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