Napco Q2 sales $43M (-9.7%), EPS $0.28 vs $0.34; RSR +14.4%, gross margin expands to 57%

NAPCO SECURITY TECHNOLOGIES, INC

2025-Q2 EPS reported $0.59 vs consensus $0.27 ▲ beat (+117.5%)

Net sales of $43.0M, down 9.7% YoY; diluted EPS $0.28 vs $0.34 in prior year Q2.
Recurring service revenue (RSR) rose 14.4% to $21.2M, 49% of total sales; RSR gross margin 91%.
Overall gross margin improved 440 bps to 57.0% from 52.6%, driven by higher-margin RSR mix.
Board declared $0.125/share quarterly dividend, payable April 3, 2025 to holders of record March 12.
Sales decline attributed to two large distributors reducing inventory; management expects improvement in H2 fiscal 2025.

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