Napco Security Technologies, Inc. develops, manufactures, and sells electronic security products in the United States and internationally. The company offers access control systems, door-locking products, intrusion and fire alarm systems, and video surveillance systems for commercial, residential, institutional, industrial, and governmental applications. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks. The company's alarm systems include automatic communicators, cellular communication devices, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panels, and area detectors; and video surveillance systems comprise video cameras, control panels, video monitors, or PCs. It also buys and resells various identification readers, video cameras, PC-based computers, and various peripheral equipment for access control and video surveillance systems; offers school security products; and markets peripheral and related equipment manufactured by other companies. The company markets and sells its products to independent distributors, dealers, and installers of security equipment. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York.

NAPCO Security Technologies, Inc.

In recent trading, shares of NAPCO Security Technologies, Inc. (Symbol: NSSC) have crossed above the average analyst 12-month target price of $38.00, changing hands for $38.34/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 4 different analyst targets within the Zacks coverage universe contributing to that average for NAPCO Security Technologies, Inc., but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $34.00. And then on the other side of the spectrum one analyst has a target as high as $40.00. The standard deviation is $2.828.
But the whole reason to look at the average NSSC price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with NSSC crossing above that average target price of $38.00/share, investors in NSSC have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $38.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover NAPCO Security Technologies, Inc.:
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on NSSC — FREE.
Also see:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

NSSC Crosses Above Average Analyst Target

Looking at the universe of stocks we cover at Dividend Channel, on 9/12/25, Acadian Asset Management Inc (Symbol: AAMI), NAPCO Security Technologies, Inc. (Symbol: NSSC), and Automatic Data Processing Inc. (Symbol: ADP) will all trade ex-dividend for their respective upcoming dividends. Acadian Asset Management Inc will pay its quarterly dividend of $0.01 on 9/26/25, NAPCO Security Technologies, Inc. will pay its quarterly dividend of $0.14 on 10/3/25, and Automatic Data Processing Inc. will pay its quarterly dividend of $1.54 on 10/1/25. As a percentage of AAMI's recent stock price of $46.54, this dividend works out to approximately 0.02%, so look for shares of Acadian Asset Management Inc to trade 0.02% lower — all else being equal — when AAMI shares open for trading on 9/12/25. Similarly, investors should look for NSSC to open 0.35% lower in price and for ADP to open 0.52% lower, all else being equal.
Below are dividend history charts for AAMI, NSSC, and ADP, showing historical dividends prior to the most recent ones declared.
Acadian Asset Management Inc (Symbol: AAMI):
NAPCO Security Technologies, Inc. (Symbol: NSSC):
Automatic Data Processing Inc. (Symbol: ADP):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 0.09% for Acadian Asset Management Inc, 1.40% for NAPCO Security Technologies, Inc., and 2.07% for Automatic Data Processing Inc..
In Wednesday trading, Acadian Asset Management Inc shares are currently up about 3.8%, NAPCO Security Technologies, Inc. shares are down about 0.4%, and Automatic Data Processing Inc. shares are down about 0.4% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Also see:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ex-Dividend Reminder: Acadian Asset Management, NAPCO Security Technologies and Automatic Data Processing

Shareholders of NAPCO Security Technologies, Inc. (Symbol: NSSC) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the March 2026 covered call at the $45 strike and collect the premium based on the $2.40 bid, which annualizes to an additional 11.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.8% annualized rate in the scenario where the stock is not called away. Any upside above $45 would be lost if the stock rises there and is called away, but NSSC shares would have to advance 14.1% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 20.1% return from this trading level, in addition to any dividends collected before the stock was called.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of NAPCO Security Technologies, Inc., looking at the dividend history chart for NSSC below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 1.4% annualized dividend yield.
Below is a chart showing NSSC's trailing twelve month trading history, with the $45 strike highlighted in red:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the March 2026 covered call at the $45 strike gives good reward for the risk of having given away the upside beyond $45. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve month volatility for NAPCO Security Technologies, Inc. (considering the last 250 trading day closing values as well as today's price of $39.38) to be 49%. For other call options contract ideas at the various different available expirations, visit the NSSC Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Friday, the put volume among S&P 500 components was 1.47M contracts, with call volume at 2.85M, for a put:call ratio of 0.51 so far for the day. Compared to the long-term median put:call ratio of .65, that represents very high call volume relative to puts; in other words, buyers are preferring calls in options trading so far today. Find out which 15 call and put options traders are talking about today.
Also see:
Largest BDCs by Net Assets
Top Ten Hedge Funds Holding NRCG
NHLD market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

YieldBoost NSSC To 12.8% Using Options

The following are the top rated Information Technology stocks according to Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
FIRST SOLAR INC (FSLR) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: First Solar, Inc. is a photovoltaic (PV) solar technology and manufacturing company. It is focused on enabling power generation needs with its advanced, thin film PV technology. The Company's primary segment is its modules business, which involves the design, manufacture, and sale of CdTe solar modules, which convert sunlight into electricity. Third-party customers of the segment include system developers, independent power producers, utilities, commercial and industrial companies, and other system owners and operators. The Company's products include the Series 7 Module and Series 6 Plus module. Its Series 6 Plus module is a glass laminate approximately 4ft x 6ft in size that encapsulates thin film PV semiconductor materials. Its Series 7 module has a larger form factor of approximately 4ft x 7ft in size. The Series 6 Plus and Series 7 modules had an average power output of 459 watts and 531 watts, respectively.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of FIRST SOLAR INC
NAPCO SECURITY TECHNOLOGIES INC (NSSC) is a small-cap growth stock in the Communications Equipment industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Napco Security Technologies, Inc. is a manufacturer and designer of high-tech electronic security devices, cellular communication services for intrusion and fire alarm systems, as well as a provider of school safety solutions. It offers a diversified array of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold to independent distributors, dealers and installers of security equipment. It manufactures and markets various products for alarm systems, including automatic communicators, cellular communication devices, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panel and area detectors. Its video surveillance systems typically consist of one or more video cameras, a control panel and a video monitor or PC.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of NAPCO SECURITY TECHNOLOGIES INC
FORTINET INC (FTNT) is a large-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Fortinet, Inc. is engaged in cybersecurity, driving the convergence of networking and security. The Companys integrated platform, Fortinet Security Fabric, spans secure networking, unified Secure Access Service Edge (SASE) and artificial intelligence (AI)-driven security operations (SecOps). Its products and services include FortiOS, FortiASIC, FortiCloud, FortiAI, FortiEndpoint, and OT Security. The FortiGuard Labs is a cybersecurity threat intelligence and research organization comprised of experienced threat hunters, researchers, analysts, engineers and data scientists who develop and utilize machine learning and AI technologies. FortiGuard and Other Security Services are a suite of AI-powered security capabilities that are integrated as part of the Fortinet Security Fabric to deliver coordinated detection and enforcement across the entire attack surface. FortiCare Technical Support Service is a per-device technical support service. It also operates Fortinet Training Institute.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of FORTINET INC
MONOLITHIC POWER SYSTEMS INC (MPWR) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch is 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Monolithic Power Systems, Inc. is a fabless company, which provides semiconductor-based power electronic solutions. The Company design and develop its products for the enterprise data, storage and computing, automotive, communications, consumer, and industrial end markets. Direct Current (DC) to DC, Alternating Current (AC) to DC, driver metal-oxide-semiconductor field-effect transistor, power management integrated circuit (IC), current limit switch and lighting control products. Its DC to DC ICs are used to convert and control voltages within a range of electronic systems, such as cloud-based central processing unit (CPU) servers, server artificial intelligence (AI) applications, storage applications, commercial notebooks, digital cockpit, power sources, home appliances, fourth generation (4G) and fifth generation (5G) infrastructure and satellite communications applications. The Company have sales offices in various locations in Asia, Europe and the United States.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of MONOLITHIC POWER SYSTEMS INC
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea's Top Information Technology Stocks Based On Peter Lynch - 9/5/2025

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Napco (NSSC) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
Here are three of the most important factors that make the stock of this security products and software company a great growth pick right now.
Earnings Growth
Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Napco is 48.7%, investors should actually focus on the projected growth. The company's EPS is expected to grow 32.8% this year, crushing the industry average, which calls for EPS growth of 14.7%.
Impressive Asset Utilization Ratio
Growth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.
Right now, Napco has an S/TA ratio of 0.91, which means that the company gets $0.91 in sales for each dollar in assets. Comparing this to the industry average of 0.8, it can be said that the company is more efficient.
In addition to efficiency in generating sales, sales growth plays an important role. And Napco looks attractive from a sales growth perspective as well. The company's sales are expected to grow 2.4% this year versus the industry average of 0%.
Promising Earnings Estimate Revisions
Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Napco. The Zacks Consensus Estimate for the current year has surged 23.4% over the past month.
Bottom Line
While the overall earnings estimate revisions have made Napco a Zacks Rank #1 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Napco well for outperformance, so growth investors may want to bet on it.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Napco (NSSC) is an Incredible Growth Stock: 3 Reasons Why

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in NAPCO Security Technologies, Inc. (Symbol: NSSC), where a total volume of 1,238 contracts has been traded thus far today, a contract volume which is representative of approximately 123,800 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 50.7% of NSSC's average daily trading volume over the past month, of 244,075 shares. Especially high volume was seen for the $35 strike call option expiring September 19, 2025, with 577 contracts trading so far today, representing approximately 57,700 underlying shares of NSSC. Below is a chart showing NSSC's trailing twelve month trading history, with the $35 strike highlighted in orange:
Bloom Energy Corp (Symbol: BE) options are showing a volume of 57,154 contracts thus far today. That number of contracts represents approximately 5.7 million underlying shares, working out to a sizeable 48% of BE's average daily trading volume over the past month, of 11.9 million shares. Especially high volume was seen for the $53 strike call option expiring August 29, 2025, with 10,274 contracts trading so far today, representing approximately 1.0 million underlying shares of BE. Below is a chart showing BE's trailing twelve month trading history, with the $53 strike highlighted in orange:
And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 10,009 contracts, representing approximately 1.0 million underlying shares or approximately 45.7% of AAP's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $61 strike call option expiring September 05, 2025, with 2,692 contracts trading so far today, representing approximately 269,200 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $61 strike highlighted in orange:
For the various different available expirations for NSSC options, BE options, or AAP options, visit StockOptionsChannel.com.
Also see:
ANGN Split History
Top Ten Hedge Funds Holding PRTK
NLY Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Monday Option Activity: NSSC, BE, AAP

Key Points
Recurring Service Revenue rose 10% to $22.4 million, serving as the key growth driver and accounting for 44% of sales in Q4 FY2025.
Equipment sales recovered sequentially but remained 5% below the prior year; gross margin and EPS both fell.
Dividend remained flat at $0.14 per share, with no explicit outlook figures provided for the next year.
Napco Security Technologies (NASDAQ:NSSC), a leader in commercial and residential electronic security solutions, reported mixed results in its earnings release on August 25, 2025. Recurring Service Revenue (RSR) was a standout, but equipment sales and gross margins both declined year-over-year. Net income (GAAP) and diluted earnings per share (GAAP) also dropped. This quarter marked stabilizing trends in some areas but ongoing pressure in others.
Metric
Q4 2025
Q4 2024
Y/Y Change
EPS (Diluted)
$0.33
$0.36
(8.3%)
Revenue
$50.7 million
$50.3 million
0.8%
Gross Profit Margin
52.8%
55.3%
(2.5 pp)
Net Income
$11.6 million
$13.5 million
(14.1%)
Recurring Service Revenue
$22.4 million
$20.4 million
10%
Adjusted EBITDA
$14.2 million
$15.4 million
(7.6%)
Business Overview and Key Focus Areas
Napco Security Technologies designs and manufactures security hardware and software for commercial, industrial, and residential buildings. Its products include intrusion alarms, access control hardware, electronic locks, and monitoring platforms that support safety and communication needs.
The company’s most important focus lately has been on building up recurring service revenue, which delivers predictable, high-margin income. This service is tied to cellular connectivity subscriptions for things like security alarms and remote management. Innovation and R&D spending continue to support this shift, while cost efficiency from Dominican Republic-based manufacturing helps protect margins. Increasing sales to the school safety market and providing complete, integrated security solutions remain top priorities for the business.
Fourth Quarter Developments: Revenue Trends, Product Mix, and Margins
GAAP revenue edged up just under 1% from the prior year, reaching $50.7 million. Recurring Service Revenue stood out with a 10% increase to $22.4 million. This revenue comes from monthly or annual charges for services like StarLink radios, which provide cellular communication and alarm connection, as well as the newly launched MVP Access platform for cloud-based entry control. RSR now makes up nearly half of total sales and enjoys a gross margin of 91%—by far the most profitable segment in the portfolio.
In contrast, equipment sales—revenue from physical security products such as alarms and electronic door locks—declined 5% year over year to $28.3 million. The company did manage a 27% sequential gain in equipment sales versus the previous quarter, suggesting distributors may be starting to rebuild inventory. However, the full-year picture shows a notable 16% decline in equipment sales for FY2025. Management cited ongoing distributor “destocking”—meaning dealers bought less to use up old inventory—as a reason for weak hardware revenues in Q3 FY2025. This hurt overall gross profits, even as RSR improved.
Gross profit margin dropped to 52.8% from 55.3% compared to the prior year. The company maintained its industry-leading RSR margin at 91%. Selling, general, and administrative expenses grew, including higher R&D and legal costs. Net income fell 14 % to $11.6 million, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization—a measure of core operating performance) shrank 7.6 %.
Despite these profit headwinds, Napco made significant improvements in operating cash flow, which reached $53.5 million (GAAP) for FY2025, thanks to reductions in inventory. The balance sheet remains solid, with $83.1 million in cash and no debt as of June 30, 2025. The company also highlighted its use of cash for shareholder returns: during FY2025, it paid $18.6 million in dividends and spent $36.8 million on stock buybacks.
The quarter included the public launch of the MVP Access platform, a cloud-based system enabling remote and recurring management of building and door security. This product launch is important because it expands the recurring service base, which management hopes will soon surpass the 50% threshold of total revenue, compared to 48% for FY2025. Investments in R&D also increased, reaching $12.6 million for FY2025, or almost 7% of net sales—supporting a pipeline of new products and features.
Looking Ahead: Guidance and Investor Watchpoints
Management maintained its dividend at $0.14 per share, with no increase or decrease for the coming period. It did not provide specific sales or earnings guidance for fiscal 2026, only indicating optimism about improving hardware demand and ongoing strength in recurring services. Continued pressure on EPS and margins means recovery in hardware and cost control will be key areas to monitor.
Investors should watch for any major change in equipment order trends, progress in recurring service mix, and signs of margin stabilization in the coming quarters. With no formal forward guidance offered, visibility on the timing of a broader rebound in hardware sales remains limited. NSSC does pay a dividend, which was unchanged at $0.14 per share.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,057%* — a market-crushing outperformance compared to 185% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of August 25, 2025
Motley Fool Markets Team is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. The Motley Fool takes ultimate responsibility for the content of these articles. Motley Fool Markets Team cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Napco Reports 10% RSR Jump in Fiscal Q4

Data is currently not available
Edit My Quotes
Add up to 25 symbols
To add symbols:
Type a symbol or company name. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return.
Copy and paste multiple symbols separated by spaces.
These symbols will be available throughout the site during your session.
Data is currently not available
Edit My European Quotes
Add up to 25 instruments
To add instruments:
Type a instrument or company name. When the instrument you want to add appears, add it to My European Quotes by selecting it and pressing Enter/Return.
Copy and paste multiple instruments separated by spaces.
These instruments will be available throughout the site during your session.
Data is currently not available
Your symbols have been updated
You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com.
Data is currently not available
Edit Watchlist
Add up to 20 symbols
To add symbols:
Type a symbol or company name. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return.
Copy and paste multiple symbols separated by spaces.
These symbols will be available throughout the site during your session.
Data is currently not available
Opt in to Smart Portfolio
We are currently experiencing technical difficulties, please try again.
Smart Portfolio is supported by our partner TipRanks. By connecting my portfolio to TipRanks Smart Portfolio I agree to their Terms of Use.

Napco (NSSC) Q4 2025 Earnings Call Transcript

Napco Security Technologies (NASDAQ:NSSC) reported Q4 2025 earnings on August 25, 2025, with net sales of $50.7 million (up 0.8% year-over-year) and the full-year recurring revenue run rate reaching $94 million, up $5 million sequentially. Recurring revenue gross margin remained at 91% for the year, GAAP net income totaled $43.4 million (24% of sales), and year-end cash was $99.1 million with zero debt; management highlighted double-digit recurring revenue growth, strong hardware rebound, and sharpened pricing strategies for fiscal 2026.
Recurring revenue drives long-term margin expansion for NSSC
StarLink fire radio activations boosted recurring monthly service revenue (RMR) by 10% year-over-year, with recurring revenue now accounting for nearly half of annual sales and sustaining exceptionally high gross margins. Gross profit from recurring service revenue reached $78.5 million at a 91% gross margin, directly contrasting a 15.7% year-over-year decline in GAAP equipment sales.
"One of the clearest indications of that strength is our recurring revenue. This year, recurring revenue grew by more than $10 million and now represents nearly half of our total sales with a sustained gross margin of 91%, which provides consistent cash generation and opportunity for continued reinvestment. A major driver of this growth has been the success of our StarLink Fire Radio platform, which is increasingly viewed as the industry standard for fire communications in commercial buildings."
-- Dick Soloway, Chairman and CEO
The increasing contribution of high-margin, contract-based service revenue ensures predictable cash flows and positions Napco Security Technologies for resilient earnings even through equipment revenue volatility.
Hardware segment rebounds; pricing actions position NSSC for 2026 growth
Sequential equipment revenue grew 27% over the prior quarter, reversing prior inventory headwinds driven by distributor destocking and tariff uncertainty, despite year-over-year declines of 5.5% for the quarter and 15.7% for the year. Two price increases were implemented during the quarter—one 8.5% tariff-related and another standard 5% -- with management affirming expectations for double-digit equipment sales growth in FY2026, driven by easier comparisons and pricing tailwinds.
"Equipment sales for the quarter, while down 5% versus last year's Q4, had a much-improved performance, increasing 27% sequentially from 2025. This growth underscores the value of our offerings and the continued strength of our customer relationships, particularly in uncertain economic times caused in large part by the effect of tariffs. From a profitability standpoint, our recurring revenue gross margin remained very strong at 91%, with Starling Commercial Fire Radios continuing to be a strong part of the mix. We also made meaningful progress on inventory management, reducing inventory levels at June 30, 2025, by $8.6 million compared to this time last year. Cash flow from operations for the year came in at $53.5 million, which reinforces our ability to generate consistent cash flow to support both strategic investments and shareholder returns. Speaking of which, we returned significant value to our shareholders during the fiscal year. We paid out $13.6 million in dividends and repurchased $36.8 million of our stock, which is equivalent to 1.2 million shares at an average price of $30.40. Even after these returns, we ended the fiscal year with approximately $100 million in cash and no debt, giving us tremendous flexibility going forward. On pricing, we announced two pricing increases during the quarter. The first in April was an 8.5% increase to help offset rising tariff costs. The second was our standard annual price increase, which this year was 5% and went into effect approximately mid-July. We expect the full benefit of these actions to be reflected starting in our fiscal 2026 Q1. Finally, while there remains considerable uncertainty in the market around tariffs, we believe we are in an advantageous position as compared to some of our competitors. Our supply chain planning, pricing strategies, and balance sheet strength give us a competitive advantage in navigating these challenges."
-- Kevin Buchel, President and COO
Effective pricing strategies and operational discipline have given the company a competitive advantage in navigating tariff volatility and management expects the full benefit of these actions to be reflected starting in Q1 of fiscal 2026.
Strategic investment in R&D accelerates expansion opportunities
Napco Security Technologies raised R&D expense by 16.9% year-over-year to $12.6 million, representing 7% of annual sales, reflecting headcount growth and elevated compensation. Management introduced the MVP cloud-based access control platform in both enterprise and SMB tiers, creating new recurring revenue streams and reinforcing its differentiated approach to integrated, cloud-forward security solutions.
"One of the most exciting of these is our MVP platform, a next generation of cloud-based access control systems that integrates seamlessly with our locking hardware. It represents a brand new recurring revenue stream for us and for our dealers, with configurations tailored for both enterprise customers and smaller facilities. We believe MVP can potentially be a game changer and become a foundational contributor to our growth over the coming years, as it extends our leadership into the hosted access control market and reinforces our core strategy of integrating innovative hardware with cloud-based services to deliver long-term, high-margin recurring revenue."
-- Dick Soloway, Chairman and CEO
Broadening its addressable market and embedding further long-term contract value into its business model.
Looking Ahead
Management expressed confidence in double-digit equipment revenue growth in FY2026, citing cumulative price increases and easier comparisons through the first three quarters of fiscal 2025, with additional recurring revenue growth projected to maintain or exceed the current 10% year-over-year run rate as new radio and SaaS products are activated. The full benefit of the 8.5% and 5% pricing adjustments is expected in Q1 FY2026, and leadership confirmed a strong cash position with continued opportunistic buybacks and potential for future dividend increases. No specific capex guidance was provided beyond these operational milestones, along with commitments to new product launches and margin preservation.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,057%* — a market-crushing outperformance compared to 185% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of August 25, 2025
This article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Napco Security Recurring Revenue Surges

(RTTNews) - NAPCO Security Technologies Inc. (NSSC) released earnings for fourth quarter that Dropped, from the same period last year
The company's earnings came in at $43.40 million, or $1.19 per share. This compares with $49.81 million, or $1.34 per share, last year.
The company's revenue for the period fell 3.8% to $181.62 million from $188.82 million last year.
NAPCO Security Technologies Inc. earnings at a glance (GAAP) :
-Earnings: $43.40 Mln. vs. $49.81 Mln. last year. -EPS: $1.19 vs. $1.34 last year. -Revenue: $181.62 Mln vs. $188.82 Mln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	23.64 28.98
Price/Sales	5.86 2.58
P/B	5.08 2.76
P/FCF	20.68 24.31

Indicator	TTM Median
ROE	25.94 15.33
ROA	22.17 6.66
ROI	0.00 9.73
Net Worth	1.05 0.98
Quick Ratio	5.22 1.53
Current Ratio	6.74 1.84

Indicator	TTM Median
Net Profit Margin	24.86 9.71
Operating Margin	26.52 11.07
Gross Margin	56.35 50.00
Return on tangible equity	26.51 27.59

Indicator	TTM Median
EPS	0.28 0.24
EPS Forecast	0.35 0.19
Revenue	44.00M 73.00M
Gross Profit	25.00M —
EBITDA	12.00M —

NAPCO Security Technologies, Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue