Napco Security | 8-K: FY2026 Revenue Beats Estimate at USD 202.32 M

Revenue: As of FY2026, the actual value is USD 202.32 M, beating the estimate of USD 199.08 M.

EPS: As of FY2026, the actual value is USD 1.2.

EBIT: As of FY2026, the actual value is USD 46.24 M.

Fiscal Q4 2026 Financial Results

Segment Revenue

• Recurring Service Revenue (RSR): Napco Security Technologies, Inc. reported RSR of $25.3 million, an increase of 12.9% year-over-year compared to $22.4 million in Q4 2025. This segment maintained over 90% gross margin and represented approximately 45% of total revenue in Q4 2026.
• Equipment Revenue: Equipment revenue increased by 7.7% to $30.5 million, up from $28.3 million in Q4 2025.

Operational Metrics

• Gross Profit: Gross profit was $34,218 thousand, an increase of 27.7% from $26,798 thousand in Q4 2025.
• Gross Profit Margin: The gross profit margin was 61.3%, which included a benefit of approximately 600 basis points from tariff refunds, compared to 52.8% in Q4 2025.
• Operating Income (GAAP): Operating income increased by 52.5% to $18,430 thousand, up from $12,086 thousand in Q4 2025.
• Net Income (GAAP): Net income increased by 52.7% year-over-year to a quarterly record of $17.8 million, compared to $11.6 million in Q4 2025.
• Non-GAAP Adjusted EBITDA: Non-GAAP Adjusted EBITDA increased by 44.3% to a quarterly record of $20.6 million, with an Adjusted EBITDA Margin of 36.8%. This is compared to $14.2 million and 28.1% margin in Q4 2025.

Cash Flow

• Free Cash Flow: Free cash flow was $17,249 thousand, an increase of 19.9% from $14,387 thousand in Q4 2025. The Free Cash Flow Margin was 30.9% compared to 28.4% in Q4 2025.

Fiscal Full Year 2026 Financial Results

Segment Revenue

• Recurring Service Revenue (RSR): RSR increased by 13.0% to $97.5 million, up from $86.3 million in Fiscal Year 2025. This segment maintained over 90% gross margin.
• Equipment Revenue: Equipment revenue increased by 10.0% to $104.8 million, compared to $95.3 million in Fiscal Year 2025.

Operational Metrics

• Gross Profit: Gross profit was $119,791 thousand, an increase of 18.6% from $101,030 thousand in Fiscal Year 2025.
• Gross Profit Margin: The gross profit margin was 59.2%, which included a benefit of approximately 50 basis points from tariff refunds, compared to 55.6% in Fiscal Year 2025.
• Operating Income (GAAP): Operating income decreased by -1.3% to $45,638 thousand, compared to $46,259 thousand in Fiscal Year 2025.
• Net Income (GAAP): Net income decreased by -0.9% to $43.0 million, compared to $43.4 million in Fiscal Year 2025. Full year net income was negatively affected by a $16 million litigation settlement charge taken in Q3 of fiscal 2026.
• Non-GAAP Net Income: Non-GAAP Net Income increased by 32.0% to $57.3 million, compared to $43.4 million in Fiscal Year 2025.
• Non-GAAP Adjusted EBITDA: Non-GAAP Adjusted EBITDA increased by 27.9% year-over-year to a record $66.7 million, with an Adjusted EBITDA Margin of 33.0%. This is compared to $52.1 million and 28.7% margin in Fiscal Year 2025.

Cash Flow

• Net Cash Provided by Operating Activities: Net cash provided by operating activities was $61,145 thousand, up from $53,527 thousand in Fiscal Year 2025.
• Free Cash Flow: Free cash flow was $59,228 thousand, an increase of 15.2% from $51,411 thousand in Fiscal Year 2025. The Free Cash Flow Margin was 29.3% compared to 28.3% in Fiscal Year 2025.

Unique Metrics

• RSR Prospective Annual Run Rate: Napco Security Technologies, Inc. reported a prospective annual run rate for RSR of approximately $103 million based on July 2026 recurring service revenues.

Outlook / Guidance

Napco Security Technologies, Inc. announced an increase in its quarterly dividend by 13.3% to $0.17 per share, payable on October 2, 2026, to shareholders of record on September 11, 2026. The company anticipates continued positive financial results, bolstered by double-digit growth in recurring service revenue. Management noted strong demand for door-locking products and significant growth in intrusion products, particularly StarLink fire communicators.