AMITYVILLE, N.Y. — NAPCO Security Technologies, Inc., today announced financial results for its fourth quarter and fiscal year 2026, including a quarterly net revenue record, a quarterly net income record and a full-year net revenue record.
Here’s a rundown of some of the highlights of NAPCO’s 2026 fourth quarter and full fiscal year 2026 earnings report, according to a company announcement:
Fourth Quarter 2026 Financial Results Compared to Fourth Quarter Fiscal 2025
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Net revenue increased 10% to a quarterly record $55.8 million, compared to $50.7 million
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Recurring service revenue (RSR) increased 12.9% to $25.3 million, with more than 90% gross margin, compared to $22.4 million
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Equipment revenue increased 7.7% to $30.5 million, compared to $28.3 million
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Gross profit margin of 61.3%, which included a benefit of approximately 600 basis points from tariff refunds vs. 52.8% in prior fiscal-year quarter
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Net income increased 52.7% year-over-year to a quarterly record $17.8 million, compared to $11.6 million
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Diluted net income per share increased 51.5% to $0.50, inclusive of a benefit of approximately $0.09 from net tariff refunds, compared to $0.33
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Non-GAAP adjusted EBITDA increased 44.3% to a quarterly record $20.6 million with an adjusted EBITDA margin of 36.8%
Full Year 2026 Financial Results as Compared to Full Year 2025
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Net revenue increased 11.4% to a record $202.3 million, compared to $181.6 million
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RSR increased 13% to $97.5 million, with more than 90% gross margin, compared to $86.3 million
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RSR has a prospective annual run rate of approximately $103 million based on July 2026 recurring service revenues
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Equipment revenue increased 10.0% to $104.8 million, compared to $95.3 million
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Gross profit margin of 59.2%, which included a benefit of approximately 50 basis points from tariff refunds, vs 55.6% in prior fiscal year
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Net Income decreased (.9%) to $43.0 million, compared to $43.4 million. Full year net income and net income per share were negatively affected by a $16 million litigation settlement charge taken in Q3 of fiscal 2026
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Diluted net income per share increased 0.8% YoY to $1.20, which is inclusive of a benefit of approximately $0.03 from net tariff refunds and negative impact of approximately $0.40 from net litigation settlement costs, as compared to $1.19
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Non-GAAP net income increased 32.0% to $57.3 million, as compared to $43.4 million
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Non-GAAP diluted net income per share increased 34.5% YoY to $1.60, as compared to $1.19.
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Non-GAAP adjusted EBITDA increased 27.9% YoY to a record $66.7 million, with an adjusted EBITDA margin of 33.0%
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The board declared a quarterly dividend of $0.17 per share, payable on Oct. 2, 2026 to shareholders of record on Sept. 11, 2026.
What Does NAPCO Say About Its Fiscal 2026 Earnings?
“Our fiscal Q4 performance completes a strong close to our fiscal year end and reflects continued positive financial results,” says Kevin Buchel, president and chief executive officer of NAPCO Security Technologies, in the company announcement.
“We achieved record Q4 revenue and adjusted EBITDA of $55.8 and $20.6 million, respectively, which was bolstered by our recurring service revenue with its continued year over year double-digit growth. We saw a rebound in our equipment sales, which increased 10.0% for the year, driven by strong demand for our door-locking products as well as a 36% growth in sales of our intrusion products in Q4, which is primarily a result of increased sales of our StarLink fire communicators,” he says.
“Our RSR continues to deliver gross margins of over 90%, and represents approximately 45% of total revenue in Q4, and has a prospective run rate of approximately $103 million based on our July 2026 recurring service revenue,” says Buchel in the announcement. “Our revenue growth and margin expansion in Q4 resulted in a 53% increase in net income, a 44% increase in Non-GAAP Adjusted EBITDA and our Adjusted EBITDA margin was 36.8% as compared to 28.1% in Q4 of fiscal 2025.
“As such we are pleased to continue our dividend program and will be increasing the quarterly dividend by 13.3% to $0.17 per share, which will be paid on Oct. 2, 2026, to shareholders of record on Sept. 11, 2026,” he says.
