Napco Q3 Earnings Beat, Recurring Revenue Grows

Napco Security Technologies reported third-quarter earnings that beat analyst expectations, with EPS ranging from $0.28 to $0.36 per share. Revenue declined about 11% year over year to approximately $44 million, reflecting continued pressure from lower equipment sales, though recurring service revenue now makes up nearly half of total revenue and is growing. CEO Richard Soloway said the company feels well-positioned to face tariff challenges, having already raised prices and benefiting from its manufacturing locations. Napco also raised its quarterly dividend and reported improved free cash flow margins. Despite year-over-year profit and revenue declines, investors responded positively to the earnings beat, recurring revenue growth, and strategic adjustments. The company's stock rose over 7% following the announcement.