Napco Security Technologies Revenue, Net Income & 10-K Summary

Business focus

Manufacturer and designer of high-tech electronic security devices.
Provides cellular communication services for intrusion and fire alarm systems.
Leading provider of school safety solutions.
Offers a diversified portfolio of security products for commercial, residential, institutional, industrial, and governmental applications.
Sells primarily through independent distributors, dealers, and installers via a national network of security dealers and integrators; communication services are offered on a monthly-fee basis.

Door security and access control
- Standalone and networked digital door locks.
- Standard and custom locksets, panic devices, and door closers.
- Intrusion and access control products, including door controllers and hosted access-control services.
- Combination control panels, digital communicators, and digital keypad systems.
- Fire alarm control panels and area detectors, including infrared/microwave combination detectors.
Intrusion, fire, and video systems
- Intrusion alarm equipment and integrated cellular intrusion alarm systems.
- Intrusion and fire alarm cellular communication devices and related services.
- Video surveillance equipment (cameras, PCs, peripherals) and supporting hardware/software.
Cellular communication and recurring revenue
- Cellular communication devices for alarm systems and monthly subscription services (e.g., StarLink, Networx, NOC-based services).
- Recurring service revenues provide long-term, monthly-fee access to cellular and cloud services for security devices.
- Recurring services represented about 48% of total revenue for the fiscal year ended June 30, 2026, with a gross margin of approximately 90.3% for that year.
Market-ready solutions
- Full product suite for schools and public safety, including campus lockdown options.
- Healthcare-focused products, including anti-ligature locksets for hospitals and behavioral health facilities.

Serves commercial, residential, institutional, industrial, and governmental customers.
Approximately 2,200 active distributors, installing dealers, and wholesalers.
Operates through a national network of independent security dealers and integrators who install, service, and support NAPCO technologies.

Net revenues: $202.3 million (2026); $181.6 million (2025); $188.8 million (2024).
Revenue growth drivers (2025–2026):
- Equipment products: +$9.5 million (+10.0%).
- Recurring communication services: +$11.2 million (+13.0%).
Net income: $43.0 million (2026); $43.4 million (2025); $49.8 million (2024).
- 2026 net income includes a one-time litigation settlement charge of $16.0 million.
Recurring revenue profile
- Recurring service revenues represented about 48% of total revenues in 2026.
- Recurring services delivered higher gross margins (about 90.3% in 2026) and a more stable income stream.
R&D
- Research and development spending is approximately 6–7% of revenues.

Total full-time employees: 1,049 as of June 30, 2026.
- 293 located in the United States.
- 756 located at the Dominican Republic manufacturing facility.
U.S. workforce: 38 employees covered by a collective bargaining agreement.
Headquarters and U.S. operations
- Amityville, New York facility: 100,000 square feet housing corporate offices, R&D, design, sales administration, technical services, finance, procurement, manufacturing control, warehousing, and shipping.
Manufacturing
- Dominican Republic facility (Napco DR, S.A.) produces the majority of products.
- Facility size: approximately 180,000 square feet of production and warehousing.
- Lease: 99-year land lease expiring in 2092; base rent about $235,000 per year and service charges about $105,000 per year, with service charges increasing 2% annually.
- DR operation is a free zone and provides tax and cost efficiencies that support lower overhead and supply chain capabilities.

Over 90% of products are manufactured at the Dominican Republic facility.
U.S. headquarters provides engineering capabilities across mechanical, electronic, digital/microprocessor design, networking, and wireless/cellular communications.

The security products market is competitive, with about 12 other manufacturers and firms.
NAPCO offers an integrated platform across intrusion, access control, connectivity, and locking devices from a single source, reducing the risk of incompatibility between vendors’ equipment.

Company information, governance, and public reporting comply with SEC requirements; annual and quarterly filings are publicly available.

K-12 and higher education emphasis: over 100,000 K-12 schools and over 5,000 colleges and universities in the U.S.
Market opportunity also includes over 350,000 houses of worship, with school and public safety funding contributing to demand for NAPCO’s products.