NAPCO Security Technologies, Inc. released its financial results for the fourth quarter and full fiscal year of 2025.
Key highlights include net sales performance, recurring service revenue growth, and equipment sales trends.
The company's gross profit margin, diluted EPS, and dividend declaration were also key points of discussion.
Revenue Performance
Net sales increased by 1% in Q4 but decreased by 4% for the full year compared to the previous year.
Recurring Service Revenue Growth
Recurring service revenue saw significant growth, with RSR increasing by 10% in Q4 and 14% for the full year, reaching a prospective annual run rate of approximately $94 million.
Profitability Metrics
Gross profit margins for Q4 and the full year were reported, with a slight decrease in Q4 compared to the previous fiscal year quarter.
Dividend Declaration
The Board declared a quarterly dividend of $0.14 per share, payable in October 2025.
Product Innovation
Introduction of a new cloud-based MVP Access platform in Q4 aimed at generating future monthly recurring revenue for the company.
- The company faced challenges with equipment revenue performance throughout fiscal year 2025, but saw a 27% increase in equipment sales from Q3 to Q4, providing optimism for growth in fiscal 2026.
- NAPCO Security Technologies, Inc. remains confident in its future performance, highlighted by a return on adjusted EBITDA of 28% in fiscal 2025 and successful inventory reduction.
- The company generated over $53 million in cash flows from operations with no debt during fiscal 2025, demonstrating financial strength and stability.
NAPCO Security Technologies, Inc. concludes the fiscal year 2025 with a mixed performance in net sales and equipment revenue, strong recurring service revenue growth, and a focus on innovation with the introduction of new product offerings. The company remains optimistic about future growth and profitability in fiscal 2026.