Napco Security Technologies Reports Record Q1 2027 Revenue Driven by Recurring Service Growth
Napco Security Technologies (NSSC) reported record first-quarter net revenue of $50 million, a 1.7% increase year-over-year. The company's growth was primarily fueled by an 11.5% rise in recurring monthly service revenue, reaching $26.1 million, driven largely by the activation of StarLink radio communicators. This shift toward high-margin services helped expand overall gross margin to 58.7%. Despite record top-line performance and a 6.9% increase in net income to $13 million, equipment revenue fell 7.3% due to inventory management adjustments by two major locking distributors. Additionally, free cash flow saw a significant decline of nearly 80% compared to the previous year, primarily due to a one-time $15 million litigation settlement payment. The company maintains a strong liquidity position with zero debt and $134.6 million in cash and marketable securities.
Topics: free cash flow gross margin net income recurring revenue revenue growth
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