{
  "id": 4852726,
  "title": "Napco’s (NSSC) Record Quarter Comes With A Costly Asterisk Attached",
  "url": "https://urgent.news/2026/09/01/napcos-nssc-record-quarter-comes-with-a-costly-asterisk-attached",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-01T11:33:59.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/napco-nssc-record-quarter-comes-113359153.html"
  },
  "original_language": "en",
  "account": "Napco Security Technologies (NSSC) reported record quarterly earnings in August 2026, reaching $55.8 million in net revenue, with full-year revenue surpassing $200 million for the first time. The company raised its dividend and maintained a cash reserve of $138 million with no debt. The driving force behind this success was Napco's StarLink radio business, which reported a 12.9% increase in recurring service revenue to $25.3 million and a gross margin of 90.1%. StarLink sales grew 40% year-over-year and 30% sequentially. CEO Kevin S. Buchel highlighted the high growth rate, stating that radio sales today lead to recurring revenue tomorrow. The company anticipates a long runway for growth as the shift from copper phone lines to cellular communicators continues across more than 2 million buildings. The rest of the business also performed well, with intrusion and access control sales rising 20.9% and door locking revenue climbing 11.1% for the full year. Adjusted EBITDA for the quarter grew 44.3% to $20.6 million, and full-year non-GAAP diluted EPS rose 34.5% to $1.60. However, the quarter was marred by a $16 million litigation charge that impacted full-year operating income, despite a 52.5% increase in quarterly operating income. CFO Andrew J. Vuono noted that data center expansion is increasing electronic parts costs, while R&D spending rose to $13.8 million for the year due to underwriting certification costs for new products. The leadership change saw Richard L. Soloway step down as founder and executive chairman after 50 years to become executive chairman, while Buchel took over as CEO. Hedge fund ownership diminished from 31 to 27 funds, and short interest stood at 8.04% of the float. Despite the legal challenge and new CEO settling into an established role, Napco heads into fiscal 2027 with a strong recurring revenue base and a clean balance sheet, funding dividend increases and new product development.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Yahoo Finance",
        "title": "TD’s (TD) Record Quarter Comes With A Regulatory Asterisk",
        "url": "https://urgent.news/2026/09/01/tds-td-record-quarter-comes-with-a-regulatory-asterisk",
        "published": "2026-09-01T09:59:38.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}