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Sep 30, 2024
Napco Q1 2025 Earnings Report
NAPCO's Q1 2025 financial results were announced, featuring record revenue and net income for any first quarter in the company's history.
Key Takeaways
NAPCO Security Technologies reported a 6% increase in net sales, reaching a Q1 record of $44.0 million, and a 7% increase in net income, also a Q1 record, at $11.2 million. Recurring service revenues increased by 22% to $21.1 million, while adjusted EBITDA decreased by 4% to $12.3 million.
Net sales increased by 6% to a record $44.0 million for Q1.
Recurring service revenue increased by 22% to $21.1 million.
Net income increased by 7% to a record $11.2 million for Q1.
The board declared a quarterly dividend of $0.125 per share.
Revenue by Segment
Forward Guidance
NAPCO anticipates improvements in locking sales once distributors complete the reduction of their inventory levels, which should lead to improved equipment revenue, improved equipment gross margins and the continuation of very profitable recurring revenue.
Positive Outlook
- Strength of Starlink radio sales, particularly the Starlink Fire radio.
- Expectation is that Starlink radio sales will remain strong.
- Anticipated improvement in locking sales once distributors complete the reduction of their inventory levels.
- Improved equipment revenue.
- Continuation of very profitable recurring revenue.
Challenges Ahead
- Disappointment in overall equipment sales.
- Locking sales decreased 8% compared to last year.
- Locking products represents approximately 60% of equipment revenues.
- Robust radio sales have a negative impact on overall equipment gross margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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