NAPCO Q4 revenue beats on recurring service rev growth

NAPCO Security Technologies

24/08/2026 12:10

Overview
U.S. security equipment maker's fiscal Q4 revenue rose 10%, beating analyst expectations
Fiscal Q4 adjusted EBITDA grew 44% and beat analyst expectations
Quarterly results driven by recurring service revenue growth and rebound in equipment sales

Outlook
Company did not provide specific financial guidance for the upcoming quarter or year in the press release

Result Drivers
RECURRING SERVICE REVENUE - Co said double-digit growth in recurring service revenue with over 90% gross margin drove Q4 results
EQUIPMENT SALES REBOUND - Co said equipment sales rebounded, driven by strong demand for door-locking products and 36% growth in intrusion product sales, mainly StarLink fire communicators
TARIFF REFUNDS - Gross profit margin benefited from approximately 600 basis points due to tariff refunds in Q4

Company press release: ID:nPn9xTjypa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$55.8 mln
$52.51 mln (6 Analysts)
Q4 EPS
 
$0.50
 
Q4 Net Income
 
$17.8 mln
 
Q4 Adjusted EBITDA
Beat
$20.6 mln
$16.81 mln (5 Analysts)
Q4 Gross Margin
 
61.30%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for NAPCO Security Technologies, Inc. is $50.00, about 31.3% above its August 21 closing price of $38.09
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 30 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)