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Jun 30
Napco Q4 2025 Earnings Report
Napco reported stable Q4 2025 results with modest sales growth and strong recurring revenue margins.
Key Takeaways
In Q4 2025, Napco delivered $50.7M in revenue and $11.63M in net income. Recurring service revenue grew to $22.4M with a strong 91% margin, though EPS declined slightly year over year.
Q4 revenue increased slightly to $50.7M
Recurring service revenue reached $22.4M, up 10% YoY
Diluted EPS was $0.33 vs. $0.36 last year
Gross margin stood at 52.8%, down from 55.3%
Napco
Napco
Napco Revenue by Segment
Revenue by Segment
Recurring Services Revenue
CapyFin.comEquipment Sales Revenue
CapyFin.com Forward Guidance
Napco expects continued strength in recurring services and cash flow into FY2026, while monitoring challenges in equipment sales.
Positive Outlook
- Strong recurring service revenue with 91% gross margin
- Sequential growth in equipment sales from Q3
- Prospective annualized RSR run rate of ~$94M
- Cash flow from operations exceeded $53M for FY
- No outstanding debt on balance sheet
Challenges Ahead
- Slight YoY decline in overall net income
- EPS declined from prior year
- Equipment revenue down 5% YoY
- Gross margin slightly lower than last year
- Distributor destocking remained a headwind
Revenue & Expenses
Visualization of income flow from segment revenue to net income