Loading...
•
Sep 30
Napco Q1 2026 Earnings Report
Napco reported record Q1 2026 revenue of $49.2 million, driven by double-digit growth in both equipment and recurring service revenue.
Key Takeaways
Napco delivered strong Q1 2026 results with growth across all key segments. Recurring service revenue hit $23.4 million and continued to drive profitability with a 90% gross margin. Equipment sales also performed well, supported by demand for door-locking systems.
Total revenue rose to $49.2 million, up 11.7% YoY
Recurring service revenue reached $23.4 million with 90% gross margin
Net income increased to $12.2 million or $0.34 per diluted share
Adjusted EBITDA grew to $14.9 million with a 30.4% margin
Napco
Napco
Napco Revenue by Segment
Revenue by Segment
Recurring Service Revenue
CapyFin.comEquipment Sales Revenue
CapyFin.com Forward Guidance
Napco expects continued growth in recurring service revenue and strong margins as demand remains robust across product lines.
Positive Outlook
- Strong RSR growth and 90%+ margins maintained
- Continued demand for door-locking and fire solutions
- Adjusted EBITDA margin improved YoY to 30.4%
- Dividend of $0.14 declared for shareholders
- Healthy cash position of $95.4 million
Challenges Ahead
- Slight YoY decline in operating cash flow
- Continued dependence on strong service revenue growth
- Marketable securities down from prior quarter
- Inventories increased slightly QoQ
- Gross margin improvement was modest YoY
Revenue & Expenses
Visualization of income flow from segment revenue to net income