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Security systems maker NAPCO's Q4 revenue beats estimates

ReutersAug 25, 2025 11:12 AM


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

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