NSSC

NAPCO SECURITY TECHNOLOGIES, INC

7 filings tracked

technologycloud computingSMALL ($300M-2B)

Signal Magnitude Chart

bullish

bearish

neutral

Signal Timeline

bullishMay 5

Gross profit margin increased to 60% from 57.2% year-over-year.

margin expansion

80%

bearishMay 5

Net loss of $408k due to $16M litigation settlement.

earnings miss

70%

bullishMay 5

Service revenue grew 15.4%, signaling strong recurring growth.

guidance raise

60%

bullishMay 5

Gross profit margin increased to 60% from 57.2% year-over-year.

margin expansion

80%

bearishMay 5

Net loss of $408k due to $16M litigation settlement.

earnings miss

70%

bullishMay 5

Service revenue grew 15.4%, signaling strong recurring growth.

guidance raise

60%

bullishMay 5

Gross profit margin increased to 60% from 57.2% year-over-year.

margin expansion

80%

bearishMay 5

Net loss of $408k due to $16M litigation settlement.

earnings miss

70%

bullishMay 5

Service revenue grew 15.4%, signaling strong recurring growth.

guidance raise

60%

bullishMay 5

Gross profit margin increased to 60% from 57.2% year-over-year.

margin expansion

80%

bearishMay 5

Net loss of $408k due to $16M litigation settlement.

earnings miss

70%

bullishMay 5

Service revenue grew 15.4%, signaling strong recurring growth.

guidance raise

60%

bullishMay 5

Gross profit margin increased to 60% from 57.2% year-over-year.

margin expansion

80%

bearishMay 5

Net loss of $408k due to $16M litigation settlement.

earnings miss

70%

bullishMay 5

Service revenue grew 15.4%, signaling strong recurring growth.

guidance raise

60%

bullishMay 5

Gross profit margin increased to 60% from 57.2% year-over-year.

margin expansion

80%

bearishMay 5

Net loss of $408k due to $16M litigation settlement.

earnings miss

70%

bullishMay 5

Service revenue grew 15.4%, signaling strong recurring growth.

guidance raise

60%

bullishMay 5

Gross profit margin increased to 60% from 57.2% year-over-year.

margin expansion

80%

bearishMay 5

Net loss of $408k due to $16M litigation settlement.

earnings miss

70%

bullishMay 5

Service revenue grew 15.4%, signaling strong recurring growth.

guidance raise

60%

Filing History

10-QMay 5, 2026

The latest 10-Q presents a company at a crossroads between a high-growth service transition and the drag of legacy legal liabilities. On one hand, the core operational metrics are impressive: revenue is growing, and the shift toward recurring service income is providing a stable, high-margin foundation. The expansion of overall gross margins to 60% indicates that the business is becoming more efficient at generating profit from its sales. However, the $16 million settlement serves as a stark reminder that legal risks can rapidly erase operational gains. While the balance sheet remains strong with significant cash holdings, the transition from a hardware-centric vendor to a service-led ecosystem is being tested by macroeconomic pressures and litigation. Investors must weigh the strength of the recurring revenue flywheel against the unpredictability of the company's legal and regulatory environment.