NAPCO Security Reports Strong Q1 2026 Earnings Growth

Napco Security ( (NSSC) ) has released its Q1 earnings. Here is a breakdown of the information Napco Security presented to its investors.

NAPCO Security Technologies, Inc. is a leading manufacturer and designer of high-tech electronic security equipment and wireless communication devices, specializing in intrusion and fire alarm systems, as well as school safety solutions. The company is headquartered in Amityville, New York, and serves a global market with its innovative and reliable security products.

In its fiscal first quarter of 2026, NAPCO Security Technologies reported record net revenues of $49.2 million, marking an 11.7% increase year-over-year. The company’s equipment revenue saw a 12.3% rise, while recurring service revenue increased by 11.1%, contributing to a gross profit margin of 56.6%. The company also declared a quarterly dividend of $0.14 per share.

Key financial highlights include a net income increase of 8.8% to $12.2 million and a 13.3% rise in diluted earnings per share to $0.34. Adjusted EBITDA grew by 21.1% to $14.9 million, with an adjusted EBITDA margin of 30.4%. The company’s recurring service revenue, which represents 48% of total revenue, maintained a robust gross margin of 90%.

NAPCO’s management remains optimistic about future growth, focusing on expanding its recurring service revenue solutions across various platforms. The company aims to continue its trajectory of financial strength, product innovation, and profitability throughout fiscal 2026 and beyond, supported by strong demand for its door-locking products and the MVP Access platform.

Looking ahead, NAPCO Security Technologies is committed to sustaining its growth momentum by leveraging its technical superiority and expanding its market presence in the electronic security sector. The company anticipates continued growth in net income, adjusted EBITDA, and cash flow, reinforcing its position as a leader in the security industry.