−Removed: Napco Security Technologies, Inc (“NAPCO”, “the Company”, “we”) is one of the leading manufacturers and designers of high-tech electronic security devices, cellular communication services for intrusion and fire alarm systems as well as a leading provider of school safety solutions.
+Added: NAPCO is one of the leading manufacturers and designers of high-tech electronic security devices, cellular communication services for intrusion and fire alarm systems as well as a leading provider of school safety solutions.
We offer a diversified array of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products.
These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold principally to independent distributors, dealers and installers of security equipment.
−Removed: We are dedicated to developing innovative technology and producing the next generation of reliable security solutions that utilize remote communications and wireless networks.
+Added: We have established a national network of trusted independent security dealers and integrators that are experts at selling, installing and supporting our various technologies.
+Added: These dealers are dependent on our platform for communication services to our radio communicators and smart security devices, and they pay us a monthly fee for these services to operate and manage their businesses efficiently.
Our net sales were $181.6 million, $188.8 million and $170.0 million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively.
−Removed: The increase in our net sales from fiscal 2023 to 2024 was driven primarily from the continued growth of our recurring services revenues ($15.8 million) as well as an increase in sales of equipment products ($3.0 million).
−Removed: The increase in equipment sales was due primarily to the increased demand for the Company’s door-locking products.
+Added: The decrease in our net sales from fiscal 2024 to 2025 was driven by the decrease in sales of equipment products ($17.8 million) offset by the continued growth of our recurring communication services ($10.6 million).
+Added: The decrease in equipment sales was due primarily to reduced sales of door-locking products ($11.5 million) as a result of the timing of project work as well as softness in demand for locking products during the period related to distributor destocking of inventory and to a lesser extent general uncertainty over U.S.
+Added: tariff policies.
Our net income was $43.4 million, $49.8 million and $27.1 million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively.
−Removed: The increase in net income during fiscal 2024 was due primarily to the growth of the recurring service revenues which generated a gross margin of 90% during the period.
+Added: Net income for the fiscal year ended June 30, 2025 was down ($6.4 million) as a result of decreases in the sales of our equipment products and increased operating expenses.
Our Products and Services
−Removed: Since 1969, NAPCO has established a heritage and proven record in the professional security community for reliably delivering both advanced technology and high-quality security solutions, building many of the industry’s widely recognized brands, such as NAPCO Security Systems, Alarm Lock, Continental Access, Marks USA, and other popular product lines.
+Added: Since 1969, NAPCO has established a heritage and proven record in the professional security community for reliably delivering both advanced technology and high-quality security solutions, building many of the industry’s widely recognized brands, such as NAPCO Security Systems, Alarm Lock, NAPCO Access Pro, Marks USA, and other popular product lines.
The Company’s products and services are comprised primarily of the following:
2 unchanged sentences
● Intrusion alarm equipment
−Removed: ● Intrusion and fire alarm cellular communication devices and services
+Added: ● Intrusion and fire alarm cellular communication devices and services from which we generate recurring monthly service revenues and which has been a key driver of our profitability growth
● Integrated cellular intrusion alarm systems
● Door controllers and hosted services for access control
+Added: Communication Services (Recurring Service Revenues)
+Added: The Company provides.
+Added: In 2012, we began to generate monthly recurring service revenue by providing secure cellular and cloud access for intrusion and fire alarm communicators and other smart security devices.
+Added: These services are provided to the Company’s customers on a month-to-month basis in exchange for a monthly fee.
+Added: Revenues from these services have grown significantly over the past several years, increasing 44% from fiscal 2023 to fiscal 2025.
+Added: These revenues, which currently have a gross margin of approximately 91% for the fiscal year ended June 30, 2025, represent approximately 48% of our total revenue for the fiscal year ended of June 30, 2025.
+Added: Since 2012, we have continued to develop and sell additional equipment products that require communication services and generate recurring revenues.
+Added: To date, the majority of our recurring revenue has been generated through the sale, installation and activation of our StarLink cellular communication devices.
+Added: These products are installed at the premises of end users, and we generate revenue from the installers by both the upfront purchase of our products and the monthly subscription fees for access to our Networx Operations Center (NOC) that provides cellular communication services to the devices.
+Added: Monthly recurring service revenue generates substantially higher gross margins than do equipment sales and allows us to generate a more consistent stream of income.
+Added: We believe there is a significant market opportunity for these products and services because many commercial and residential customers prefer to purchase real-time security monitoring services to ensure continuous protection and swift responses to security breaches and fire alarms.
+Added: We intend to continue pursuing recurring revenue opportunities by developing new and innovative products and continuing our aggressive sales and marketing efforts of these products.
Door Security Products
5 unchanged sentences
Communication equipment such as a cellular or digital communicator may be used to transmit the alarm signal to a central station or another person selected by a customer.
−Removed: communicators have become more popular and panels and communicators are trending towards integration so that many alarm panels will contain an integrated cellular communication device.
+Added: Cellular communicators have become more popular and panels and communicators are trending towards integration so that many alarm panels will contain an integrated cellular communication device.
The Company manufactures and markets the following products for these alarm systems:
16 unchanged sentences
Combination units respond to both changes in heat patterns and changes in microwave patterns occurring at the same time.
−Removed: Cellular Communication (Recurring Service Revenues)
−Removed: The Company provides cellular access for the cellular communication devices described above.
−Removed: These services are provided to the Company’s service customers on a month-to-month basis.
Access Control Systems .
11 unchanged sentences
It also buys and resells various video cameras, PC-based computers and peripheral equipment for video surveillance systems.
−Removed: Our Growth Drivers
−Removed: Recurring Service Revenue
−Removed: In 2012, we began to generate monthly recurring service revenue by developing our cellular radio technology.
−Removed: Revenues from these services have grown significantly over the past several years, increasing 65% from fiscal 2022 to fiscal 2024.
−Removed: These revenues, which currently have a gross margin of approximately 90% for the fiscal year ended June 30, 2024, represent approximately 40% of our total revenue for the fiscal year ended of June 30, 2024.
−Removed: The Company’s long-term goal is to have revenues from these recurring services represent at least 50% of total revenue.
−Removed: We continue to introduce additional products generating recurring revenues, primarily in cellular communication devices.
−Removed: These products are installed at the premises of end users and we generate revenue from the installers by both the upfront purchase of our products and the monthly subscription fees for cellular communication services.
−Removed: Monthly recurring service revenue generate higher gross margins, and allows us to generate a more consistent and predictable stream of income and mitigates the risk of fluctuation in market demand for our equipment products.
−Removed: We believe there is a significant market opportunity for these products and services, because many commercial and residential customers prefer to purchase real-time security monitoring services to ensure continuous protection and swift responses to security breaches and fire alarms.
−Removed: We intend to continue pursuing recurring revenue opportunities by developing new and innovative products and continuing our aggressive sales and marketing efforts.
School Security and Public Safety
−Removed: We have developed products to help address security concerns arising from the significant need for increased security in schools and other public spaces.
+Added: School security and public safety continues to be an important market, and we have developed products to help address security concerns arising from the significant need for increased security in schools and other public spaces.
In the U.S., there are over 100,000 K-12 schools, over 5,000 colleges and universities and over 350,000 houses of worship.
−Removed: Management estimates many of these institutions do not have adequate protection from an active shooter or intruder.
As a result of increased “active shooter” incidents, a number of U.S.
4 unchanged sentences
Depending on the needs of the school and their budget, we offer (i) Standalone LocDown locks which can be operated by a teacher, (ii) a series of Networx standalone wireless locks which communicate with central controls, or (iii) enterprise-class access control with cellular connectivity, which allows the head of security to lock down all or part of the campus, including dorm rooms, classrooms and administrative offices, from a centralized office.
−Removed: Competitive Strengths
+Added: While we continue to win new school security projects, due to the nature of selling our security products through distribution, total visibility into quantifying the revenue from this market is difficult.
The security products industry is highly competitive.
9 unchanged sentences
It is located in a free zone which is a tax-advantaged location.
−Removed: The Company also benefits from the lower tariffs available to it under The Dominican Republic-Central America FTA (CAFTA-DR).
manufacturing operation is vertically integrated and operates in a low-cost location, where the typical labor cost are significantly less than the cost for similar services in the U.S.
facility allows us to maintain a lower manufacturing overhead and improve our gross margin.
−Removed: The building is self-contained with an ability to withstand a Category 5 hurricane.
+Added: The building is self-contained with the ability to withstand a Category 5 hurricane.
Shipping times from the D.R.
11 unchanged sentences
Due to paradigm changes in the security marketplace, the Company’s focus has been on mandatory (non-elective) systems, such as fire systems with central station monitoring in commercial buildings, and IoT-driven connectivity services in high growth and margin categories.
−Removed: As copper land lines are phased out and more people switch to cellular phone service for their homes, our cellular communication services become increasingly attractive in these installations, both new and existing.
+Added: As copper land lines continue to be phased out and more people are required to switch to cellular phone service for their homes, our cellular communication services become increasingly attractive in these installations, both new and existing.
We have built a strong competitive position by developing a wide range of software capabilities from embedded micro-coding to enterprise system software, database design, mobile applications development, user portal design, mechanical and electronic mechanisms and telecommunications, featuring our significant radio and cellular communications expertise.
−Removed: This has enabled us to create recurring revenue opportunities across product lines, and our goal is to expand such opportunities to generate recurring revenue that will account for over 50% of our total revenue and to sustain profitability from recurring revenue margins that recently have approximated 90%.
+Added: This has enabled us to create recurring revenue opportunities across product lines, and to sustain profitability from recurring revenue margins that recently have approximated 91%.
We are also focusing on security solutions for the healthcare industry, including anti-ligature lockets designed for life safety and liability reduction in hospitals, behavior health institutions and correctional facilities, and such products are highly profitable while complying with applicable regulatory and health standards.
32 unchanged sentences
The Company believes that any vendor that is currently the sole source of a component can be replaced without a material impact on the Company.
−Removed: Corporate Information and History
+Added: Company Information
The Company was founded in 1969 and incorporated as NAPCO Security Systems, Inc.
in December 1971 in the State of Delaware.
−Removed: NAPCO went public on NASDAQ with the ticker symbol “NSSC”, in 1972.
In December 2008 the Company changed its name to NAPCO Security Technologies, Inc.
−Removed: Our executive offices are located at 333 Bayview Ave, Amityville NY 11701.
−Removed: Our telephone number is (631) 842-9400.
−Removed: Website Access to Company Reports
−Removed: Copies of our filings under the Securities Exchange Act of 1934 (including annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to these reports) are available free of charge on our website ( https://investor.napcosecurity.com/sec-filings ) on the same day they are electronically filed with the Securities and Exchange Commission.
−Removed: The Company has one class of Common Stock which trades on the NASDAQ Global Market under the symbol “NSSC”.
+Added: Our executive offices are located at 333 Bayview Ave, Amityville NY 11701 and our telephone number is (631) 842-9400.
+Added: Our website is http://www.napcosecurity.com.
+Added: Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) are available free of charge on our website as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities Exchange Commission (the “SEC”).
+Added: The contents of or accessible through our website are not incorporated into this Annual Report.
+Added: Further, our references to the URLs for these websites are intended to be inactive textual reference only.
+Added: Available Information
+Added: Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to Sections 13(a) and 15(d) of the Exchange Act are filed with the SEC.
+Added: We are subject to the informational requirements of the Exchange Act and file or furnish reports, proxy statements, and other information with the SEC.
+Added: Our filings are also available to the public over the Internet at the SEC’s website at http://www.sec.gov.
+Added: Our website provides a link to our SEC filings, which are available free of charge on the same day such filings are made.
+Added: The specific location on the website where these reports can be found is https://investor.napcosecurity.com.
+Added: Our website also provides a link to Section 16 filings which are available free of charge on the same day as such filings are made.
+Added: Information contained on or accessible through these websites is not a part of this Annual Report on Form 10-K.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.