NAPCO Announces Increases in Net Sales RMR for Q4, Fiscal 2025
AMITYVILLE, N.Y. — NAPCO Security Technologies, Inc., announced financial results for its fourth quarter of fiscal 2025 this week, highlighted by recurring monthly revenue growth of 10% for the three months ending June 30 and 14% for fiscal 2025 and a net sales increase of 1% for the fourth quarter of the fiscal year.
NAPCO‘s RMR jumped to $22.4 million for the fourth quarter of fiscal 2025 and $86.3 million for the full year, while net sales were up to $50.7 million in the last three months of the fiscal year and down 4% to $181.6 million for the 12-months ending June 30.
“With the completion of our fourth quarter of fiscal 2025, our (recurring monthly revenue) remains strong as we continue to see double-digit growth in Q4 and annually and gross margins at 91%,” says chairman and CEO Richard Soloway in the NAPCO announcement.
Inside the NAPCO Q4 and Fiscal 2025 Results
RMR represents 44% and 48% of NAPCO’s total revenue in Q4 and annually, respectively, and “our RSR has a prospective run rate of approximately $94 million based on our July 2025 recurring service revenue, which reflects approximately a $5 million increase from what was reported at the end of our third quarter of fiscal 2025,” he says.
“We faced challenges with our equipment revenue performance throughout fiscal 2025 as distributor destocking lingered throughout the year as well as timing of larger project work in our door-locking segment,” says Soloway. “However, we are encouraged by the 27% increase in equipment sales from Q3 to Q4, and we are optimistic that equipment sales will grow in Fiscal 2026, and believe we are well positioned with the evolving tariff environment.”
In the fourth quarter, NAPCO introduced the cloud-based MVP Access platform, which “empower(s) security teams to experience 24/7 security management, enabling users to lock down doors, adjust threat levels and monitor real-time events from anywhere and eliminates the need for on-premises hardware or databases.”
“This product line is anticipated to generate future monthly recurring revenue for both locking and access control dealers and the company,” says Soloway.
NAPCO’s return on adjusted EBITDA of 28% in fiscal 2025 “remains robust and we were successful in our goal of significantly reducing our inventory levels by $8.6 million, while also generating over $53 million in cash flows from operations with no debt,” he says.
During fiscal 2025, the company declared cash dividends of $18.6 million to shareholders and repurchased $36.8 million of its common stock.
“As we enter fiscal 2026, we remain confident that our net income, Adjusted EBITDA* and cash flow, will continue to be strong,” says Soloway. “As such, we are pleased to continue our dividend program and will be paying the next quarterly dividend of $0.14 per share on October 3, 2025 to shareholders of record on September 12, 2025.
“We continue to strive to accomplish our goal of continued financial strength, product innovation, technical superiority and strong profitability, for fiscal 2026 and beyond,” he says.
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from Security Sales & Integration https://www.securitysales.com/news/napco-q4-fiscal-2025/613804/
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