NAPCO SECURITY TECHNOLOGIES, INC

NAPCO manufactures and designs high-tech electronic security devices and provides cellular communication services for intrusion and fire alarm systems, as well as school safety solutions. The company offers a range of security products including access control systems, door-locking products, intrusion and fire alarm systems, and video surveillance products. These products serve commercial, residential, institutional, industrial, and governmental applications. NAPCO sells its products primarily to independent distributors, dealers, and installers of security equipment. The company also provides communication services for its radio communicators and smart security devices, for which dealers pay a monthly fee. NAPCO's net sales were $181.6 million, $188.8 million, and $170.0 million for the fiscal years ended June 30, 2025, 2024, and 2023, respectively. The decrease in net sales from fiscal 2024 to 2025 was due to a $17.8 million decrease in equipment product sales, partially offset by a $10.6 million growth in recurring communication services. The reduction in equipment sales was primarily driven by an $11.5 million decrease in door-locking product sales, attributed to project timing, distributor inventory destocking, and general uncertainty over U.S. tariff policies. Net income was $43.4 million, $49.8 million, and $27.1 million for the fiscal years ended June 30, 2025, 2024, and 2023, respectively. The $6.4 million decrease in net income for the fiscal year ended June 30, 2025, resulted from decreased equipment product sales and increased operating expenses.