August 20, 2026

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NAPCO SECURITY TECHNOLOGIES, INC.

(Exact name of registrant as specified in charter)

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

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333 Bayview Avenue, Amityville, New York 11701

(Address of principal executive offices)

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

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

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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):

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

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

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

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

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

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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

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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).

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Emerging growth company ☐

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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 ☐

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Item 2.02.    RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On August 20, 2026, the registrant issued a press release to report results for the three months and year ended June 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 August 20, 2026, the Company’s Board of Directors declared a cash dividend of $.17 per share payable on October 2, 2026, to stockholders of record on September 11, 2026. Information regarding this declaration is included in the press release furnished as Exhibit 99.1.

Item 9.01.    FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits:

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99.1	​ ​	Press Release issued by Napco Security Technologies, Inc. dated August 24, 2026.
10 4	​	Cover Page Interactive Data File (formatted as Inline XBRL).

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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.

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	NAPCO SECURITY TECHNOLOGIES, INC.
	(Registrant)
Date: August 24,2026	By:	/s/ Kevin S. Buchel
		Kevin S. Buchel
		Chief Executive Officer & President

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Exhibit 99.1

NAPCO Security Technologies, Inc. Reports Fiscal Q4 and Full Year 2026 Results

AMITYVILLE, N.Y., August 24, 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 fourth quarter and fiscal year 2026.  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.  

Fourth Quarter 2026 Financial Results as Compared to Fourth Quarter 2025

● Net revenue increased 10.0% to a quarterly record $55.8 million, as compared to $50.7 million

● Recurring service revenue (“RSR”) increased 12.9% to $25.3 million, with over 90% gross margin, as compared to $22.4 million

● Equipment revenue increased 7.7% to $30.5 million, compared to $28.3 million

● Gross profit margin of 61.3%, which included a benefit of approximately 600 basis points from tariff refunds, vs 52.8% in prior fiscal year quarter

● Net Income increased 52.7% YoY to a quarterly record $17.8 million, as compared to $11.6 million

● Diluted Net Income per share increased 51.5% to $0.50, which is inclusive of a benefit of approximately $0.09 from net tariff refunds, as compared to $0.33

● Non-GAAP Adjusted EBITDA increased 44.3% to a quarterly record $20.6 million with an Adjusted EBITDA Margin of 36.8%

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Full Year 2026 Financial Results as Compared to Full Year 2025

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● Net revenue increased 11.4% to a record $202.3 million, as compared to $181.6 million

● RSR increased 13.0% to $97.5 million, with over 90% gross margin, as compared to $86.3 million

● RSR has a prospective annual run rate of approximately $103 million based on July 2026 recurring service revenues

● Equipment revenue increased 10.0% to $104.8 million, compared to $95.3 million

● Gross profit margin of 59.2%, which included a benefit of approximately 50 basis points from tariff refunds, vs 55.6% in prior fiscal year

● Net Income decreased (.9%) to $43.0 million, as compared to $43.4 million. Full year net income and net income per share were negatively affected by a $16 million litigation settlement charge taken in Q3 of fiscal 2026

● Diluted Net Income per share increased 0.8% YoY to $1.20, which is inclusive of a benefit of approximately $0.03 from net tariff refunds and negative impact of approximately $0.40 from net litigation settlement costs, as compared to $1.19

● Non-GAAP Net Income increased 32.0% to $57.3 million, as compared to $43.4 million

● Non-GAAP Diluted Net Income per share increased 34.5% YoY to $1.60, as compared to $1.19.

● Non-GAAP Adjusted EBITDA increased 27.9% YoY to a record $66.7 million, with an Adjusted EBITDA Margin of 33.0%

● The Board declared a quarterly dividend of $0.17 per share, payable on October 2, 2026 to shareholders of record on September 11, 2026.

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 $55.8 and $20.6 million, respectively, which was bolstered by our recurring service revenue with its continued year over year double digit growth. We saw a rebound in our equipment sales, which increased 10.0% for the year, driven by strong demand for our door-locking products as well as a 36% growth in sales of our intrusion products in Q4, which is primarily a result of increased sales of our StarLink fire communicators. Our RSR continues to deliver gross margins of over 90%, and represents approximately 45% of total revenue in Q4, and has a prospective run rate of approximately $103 million based on our July 2026 recurring service revenue. Our revenue growth and margin expansion in Q4 resulted in a 53% increase in net income, a 44% increase in Non-GAAP Adjusted EBITDA and our Adjusted EBITDA margin was 36.8% as compared to 28.1% in Q4 of Fiscal 2025.

As such we are pleased to continue our dividend program and will be increasing the quarterly dividend by 13.3% to $0.17 per share, which will be paid on October 2, 2026, to shareholders of record on September 11, 2026.”

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	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	%
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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.

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NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

​	​	​	​	​	​	​
​	​	​		​	​	​
​	​ ​ ​	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 $101 and $25 as of June 30, 2026 and June 30, 2025, respectively	​		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 $0.01 per share; 100,000,000 shares authorized as of June 30, 2026 and 2025; 39,883,051 and 39,771,035 shares issued; and 35,768,437 and 35,656,421 shares outstanding, respectively.	​	​	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

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NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

​	​	​	​	​	​	​	​	​	​
​	​	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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

​	​	​	​	​	​	​	​	​	​
​	​	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.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL DATA*

(unaudited)

(in thousands, except share and per share data)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL DATA*

(unaudited)

(in thousands, except share and per share data)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

​

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 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

%

​

1. 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-99.1 748.5 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