Filing Flows › Napco Security Technologies (NSSC) › Q2 FY26
Napco Security Technologies (NSSC) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Feb 2, 2026
Napco Security Technologies (NSSC) reported revenue of $48.2M for the second quarter fiscal 2026 (Q2 FY26), +12% from a year earlier and -2% from the quarter before. Operating margin was 30.6%, net earnings $13.5M (28.0% of revenue).
Napco Security Technologies, Q2 FY26: revenue $48.2M (+12% year over year), operating margin 30.6%, net earnings $13.5M, operating cash flow $15.1M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $48.2M | -2% | +12% |
| Gross profit | $28.2M | +1% | +15% |
| Operating profit | $14.8M | +8% | +32% |
| Net earnings | $13.5M | +11% | +29% |
| Operating cash flow | $15.1M | +30% | +12% |
| Free cash flow | $14.5M | — | +17% |
What changed
Revenue was $48.2M in Q2 FY26, up 12% year over year and down 2% from the previous quarter. Service revenue was the largest line at 50% of revenue. Service revenue added $2.6M year over year (up 12%), 50% of the total change.
Gross margin was 58.6%, up 1.6 points from a year earlier. Operating profit was $14.8M, a 30.6% margin (up 4.6 points year over year). Of the extra revenue versus a year earlier, 68% reached operating profit, above the 26% margin then. Operating expenses grew 1% against revenue growth of 12%. The fastest-growing cost line was Research & development (+12%). Net earnings were $13.5M, up 29% year over year. The effective tax rate was 14.2%.
Operating cash flow was $15.1M (up 12% year over year), 112% of net earnings. Non-cash charges added back $488K of depreciation and amortization and $185K of share-based compensation. Working capital and other items added $922K. After purchases of property, plant, and equipment ($585K), free cash flow as the company reports it was $14.5M.
Questions
What was Napco Security Technologies' revenue in the second quarter fiscal 2026?
Napco Security Technologies (NSSC) reported revenue of $48.2M for the second quarter fiscal 2026 (Q2 FY26), +12% from a year earlier and -2% from the quarter before.
Was Napco Security Technologies profitable in the second quarter fiscal 2026?
Operating profit was $14.8M (30.6% of revenue) and net earnings $13.5M.