Napco Security Technologies reported a record fiscal fourth quarter 2026, with net revenue hitting $55.8 million and full-year revenue crossing $200 million for the first time, but the results include a $16 million litigation charge. Recurring service revenue rose 12.9% to $25.3 million with a 90.1% gross margin, and the annualized recurring revenue run rate is around $103 million. Adjusted EBITDA grew 44.3% to $20.6 million, and the company raised its dividend by 13.3% to $0.17 per share, payable Oct. 2, 2026, while holding $138 million in cash and no debt. However, the litigation settlement pulled full-year operating income down 1.3% to $45.6 million, and about 600 basis points of the quarter's gross margin expansion came from tariff refunds tied to the American Infrastructure and Industrial Power Act. Access control product sales fell 13.8% in the quarter, and founder Richard L. Soloway stepped back to become executive chairman, with CEO Kevin S. Buchel taking over.
NAPCO Security Technologies IncRecord quarter but $16M litigation charge and lower operating income weigh on results.
