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NSSC

Napco Security Technologies, Inc.

NSSC

Napco Security Technologies, Inc. • NASDAQ
$40.40 ▼ -0.88% (-0.36)
Market Cap $1.44 B
52w High $48.12
52w Low $19.00
Dividend Yield 0.56%
P/E 32.85
Volume 94.59K
Outstanding Shares 35.66M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q1-2026 $49.168M ▼ $14.203M ▼ $12.165M ▲ 24.742% ▲ $0.34 ▲ $15.205M ▲
Q4-2025 $50.724M ▲ $14.712M ▲ $11.632M ▲ 22.932% ▼ $0.32 ▲ $12.657M ▲
Q3-2025 $43.961M ▲ $13.981M ▲ $10.122M ▼ 23.025% ▼ $0.28 ▼ $11.718M ▼
Q2-2025 $42.933M ▼ $13.318M ▲ $10.467M ▼ 24.38% ▼ $0.29 ▼ $11.755M ▼
Q1-2025 $44.003M $12.76M $11.185M 25.419% $0.3 $12.405M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q1-2026 $89.297M ▼ $190.863M ▼ $29.315M ▼ $161.548M ▼
Q4-2025 $99.176M ▲ $198.141M ▲ $29.535M ▲ $168.606M ▲
Q3-2025 $89.297M ▼ $190.863M ▼ $29.315M ▲ $161.548M ▼
Q2-2025 $99.195M ▼ $202.684M ▼ $28.457M ▼ $174.227M ▼
Q1-2025 $102.188M $209.891M $31.282M $178.609M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q1-2026 $10.122M ▼ $13.379M ▼ $-2.645M ▼ $-23.34M ▼ $-12.606M ▼ $13.314M ▼
Q4-2025 $11.632M ▲ $14.624M ▲ $-488K ▲ $-4.468M ▲ $9.668M ▲ $14.387M ▲
Q3-2025 $10.122M ▼ $13.379M ▼ $-2.645M ▼ $-23.34M ▼ $-12.606M ▼ $13.314M ▲
Q2-2025 $10.467M ▼ $13.499M ▲ $2.262M ▼ $-15.338M ▼ $423K ▼ $12.365M ▲
Q1-2025 $11.185M $12.025M $15.456M $-7.226M $20.255M $11.345M

Revenue by Products

Product Q2-2025Q3-2025Q4-2025Q1-2026
Door locking devices
Door locking devices
 $10.00M ▲$10.00M ▲$20.00M ▲$20.00M ▲
Intrusion and access alarm products
Intrusion and access alarm products
 $10.00M ▲$10.00M ▲$10.00M ▲$10.00M ▲
Service
Service
 $20.00M ▲$20.00M ▲$20.00M ▲$20.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Napco’s income statement shows a business that has grown steadily over the last several years, moving from being a smaller niche player to a more meaningful, profitable operator. Sales have climbed at a healthy pace, and profits have scaled even faster, which suggests good pricing power, favorable product mix, and cost discipline. Margins have widened over time, helped by the shift toward high‑margin recurring service revenue from cellular communicators and cloud services. That means each dollar of revenue is now generating more profit than in prior years. The most recent year does show a modest step down from an exceptionally strong prior year, which looks more like a normalization than a structural problem. Overall, the trend still points to a company that has successfully turned growth into solid, repeatable earnings.

Balance Sheet

Balance Sheet The balance sheet looks conservative and resilient. Total assets and shareholder equity have risen consistently, indicating that the company has been building its base of resources and net worth over time. Cash levels have increased meaningfully, while debt has remained very low and largely unchanged. This combination—more cash, little leverage—gives Napco flexibility to fund growth, withstand downturns, or invest in new initiatives without relying heavily on borrowing. In simple terms, the company appears to be in a strong financial position with a cushion against shocks.

Cash Flow

Cash Flow Napco’s cash flow profile is a key strength. Cash generated from day‑to‑day operations has grown in line with, and at times faster than, reported profits, which is a good sign that earnings are backed by real cash rather than accounting only. Because the business model is relatively asset‑light, capital spending needs have been modest. As a result, free cash flow—the cash left after basic reinvestment—has been solid and improving over time. This gives Napco room to fund product development, potential acquisitions, or returns of capital, while still maintaining a healthy cash buffer.

Competitive Edge

Competitive Edge Competitively, Napco has carved out a differentiated position in electronic security and access control, particularly through its StarLink cellular communicator platform. The universal compatibility of these devices with many brands, coupled with multi‑carrier connectivity and easy installation, makes them attractive to security dealers who value simplicity and flexibility. The company’s recurring service revenue from cellular and cloud services creates a sticky, long‑term relationship with customers and dealers. That stream is high‑margin and predictable, giving Napco an edge over competitors more dependent on one‑time hardware sales. In addition, its family of brands in locks, access control, and integrated systems allows it to offer end‑to‑end solutions, strengthening dealer loyalty and making it harder for rivals to displace.

Innovation and R&D

Innovation and R&D Innovation is at the center of Napco’s strategy. The StarLink ecosystem is a clear example: universal communicators, 5G, multi‑carrier support, and installer‑friendly features are all aimed at solving real pain points for dealers. Newer products like AirAccess (access control delivered as a cloud service), the MVP managed video and access platform, and the Prima connected home system show a deliberate push into cloud, mobile, and integrated smart security. Much of this innovation is designed to deepen recurring revenue—turning one‑time hardware installs into long‑term service relationships. Napco is also leaning into specific growth niches, such as school security and small‑to‑mid‑size business access control, where tailored solutions and regulatory drivers can support demand. The challenge will be to keep pace with rapid changes in cellular, cloud, and cybersecurity technologies, but the current product roadmap suggests a company actively investing to stay ahead.

Summary

Napco Security Technologies combines steady growth, rising profitability, and a conservative balance sheet with a clear strategic focus on high‑margin recurring services. Over the past several years, it has transformed from a more hardware‑driven manufacturer into a hybrid hardware‑plus‑services platform, with stronger margins and cash generation to show for it. Financially, the business appears cash‑rich and lightly leveraged, with profits largely backed by cash flow. Competitively, its universal cellular communicators, access control offerings, and integrated ecosystem give it a meaningful niche in the security market, particularly with professional dealers and education customers. Looking ahead, the main opportunities lie in expanding cloud and cellular services, deepening recurring revenue, and capturing more share in access control and school security. Key risks to monitor include technology shifts in cellular networks, intensifying competition in cloud‑based security platforms, and the need to continually innovate to maintain its moat. Overall, Napco presents as a financially solid, innovation‑driven security company with a business model that increasingly favors durable, service‑based income streams.

NEWS

November 24, 2025 · 3:43 PM UTC

NAPCO Security Technologies Releases ISC East 2025 Recap Video Highlighting Booth Engagement

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November 17, 2025 · 7:30 AM UTC

NAPCO to Showcase New Products at the International Security Conference & Exposition

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November 3, 2025 · 7:00 AM UTC

NAPCO Security Technologies, Inc. Reports Fiscal Q1 Results

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October 29, 2025 · 7:30 AM UTC

NAPCO Security Technologies to Announce Fiscal First Quarter 2026 Results Monday, November 3, 2025

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October 23, 2025 · 11:20 AM UTC

Halper Sadeh LLC Encourages NAPCO Security Technologies, Inc. Shareholders to Contact the Firm to Discuss Their Rights

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