Napco Security Reports Strong Q4 and Fiscal Year 2026 Earnings
Napco Security Technologies (NSSC) reported robust financial results for the fourth quarter of fiscal year 2026, with net revenue reaching $55.8 million—a 10% increase from the prior year—driven by strong performance across its product portfolio and recurring service growth. Recurring service revenue grew to $25.3 million (up 12.9%), largely due to steady activations of StarLink radio fire communicators, while equipment revenue rose 7.7%. The company also highlighted a record annualized recurring revenue run rate of $103 million and strong free cash flow generation. GAAP net income surged by 52.7% year over year to $17.8 million (or 31.8% of net revenue), while adjusted EBITDA increased by 44.3%. Napco maintained a debt-free balance sheet with $138 million in cash and marketable securities, and it announced an increase in its quarterly dividend to $0.17 per share. The company also noted supply chain challenges due to rising electronic component costs from data center expansion but emphasized that shipment capabilities remain unaffected.
Tickers: $NSSC
Topics: Adjusted EBITDA GAAP Gross Margin growth revenue StarLink radios