Napco Q3 revenue rises; one-time charge hits profit

NAPCO Security Technologies reported mixed fiscal Q3 2026 results and raised its cash return to shareholders.

Rhea-AI Filing Summary

NAPCO Security Technologies reported mixed fiscal Q3 2026 results and raised its cash return to shareholders. Net revenue for the quarter ended March 31, 2026 rose to $49.2 million, up 11.8% from $44.0 million a year earlier, driven by growth in both equipment and service revenue. Gross profit increased to $29.5 million with gross margin improving to 60.0% from 57.2%.

GAAP results were pressured by a $16.0 million litigation settlement cost, leading to an operating loss of $1.2 million and a net loss of $0.4 million, or $(0.01) per diluted share, versus GAAP net income of $10.1 million, or $0.28 per share, in the prior-year quarter.

On a Non-GAAP basis, operating income rose to $14.8 million and net income to $13.9 million, a 36.9% increase, with Non-GAAP diluted EPS of $0.39. Adjusted EBITDA reached a record Q3 level of $15.8 million, up 20.2%, and free cash flow was $16.0 million. The Board declared a quarterly cash dividend of $0.15 per share, payable July 3, 2026 to shareholders of record on June 12, 2026.

Insights

Equity research analyst

Revenue and cash flow improved, but a large litigation charge turned GAAP results negative.

NAPCO delivered solid top-line growth and margin expansion in fiscal Q3 2026. Net revenue grew 11.8% to $49.2M, and gross margin widened to 60.0%, helped by higher-margin recurring service revenue and better equipment margins.

A one-time litigation settlement cost of $16.0M drove a GAAP operating loss of $1.2M and net loss of $0.4M. Excluding this, Non-GAAP net income rose 36.9% to $13.9M and Adjusted EBITDA reached a record $15.8M for the quarter, with a 32.2% margin.

For the nine months ended March 31, 2026, revenue grew 11.9% to $146.5M, while GAAP net income declined to $25.3M due to the settlement. Strong free cash flow of $42.0M and cash of $114.4M supported continuation of the $0.15 per-share quarterly dividend.

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

Q3 2026 Net Revenue: $49.2M Q3 2026 GAAP Net (Loss) Income: -$0.4M Litigation Settlement Cost: $16.0M +5 more

8 metrics

Q3 2026 Net Revenue $49.2M Three months ended March 31, 2026; up 11.8% year over year

Q3 2026 GAAP Net (Loss) Income -$0.4M Three months ended March 31, 2026; vs $10.1M prior year

Litigation Settlement Cost $16.0M Recorded in operating expenses in Q3 2026

Q3 2026 Non-GAAP Net Income $13.9M Three months ended March 31, 2026; up 36.9% year over year

Q3 2026 Adjusted EBITDA $15.8M Record fiscal Q3 level; Adjusted EBITDA margin 32.2%

Nine-Month 2026 Revenue $146.5M Nine months ended March 31, 2026; up 11.9% year over year

Free Cash Flow (Nine Months 2026) $42.0M Nine months ended March 31, 2026; margin 28.7%

Quarterly Dividend $0.15 per share Declared April 30, 2026; payable July 3, 2026

Key Terms

Adjusted EBITDA, recurring service revenue, litigation settlement cost, Free Cash Flow, +2 more

6 terms

Adjusted EBITDA financial

"Adjusted EBITDA reached a record Q3 level of $15,820 and $46,112 for the nine months"

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.

recurring service revenue financial

"our recurring service revenue with its continued year over year double digit growth"

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.

litigation settlement cost financial

"Litigation settlement cost | 16,000 | —"

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 net income financial

"We define non-GAAP net income as GAAP net income plus litigation settlement costs."

Non-GAAP net income is a company's profit figure that excludes certain costs or income that are included in standard accounting methods. Companies often use it to show what their earnings might look like without one-time expenses or other unusual items, helping investors see the company's core performance more clearly.

Adjusted EBITDA margin financial

"Adjusted EBITDA margin | 32.2 % | 29.9 %"

Adjusted EBITDA margin shows how much profit a company makes from its core operations, expressed as a percentage of its total revenue, after removing certain one-time or unusual expenses and income. It helps investors understand the company's true earning ability from regular business activities, making it easier to compare performance over time or with other companies. Think of it as measuring the efficiency of a business in turning sales into profits, excluding irregular adjustments.

Earnings Snapshot

Revenue: $49.2M

Q3 2026

Revenue $49.2M +11.8% YoY

GAAP Net (Loss) Income -$0.4M -104.0% YoY

Non-GAAP Net Income $13.9M +36.9% YoY

Adjusted EBITDA $15.8M +20.2% YoY

Diluted EPS (GAAP) -$0.01 -103.6% YoY

Diluted EPS (Non-GAAP) $0.39 +39.3% YoY

FAQ

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

How did NAPCO Security Technologies (NSSC) perform in fiscal Q3 2026?

NAPCO’s fiscal Q3 2026 net revenue rose 11.8% to $49.2 million, with gross margin improving to 60.0%. A large litigation settlement drove a small GAAP net loss, but Non-GAAP net income and Adjusted EBITDA both increased strongly year over year.

Why did NAPCO report a GAAP net loss in Q3 2026 despite higher revenue?

NAPCO recorded a $16.0 million litigation settlement cost in Q3 2026, which significantly increased operating expenses. This non-recurring charge turned operating income into a $1.2 million loss and led to a GAAP net loss of $0.4 million, or $(0.01) per diluted share.

What were NAPCO’s key Non-GAAP results for Q3 2026?

On a Non-GAAP basis, NAPCO’s Q3 2026 operating income was $14.8 million and Non-GAAP net income was $13.9 million, up 36.9%. Non-GAAP diluted EPS reached $0.39, and Adjusted EBITDA grew 20.2% to a record $15.8 million, with a 32.2% Adjusted EBITDA margin.

How did recurring service and equipment revenues contribute to NSSC’s results?

For Q3 2026, NAPCO generated $24.2 million in equipment revenue and $24.9 million in service revenue. Management highlighted recurring service revenue, which maintains gross margins above 90% and represented about 51% of total revenue, alongside improved margins on door-locking equipment.

What were NAPCO’s cash flow and cash position for the nine months ended March 31, 2026?

For the nine months ended March 31, 2026, NAPCO produced $43.5 million in net cash from operating activities and $42.0 million in free cash flow. Cash and cash equivalents increased to $114.4 million at period end, up from $83.1 million at June 30, 2025.

What dividend did NAPCO Security Technologies declare in April 2026?

On April 30, 2026, NAPCO’s Board declared a quarterly cash dividend of $0.15 per share, payable on July 3, 2026. Shareholders of record on June 12, 2026 will receive the dividend, continuing the company’s ongoing dividend program.

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

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Accepted by SEC EDGAR 05/04/2026 - 01:54 PM EDT Learn about SEC filing dates

0000069633false00000696332026-04-302026-04-30

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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)

April 30, 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 May 4, 2026, the registrant issued a press release to report results for the three and nine months ended March 31, 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 April 30, 2026, the Company’s Board of Directors declared a cash dividend of $.15 per share payable on July 3, 2026, to stockholders of record on June 12, 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 May 4, 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: May 4, 2026	By:	/s/ Kevin S. Buchel
		Kevin S. Buchel
		President & Chief Operating Officer

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Exhibit 99.1

NAPCO Security Technologies, Inc. Reports Fiscal 2026 Q3 Results

Fiscal Q3 2026 Highlights

● Q3 Net revenues of $49.2 million, a 11.8% YoY increase

● Equipment revenue increased 8.4% YoY to $24.2 million

● Recurring service revenue (“RSR”) increased 15.4% YoY to $24.9 million with a 90.4% gross margin

● RSR had a prospective annual run rate of approximately $101 million based on April 2026 recurring service revenues.

● Gross profit margin for Q3 2026 of 60.0% vs 57.2% in prior fiscal year quarter

● Net (loss) income for the three and nine months ended March 31, 2026, of $(0.4) million and $25.3 million is inclusive of a $16.0 million litigation settlement charge

● Non-GAAP Diluted Net Income per share increased YoY to $0.39 vs $0.28

● Q3 Adjusted EBITDA increased 20.2% YoY to $15.8 million with an Adjusted EBITDA Margin of 32.2%

● The Board declared a quarterly dividend of $0.15 per share, payable on July 3, 2026 to shareholders of record on June 12, 2026.

AMITYVILLE, N.Y., May 4, 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 third quarter of fiscal 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.  

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	Three months ended March 31,							​ ​ ​	​	Nine months ended March 31,							​
​	​	(dollars in thousands)							​	​	(dollars in thousands)
​		​	​		​	​		% Increase/		​	​	​		​	​		% Increase/	​
Financial Highlights	​ ​ ​	2026		​ ​ ​	2025		​ ​ ​	(decrease)	​ ​ ​	​	2026		​ ​ ​	2025		​ ​ ​	(decrease)	​
GAAP Results	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net Revenue	​	$	49,167	​	$	43,961		11.8	%	​	$	146,507	​	$	130,897		11.9	%
Gross Profit	​	$	29,489	​	$	25,127	​	17.4	%	​	$	85,573	​	$	74,232	​	15.3	%
Gross Profit Margin	​	​	60.0	%	​	57.2	%	​	​	​	​	58.4	%	​	56.7	%	​	​
Operating (Loss) Income	​	$	(1,188)	​	$	11,146	​	(110.7)	%	​	$	27,208	​	$	34,173	​	(20.4)	%
Net (Loss) Income	​	$	(408)	​	$	10,122	​	(104.0)	%	​	$	25,260	​	$	31,774	​	(20.5)	%
Diluted (Loss) Earnings Per Share	​	$	(0.01)	​	$	0.28	​	(103.6)	%	​	$	0.70	​	$	0.86	​	(18.6)	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Non-GAAP Results	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operating Income	​	$	14,812	​	$	11,146	​	32.9	%	​	$	43,208	​	$	34,173	​	26.4	%
Net Income	​	$	13,859	​	$	10,122	​	36.9	%	​	$	39,527	​	$	31,774	​	24.4	%
Net Income Margin	​	​	28.2	%	​	23.0	%	​	​	​	​	27.0	%	​	24.3	%	​	​
Diluted Earnings Per Share	​	$	0.39	​	$	0.28	​	39.3	%	​	$	1.10	​	​	0.86	​	27.9	%
Adjusted EBITDA	​	$	15,820	​	$	13,161	​	20.2	%	​	$	46,112	​	$	37,877	​	21.7	%
Adjusted EBITDA Margin	​	​	32.2	%	​	29.9	%	​	​	​	​	31.5	%	​	28.9	%	​	​
Adjusted EBITDA Per Share	​	$	0.44	​	$	0.36	​	22.2	%	​	$	1.28	​	$	1.03	%  ​	24.3	%
Free Cash Flows	​	$	16,022	​	$	13,314	​	20.3	%	​	$	41,979	​	$	37,024	​	13.4	%
Free Cash Flows Margin	​	​	32.6	%	​	30.3	%	​	​	​	​	28.7	%	​	28.3	%	​	​

Richard Soloway, Chairman and CEO, commented, “Our Fiscal Q3 performance reflects positive financial results, including record Q3 Adjusted EBITDA of $15.8 million, which was sustained by our recurring service revenue with its continued year over year double digit growth, and the consistent demand for our door-locking products that drove growth in our equipment revenue and improved equipment gross margins, which increased to approximately 29%. Our RSR continues to sustain gross margins of over 90%, represents approximately 51% of total revenue in Q3, and has a prospective run rate of approximately $101 million based on our April 2026 recurring service revenue. Our revenue growth and margin expansion resulted in a 37% increase in Non-GAAP net income, a 20% increase in Adjusted EBITDA and our adjusted EBITDA margin was 32.2% as compared to 29.9% in Q3 of Fiscal 2025.

As such we are pleased to continue our dividend program and will be paying the next quarterly dividend of $0.15 per share on July 3, 2026 to shareholders of record on June 12, 2026.”

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Conference Call Information

Management will conduct a conference call at 11 a.m. ET today, May 4, 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/Yr185qlxvQE. 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 the impact of COVID-19 pandemic; 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; business trends , including the replacement of 3G radios, 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 expense, litigation settlement costs, and depreciation and amortization expense.  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)

​	​	​	​	​	​	​	​
​	​	​		​	​	​	​
​	​ ​ ​	March 31, 2026		​ ​ ​	June 30, 2025		​ ​ ​
​	​	(in thousands, except share data)					​
Assets	​	​	​	​	​	​	​
Current Assets	​	​	​		​	​	​
Cash and cash equivalents	​	$	114,408	​	$	83,081	​
Marketable securities	​	​	10,544	​	​	16,095	​
Accounts receivable, net of allowance for credit losses of $27 and $25 as of March 31, 2026 and June 30, 2025, respectively	​		28,527	​		30,108	​
Inventories	​		33,384	​		29,962	​
Income tax receivable	​	​	2,765	​	​	—	​
Prepaid expenses and other current assets	​		3,146	​		3,198	​
Total Current Assets	​		192,774	​		162,444	​
Inventories - non-current	​		10,012	​		11,313	​
Property, plant and equipment, net	​		9,297	​		9,233	​
Intangible assets, net	​		3,064	​		3,287	​
Deferred income taxes	​	​	1,697	​	​	6,476	​
Operating lease - Right-of-use asset	​	​	4,975	​	​	5,188	​
Other assets	​		190	​		200	​
Total Assets	​	$	222,009	​	$	198,141	​
​	​	​	​	​	​	​	​
Liabilities and Stockholders' Equity	​	​	​	​	​	​	​
Current Liabilities	​	​	​		​	​	​
Accounts payable	​	$	5,786	​	$	5,742	​
Accrued expenses	​		7,999	​		8,712	​
Accrued litigation costs	​	​	16,000	​	​	—	​
Accrued salaries and wages	​		3,834	​		4,398	​
Dividends payable	​	​	5,357	​	​	4,992	​
Accrued income taxes	​		—	​		213	​
Total Current Liabilities	​		38,976	​		24,057	​
Accrued income taxes	​		34	​		143	​
Operating lease liability	​	​	5,217	​	​	5,335	​
Total Liabilities	​		44,227	​		29,535	​
Commitments and Contingencies (Note 13)	​		​	​		​	​
Stockholders' Equity	​	​	​	​	​	​	​
Common Stock, par value $0.01 per share; 100,000,000 shares authorized as of March 31, 2026 and June 30, 2025; 39,841,951 and 39,771,035 shares issued; and 35,727,337 and 35,656,421 shares outstanding, respectively.	​	​	398	​	​	398	​
Additional paid-in capital	​		24,523	​		25,280	​
Retained earnings	​		209,001	​		199,083	​
Treasury Stock, at cost, 4,114,614 shares as of both March 31, 2026 and June 30, 2025	​		(56,315)	​		(56,315)	​
Accumulated other comprehensive income	​	​	175	​	​	160	​
Total Stockholders' Equity	​		177,782	​		168,606	​
Total Liabilities and Stockholders' Equity	​	$	222,009	​	$	198,141	​

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NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

​	​	​	​	​	​	​
​	​ ​ ​	Three Months ended March 31,
​	​ ​ ​	2026		​ ​ ​	2025
​	​	(in thousands, except for share and per share data)
Revenue:		​	​	​	​	​
Equipment revenue	​	$	24,238	​	$	22,351
Service revenue	​		24,929	​		21,610
Total revenue	​		49,167	​		43,961
Cost of Revenue:	​		​	​		​
Cost of equipment revenue	​		17,289	​		16,852
Cost of service revenue	​		2,389	​		1,982
Total cost of revenue	​		19,678	​		18,834
​	​	​	​	​	​	​
Gross Profit	​		29,489	​		25,127
​	​	​	​	​	​	​
Operating Expenses:	​	​	​	​	​	​
Research and development	​		3,418	​		3,185
Selling, general, and administrative	​		11,259	​		10,796
Litigation settlement cost	​	​	16,000	​	​	—
Total Operating Expenses	​	​	30,677	​	​	13,981
​	​	​	​	​	​	​
Operating (Loss) Income	​		(1,188)	​		11,146
​	​	​	​	​	​	​
Other Income:	​		​	​		​
Interest income, net	​		881	​		762
Other income, net	​	​	105	​	​	100
(Loss) Income before Provision for Income Taxes	​		(202)	​		12,008
Provision for Income Taxes	​		206	​		1,886
Net (Loss) Income	​	$	(408)	​	$	10,122
​	​	​	​	​	​	​
(Loss) Income Per Share:	​		​	​		​
Basic	​	$	(0.01)	​	$	0.28
Diluted	​	$	(0.01)	​	$	0.28
​	​	​	​	​	​	​
Weighted Average Number of Shares Outstanding:	​		​	​		​
Basic	​		35,691,000	​		36,111,000
Diluted	​		35,691,000	​		36,253,000

​

NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

​	​	​	​	​	​	​	​
​	​	Nine Months Ended March 31,					​
​	​	2026		​ ​ ​	2025		​
​	​	(in thousands, except for share and per share data)					​
Revenue:	​	​	​	​	​	​	​
Equipment revenue	​	$	74,300	​	$	66,993	​
Service revenue	​		72,207	​		63,904	​
Total revenue	​		146,507	​		130,897	​
Cost of Revenue:	​		​			​	​
Cost of equipment revenue	​		53,942	​		50,968	​
Cost of service revenue	​		6,992	​		5,697	​
Total cost of revenue	​		60,934	​		56,665	​
​	​	​	​	​	​	​	​
Gross Profit	​		85,573	​		74,232	​
​	​	​	​	​	​	​	​
Operating Expenses:	​	​	​	​	​	​	​
Research and development	​		10,131	​		9,349	​
Selling, general, and administrative expenses	​		32,234	​		30,710	​
Litigation settlement cost	​	​	16,000	​	​	—	​
Total Operating Expenses	​		58,365		​	40,059	​
​	​	​	​	​	​	​	​
Operating Income	​		27,208			34,173	​
​	​	​	​	​	​	​	​
Other Income:	​		​			​	​
Interest income, net	​		2,618	​		2,631	​
Other income, net	​	​	346	​	​	296	​
Income before Provision for Income Taxes	​		30,172	​		37,100	​
Provision for Income Taxes	​		4,912	​		5,326	​
Net Income	​	$	25,260	​	$	31,774	​
​	​	​	​	​	​	​	​
Income Per Share:	​		​	​		​	​
Basic	​	$	0.71	​	$	0.87	​
Diluted	​	$	0.70	​	$	0.86	​
​	​	​	​	​	​	​	​
Weighted Average Number of Shares Outstanding:	​		​	​		​	​
Basic	​		35,689,000	​		36,511,000	​
Diluted	​		35,911,000	​		36,743,000	​

​

​

​

NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

​	​	​	​	​	​	​	​
​	​	Nine Months ended March 31,					​
​	​ ​ ​	2026		​ ​ ​	2025		​ ​ ​
​	​	(in thousands)					​
Cash Flows from Operating Activities	​	​	​		​	​	​
Net Income	​	$	25,260	​	$	31,774	​
Adjustments to reconcile net income to net cash provided by operating activities:	​		​	​		​	​
Depreciation and amortization	​		1,670	​		1,705	​
Change in accrued interest on other investments	​	​	—	​	​	(194)	​
Unrealized gain on marketable securities	​	​	—	​	​	(131)	​
Realized gain on sales of marketable securities	​	​	(296)	​	​	—	​
Charge (recovery) of credit losses	​		2	​		(12)	​
Change to inventory reserve	​		(580)	​		78	​
Deferred income taxes	​		4,779	​		(2,324)	​
Stock-based compensation expense	​		784	​		1,143	​
Changes in operating assets and liabilities:	​		​	​		​	​
Accounts receivable	​		1,579	​		7,660	​
Inventories	​		(1,541)	​		2,973	​
Prepaid expenses and other current assets	​		52	​		841	​
Income tax receivable	​	​	(2,769)	​	​	(905)	​
Other assets	​		10	​		84	​
Accounts payable, accrued expenses, accrued litigation costs, accrued salaries and wages, accrued income taxes	​		14,541	​		(3,789)	​
Net Cash Provided by Operating Activities	​		43,491	​		38,903	​
Cash Flows from Investing Activities	​		​	​		​	​
Purchases of property, plant, and equipment	​		(1,512)	​		(1,879)	​
Purchases of marketable securities	​	​	(7,825)	​	​	(10,222)	​
Proceeds from sales of marketable securities	​	​	13,691	​	​	—	​
Purchases of other investments	​	​	—	​	​	(78)	​
Redemption of other investments	​	​	—	​	​	27,252	​
Net Cash Provided by Investing Activities	​		4,354	​		15,073	​
Cash Flows from Financing Activates	​		​	​		​	​
Proceeds from stock option exercises	​		—	​		54	​
Dividends paid	​		(14,977)	​		(9,164)	​
Repurchase of common stock	​	​	—	​	​	(36,794)	​
Payment of tax withholdings related to stock option exercises	​	​	(1,541)	​	​	—	​
Net Cash Used in Financing Activities	​		(16,518)	​		(45,904)	​
​	​	​	​	​	​	​	​
Net increase in Cash and Cash Equivalents	​		31,327	​		8,072	​
Cash and Cash Equivalents - Beginning	​		83,081	​		65,341	​
Cash and Cash Equivalents - Ending	​	$	114,408	​	$	73,413	​
Supplemental Cash Flow Information	​		​	​		​	​
Interest paid	​	$	—	​	$	—	​
Income taxes paid	​	$	3,114	​	$	8,350	​
Non-Cash Investing and Financing Transactions	​	​	​	​	​	​	​
Dividends declared and not paid	​	$	5,357	​	$	4,467	​

​

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 March 31, 2026

​

​

​

​

​

​

​

​

​

​

​

​

Revenue

$

49,167

​

$

—

​

$

—

​

$

49,167

​

Gross Profit

​

29,489

​

​

—

​

​

—

​

​

29,489

​

Operating Expenses

​

30,677

​

​

(16,000)

​

​

—

​

​

14,677

​

Operating (loss) Income

​

(1,188)

​

​

16,000

​

​

—

​

​

14,812

​

Net (loss) Income

​

(408)

​

​

16,000

​

​

(1,733)

​

​

13,859

​

Non-GAAP adjusted net income margin

​

​

​

​

​

​

​

​

​

​

28.2

%

Non-GAAP adjusted net income per share - diluted

​

​

​

​

​

​

​

​

​

$

0.39

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended March 31, 2025

​

​

​

​

​

​

​

​

​

​

​

​

Revenue

$

43,961

​

$

—

​

$

—

​

$

43,961

​

Gross Profit

​

25,127

​

​

—

​

​

—

​

​

25,127

​

Operating Expenses

​

13,981

​

​

—

​

​

—

​

​

13,981

​

Operating (loss) Income

​

11,146

​

​

—

​

​

—

​

​

11,146

​

Net (loss) Income

​

10,122

​

​

—

​

​

—

​

​

10,122

​

Non-GAAP adjusted net income margin

​

​

​

​

​

​

​

​

​

​

23.0

%

Non-GAAP adjusted net income per share - diluted

​

​

​

​

​

​

​

​

​

$

0.28

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine months ended March 31, 2026

​

​

​

​

​

​

​

​

​

​

​

​

Revenue

$

146,507

​

$

—

​

$

—

​

$

146,507

​

Gross Profit

​

85,573

​

​

—

​

​

—

​

​

85,573

​

Operating Expenses

​

58,365

​

​

(16,000)

​

​

—

​

​

42,365

​

Operating Income

​

27,208

​

​

16,000

​

​

—

​

​

43,208

​

Net Income

​

25,260

​

​

16,000

​

​

(1,733)

​

​

39,527

​

Non-GAAP adjusted net income margin

​

​

​

​

​

​

​

​

​

​

27.0

%

Non-GAAP adjusted net income per share - diluted

​

​

​

​

​

​

​

​

​

$

1.10

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine months ended March 31, 2025

​

​

​

​

​

​

​

​

​

​

​

​

Revenue

$

130,897

​

$

—

​

$

—

​

$

130,897

​

Gross Profit

​

74,232

​

​

—

​

​

—

​

​

74,232

​

Operating Expenses

​

40,059

​

​

—

​

​

—

​

​

40,059

​

Operating Income

​

34,173

​

​

—

​

​

—

​

​

34,173

​

Net Income

​

31,774

​

​

—

​

​

—

​

​

31,774

​

Non-GAAP adjusted net income margin

​

​

​

​

​

​

​

​

​

​

24.3

%

Non-GAAP adjusted net income per share - diluted

​

​

​

​

​

​

​

​

​

$

0.86

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended March 31,

​

Nine months ended March 31,

​

​

2026

​

2025

​

2026

​

2025

​

Denominator:

​

​

​

​

​

​

​

​

​

​

​

​

Weighted average shares outstanding

​

​

​

​

​

​

​

​

​

​

​

​

Basic, as reported

​

35,691,000

​

​

36,111,000

​

​

35,689,000

​

​

36,511,000

​

Effect of Dilutive Securities

​

—

​

​

142,000

​

​

222,000

​

​

232,000

​

Diluted, (Denominator)

​

35,691,000

​

​

36,253,000

​

​

35,911,000

​

​

36,743,000

​

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 March 31,

​

Nine months ended March 31,

​

​

2026

​

2025

​

2026

​

2025

​

Non-GAAP adjusted EBITDA:

​

​

​

​

​

​

​

​

​

​

​

​

Net (loss) income, as reported

$

(408)

​

$

10,122

​

$

25,260

​

$

31,774

​

Interest income, net

​

(881)

​

​

(762)

​

​

(2,618)

​

​

(2,631)

​

Provision for income taxes

​

206

​

​

1,886

​

​

4,912

​

​

5,326

​

Depreciation and amortization

​

535

​

​

572

​

​

1,670

​

​

1,705

​

Non-GAAP EBITDA

​

(548)

​

​

11,818

​

​

29,224

​

​

36,174

​

Adjustments:

​

​

​

​

​

​

​

​

​

​

​

​

Stock based compensation

​

290

​

​

386

​

​

784

​

​

1,143

​

Nonrecurring legal expense(1)

​

78

​

​

957

​

​

104

​

​

560

​

Litigation settlement cost(2)

​

16,000

​

​

—

​

​

16,000

​

​

—

​

Total adjustments

​

16,368

​

​

1,343

​

​

16,888

​

​

1,703

​

Non-GAAP adjusted EBITDA

$

15,820

​

$

13,161

​

$

46,112

​

$

37,877

​

Non-GAAP adjusted EBITDA margin

​

32.2

%

​

29.9

%

​

31.5

%

​

28.9

%

​

​

​

​

​

​

​

​

​

​

​

​

​

Non-GAAP per share data:

​

​

​

​

​

​

​

​

​

​

​

​

Non-GAAP adjusted EBITDA per share - diluted

$

0.44

​

$

0.36

​

$

1.28

​

$

1.03

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Denominator:

​

​

​

​

​

​

​

​

​

​

​

​

Weighted average shares outstanding

​

​

​

​

​

​

​

​

​

​

​

​

Basic, as reported

​

35,691,000

​

​

36,111,000

​

​

35,689,000

​

​

36,511,000

​

Effect of Dilutive Securities

​

—

​

​

142,000

​

​

222,000

​

​

232,000

​

Diluted, (Denominator)

​

35,691,000

​

​

36,253,000

​

​

35,911,000

​

​

36,743,000

​

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 March 31,

​

Nine months ended March 31,

​

​

(dollars in thousands)

​

(dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​ ​ ​

2026

​ ​ ​

2025

​ ​ ​

​

2026

​ ​ ​

2025

​ ​ ​

Free cash flow:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net Cash Provided by Operating Activities

​

$

16,756

​

$

13,379

​

$

43,491

​

$

38,903

Less: Purchases of property, plant, and equipment

​

​

(734)

​

​

(65)

​

​

​

(1,512)

​

​

(1,879)

​

Free Cash Flow(1)

​

$

16,022

​

$

13,314

​

​

$

41,979

​

$

37,024

​

Free Cash Flow Margin(1)

​

​

32.6

%

​

30.3

%

​

​

28.7

%

​

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-99.1 691.9 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