NAPCO Security Technologies, Inc. Reports Fiscal Q4 and Full Year 2025 Results

Fiscal 2025 Highlights

• Net sales of $50.7 million for Q4, up 1% year‑over‑year; net sales for the full year of $181.6 million, down 3.8% year‑over‑year.
• Recurring service revenue (RSR) increased 10% in Q4 and 14% for the full year to $22.4 million and $86.3 million, respectively, with a 91% gross margin for both periods.
• RSR had a prospective annual run rate of approximately $94 million based on July 2025 recurring service revenues.
• Equipment sales for Q4 were $28.3 million (a 5% YoY decrease), but were up 27% sequentially from Q3; equipment sales for the full year were $95.3 million (a 16% YoY decrease).
• Gross profit margin: Q4 — 52.8% (vs. 55.3% prior year quarter); full year — 55.6% (vs. 53.9% prior fiscal year).
• Diluted EPS: Q4 $0.33 vs. $0.36 prior year; full year $1.19 vs. $1.34 prior year.
• The Board declared a quarterly dividend of $0.14 per share, payable October 3, 2025 to shareholders of record on September 12, 2025.

Amityville, N.Y., Aug. 25, 2025 — NAPCO Security Technologies, Inc. (NASDAQ: NSSC), a manufacturer and designer of high‑tech electronic security equipment, wireless communication devices for intrusion and fire alarm systems, and a provider of school safety solutions, today announced financial results for its fourth quarter of fiscal 2025.

Selected Financial Results

For the three months ended June 30, 2025:

• Net sales: $50,724,000 (up 0.8% vs. prior year quarter)
• Gross profit: $26,798,000 (gross margin 52.8%)
• Net income: $11,632,000
• Diluted EPS: $0.33
• Adjusted EBITDA (non‑GAAP): $14,249,000 (28.1% of sales)

For the year ended June 30, 2025:

• Net sales: $181,621,000 (down 3.8% vs. prior year)
• Gross profit: $101,030,000 (gross margin 55.6%)
• Net income: $43,406,000
• Diluted EPS: $1.19
• Adjusted EBITDA (non‑GAAP): $52,126,000 (28.7% of sales)
• Cash flows from operating activities: $53,527,000

CEO Commentary

Richard Soloway, Chairman and CEO, commented, “With the completion of our fourth quarter of Fiscal 2025, our RSR remains strong as we continue to see double‑digit growth in Q4 and annually and gross margins at 91%. RSR represents 44% and 48% of total revenue in Q4 and annually, respectively, and our RSR has a prospective run rate of approximately $94 million based on our July 2025 recurring service revenue, which reflects approximately a $5 million increase from what was reported at the end of our third quarter of Fiscal 2025. We faced challenges with our equipment revenue performance throughout Fiscal 2025 as distributor destocking lingered throughout the year as well as timing of larger project work in our door‑locking segment; however, we are encouraged by the 27% increase in equipment sales from Q3 to Q4, and we are optimistic that equipment sales will grow in Fiscal 2026, and believe we are well positioned with the evolving tariff environment.”

He added, “Our return on adjusted EBITDA of 28% in fiscal 2025 remains robust, and we were successful in our goal of significantly reducing our inventory levels by $8.6 million, while also generating over $53 million in cash flows from operations with no debt. During fiscal 2025 we declared cash dividends of $18.6 million to our shareholders, and in addition we repurchased $36.8 million of our common stock. As we enter fiscal 2026 we remain confident that our net income, Adjusted EBITDA and cash flow will continue to be strong.”

Product Update

In Q4, NAPCO introduced a new cloud‑based MVP Access platform. Priced with an economical “by‑door” flat monthly recurring revenue model, MVP Access enables 24/7 security management — including remote door lockdown, threat level adjustments and real‑time event monitoring — without on‑premises hardware or databases. Management expects this product line to generate future monthly recurring revenue for both locking and access control dealers and the Company.

Dividend

The Board declared a quarterly dividend of $0.14 per share, payable October 3, 2025 to shareholders of record on September 12, 2025.

Conference Call Information

Management will conduct a conference call at 11:00 a.m. ET on August 25, 2025. To participate, please visit the Investor Relations section of the Company website at https://investor.napcosecurity.com/events-presentations or join via webinar at https://app.webinar.net/bDwYQBoNJrd. Interested parties may also dial (US) 1‑800‑836‑8184 or 1‑646‑357‑8785. A replay of the webcast will be available on the Company website.

About NAPCO Security Technologies, Inc.

NAPCO Security Technologies, Inc. is a manufacturer and designer of high‑tech electronic security devices, wireless recurring communication services for intrusion and fire alarm systems, and a provider of school safety solutions. The Company consists of four divisions: NAPCO and three wholly owned subsidiaries — Alarm Lock, Continental Instruments, and Marks USA. Headquartered in Amityville, New York, NAPCO’s products are installed worldwide in commercial, industrial, institutional, residential and government applications. For additional information, visit http://www.napcosecurity.com.

Safe Harbor Statement

This press release contains forward‑looking statements that are based on current expectations, estimates, forecasts and projections of future performance. Forward‑looking statements include, but are not limited to, statements about the growth of recurring service revenues and annual run rate, expectations regarding future results, the introduction and performance of new products (including access control and locking products), business trends and our ability to execute business strategies. Actual results may differ materially due to risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including the annual report on Form 10‑K and quarterly reports on Form 10‑Q. The Company undertakes no duty to update these statements except as required by law.

Non‑GAAP Financial Measures

Certain non‑GAAP measures (including Adjusted EBITDA and Adjusted EBITDA per share) are included in this release. Adjusted EBITDA is defined by the Company as GAAP net income plus income tax expense, net interest expense, non‑cash stock‑based expense, non‑recurring legal expense, other non‑recurring income, and depreciation and amortization expense. Reconciliations to the most directly comparable GAAP measures are provided in the schedules accompanying the Company’s original release.

Contact

Francis J. Okoniewski
Vice President of Investor Relations
NAPCO Security Technologies, Inc.
Office: 800‑645‑9445 x374
Mobile: 516‑404‑3597
Email: [email protected]

SOURCE NAPCO Security Technologies, Inc.