NASDAQ$NSSC

Napco Security Technologies Inc · Q2 2025 earnings

Q2 2025 earnings · · Before market open · Investor relations

Briefing

NAPCO Security Technologies reported a decrease in net sales but an increase in recurring service revenue and gross profit margin compared to the prior year quarter.

NAPCO Security Technologies reported a decrease in net sales by 9.7% year-over-year, but an increase in recurring service revenue by 14.4%. The gross profit margin improved to 57.0% from 52.6% in the prior year quarter. Diluted EPS decreased to $0.28 from $0.34 in the prior year quarter.

  • Net sales decreased by 9.7% year-over-year to $43.0 million.
  • Recurring service revenue increased by 14.4% to $21.2 million.
  • Gross profit margin improved to 57.0% compared to 52.6% in the prior year quarter.
  • Diluted EPS decreased to $0.28 from $0.34 in the prior year quarter.

Headline financials

Total Revenue

$42.9M

Previous: $47.5M-9.7%
EPS (adj)

$0.28

Previous: $0.34-17.6%
Gross margin

57.0%

No prior period
Adjusted EBITDA

$12.2M

Previous: $15.1M-19.3%
Capital Expenditures

-$1.81M

Previous: -$682K-166.0%
Net Income

$10.5M

Previous: $12.6M-17.0%
Operating Income

$11.2M

Previous: $13.8M-19.1%
Gross Profit

$24.5M

Previous: $25M-2.1%
Stock-Based Comp

$386K

Previous: $303K+27.4%

Revenue & EPS history

Napco · Revenue · Quarterly

$42.9M

Q2 2025-9.7%vs Q2 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 Security Technologies anticipates improvement in equipment sales through the balance of Fiscal 2025 and remains confident that its strong net income, Adjusted EBITDA and cash flow, will improve further.

Tailwinds

  • Anticipate improvement in equipment sales through the balance of Fiscal 2025
  • Confident that strong net income will improve further
  • Confident that Adjusted EBITDA will improve further
  • Confident that cash flow will improve further
  • Will strive to accomplish goal of continued financial strength, product innovation, technical superiority and strong profitability

Headwinds

  • Reduction in equipment revenue was a result of lagging sales in intrusion and access alarm products and door locking devices
  • Reduced sales to two of our larger distributors
  • Timing of new project work for custom locking products has resulted in reduced sales of locking devices
  • Completing a project related to a significant New York City building renovation which began in fiscal 2024
  • Disappointed in overall equipment sales

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 Q2 2025

Historical avgQ2 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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