In brief: NAPCO and Resideo post strong financials, Pye-Barker expands, Verkada enhances platform

AMITYVILLE, N.Y.—NAPCO Security Technologies reported solid fiscal Q3 2026 results, highlighted by double-digit revenue growth, expanding margins and continued strength in its high-margin recurring service revenue (RSR) business. 

Total net revenue for the quarter ended March 31 increased 11.8% year over year to $49.2 million, driven by growth across both equipment sales and recurring services. 

Recurring revenue drives performance 

Recurring service revenue accounted for approximately 51% of total revenue in the quarter, continuing to serve as a key profitability engine with gross margins above 90%. 

NAPCO said its RSR business now has a prospective annual run rate of approximately $101 million based on April 2026 results, underscoring its growing importance to the company’s long-term strategy. 

“RSR continues to sustain gross margins of over 90% and represents approximately 51% of total revenue,” said Chairman and CEO Richard Soloway. 

Equipment segment contributes to growth 

Equipment revenue growth was supported by ongoing demand for the company’s door-locking and access control solutions. 

Improved mix and pricing contributed to margin expansion in the segment, with equipment gross margins rising to approximately 29%, according to the company. 

Margin expansion and EBITDA gains 

Overall gross margin improved to 60.0%, up from 57.2% in the year-ago period, reflecting a favorable shift toward higher-margin recurring revenue. 

Adjusted EBITDA increased 20.2%, reflecting both revenue growth and improved mix. 

Non-GAAP net income climbed 36.9% to $13.9 million, while diluted earnings per share increased to $0.39 from $0.28 a year ago. 

Litigation charge impacts GAAP results 

Despite strong operational performance, GAAP results were significantly impacted by a $16 million litigation settlement charge recorded during the quarter. 

As a result, NAPCO reported a net loss of $0.4 million for the quarter, compared with net income of $10.1 million in the prior-year period. Diluted loss per share was $(0.01), versus earnings of $0.28 per share a year earlier. 

Operating loss for the quarter totaled $1.2 million, compared with operating income of $11.1 million in fiscal Q3 2025. 

Nine-month performance remains positive 

For the first nine months of fiscal 2026, NAPCO generated net revenue of $146.5 million, up 11.9% year over year. 

Net income for the period totaled $25.3 million, down from $31.8 million last year due to the litigation charge. On a non-GAAP basis, net income rose 24.4% to $39.5 million, with diluted earnings per share increasing to $1.10 from $0.86. 

Adjusted EBITDA for the nine-month period increased 21.7% to $46.1 million. 

Dividend maintained 

Reflecting confidence in its underlying business, NAPCO’s board declared a quarterly dividend of $0.15 per share, payable July 3, 2026, to shareholders of record as of June 12. 

Soloway said the company’s strong cash flow and expanding recurring revenue base continue to support shareholder returns. 

Resideo Q1 revenue climbs 8% as earnings surge, ADI spin-off nears 

SCOTTSDALE, Ariz.—Resideo Technologies reported Q1 2026 results that exceeded its outlook across key metrics, driven by steady growth in both its Products & Solutions (P&S) and ADI Global Distribution businesses. 

The performance reflects continued operational execution across both segments, with strength in core security, pro audiovisual (AV) and data communications categories, alongside momentum from new product introductions and pricing actions. 

“Our first quarter results reflect the continued strong operational execution of both businesses in a dynamic macro-economic environment,” said President and CEO Jay Geldmacher. “The team’s operational performance, along with the achievement of key business separation milestones, builds momentum and conviction for each company as we approach completion of the ADI spin-off later this year.” 

Resideo Q1 2026: By the Numbers 

• Revenue: $1.91 billion, up 8% year over year 

• Net income: $38 million (vs. $6 million in Q1 2025) 

• Adjusted EBITDA: $215 million, up 28% 

• Diluted EPS: $0.17 

• Adjusted EPS: $0.65, up 3% 

Products & Solutions (P&S): 

• Revenue: $706 million, up 9% 

• Gross margin: 41.8%, up 40 basis points 

• Adjusted EBITDA: $177 million, up 12% 

ADI Global Distribution: 

• Revenue: $1.21 billion, up 8% 

• Gross margin: 21.2%, down 40 basis points 

• Adjusted EBITDA: $66 million, down 8% 

Cash & balance sheet: 

• Cash and equivalents: $438 million 

• Total debt: $3.23 billion 

• Operating cash flow: -$145 million 

Segment performance 

Products & Solutions delivered broad-based growth across most channels and product families, supported by price realization in original equipment manufacturer (OEM) and security channels and demand for newer offerings in retail and electrical distribution. 

Margin expansion continued, marking the segment’s 12th consecutive quarter of year-over-year improvement, driven by structural operating efficiencies. However, profit was tempered by higher R&D investment, a one-time litigation settlement, and restructuring costs tied to manufacturing optimization. 

ADI Global Distribution growth was supported by demand in security, professional AV and data communications, as well as increased e-commerce adoption and gains in exclusive brands. Residential AV continued to weigh on performance, reflecting continued softness in the U.S. housing market.   

Margins were pressured by higher freight costs and unfavorable product mix, while additional sales days and higher variable expenses also weighed on profitability. 

Pye-Barker Fire & Safety acquires AAA Fire Extinguisher Co. 

ATLANTA—Pye-Barker Fire & Safety has acquired AFA, Inc. dba AAA Fire Extinguisher Co., joining Pye-Barker's integrated services team in West Texas.  

The transaction adds to Pye-Barker's immediate operational capacity and advances the company's ability to provide more Texas customers with full-service fire and life safety services. 

Based in Lubbock, Texas, AAA focuses on the inspection and servicing of portable fire extinguishers and fire suppression systems. The company installs, inspects and services kitchen hood systems, offering restaurants, schools and other commercial kitchens customer-driven service and unmatched expertise.   

"We're so grateful for the support of our local customers. It's a big part of why we're joining Pye-Barker: to give back and provide better, more comprehensive services," said Lawrence Fithen, owner of AAA. "The Pye-Barker team has been extremely welcoming, and I'm proud to say we're in a position to make this next step in meaningful fire and life safety in our community." 

"Our existing service offerings in West Texas are focused on fire alarm and security work. Joining forces with AAA allows us to enhance our suppression capabilities in the area," said Pye-Barker CEO Bart Proctor. "AAA's team is truly committed to doing what's right by its customers, saving lives and property in the local community. That type of passion stands out, and it's exactly the mission-based approach we're looking for to join our team."  

This addition follows the introduction of nearby security and fire alarm acquisitions in 2024 and 2025, establishing comprehensive and seamlessly connected services in the area. 

AAA's skilled technicians will continue to serve customers in Texas. Nelson Mullins Riley & Scarborough, LLP represented Pye-Barker.

Verkada expands AI-powered physical security platform  

SAN MATEO, Calif.—Verkada announced a broad range of hardware and software updates across its platform, including new generations of bullet cameras and access control units, expanded artificial intelligence (AI)-powered alerting capabilities, and enhanced visitor management for healthcare. Verkada unveils new third-generation bullet camera models, with smarter analytics, easier install, and customizable attachments. "Every update we make to Verkada's platform is focused on giving security teams the right tools for the right situations," said Brandon Davito, senior vice president of product and operations at Verkada. "Whether it's identifying operational issues with AI-powered alerts or customizing emergency response protocols, we're building a platform that brings all of the functionality required for complex enterprise security operations with the simplicity and ease of a modern, cloud-based platform." 

SIA names Nathan Wells as recipient of inaugural VETS Award 

SILVER SPRING, Md.—The Security Industry Association (SIA) has named Convergint’s Nathan Wells as the first-ever recipient of the SIA Valuing Experience, Talent and Service (VETS) Award, presented by SIA’s Veterans in Security community. SIA will present Wells with the award at SIA GovSummit, SIA’s annual public policy and government security technology conference, which will be held May 20–21 in Washington, D.C. The VETS Award honors an individual who has shown exceptional dedication to supporting military veterans in the security industry. It recognizes leadership in championing veteran recruitment, mentoring and career development, as well as advocating for initiatives that ease the transition from military to civilian roles. Wells is an account executive at Convergint and a dedicated advocate for veteran advancement within the security industry. A U.S. Navy veteran, Wells has over 20 years of experience leading strategic security initiatives for enterprise clients in the utility, government and critical infrastructure sectors.  

2026 Security LeadHER program to advance, connect and empower women in security 

ALEXANDRIA, Va., and SILVER SPRING, Md.—ASIS International and the Security Industry Association (SIA) have announced the 2026 agenda and speaker lineup for Security LeadHER, a special event dedicated to advancing, connecting and empowering women in the security profession. The fourth annual Security LeadHER conference will be held Monday, June 15–Tuesday, June 16, 2026, at the Hilton Minneapolis in Minneapolis, Minn. “This year’s Security LeadHER lineup and overall program is nothing short of exceptional,” said Candice Aragon, SIA Women in Security Forum chair and chief experience officer at PSA. “We’ve brought together an incredible group of leaders, innovators and changemakers who are shaping the future of security in real time. But beyond the content, what makes Security LeadHER so powerful is the community; it’s a place where women in our industry find connection, support and a true sense of belonging.” To learn about Security LeadHER 2026, view the full conference lineup at securityleadher.org. 

DMP’s JamAlert achieves UL Certification for use in commercial burglary applications  

SPRINGFIELD, Mo.—Digital Monitoring Products (DMP) announced that its JamAlert cellular jamming detection technology has achieved UL 2610 Certification. UL 2610 is the standard for commercial premises security alarm units and systems. It defines requirements for how commercial intrusion and holdup alarm systems must be designed, built, tested and performed. This certification marks a significant milestone for JamAlert, providing independent validation of its performance and reliability while expanding its applicability in regulated and compliance-driven environments. JamAlert has been evaluated under controlled conditions to meet established UL standards, ensuring it performs as intended when it matters most. This independent verification gives security professionals and their customers confidence in deploying jamming detection without the need for field testing. 

Interface Systems introduces Digital Keys to simplify access control 

ST. LOUIS—Interface Systems has announced the launch of its Digital Keys, a mobile credential solution for Digital Monitoring Products (DMP) access control systems. Digital Keys enables businesses to replace traditional cards, fobs, and physical keys with secure mobile credentials stored directly in Apple Wallet and Google Wallet. Designed for retailers, quick-service restaurants, and other distributed enterprises, Digital Keys simplifies access management by allowing administrators to issue, update, schedule, and revoke employee, contractor, and vendor credentials remotely through the DMP Virtual Keypad application. Credentials can be delivered instantly by text or email and added directly to a user’s mobile wallet, without requiring employees to download a separate credential app. The Interface Digital Keys solution is available for customers using DMP access control systems.  

ICT appoints Joseph Harrell as director of strategic accounts 

CENTENNIAL, Colo.—Integrated Control Technology (ICT), a global provider of open, integrated access control and security solutions, has announced the appointment of Joseph Harrell as director of strategic accounts. Harrell brings more than a decade of experience in strategic sales development and security technology, with a background spanning manufacturer, integrator, and channel-focused roles. In his new role, Harrell will focus on expanding ICT's strategic account presence across North America, with an emphasis on strengthening partner relationships, supporting complex enterprise opportunities, and helping integrators differentiate in competitive and compliance-driven markets. He will work closely with ICT's sales, marketing, and product teams to ensure alignment between customer needs and ICT's open-platform strategy. 

Camelot Secure’s Sherri Thomas selected for 2026 CRN Women of the Channel list 

COLUMBIA, Md.—Camelot Secure announced that Chief Revenue Officer (CRO) Sherri Thomas has been recognized by CRN - a brand of The Channel Company - within its prestigious 2026 Women of the Channel list. Thomas was selected for her leadership in building Camelot Secure’s partner ecosystem and advancing artificial intelligence (AI)-driven cybersecurity solutions that help organizations strengthen their security posture. The annual list honors women from vendors, distributors, solution providers, and other channel-focused organizations who are driving innovation and making a measurable impact across the IT channel ecosystem. The 2026 honorees are recognized for their strategic leadership, commitment to partner success, and contributions to advancing channel excellence. CRN’s 2026 Women of the Channel list is featured online at crn.com/wotc.