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Napco Security Technologies (NSSC) Q3 FY25 earnings results (third quarter fiscal 2025)

10-Q filed May 5, 2025

Napco Security Technologies (NSSC) reported revenue of $44.0M for the third quarter fiscal 2025 (Q3 FY25), -11% from a year earlier and +2% from the quarter before. Operating margin was 25.4%, net earnings $10.1M (23.0% of revenue).

Revenue$44.0M
Year over year-11%
Quarter over quarter+2%
Operating margin25.4%
Net earnings$10.1M

Napco Security Technologies, Q3 FY25: revenue $44.0M (-11% year over year), operating margin 25.4%, net earnings $10.1M, operating cash flow $13.4M. The chart follows the revenue to costs, profit and cash.

Q3 FY25AmountQ/QY/Y
Revenue$44.0M+2%-11%
Gross profit$25.1M+3%-5%
Operating profit$11.1M-0.2%-23%
Net earnings$10.1M-3%-23%
Operating cash flow$13.4M-0.9%+8%
Free cash flow$13.3M+8%+11%

What changed

Revenue was $44.0M in Q3 FY25, down 11% year over year and up 2% from the previous quarter. Services was the largest line at 49% of revenue. Door locking devices lost $5.3M year over year (down 27%), 100% of the total change.

Gross margin was 57.2%, up 3.4 points from a year earlier. Operating profit was $11.1M, a 25.4% margin (down 4.1 points year over year). Operating expenses grew 17% against a revenue fall of 11%. The fastest-growing cost line was SG&A (+17%). Net earnings were $10.1M, down 23% year over year. The effective tax rate was 15.7%.

Operating cash flow was $13.4M (up 8% year over year), 132% of net earnings. Non-cash charges added back $493K of depreciation and amortization and $386K of share-based compensation. Working capital and other items added $2.4M. Capital expenditures of $65K left free cash flow of $13.3M.

Questions

What was Napco Security Technologies' revenue in the third quarter fiscal 2025?

Napco Security Technologies (NSSC) reported revenue of $44.0M for the third quarter fiscal 2025 (Q3 FY25), -11% from a year earlier and +2% from the quarter before.

Was Napco Security Technologies profitable in the third quarter fiscal 2025?

Operating profit was $11.1M (25.4% of revenue) and net earnings $10.1M.

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Source: Napco Security Technologies 10-Q on SEC EDGAR.