NAPCO Security Technologies Inc (NSSC) News & EventsNSSCNAPCO Security Technologies Inc

U.S. Stock Futures Weaker, Nasdaq Down 0.63%

Stock futures are pointing to a weaker open as the market comes off a losing week for all three major indexes, with technology stocks particularly pressured by the recent rise in Treasury yields.A catalyst this week is Nvidia's earnings on Wednesday. Nvidia shares have already declined for five consecutive sessions, while some of its customers have reportedly been told that AI server prices could rise by more than 15% because of higher memory costs.The Federal Reserve is another major focus, with Fed Chair Kevin Warsh scheduled to speak Friday at the Jackson Hole symposium. Investors will be looking for clues about the Fed's rate path after recent inflation data came in relatively benign, but the labor market has weakened. At the same time, the bond market has become a source of concern. The 30-year Treasury yield reached roughly 5.34% last week, its highest level in about 19 years, putting additional pressure on growth stocks. The week's economic calendar also includes July PCE inflation data on Wednesday.The U.S. is preparing new economic sanctions targeting Iran's trade partners, with Treasury Secretary Scott Bessent expected to provide details. Oil prices have pulled back despite the escalating tensions. There is also a new U.S.-Canada trade dispute to watch after trade negotiations broke down, adding another source of uncertainty for companies with significant North American supply chains and sales exposure.In pre-market trading, S&P 500 futures fell 0.20%, Nasdaq futures fell 0.63% and Dow futures fell 0.11%.Check out this morning's top movers from around Wall Street, compiled by The Fly.HIGHER -Erascaup 3% after reporting the FDA has granted Fast Track Designation to ERAS-0015UP AFTER EARNINGS -Napco Securityup 19%PDD Holdingsup 3%DOWN AFTER EARNINGS -Gogorodown 10%XPengdown 4%LOWER -Regenxbiodown 20% after the FDA placed a clinical hold on RGX-121 following the discovery of asymptomatic spine MRI findings in five participants in the CAMPSIITE studyCanada Goosedown 5% after Wells Fargo double downgraded the stock to Underweight from Overweight with a price target of C$10, down from C$16Alibabadown 1% after announcing the pricing of its HK$80B placing of 710,000,000 newly issued ordinary shares of the company to non-U.S. persons outside the United States, at a placing price of HK$112.70 per placement share

Company Reports Q4 Revenue of $55.8M, Beating Expectations

Reports Q4 revenue $55.8M, consensus $52.55M. EPS is inclusive of a benefit of approximately 9c from net tariff refunds. Kevin Buchel, CEO and President, commented, "Our Fiscal Q4 performance completes a strong close to our fiscal year end and reflects continued positive financial results. We achieved record Q4 revenue and Adjusted EBITDA of $55.8 and $20.6 million, respectively, which was bolstered by our recurring service revenue with its continued year over year double digit growth. We saw a rebound in our equipment sales, which increased 10.0% for the year, driven by strong demand for our door-locking products as well as a 36% growth in sales of our intrusion products in Q4, which is primarily a result of increased sales of our StarLink fire communicators. Our RSR continues to deliver gross margins of over 90%, and represents approximately 45% of total revenue in Q4, and has a prospective run rate of approximately $103 million based on our July 2026 recurring service revenue. Our revenue growth and margin expansion in Q4 resulted in a 53% increase in net income, a 44% increase in Non-GAAP Adjusted EBITDA and our Adjusted EBITDA margin was 36.8% as compared to 28.1% in Q4 of Fiscal 2025.

NAPCO Security Technologies Executive Transition, Buchel Named CEO

NAPCO Security Technologies announced an executive leadership transition intended to position the Company for its next phase of growth and success. Richard Soloway, currently Chairman and CEO, will serve as Founder and Executive Chairman, and Kevin Buchel, currently President and COO, will serve as CEO and President. The transition will be effective as of July 8. Soloway founded NAPCO more than 55 years ago and has led a talented and dedicated team to create one of the most successful and well-recognized security technology companies in the U.S. As CEO and President, Buchel will take on additional management responsibilities in all aspects of NAPCO's day-to-day operations, including implementation of business strategies, execution of marketing and sales plans, communication with customers, suppliers and investors, and management of financial goals and objectives. Buchel has held various management positions at NAPCO for more than 25 years, and his intimate knowledge of and extensive experience with the Company makes him well suited to take the helm as Chief Executive Officer of NAPCO.