NAPCO Security Technologies, Inc. filed its annual report for fiscal year 2026, disclosing record net revenues of $202.3 million and a leadership transition that elevated Kevin S. Buchel to Chief Executive Officer.

Key Highlights

  • Record revenues: Net revenues rose 11.4% to $202.3 million for fiscal 2026, according to the filing.
  • Recurring service revenue: Recurring service revenue increased 13.0% to $97.5 million, with gross margins exceeding 90%.
  • Equipment revenue: Equipment revenue grew 10.0% to $104.8 million, the filing reported.
  • GAAP net income: GAAP net income was $43.0 million, or $1.20 per diluted share, impacted by a $16.0 million litigation settlement charge.
  • Non-GAAP net income: Non-GAAP net income was $57.3 million, or $1.60 per diluted share, compared to $1.19 per diluted share in fiscal 2025.
  • Adjusted EBITDA: Adjusted EBITDA was $66.7 million, representing a 33.0% margin, compared to 28.7% for fiscal 2025.
  • Dividends paid: The company paid $0.58 per share in dividends during the fiscal year.

NAPCO Security Fiscal 2026 Results and CEO Transition

NAPCO Security Technologies, trading on NASDAQ:NSSC, reported fiscal 2026 results that the company described as "another strong year," driven by growth in both recurring service and equipment segments. Net revenues reached $202.3 million, an 11.4% increase, while recurring service revenue of $97.5 million represented 13.0% year-over-year growth. The company disclosed that gross margins on recurring service revenue exceeded 90% in fiscal 2026, which it characterized as highlighting the importance of that segment to its financial model. Overall gross margin reached 59.2%.

GAAP net income was $43.0 million, or $1.20 per diluted share, but the filing noted this figure "was impacted by a $16.0 million litigation settlement charge." Excluding that charge, the company reported non-GAAP net income of $57.3 million, or $1.60 per diluted share. Free cash flow was $59.2 million, compared to $51.4 million in fiscal 2025. The company paid $0.58 per share in dividends during the fiscal year.

The filing also disclosed a leadership transition. Richard L. Soloway, described as founder and former Chairman and Chief Executive Officer for more than 50 years, moved to the role of Founder and Executive Chairman, with a focus on "new innovations and strategic initiatives." Kevin S. Buchel assumed the role of Chief Executive Officer and President, taking on leadership, day-to-day responsibilities, and financial oversight. The filing credited Soloway with two accomplishments it specifically cited: pivoting the company toward a recurring revenue model through its StarLink cellular communicator, and introducing the Trilogy locking product line.

What Was Disclosed

NAPCO Security Technologies filed its fiscal 2026 annual report disclosing record revenues of $202.3 million, recurring service revenue of $97.5 million, a $16.0 million litigation settlement charge affecting GAAP earnings, and a transition of CEO responsibilities from Richard Soloway to Kevin Buchel.