Napco Security Technologies Reports Strong Q4 Earnings
Napco Security Technologies, Inc., a leading American company specializing in electronic security devices, fire detection products, access control systems, and digital lock equipment, has reported its fiscal Q4 and full-year 2025 results. The company, which operates in the Information Technology sector, particularly in electronic equipment, instruments, and components, has shown resilience in a challenging market environment.
For the fourth quarter of 2025, Napco reported net sales of $50.7 million, marking a 1% year-over-year increase. Despite a 4% decrease in full-year net sales to $181.6 million, the company demonstrated growth in its recurring service revenue (RSR). RSR increased by 10% in Q4 and 14% for the full year, reaching $22.4 million and $86.3 million, respectively. The gross margin for RSR stood at an impressive 91% for both periods, with a prospective annual run rate of approximately $94 million based on July 2025 figures.
Equipment sales for Q4 were $28.3 million, a 5% decrease year-over-year but a 27% increase sequentially from Q3. Full-year equipment sales totaled $95.3 million, reflecting a 16% decrease from the previous year. The gross profit margin for Q4 was 52.8%, compared to 55.3% in the prior fiscal year quarter.
In terms of earnings, Napco’s GAAP EPS for Q4 was $0.33, surpassing expectations by $0.06. This performance exceeded the average analyst estimate of $0.268 per share, although it was lower than the $0.36 per share reported in the same quarter of the previous year. The company’s revenue of $50.7 million also beat forecasts by $6.25 million.
Napco’s market capitalization stands at $1.08 billion, with a close price of $31.7 as of August 21, 2025. The company’s price-to-earnings ratio is 24.73, reflecting investor confidence in its growth prospects despite recent challenges.
As Napco prepares for its upcoming financial conference on August 25, 2025, investors and analysts will closely watch for further insights into the company’s strategic direction and future performance. The company’s ability to maintain strong service revenue growth and manage equipment sales effectively will be key factors in sustaining its market position in the competitive electronic security industry.