NAPCO Security Technologies (NASDAQ:NSSC) Issues Quarterly Earnings Results

NAPCO Security Technologies (NASDAQ:NSSC) issued its earnings results on Monday. The industrial products company reported $0.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.39 by $0.11, Zacks reports. The firm had revenue of $55.81 million for the quarter, compared to analysts’ expectations of $52.51 million. NAPCO Security Technologies had a return on equity of 31.41% and a net margin of 21.27%.The company’s revenue was up 10.1% compared to the same quarter last year. During the same quarter last year, the business earned $0.33 earnings per share.

Here are the key takeaways from NAPCO Security Technologies’ conference call:

• Record fiscal 2026 results included revenue of $202.3 million, non-GAAP EPS growth of 34.5% to $1.60, adjusted EBITDA of $66.7 million, and $59.2 million in free cash flow.
• Recurring service revenue grew 13% to $97.5 million, with gross margins above 90%; the July annualized recurring revenue run rate reached approximately $103 million, supported by strong StarLink radio sales.
• Management reported a larger project funnel across schools, healthcare, airports, multifamily housing, and government, while expecting MVP cloud access control to begin generating meaningful recurring revenue around October or November 2026.
• NAPCO ended the year with $137.6 million in cash and no debt, raised its quarterly dividend 13.3% to $0.17 per share, and said it has flexibility for continued investment or potential acquisitions.
• Management flagged potential fiscal 2027 pressure from tariffs, electronic-component costs linked to data-center expansion, and supply-chain constraints; quarterly equipment margins also benefited materially from tariff refunds, including an approximately $0.09 EPS benefit.

NAPCO Security Technologies Price Performance

Shares of NASDAQ NSSC opened at $36.43 on Wednesday. The firm has a market cap of $1.30 billion, a price-to-earnings ratio of 30.11 and a beta of 1.45. The stock’s fifty day moving average price is $37.53 and its two-hundred day moving average price is $39.96. NAPCO Security Technologies has a one year low of $34.19 and a one year high of $51.77.

NAPCO Security Technologies Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 2nd. Shareholders of record on Friday, September 11th will be issued a $0.17 dividend. The ex-dividend date of this dividend is Friday, September 11th. This represents a $0.68 dividend on an annualized basis and a yield of 1.9%. This is a positive change from NAPCO Security Technologies’s previous quarterly dividend of $0.15. NAPCO Security Technologies’s payout ratio is currently 57.69%.

Hedge Funds Weigh In On NAPCO Security Technologies

A number of hedge funds have recently bought and sold shares of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in NAPCO Security Technologies by 4.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 20,899 shares of the industrial products company’s stock valued at $481,000 after purchasing an additional 885 shares during the period. Millennium Management LLC lifted its stake in NAPCO Security Technologies by 62.4% during the first quarter. Millennium Management LLC now owns 769,789 shares of the industrial products company’s stock worth $17,721,000 after purchasing an additional 295,755 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of NAPCO Security Technologies by 75.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 589,290 shares of the industrial products company’s stock valued at $13,565,000 after purchasing an additional 254,007 shares in the last quarter. Jane Street Group LLC raised its holdings in shares of NAPCO Security Technologies by 351.7% during the 1st quarter. Jane Street Group LLC now owns 98,221 shares of the industrial products company’s stock worth $2,261,000 after buying an additional 76,478 shares in the last quarter. Finally, Acadian Asset Management LLC bought a new stake in shares of NAPCO Security Technologies during the 1st quarter worth $91,000. 85.07% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on NSSC shares. TD Cowen reiterated a “buy” rating and issued a $53.00 price target (up from $50.00) on shares of NAPCO Security Technologies in a research report on Tuesday, May 5th. Weiss Ratings reiterated a “hold (c)” rating on shares of NAPCO Security Technologies in a report on Friday, August 7th. DA Davidson set a $52.00 price target on shares of NAPCO Security Technologies in a research report on Tuesday. Benchmark restated a “buy” rating on shares of NAPCO Security Technologies in a research report on Tuesday. Finally, Needham & Company LLC restated a “buy” rating and issued a $49.00 price target on shares of NAPCO Security Technologies in a report on Friday, August 21st. Six equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $50.40.

NAPCO Security Technologies News Summary

Here are the key news stories impacting NAPCO Security Technologies this week:

• Positive Sentiment: NAPCO reported fourth-quarter EPS of $0.50, exceeding the $0.39 analyst consensus, while revenue of $55.81 million topped expectations of $52.51 million. Revenue increased 10.1% year over year, and EPS rose from $0.33 in the prior-year quarter. NAPCO fiscal Q4 and full-year results
• Positive Sentiment: Management indicated recurring revenue had reached an approximately $103 million annualized run rate, supporting the company’s higher-margin, recurring-revenue strategy. NAPCO recurring revenue and dividend update
• Positive Sentiment: NAPCO raised its quarterly dividend to $0.17 per share from $0.15, a 13.3% increase, with payment scheduled for October 2 to shareholders of record on September 11. NAPCO fiscal results
• Neutral Sentiment: An analyst overview discussed NAPCO alongside Norfolk Southern, but the supplied report does not provide a specific rating, price target, or material change in expectations for NSSC. Analyst insights on NAPCO
• Negative Sentiment: At roughly 35 times earnings, NSSC remains valued at a premium, while its shares are below both the 50-day and 200-day moving averages. That positioning may encourage profit-taking despite the earnings beat and could help explain the recent weakness.
• Neutral Sentiment: The reported short-interest data shows zero shares short and a zero-day short-interest ratio, with an anomalous “NaN” change; it does not provide a credible bearish trading signal.

About NAPCO Security Technologies

NAPCO Security Technologies, Inc (NASDAQ: NSSC) is a designer and manufacturer of electronic security solutions for commercial and residential applications. The company’s product portfolio spans intrusion and fire alarm control panels, alarm communicators, access control locks and readers, as well as a broad range of peripheral modules and integrated security accessories. NAPCO’s offerings are engineered to deliver scalable, networked security systems suitable for new installations and retrofit projects alike.

Key product lines include hybrid alarm control panels that support both wired and wireless peripherals, cellular and IP alarm communicators for reliable central station reporting, and the acclaimed “Alarm Lock” series of standalone and networked electronic door locks.