NAPCO Security Technologies reports fiscal 2026 Q2 results

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

Fiscal Q2 2026 Highlights

• Record Q2 net revenues of $48.2 million, a 12.2% YoY increase
• Equipment revenue increased 12.0% YoY to $24.3 million
• Recurring service revenue (RSR) increased 12.5% YoY to $23.8 million with a 90.2% gross margin
• RSR had a prospective annual run rate of approximately $99 million based on January 2026 recurring service revenues.
• Gross profit margin for Q2 2026 of 58.6% vs 57.0% in prior fiscal year quarter
• Diluted EPS increased YoY to $0.38 vs $0.28
• The Board declared a quarterly dividend of $0.15 per share, a 7% increase from last quarter, payable on April 3, 2026, to shareholders of record on March 12, 2026.

“NAPCO delivered another strong quarter fueled by our recurring service revenue (RSR) and its consistent year-over-year double-digit growth,” said Richard Soloway, chairman and CEO. “The continued demand for our door-locking products that drove double-digit growth in our equipment revenue and improved equipment gross margins.

Our RSR continues to see growth quarter over quarter with sustained gross margins of 90%, and represents approximately 50% of total revenue in Q2, and has a prospective run rate of approximately $99 million based on our January 2026 recurring service revenue. As a result of our revenue growth and margin expansion, net income increased 29% year over year to a Q2 record of $13.5 million and our adjusted EBITDA margin was 31.9% as compared to 28.4% in Q2 of fiscal 2025.”

“Our focus remains on expanding RSR solutions across all our platforms, including locking products, such as our MVP Access platform, which is gaining traction in the marketplace as we are actively supporting and educating our dealers on the benefits of adopting this new solution.

Soloway concluded, “Our fiscal 2026 Q2 results are a continuation of the positive start to the fiscal 2026, and we remain confident that our net income, adjusted EBITDA and cash flow, will continue to grow throughout the balance of the fiscal year.”

“As such we are pleased to continue our dividend program and will be paying the next quarterly dividend of $0.15 per share on April 3, 2026, to shareholders of record on March 12, 2026. This is a 7% increase over the dividend we declared last quarter. Our goal of product innovation, technical superiority, and consistent delivery of strong profitability will continue through the balance of fiscal 2026 and beyond." 

NAPCO also announced that Joseph Pipczynski was appointed as the company's chief revenue officer, effective Jan. 29, 2026. Pipczynski will report to NAPCO President and Chief Operating Officer Kevin Buchel. Stephen Spinelli, senior vice president of sales, will continue in his current role and will report to Pipczynski.

"We are excited to have Joe join the NAPCO family’” Soloway said. “With his 35+ years as a business development executive he will provide the company strong leadership and vision and will supplement the existing talented sales team at NAPCO."

NAPCO’s complete Q2 2026 earnings report can be found at https://investor.napcosecurity.com/.