Napco Security Technologies Soars 10.25% on Mixed Earnings

On August 25, 2025, Napco Security Technologies saw a significant pre-market rise of 10.25%.

Napco Security Technologies reported mixed results for the fourth quarter and full year of 2025. While Q4 net sales increased by 1% year-over-year to $50.7 million, full-year sales decreased by 4% to $181.6 million. The company's recurring service revenue (RSR) showed strong growth, increasing by 10% in Q4 and 14% for the full year to $22.4 million and $86.3 million respectively, maintaining a 91% gross margin.

Equipment sales faced challenges, declining by 5% year-over-year in Q4 to $28.3 million, though showing a 27% sequential increase from Q3. Diluted EPS decreased to $0.33 from $0.36 in Q4 and to $1.19 from $1.34 for the full year. The company declared a quarterly dividend of $0.14 per share and reported strong cash flows from operations of $53.5 million.

NAPCO's balance sheet remains strong with $83.1 million in cash and cash equivalents, compared to $65.3 million at the end of fiscal 2024. The company successfully reduced inventory levels by $8.6 million and generated $53.5 million in operating cash flow, an 18% increase from the previous year. Management's commitment to shareholder returns continues with a declared quarterly dividend of $0.14 per share. During fiscal 2025, NAPCO returned capital to shareholders through $18.6 million in dividends and $36.8 million in share repurchases, demonstrating confidence in the company's financial position despite the mixed operational results.