Q2 2026 NAPCO Security Technologies Inc Earnings Call Transcript

Feb 2, 2026 / 04:00 PM GMT

Release Date Price: $41.02 (+11.20%)

Transcript 10-Q8-K

Key Points

Positve

NAPCO Security Technologies Inc (NSSC) reported record Q2 revenue of $48.2 million, marking a 12.2% increase compared to the previous year.
Recurring revenue grew by 12.5% over last year's Q2, maintaining a strong gross margin of 90.2%.
The company achieved a significant increase in operating income, which rose by 32% year over year to $14.8 million.
NAPCO's balance sheet remains strong with $115 million in cash and marketable securities and no debt, providing substantial financial flexibility.
The board approved an increase in the quarterly dividend to $0.15 per share, reflecting confidence in the business and commitment to shareholder value.

Negative

The gross margin for recurring service revenue slightly decreased from 91.3% to 90.2% due to one-time credits and marginal increases in data costs.
Interest income decreased by 4.7% for the quarter, primarily due to lower interest rate yields on cash and short-term investments.
The provision for income taxes increased significantly by 37.6% for the quarter, impacting net income.
Research and development costs increased by 11.8% due to higher labor and benefit costs related to expanding the engineering staff.
The company faces ongoing challenges in expanding its locking product line through its partnership with ADI, indicating room for improvement in this area.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

NSSC.OQ - NAPCO Security Technologies Inc
Q2 2026 NAPCO Security Technologies Inc Earnings Call
Feb 02, 2026 / 04:00PM GMT

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
Good morning, ladies and gentlemen, and welcome to NACO Security Technologies fiscal second quarter 2026 earnings conference call. At this time, note that all participants are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. And if at any time during this call you require immediate assistance, please press 0 for the operator. Also note that this call is being recorded on Monday, February 2, 2026, and I would like to turn the conference over to Francis Okoneeski, Vice President of Investor relations. Please go ahead.

--------------------------------------------------------------------------------
Unidentified_2 [2]
---------------------------------

Already have an account? Log in

Get the full story

Subscribe Now

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

30-Day 100% money back guarantee

Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Calculators Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App Newsletters Signup 中文

Education

Financial Glossary Tutorials FAQ Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.