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Sep 30, 2025
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
Revenue by Segment
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
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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