NAPCO reports resilient FY25 with strong RSR growth and solid margins

AMITYVILLE, N.Y.—NAPCO Security Technologies demonstrated resilience amid industry headwinds in reporting its fiscal year Q4 and full-year 2025 results.

NAPCO closed the year with strong recurring service revenue (RSR) growth and solid profitability, with the company’s RSR surging 14% to $86.3 million, representing nearly half of total revenue and boasting a 91% gross margin. Net sales of $50.7 million for Q4 increased 1% year-over-year, while total net full-year sales dipped 3.8% year-over-year to $181.6 million.

Equipment sales faced pressure from distributor destocking and project delays, falling 16% annually. However, a 27% sequential rebound in Q4 signaled potential recovery heading into fiscal 2026. The company also launched its cloud-based MVP Access platform, designed to generate future monthly recurring revenue and enhance remote security management.

Despite a decline in net income and earnings per share (EPS), NAPCO maintained robust cash flow, generating $53.5 million from operations and ending the year debt-free. Strategic moves included an $8.6 million inventory reduction, $36.8 million in stock repurchases, and $18.6 million in dividends.

NAPCO Chairman and CEO Richard Soloway expressed confidence in the company’s trajectory, emphasizing innovation, financial strength, and long-term growth.

“We continue to strive to accomplish our goal of continued financial strength, product innovation, technical superiority and strong profitability for fiscal 2026 and beyond,” he said.

NAPCO’s complete Q4 and full-year 2025 earnings report can be found at https://investor.napcosecurity.com/.