Napco Security Recurring Revenue Surges

Napco Security Technologies (NASDAQ:NSSC) reported Q4 2025 earnings on August 25, 2025, with net sales of $50.7 million (up 0.8% year-over-year) and the full-year recurring revenue run rate reaching $94 million, up $5 million sequentially. Recurring revenue gross margin remained at 91% for the year, GAAP net income totaled $43.4 million (24% of sales), and year-end cash was $99.1 million with zero debt; management highlighted double-digit recurring revenue growth, strong hardware rebound, and sharpened pricing strategies for fiscal 2026.StarLink fire radio activations boosted recurring monthly service revenue (RMR) by 10% year-over-year, with recurring revenue now accounting for nearly half of annual sales and sustaining exceptionally high gross margins. Gross profit from recurring service revenue reached $78.5 million at a 91% gross margin, directly contrasting a 15.7% year-over-year decline in GAAP equipment sales.The increasing contribution of high-margin, contract-based service revenue ensures predictable cash flows and positions Napco Security Technologies for resilient earnings even through equipment revenue volatility.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool