NAPCO Security Technologies, Inc.

napcosecurity.com

What Do They Do?

Sells security equipment and cellular alarm communication services to independent distributors, dealers and installers.

How Do They Make Money?

Installers and other customers buy finished equipment, typically paying when it ships. Customers also pay monthly fees for cellular communication services, billed monthly.

revenue

Segment	Share	How money arrives
Intrusion and access alarm products Sold outright	18% FY2023: 28%	Sold outright
Door locking devices Sold outright	34% FY2023: 37%	Sold outright
Service revenue Recurring	48% FY2023: 35%	Recurring

Who Are Their Customers?

Distributors, dealers and installers buy security equipment directly from NAPCO, while many others buy through distributors. The products serve commercial, residential, institutional, industrial and government users.

Do Revenues Turn Into Profits?

Yes. It kept 21 cents of every revenue dollar as net income in FY2026 and turned 29 cents into free cash flow.

Operating income, FY2026

23% of revenue

▼ −1% vs FY2025 ($46.3M, 25%)

Net income, FY2026

21% of revenue

▼ −1% vs FY2025 ($43.4M, 24%)

Free cash flow, FY2026

29% of revenue

▲ +15% vs FY2025 ($51.4M, 28%)

How Are They Changing?

Growing. Revenue grew 41% in 4 years, from $143.6M in FY2022 to $202.3M in FY2026, about 9% a year.

More recurring service revenue The latest report describes monthly cellular communication services as a larger part of the business mix than the older report, while both reports describe equipment sales alongside those services.

Revenue over time

Intrusion and access alarm products Door locking devices Service revenue

$250M$125M$0

FY2022 FY2023 FY2024 FY2025 FY2026

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