NASDAQ$NSSC

Napco Security Technologies Inc · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

NAPCO's Q1 2025 financial results were announced, featuring record revenue and net income for any first quarter in the company's history.

NAPCO Security Technologies reported a 6% increase in net sales, reaching a Q1 record of $44.0 million, and a 7% increase in net income, also a Q1 record, at $11.2 million. Recurring service revenues increased by 22% to $21.1 million, while adjusted EBITDA decreased by 4% to $12.3 million.

  • Net sales increased by 6% to a record $44.0 million for Q1.
  • Recurring service revenue increased by 22% to $21.1 million.
  • Net income increased by 7% to a record $11.2 million for Q1.
  • The board declared a quarterly dividend of $0.125 per share.

Headline financials

Total Revenue

$44M

Previous: $41.7M+5.6%
EPS

$0.30

Previous: $0.28+7.1%
Gross margin

55.9%

No prior period
Adjusted EBITDA

$12.3M

Previous: $12.9M-4.0%
Capital Expenditures

-$680K

Previous: -$256K-165.6%
Free Cash Flow

$10.5M

Previous: $10.2M+2.8%
Net Income

$11.2M

Previous: $10.5M+6.7%
Operating Income

$11.9M

Previous: $11.6M+2.6%
Gross Profit

$24.6M

Previous: $22.4M+9.8%
R&D Expense

$3.06M

No prior period
Stock-Based Comp

$371K

Previous: $307K+20.8%

Revenue & EPS history

Napco · Revenue · Quarterly

$44M

Q1 2025+5.6%vs Q1 2024
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Napco · $16.1M total across 1 segment · Q4 2023

  • Recurring Services
    $16.1M

Forward guidance

NAPCO anticipates improvements in locking sales once distributors complete the reduction of their inventory levels, which should lead to improved equipment revenue, improved equipment gross margins and the continuation of very profitable recurring revenue.

Tailwinds

  • Strength of Starlink radio sales, particularly the Starlink Fire radio.
  • Expectation is that Starlink radio sales will remain strong.
  • Anticipated improvement in locking sales once distributors complete the reduction of their inventory levels.
  • Improved equipment revenue.
  • Continuation of very profitable recurring revenue.

Headwinds

  • Disappointment in overall equipment sales.
  • Locking sales decreased 8% compared to last year.
  • Locking products represents approximately 60% of equipment revenues.
  • Robust radio sales have a negative impact on overall equipment gross margins.
  • Equipment revenue decreased 6% for the quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

+1.4%

Avg return

Earnings day

+2.7%

Avg return

5 days after

+7.5%

Avg return

30 days after

45%

29 / 64 earnings

Positive

+33.0%

Q1 2024

Best reaction

-26.6%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-15.2%-12.6%-22.9%
Q2 2026+11.4%+18.3%+18.1%
Q1 2026-6.8%-4.6%-7.1%
Q3 2025+3.6%+10.9%+20.2%
Q2 2025-26.6%-29.9%-33.7%
Q1 2025-6.9%+0.2%+5.7%
Q4 2024-16.4%-16.4%-25.2%
Q3 2024+7.7%+4.5%+22.0%
Q2 2024+21.3%+25.7%+14.9%
Q1 2024+33.0%+35.6%+69.5%
Q4 2023+8.9%-38.4%-38.6%
Q3 2023+20.9%+22.8%+39.2%
Q2 2023+14.3%+1.6%+8.8%
Q1 2023+8.9%+13.0%+5.0%
Q4 2022+16.3%+13.9%+17.2%
Q3 2022-2.2%+4.0%+21.9%
Q2 2022-2.9%-3.9%-0.1%
Q1 2022-5.9%-3.4%+2.5%
Q4 2021+18.5%+8.7%+18.3%
Q3 2021-1.8%-2.9%+1.5%
Q2 2021+15.1%+20.6%+33.5%
Q1 2021+10.3%+16.3%+25.3%
Q4 2020-4.8%-3.3%+5.6%
Q3 2020+12.2%+19.1%+34.0%
Q2 2020-25.6%-23.3%-30.0%
Q1 2020-0.1%-1.6%+4.3%
Q4 2019-24.0%-25.3%-26.2%
Q3 2019+12.0%+10.6%+21.2%
Q2 2019+21.8%+29.7%+32.9%
Q1 2019+12.9%+15.0%+7.8%
Q4 2018+2.0%+2.0%-3.6%
Q3 2018+7.9%+7.3%+7.8%
Q2 2018-0.4%-0.5%+1.6%
Q1 2018-3.4%-5.1%-5.6%
Q4 2017+18.6%+9.0%+28.4%
Q3 2017-5.0%-10.0%-6.7%
Q2 2017-0.6%-2.7%+6.5%
Q1 2017+4.8%+6.4%+19.1%
Q4 2016-5.9%-7.3%-2.0%
Q3 2016-0.7%
Q2 2016-2.6%
Q1 2016-4.4%
Q4 2015-3.1%
Q3 2015+2.7%
Q2 2015+8.0%
Q1 2015-6.1%
Q4 2014+5.1%
Q3 2014+7.2%
Q2 2014-5.9%
Q1 2014-1.3%
Q4 2013-1.8%
Q3 2013-1.8%
Q2 2013+2.9%
Q1 2013-3.7%
Q4 2012+7.6%
Q3 2011-7.7%
Q3 2012-7.7%
Q2 2011-10.7%
Q2 2012-10.7%
Q1 2012-1.8%
Q4 2011+1.8%
Q1 2011+1.8%
Q4 2010-2.2%
Q3 2010-0.9%

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