NAPCO reports fiscal Q1 results

AMITYVILLE, N.Y. — NAPCO Security Technologies has announced the financial results for its first quarter of fiscal 2026.

Richard Soloway, chairman and CEO, commented, "With the completion of the first quarter of fiscal 2026, we experienced year-over-year double-digit growth in both our equipment and service revenue. Strong demand for our door-locking products has driven the growth in our equipment revenue and improved equipment gross margins, and our RSR continues to see growth quarter over quarter with sustained gross margins of over 90%. RSR represents 48% of total revenue in Q1, and our RSR has a prospective run rate of approximately $95 million based on our October 2025 recurring service revenue. As a result of our revenue growth, net income increased 8.8% year over year to a Q1 record of $12.2 million and our adjusted EBITDA margin was 30.4% as compared to 28.0% in Q1 of fiscal 2025.

"We remain focused on expanding RSR solutions across all our platforms, including wireless fire and intrusion alarms, enterprise access control systems, and architectural locking products, including our MVP Access platform which is gaining traction in the marketplace as we support and educate our dealers on the benefits of adopting this new solution." 

Soloway concluded, "Our fiscal 2026 Q1 results are a positive start to the new year, and we remain confident that our net income, Adjusted EBITDA* and cash flow, will continue to be grow throughout the balance of the year.

"As such we are pleased to continue our dividend program and will be paying the next quarterly dividend of $0.14 per share on Jan. 2, 2026 to shareholders of record on Dec. 12, 2025. We continue to strive to accomplish our goal of continued financial strength, product innovation, technical superiority and strong profitability, for fiscal 2026 and beyond."

Fiscal Q1 2026 Highlights

• Record Q1 Net revenues of $49.2 million, a 11.7% YoY increase
• Equipment revenue increased 12.3% YoY to $25.7 million
• Recurring service revenue ("RSR") increased 11.1% YoY to $23.4 million with a 90% gross margin
• RSR had a prospective annual run rate of approximately $95 million based on October 2025 recurring service revenues.
• Gross profit margin for Q1 2026 of 56.6% vs 55.9% in prior fiscal year quarter
• Diluted EPS increased YoY to $0.34 vs $0.30
• The Board declared a quarterly dividend of $0.14 per share, payable on Jan. 2, 2026 to shareholders of record on Dec. 12, 2025

NAPCO’s complete Q1 2026 earnings report can be found at https://investor.napcosecurity.com/.