NAPCO Security Technologies Inc. (NASDAQ: NSSC) surged 20.5% in pre-market trading after reporting fourth-quarter results that exceeded analyst projections and raising its quarterly dividend.
The Amityville, N.Y.-based security systems provider posted adjusted earnings per share of $0.50, topping the consensus estimate of $0.39 by 28%. Quarterly revenue reached a record $55.8 million, up 10% from $50.7 million a year earlier and above the $53.18 million forecast. Adjusted EBITDA totaled $20.6 million.
Recurring service revenue, which carries gross margins exceeding 90%, grew 12.9% year-over-year to $25.3 million, while equipment revenue increased 7.7% to $30.5 million. Gross profit margin expanded to 61.3%, including a 600-basis-point benefit from tariff refunds, compared with 52.8% in the prior-year quarter.
For the full fiscal year 2026, total revenue rose 11.4% to $202.3 million, while adjusted diluted EPS climbed 34.5% to $1.60. The company incurred a $16 million litigation settlement charge in the third quarter, reducing annual diluted EPS by approximately $0.40.
NAPCO declared a quarterly dividend of $0.17 per share, a 13.3% increase, with a record date of September 11, 2026 and payment scheduled for October 2, 2026.
CEO Kevin Buchel highlighted the company's recurring service revenue growth, stating that fiscal Q4 delivered record revenue and adjusted EBITDA of $55.8 million and $20.6 million, respectively, supported by double-digit year-over-year growth in recurring services.
