Napco Security reports Q3 EPS 28c vs. 36c last year

Reports Q3 revenue $44.0M, consensus $43.14M. CEO Richard Soloway commented, “With the completion of our Q3 of FY25, we are pleased with our 30% adjusted EBITDA return and the continued strong gross margin of 91% of our RSR and the increase of 10.6% to $21.6M…At the recent International Security Conference in Las Vegas in early April, we introduced a new generational cloud-based MVP Access platform…This product line is expected to generate monthly recurring revenue for both locking and access control dealers and the company. As we enter into the final quarter of FY25, we are challenged with the headwinds and uncertainty of tariffs. In response to these uncertainties we instituted a price increase on all of our equipment products and will continue to monitor the situation and adjust our pricing accordingly. As tariff rates are presently established, we believe we may be well positioned to deal with the changing tariff landscape as compared to our competitors, as our products are principally manufactured in the Dominican Republic and USA as opposed to China, Mexico and other countries where final tariff rates could be significantly larger…we are pleased to continue our dividend program and will be paying the next quarterly dividend of 14c per share to shareholders on July 3, 2025, which is an increase over the most recent dividend paid on April 3, 2025”.