NAPCO Security Technologies' Q3 revenue slightly misses estimates

NAPCO Security Technologies

04/05/2026 12:09

Overview

US security equipment maker's fiscal Q3 revenue rose yr/yr, slightly missing analyst expectations

Adjusted EBITDA for fiscal Q3 beat analyst estimates

Company took $16 mln litigation settlement charge, leading to GAAP net loss for quarter

Outlook

Company did not provide specific financial guidance for future quarters or the full year in press release

Result Drivers

RECURRING SERVICE REVENUE - Double-digit growth in recurring service revenue, which made up 51% of Q3 revenue and maintained gross margins over 90%, supported overall results

MARGIN EXPANSION - Overall gross profit margin rose to 60.0% from 57.2% a year earlier, reflecting improved revenue mix and operational performance

Company press release: ID:nPn19qwnTa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
$49.20 mln
$49.28 mln (6 Analysts)
Q3 Adjusted EBITDA
Beat
$15.80 mln
$14.06 mln (6 Analysts)
Q3 Gross Margin
60.00%


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

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 $49.50, about 6% above its May 1 closing price of $46.72

The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 25 three months ago

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.)