Security systems maker NAPCO's Q4 revenue beats estimates

NAPCO Security Technologies

25/08/2025 12:12

Overview

NAPCO fiscal Q4 revenue of $50.7 mln beats analyst expectations

Recurring service revenue grows 10% in Q4, maintaining 91% gross margin

Equipment sales decrease 5% YoY, but rise 27% sequentially from Q3

Outlook

NAPCO expects equipment sales growth in fiscal 2026

Company anticipates recurring service revenue run rate of $94 mln

Company sees strong net income and cash flow in fiscal 2026

Result Drivers

RECURRING SERVICE REVENUE - RSR increased 10% in Q4, with a 91% gross margin, representing 44% of total revenue

EQUIPMENT SALES DECLINE - Equipment sales fell 5% YoY in Q4, attributed to distributor destocking and project timing issues

GROSS MARGIN DROP - Q4 gross profit margin decreased to 52.8% from 55.3% in the prior year qtr

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$50.70 mln
$44.40 mln (6 Analysts)
Q4 EPS
$0.33
Q4 Gross Margin
52.8%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "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 $29.00, about 9.3% below its August 22 closing price of $31.70

The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nPnb5HCWKa

(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.)