NAPCO Q3 Revenue Jumps 11.8% to $49.2M; Adjusted EBITDA Hits $15.8M
NAPCO Security's fiscal Q3 net revenue rose 11.8% YoY to $49.2M, driven by 15.4% growth in high-margin recurring service revenue, which hit a $101M annual run rate. Adjusted EBITDA climbed 20.2% to a record $15.8M (32.2% margin), and the board declared a $0.15/share dividend.
1. Revenue and Segment Performance
Net revenues for Q3 reached $49.2 million, marking an 11.8% year-over-year increase as equipment sales rose 8.4% to $24.2 million and recurring service revenue grew 15.4% to $24.9 million, sustaining a 90.4% gross margin and generating a prospective $101 million annual run rate.
2. Profitability and Margins
Overall gross profit margin expanded to 60.0% from 57.2%, while GAAP net loss of $0.4 million included a $16.0 million litigation settlement charge; on a non-GAAP basis, net income climbed 36.9% to $13.9 million, diluted EPS rose to $0.39, and adjusted EBITDA increased 20.2% to $15.8 million (32.2% margin).
3. Dividend Declaration
The board authorized a quarterly cash dividend of $0.15 per share payable on July 3, 2026, to shareholders of record as of June 12, 2026.