Strong Recurring Revenue Growth
Recurring service revenue increased by 10.6% to $21.6 million in Q3, representing 49% of total revenue with a 91% gross margin. The annualized run rate for recurring revenue rose to $89 million.
Debt-Free Status and Strong Cash Reserves
Napco Security Technologies remains debt-free with substantial cash reserves, providing flexibility to invest in long-term growth strategies.
High Gross Margin on Service Revenue
The company maintained a high gross margin of 91% on service revenues, which is a key driver of profitability.
New Product Launches
Introduction of new cloud-based MVP remote access control platforms and next-generation StarLink radios at the ISC West Expo received positive feedback.
Improved Cash Flow from Operations
Cash provided by operating activities increased 25.4% to $38.9 million for the nine months ended March 31, 2025.