NAPCO Q1 profit advances 6.9% as services revenue climbs
Pontos principais
- NAPCO reported fiscal Q1 2027 revenue of $50 million, while net income increased 6.9% to $13 million and diluted EPS rose to $0.36.
- Service revenue increased 11.5% to $26.1 million, with gross margins above 90%, while equipment revenue declined 7.3%.
- NAPCO declared a quarterly dividend of $0.17 per share, payable January 4, 2027, and reported a prospective annual recurring service revenue run rate of approximately $106 million.
NAPCO Security Technologies (NASDAQ:NSSC) reported fiscal first-quarter 2027 revenue of $50 million, up 1.7% year over year, while net income increased 6.9% to $13 million.
Diluted earnings per share rose 5.9% to $0.36, while recurring service revenue increased 11.5% to $26.1 million, offsetting weaker equipment sales.
NAPCO Chairman and Chief Executive Officer Richard Soloway said the company continued to expand its recurring revenue business while maintaining gross margins above 90% in its service operations.
Equipment revenue declined 7.3% to $23.9 million, while consolidated gross margin increased to 58.7% from 56.6% and adjusted EBITDA rose 3.8% to $15.5 million.
The company reported operating cash flow of $2.75 million, down from $11.64 million, while free cash flow declined 79.8% to $2.317 million.
Its board declared a quarterly dividend of $0.17 per share, payable January 4, 2027, to shareholders recorded December 14.
NAPCO estimated its prospective annual recurring service revenue run rate at approximately $106 million based on October 2026 revenue, reflecting the contribution of its subscription-based security services.
The company develops and manufactures electronic security products, including access control systems, intrusion alarms, locking systems and related monitoring services for commercial, institutional and residential customers.
