Form 8-K
8-K — NAPCO SECURITY TECHNOLOGIES, INC
Accession: 0001104659-26-100077
Filed: 2026-08-24
Period: 2026-08-20
CIK: 0000069633
SIC: 3669 (COMMUNICATIONS EQUIPMENT, NEC)
Item: Results of Operations and Financial Condition
Item: Regulation FD Disclosure
Item: Financial Statements and Exhibits
Documents
8-K — nssc-20260820x8k.htm (Primary)
EX-99.1 (nssc-20260820xex99d1.htm)
XML — IDEA: XBRL DOCUMENT (R1.htm)
8-K
8-K (Primary)
Filename: nssc-20260820x8k.htm · Sequence: 1
NAPCO SECURITY TECHNOLOGIES, INC._August 20, 2026
0000069633false00000696332026-08-202026-08-20
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
August 20, 2026
NAPCO SECURITY TECHNOLOGIES, INC.
(Exact name of registrant as specified in charter)
Delaware
0-10004
11-2277818
(State or other jurisdiction of
(Commission File Number)
(IRS Employer Identification No.)
incorporation)
333 Bayview Avenue, Amityville, New York 11701
(Address of principal executive offices)
Registrant’s telephone number, including area code (631) 842-9400
(Former name and former address if changed from last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.01 per share
NSSC
Nasdaq Stock Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (section 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Item 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On August 20, 2026, the registrant issued a press release to report results for the three months and year ended June 30, 2026. This press release is furnished as Exhibit 99.1.
The information in this Current Report on Form 8-K, including the exhibit attached hereto, is furnished pursuant to Item 2.02, and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section.
Item 7.01. REGULATION FD DISCLOSURE
On August 20, 2026, the Company’s Board of Directors declared a cash dividend of $.17 per share payable on October 2, 2026, to stockholders of record on September 11, 2026. Information regarding this declaration is included in the press release furnished as Exhibit 99.1.
Item 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits:
99.1
Press Release issued by Napco Security Technologies, Inc. dated August 24, 2026.
10 4
Cover Page Interactive Data File (formatted as Inline XBRL).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunder duly authorized.
NAPCO SECURITY TECHNOLOGIES, INC.
(Registrant)
Date: August 24,2026
By:
/s/ Kevin S. Buchel
Kevin S. Buchel
Chief Executive Officer & President
EX-99.1
EX-99.1
Filename: nssc-20260820xex99d1.htm · Sequence: 2
Exhibit 99.1
NAPCO Security Technologies, Inc. Reports Fiscal Q4 and Full Year 2026 Results
AMITYVILLE, N.Y., August 24, 2026 /PRNewswire/ -- NAPCO Security Technologies, Inc. (NASDAQ: NSSC), one of the leading manufacturers and designers of high-tech electronic security equipment, wireless communication devices for intrusion and fire alarm systems and the related recurring service revenues as well as a provider of school safety solutions, today announced financial results for its fourth quarter and fiscal year 2026. Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release.
Fourth Quarter 2026 Financial Results as Compared to Fourth Quarter 2025
● Net revenue increased 10.0% to a quarterly record $55.8 million, as compared to $50.7 million
● Recurring service revenue (“RSR”) increased 12.9% to $25.3 million, with over 90% gross margin, as compared to $22.4 million
● Equipment revenue increased 7.7% to $30.5 million, compared to $28.3 million
● Gross profit margin of 61.3%, which included a benefit of approximately 600 basis points from tariff refunds, vs 52.8% in prior fiscal year quarter
● Net Income increased 52.7% YoY to a quarterly record $17.8 million, as compared to $11.6 million
● Diluted Net Income per share increased 51.5% to $0.50, which is inclusive of a benefit of approximately $0.09 from net tariff refunds, as compared to $0.33
● Non-GAAP Adjusted EBITDA increased 44.3% to a quarterly record $20.6 million with an Adjusted EBITDA Margin of 36.8%
Full Year 2026 Financial Results as Compared to Full Year 2025
● Net revenue increased 11.4% to a record $202.3 million, as compared to $181.6 million
● RSR increased 13.0% to $97.5 million, with over 90% gross margin, as compared to $86.3 million
● RSR has a prospective annual run rate of approximately $103 million based on July 2026 recurring service revenues
● Equipment revenue increased 10.0% to $104.8 million, compared to $95.3 million
● Gross profit margin of 59.2%, which included a benefit of approximately 50 basis points from tariff refunds, vs 55.6% in prior fiscal year
● Net Income decreased (.9%) to $43.0 million, as compared to $43.4 million. Full year net income and net income per share were negatively affected by a $16 million litigation settlement charge taken in Q3 of fiscal 2026
● Diluted Net Income per share increased 0.8% YoY to $1.20, which is inclusive of a benefit of approximately $0.03 from net tariff refunds and negative impact of approximately $0.40 from net litigation settlement costs, as compared to $1.19
● Non-GAAP Net Income increased 32.0% to $57.3 million, as compared to $43.4 million
● Non-GAAP Diluted Net Income per share increased 34.5% YoY to $1.60, as compared to $1.19.
● Non-GAAP Adjusted EBITDA increased 27.9% YoY to a record $66.7 million, with an Adjusted EBITDA Margin of 33.0%
● The Board declared a quarterly dividend of $0.17 per share, payable on October 2, 2026 to shareholders of record on September 11, 2026.
Kevin Buchel, CEO and President, commented, “Our Fiscal Q4 performance completes a strong close to our fiscal year end and reflects continued positive financial results. We achieved record Q4 revenue and Adjusted EBITDA of $55.8 and $20.6 million, respectively, which was bolstered by our recurring service revenue with its continued year over year double digit growth. We saw a rebound in our equipment sales, which increased 10.0% for the year, driven by strong demand for our door-locking products as well as a 36% growth in sales of our intrusion products in Q4, which is primarily a result of increased sales of our StarLink fire communicators. Our RSR continues to deliver gross margins of over 90%, and represents approximately 45% of total revenue in Q4, and has a prospective run rate of approximately $103 million based on our July 2026 recurring service revenue. Our revenue growth and margin expansion in Q4 resulted in a 53% increase in net income, a 44% increase in Non-GAAP Adjusted EBITDA and our Adjusted EBITDA margin was 36.8% as compared to 28.1% in Q4 of Fiscal 2025.
As such we are pleased to continue our dividend program and will be increasing the quarterly dividend by 13.3% to $0.17 per share, which will be paid on October 2, 2026, to shareholders of record on September 11, 2026.”
Three months ended June 30,
Year ended June 30,
(dollars in thousands)
(dollars in thousands)
% Increase/
% Increase/
Financial Highlights
2026
2025
(decrease)
2026
2025
(decrease)
GAAP Results
Net Revenue
$
55,809
$
50,724
10.0
%
$
202,316
$
181,621
11.4
%
Gross Profit
$
34,218
$
26,798
27.7
%
$
119,791
$
101,030
18.6
%
Gross Profit Margin
61.3
%
52.8
%
59.2
%
55.6
%
Operating Income
$
18,430
$
12,086
52.5
%
$
45,638
$
46,259
(1.3)
%
Net Income
$
17,767
$
11,632
52.7
%
$
43,027
$
43,406
(0.9)
%
Diluted Earnings Per Share
$
0.50
$
0.33
51.5
%
$
1.20
$
1.19
0.8
%
Non-GAAP Results
Operating Income
$
18,430
$
12,086
52.5
%
$
61,638
$
46,259
33.2
%
Net Income
$
17,767
$
11,632
52.7
%
$
57,294
$
43,406
32.0
%
Net Income Margin
31.8
%
22.9
%
28.3
%
23.9
%
Diluted Earnings Per Share
$
0.50
$
0.33
51.5
%
$
1.60
$
1.19
34.5
%
Adjusted EBITDA
$
20,559
$
14,249
44.3
%
$
66,670
$
52,126
27.9
%
Adjusted EBITDA Margin
36.8
%
28.1
%
33.0
%
28.7
%
Adjusted EBITDA Per Share
$
0.57
$
0.40
42.5
%
$
1.86
$
1.43
30.1
%
Free Cash Flows
$
17,249
$
14,387
19.9
%
$
59,228
$
51,411
15.2
%
Free Cash Flows Margin
30.9
%
28.4
%
29.3
%
28.3
%
Conference Call Information
Management will conduct a conference call at 11 a.m. ET today, August 24, 2026, and in order to participate please go to the Investor Relations section of the Company website at https://investor.napcosecurity.com/events-presentations or choose https://app.webinar.net/OM3bGdQ8gY1. Alternatively, interested parties may participate in the call by dialing (US) 1-800-836-8184 or 1-646-357-8785. A replay of the webcast will be available on the Investor Relations section of the Company’s website.
About NAPCO Security Technologies, Inc.
NAPCO Security Technologies, Inc., is one of the leading manufacturers and designers of high-tech electronic security devices, wireless recurring communication services for intrusion and fire alarm systems as well as a provider of school safety solutions, The Company consists of four Divisions: NAPCO, plus three wholly owned subsidiaries: Alarm Lock, Continental Instruments, and Marks USA. Headquartered in Amityville, New York, its products are installed by tens of thousands of security professionals worldwide in commercial, industrial, institutional, residential and government applications. NAPCO products have earned a reputation for innovation, technical excellence and reliability, positioning the Company for growth in the multi-billion dollar and rapidly expanding electronic security market. For additional information on NAPCO, please visit the Company's web site at http://www.napcosecurity.com.
Safe Harbor Statement
This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, but are not limited to, statements relating to supply chain challenges and developments; the growth of recurring service revenues and annual run rate; the strength of our balance sheet; our expectations regarding future results; the introduction of new access control and locking products; the opportunities for school security products; the opportunities for fire alarm products; and our ability to execute our business strategies. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements because of certain factors, including those risk factors set forth in the Company's filings with the Securities and Exchange Commission, such as our annual report on Form 10-K and quarterly reports on Form 10-Q. Other unknown or unpredictable factors or underlying assumptions subsequently proved to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and the Company undertakes no duty to update such information, except as required under applicable law.
*Non-GAAP Financial Measures
Certain non-GAAP measures are included in this press release, including non-GAAP operating income, non-GAAP net income, non-GAAP net income per share (diluted), non-GAAP net income margin, Adjusted EBITDA, Adjusted EBITDA per share (diluted), Adjusted EBITDA per share margin, Free Cash Flow and Free Cash Flow margin. We define non-GAAP net income as GAAP net income plus litigation settlement costs. We define Adjusted EBITDA as GAAP net income plus income tax expense, net interest income (expense), stock-based compensation, non-recurring legal expenses, litigation settlement costs, and depreciation and amortization expenses. Non-GAAP net income margin is non-GAAP net income divided by revenue. Adjusted EBITDA margin is Adjusted EBITDA divided by revenue. We define Free Cash Flow (FCF) as net cash provided by operating activities less capital expenditures. FCF margin is the FCF divided by revenue. These non-GAAP measures are provided to enhance the user's overall understanding of our financial performance. By excluding these charges our non-GAAP results provide information to management and investors that is useful in assessing NAPCO's core operating performance and in comparing our results of operations on a consistent basis from period to period. Our use of non-GAAP financial measures has certain limitations in that such non-GAAP financial measures may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as Adjusted EBITDA, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. The presentation of this information is not meant to be a substitute for the corresponding financial measures prepared in accordance with generally accepted accounting principles. Investors are encouraged to review the reconciliation of GAAP to non-GAAP financial measures set forth above.
NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, 2026
June 30, 2025
(in thousands, except share data)
Assets
Current Assets
Cash and cash equivalents
$
126,928
$
83,081
Marketable securities
10,637
16,095
Accounts and other receivable, net of allowance for credit losses of $101 and $25 as of June 30, 2026 and June 30, 2025, respectively
35,975
30,108
Inventories
30,118
29,962
Prepaid expenses and other current assets
4,325
3,198
Total Current Assets
207,983
162,444
Inventories - non-current
9,256
11,313
Property, plant and equipment, net
9,238
9,233
Intangible assets, net
2,990
3,287
Deferred income taxes
4,105
6,476
Operating lease - Right-of-use asset
4,906
5,188
Other assets
190
200
Total Assets
$
238,668
$
198,141
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable
$
6,925
$
5,742
Accrued expenses
8,546
8,712
Accrued litigation costs
16,000
—
Accrued salaries and wages
4,484
4,398
Dividends payable
5,365
4,992
Accrued income taxes
1,134
213
Total Current Liabilities
42,454
24,057
Accrued income taxes
33
143
Operating lease liability
5,179
5,335
Total Liabilities
47,666
29,535
Commitments and Contingencies (Note 13)
Stockholders' Equity
Common Stock, par value $0.01 per share; 100,000,000 shares authorized as of June 30, 2026 and 2025; 39,883,051 and 39,771,035 shares issued; and 35,768,437 and 35,656,421 shares outstanding, respectively.
399
398
Additional paid-in capital
25,355
25,280
Retained earnings
221,403
199,083
Treasury Stock, at cost, 4,114,614 shares as of both June 30, 2026 and June 30, 2025
(56,315)
(56,315)
Accumulated other comprehensive income
160
160
Total Stockholders' Equity
191,002
168,606
Total Liabilities and Stockholders' Equity
$
238,668
$
198,141
NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months ended June 30,
2026
2025
2024
(in thousands, except for share and per share data)
Revenue:
Equipment revenue
$
30,488
$
28,298
$
29,938
Service revenue
25,321
22,426
20,392
Total revenue
55,809
50,724
50,330
Cost of Revenue:
Cost of equipment revenue
19,089
21,827
20,530
Cost of service revenue
2,502
2,099
1,955
Total cost of revenue
21,591
23,926
22,485
Gross Profit
34,218
26,798
27,845
Operating Expenses:
Research and development
3,660
3,232
3,027
Selling, general, and administrative
12,128
11,480
10,854
Total operating expenses
15,788
14,712
13,881
Operating Income
18,430
12,086
13,964
Other Income:
Interest income, net
969
725
712
Other income, net
251
158
50
Income before Provision for Income Taxes
19,650
12,969
14,726
Provision for Income Taxes
1,883
1,337
1,192
Net Income
$
17,767
$
11,632
$
13,534
Income Per Share:
Basic
$
0.50
$
0.33
$
0.37
Diluted
$
0.50
$
0.33
$
0.36
Weighted Average Number of Shares Outstanding:
Basic
35,747,000
35,656,000
36,939,000
Diluted
35,883,000
35,764,000
37,232,000
NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Year Ended June 30,
2026
2025
2024
(in thousands, except for share and per share data)
Revenue:
Equipment revenue
$
104,788
$
95,291
$
113,071
Service revenue
97,528
86,330
75,749
Total revenue
202,316
181,621
188,820
Cost of Revenue:
Cost of equipment revenue
73,031
72,795
79,862
Cost of service revenue
9,494
7,796
7,204
Total cost of revenue
82,525
80,591
87,066
Gross Profit
119,791
101,030
101,754
Operating Expenses:
Research and development
13,791
12,581
10,763
Selling, general, and administrative expenses
44,362
42,190
37,173
Litigation settlement cost
16,000
—
—
Total operating expenses
74,153
54,771
47,936
Operating Income
45,638
46,259
53,818
Other Income:
Interest income, net
3,587
3,356
2,375
Other income, net
597
454
193
Income before Provision for Income Taxes
49,822
50,069
56,386
Provision for Income Taxes
6,795
6,663
6,568
Net Income
$
43,027
$
43,406
$
49,818
Income Per Share:
Basic
$
1.21
$
1.20
$
1.35
Diluted
$
1.20
$
1.19
$
1.34
Weighted Average Number of Shares Outstanding:
Basic
35,690,000
36,298,000
36,812,000
Diluted
35,891,000
36,499,000
37,066,000
NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Fiscal Year ended June 30,
2026
2025
2024
(in thousands)
Cash Flows from Operating Activities
Net Income
$
43,027
$
43,406
$
49,818
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
2,208
2,276
2,163
Change in accrued interest on other investments
—
—
31
Unrealized gain on marketable securities
—
(177)
(56)
Realized gain on sales of marketable securities
(407)
(56)
—
Charge (recovery) of credit losses
76
(7)
(99)
Change to inventory reserve
(444)
643
1,691
Deferred income taxes
2,371
(1,048)
(2,776)
Stock-based compensation expense
989
1,513
1,733
Changes in operating assets and liabilities:
Accounts and other receivable
(5,943)
1,797
(5,730)
Inventories
2,344
7,995
(3,255)
Prepaid expenses and other current assets
(1,127)
1,071
(867)
Income tax receivable
(1)
48
2
Other assets
11
86
25
Accounts payable, accrued expenses, accrued litigation costs, accrued salaries and wages, accrued income taxes
18,041
(4,020)
2,688
Net Cash Provided by Operating Activities
61,145
53,527
45,368
Cash Flows from Investing Activities
Purchases of property, plant, and equipment
(1,917)
(2,116)
(1,594)
Purchases of marketable securities
(11,370)
(12,835)
(206)
Proceeds from sales of marketable securities
17,236
2,556
—
Purchases of other investments
—
—
(1,351)
Redemption of other investments
—
26,980
—
Net Cash Provided by (Used in) Investing Activities
3,949
14,585
(3,151)
Cash Flows from Financing Activates
Proceeds from stock option exercises
628
54
427
Dividends paid
(20,334)
(13,632)
(13,258)
Purchase of treasury shares
—
(36,794)
—
Payment of tax withholdings related to stock option exercises
(1,541)
—
—
Net Cash Used in Financing Activities
(21,247)
(50,372)
(12,831)
Net increase in Cash and Cash Equivalents
43,847
17,740
29,386
Cash and Cash Equivalents - Beginning
83,081
65,341
35,955
Cash and Cash Equivalents - Ending
$
126,928
$
83,081
$
65,341
Supplemental Cash Flow Information
Interest paid
$
—
$
—
$
14
Income taxes paid, net of refunds received
$
3,505
$
8,427
$
9,330
Non-Cash Investing and Financing Transactions
Dividends declared and not paid
$
5,365
4,992
—
NAPCO SECURITY TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL DATA*
(unaudited)
(in thousands, except share and per share data)
Non-GAAP Adjustments
Litigation
Settlement
Tax
GAAP
Cost
Adjustments (1)
Non-GAAP
Three months ended June 30, 2026
Revenue
$
55,809
$
—
$
—
$
55,809
Gross Profit
34,218
—
—
34,218
Operating Expenses
15,788
—
—
15,788
Operating Income
18,430
—
—
18,430
Net Income
17,767
—
-
17,767
Non-GAAP adjusted net income margin
31.8
%
Non-GAAP adjusted net income per share - diluted
$
0.50
Three months ended June 30, 2025
Revenue
$
50,724
$
—
$
—
$
50,724
Gross Profit
26,798
—
—
26,798
Operating Expenses
14,712
—
—
14,712
Operating Income
12,086
—
—
12,086
Net Income
11,632
—
—
11,632
Non-GAAP adjusted net income margin
22.9
%
Non-GAAP adjusted net income per share - diluted
$
0.33
Year ended June 30, 2026
Revenue
$
202,316
$
—
$
—
$
202,316
Gross Profit
119,791
—
—
119,791
Operating Expenses
74,153
(16,000)
—
58,153
Operating Income
45,638
16,000
—
61,638
Net Income
43,027
16,000
(1,733)
57,294
Non-GAAP adjusted net income margin
28.3
%
Non-GAAP adjusted net income per share - diluted
$
1.60
Year ended June 30, 2025
Revenue
$
181,621
$
—
$
—
$
181,621
Gross Profit
101,030
—
—
101,030
Operating Expenses
54,771
—
—
54,771
Operating Income
46,259
—
—
46,259
Net Income
43,406
—
—
43,406
Non-GAAP adjusted net income margin
23.9
%
Non-GAAP adjusted net income per share - diluted
$
1.19
Three months ended June 30,
Fiscal year ended June 30,
2026
2025
2026
2025
Denominator:
Weighted average shares outstanding
Basic, as reported
35,747,000
35,656,000
35,690,000
36,298,000
Effect of Dilutive Securities
136,000
108,000
201,000
201,000
Diluted, (Denominator)
35,883,000
35,764,000
35,891,000
36,499,000
1. The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.
NAPCO SECURITY TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL DATA*
(unaudited)
(in thousands, except share and per share data)
Three months ended June 30,
Year ended June 30,
2026
2025
2026
2025
Non-GAAP adjusted EBITDA:
Net income, as reported
$
17,767
$
11,632
$
43,027
$
43,406
Interest income, net
(969)
(725)
(3,587)
(3,356)
Provision for income taxes
1,883
1,337
6,795
6,663
Depreciation and amortization
539
571
2,208
2,276
Non-GAAP EBITDA
19,220
12,815
48,443
48,989
Adjustments:
Stock based compensation
205
370
989
1,513
Nonrecurring legal expense(1)
1,134
1,064
1,238
1,624
Litigation settlement cost(2)
—
—
16,000
—
Total adjustments
1,339
1,434
18,227
3,137
Non-GAAP adjusted EBITDA
$
20,559
$
14,249
$
66,670
$
52,126
Non-GAAP adjusted EBITDA margin
36.8
%
28.1
%
33.0
%
28.7
%
Non-GAAP per share data:
Non-GAAP adjusted EBITDA per share - diluted
$
0.57
$
0.40
$
1.86
$
1.43
Denominator:
Weighted average shares outstanding
Basic, as reported
35,747,000
35,656,000
35,690,000
36,298,000
Effect of Dilutive Securities
136,000
108,000
201,000
201,000
Diluted, (Denominator)
35,883,000
35,764,000
35,891,000
36,499,000
1. Nonrecurring Legal Expenses, which are net of any insurance reimbursements, are legal fees that are determined not to be of a normal recuring nature and expenses necessary to operate the business
2. Litigation settlement costs, which are net of any insurance reimbursements, were determined not to be of a recurring nature and costs that are not in the normal cost of business or necessary to operate the business
Three months ended June 30,
Year ended June 30,
(dollars in thousands)
(dollars in thousands)
2026
2025
2026
2025
Free cash flow:
Net Cash Provided by Operating Activities
$
17,654
$
14,624
$
61,145
$
53,527
Less: Purchases of property, plant, and equipment
(405)
(237)
(1,917)
(2,116)
Free Cash Flow(1)
$
17,249
$
14,387
$
59,228
$
51,411
Free Cash Flow Margin(1)
30.9
%
28.4
%
29.3
%
28.3
%
1. 1. Free cash flow is calculated as net cash provided by operating activities less capital expenditures. Free cash flow margin is the free cash flow divided by revenue.
Contacts:
Francis J. Okoniewski
Vice President of Investor Relations
NAPCO Security Technologies, Inc.
Office 800-645-9445 x 374
Mobile 516-404-3597
fokoniewski@napcosecurity.com
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