NAPCO Security Technologies Inc. (NASDAQ:NSSC) stock traded higher Monday after the security equipment maker reported better-than-expected fiscal fourth-quarter results.
NAPCO posted adjusted earnings of 41 cents per share. That beat the analyst estimate of 39 cents.
Quarterly revenue rose 10% year over year to a record $55.81 million. The result topped Wall Street’s estimate of $52.51 million.
Recurring Revenue Fuels Growth
Recurring service revenue increased 12.9% to $25.32 million. The business maintained a gross margin above 90% and generated about 45% of total quarterly revenue.
Equipment revenue climbed 7.7% to $30.49 million. CEO Kevin Buchel said demand for door-locking products remained strong. Intrusion product sales also jumped 36%, mainly due to higher sales of StarLink fire communicators.
NAPCO’s recurring service business reached a projected annual run rate of about $103 million in July.
Tariff Refunds Lift Margins
Quarterly gross margin expanded to 61.3% from 52.8% a year earlier. Tariff refunds provided a benefit of about 600 basis points.
GAAP net income surged 52.7% to a record $17.77 million. Diluted earnings rose to 50 cents per share from 33 cents. The latest result included a roughly 9-cent benefit from tariff refunds.
Adjusted EBITDA increased 44.3% to a record $20.56 million. Adjusted EBITDA margin widened to 36.8% from 28.1%.
Free cash flow rose 19.9% to $17.25 million.
Cash and cash equivalents were $126.9 million as of June 30, 2026, up from $83.1 million a year earlier. Including $10.6 million in marketable securities, total cash and marketable securities were $137.6 million.
NAPCO Raises Dividend
Full-year revenue increased 11.4% to a record $202.32 million. Adjusted earnings rose 34.5% to $1.60 per share.
The board increased NAPCO’s quarterly dividend by 13.3% to 17 cents per share. The dividend is payable Oct. 2 to shareholders of record Sept. 11.
In July, NAPCO completed an executive leadership transition. Richard Soloway moved from chairman and CEO to founder and executive chairman, while Kevin Buchel became CEO and president, effective July 8.
NSSC Price Action: NAPCO Security Techs shares were up 14.20% at $43.50 at the time of publication on Monday, according to Benzinga Pro data.
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