NAPCO Q2 revenue rises 12.2% but slightly misses estimates

NAPCO Security Technologies

02/02/2026 12:08

Overview

Security equipment maker's fiscal Q2 revenue rose 12.2% YoY, slightly missing analyst expectations

Diluted EPS for fiscal Q2 increased 35.7% YoY to $0.38

Company announced a 7% increase in quarterly dividend to $0.15 per share

Outlook

Company expects continued growth in net income, Adjusted EBITDA, and Free Cash Flow

NAPCO focuses on expanding RSR solutions across all platforms

Company sees MVP Access platform gaining traction in the marketplace

Result Drivers

RECURRING SERVICE REVENUE - RSR increased 12.5% YoY, representing 50% of total revenue with a 90.2% gross margin

EQUIPMENT SALES - Equipment revenue rose 12.0% YoY, driven by demand for door-locking products

GROSS MARGIN IMPROVEMENT - Gross profit margin improved to 58.6% from 57.0% in prior fiscal year quarter

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
$48.20 mln
$48.43 mln (5 Analysts)
Q2 EPS
$0.38
Q2 Gross Margin
58.60%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Press Release: ID:nPn88M4LQa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)