Earnings Releases·Nov 2, 2026, 11:04 AM ET

NAPCO Security Technologies — Fiscal Q1 2027 Earnings Summary

Net revenue rose 1.7% year-over-year to a record $50.0 million, driven by an 11.5% increase in recurring service revenue (RSR) to $26.1 million, while equipment revenue declined 7.3% to $23.9 million.
Profitability metrics expanded with net income up 6.9% to $13.0 million and non-GAAP Adjusted EBITDA increasing 3.8% to a record $15.5 million, though free cash flow dropped 79.8% to $2.3 million.
Management raised the RSR prospective annual run rate to approximately $106 million and expressed confidence in underlying business health despite temporary distributor purchase reductions.
The Board declared a quarterly dividend of $0.17 per share, and total liabilities decreased to $33.3 million following the reduction of accrued litigation costs to zero.