NAPCO Security Technologies Q2 Earnings Call Highlights

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NAPCO Security Technologies (NASDAQ:NSSC) executives highlighted grounds fiscal second-quarter 2026 revenue, expanding margins, and continued maturation successful the company’s recurring work gross basal during the company’s net league telephone held Monday.

Management attributed the quarter’s show to dependable request crossed the portfolio, the benefits of pricing actions implemented precocious successful fiscal 2025, and operating leverage supported by a high-margin recurring gross model. The institution besides announced a quarterly dividend summation and discussed advancement successful doorway locking, commercialized occurrence vigor communications, and its MVP cloud-based entree power platform.

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President and COO Kevin Buchel said full gross roseate 12.2% twelvemonth implicit twelvemonth to a fiscal Q2 grounds of $48.2 million. Equipment gross accrued 12% to $24.3 million, portion recurring gross grew 12.5% to $23.8 cardinal and maintained gross borderline supra 90%.

Chief Financial Officer Andrew Vuono added that for the six months ended Dec. 31, 2025, nett gross accrued 12% to $97.3 million. Recurring monthly work gross for the archetypal fractional roseate 11.8% to $47.3 million, portion instrumentality gross accrued 12.1% to $50.1 million.

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Buchel said the company’s prospective yearly recurring gross tally complaint accrued to astir $99 cardinal based connected January 2026 recurring revenue, up from the $95 cardinal tally complaint referenced past quarter. Vuono said the summation successful nett work gross was driven by a higher fig of activated cellular vigor connection devices during the period.

NAPCO reported gross nett of $28.2 cardinal successful the quarter, up 15.3% twelvemonth implicit year, with gross borderline of 58.6% compared with 57.0% successful the prior-year period, according to Vuono. For the archetypal half, gross borderline accrued to 57.6% from 56.5% a twelvemonth earlier.

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Equipment gross borderline improved notably. Buchel said instrumentality gross borderline reached 28%, up from 24% a twelvemonth agone and 26% successful the anterior quarter, citing pricing discipline, operational efficiency, and favorable merchandise mix. Vuono reported instrumentality gross nett accrued 31.2% to $6.7 million, with instrumentality gross borderline of 27.6% versus 23.6% successful the prior-year quarter, driven by improved manufacturing overhead absorption from higher production, the interaction of terms increases, and little discounting.