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Dec 31, 2025
Napco Q2 2026 Earnings Report
The company reported record second-quarter revenue and strong profitability driven by recurring service revenue growth.
Key Takeaways
Napco delivered a strong Q2 FY2026 with double-digit revenue growth, expanding margins, and higher earnings, supported by continued momentum in recurring service revenue and solid equipment sales.
Quarterly revenue reached a record level driven by recurring services and equipment demand.
Recurring service revenue represented roughly half of total revenue with very high margins.
Net income and operating income increased significantly year over year.
Cash generation remained strong, supporting dividends and balance sheet strength.
Revenue by Segment
Forward Guidance
Management expressed confidence in continued growth in earnings, cash flow, and recurring service revenue for the remainder of the fiscal year.
Positive Outlook
- Ongoing double-digit growth in recurring service revenue.
- Sustained high gross margins in service revenue.
- Strong balance sheet with growing cash position.
- Continued demand for access control and locking products.
- Confidence in continued growth through the rest of FY2026.
Challenges Ahead
- Exposure to general economic and market conditions.
- Potential supply chain and component availability risks.
- Dependence on continued adoption of new platforms by dealers.
- Competitive pressures in the security technology market.
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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