The $16M litigation charge removes a key overhang, and the core RSR business continues to show double-digit growth with high margins. Traders should watch for any guidance update on upcoming conference call and subsequent quarterly reports for revenue growth sustainability and margin expansion.
Price Chart
Executive Summary
NAPCO reported fiscal Q3 2026 results with strong underlying growth (revenue +11.8% YoY to $49.2M, non-GAAP EPS +39% to $0.39), but a $16M litigation settlement caused a GAAP net loss of $0.4M. Recurring service revenue grew 15.4% to $24.9M with 90.4% gross margins. Revenue missed consensus of $55.7M, and GAAP EPS was a loss, but non-GAAP metrics showed continued operational momentum.
Key Financial Metrics
Key Facts
- Q3 FY2026 revenue $49.2M, +11.8% YoY
- Non-GAAP diluted EPS $0.39 vs $0.28 YoY, +39.3%
- GAAP net loss $0.4M due to $16M litigation settlement charge
- Recurring service revenue $24.9M (+15.4%), 90.4% gross margin
- Adjusted EBITDA $15.8M, +20.2% YoY, margin 32.2%
- Dividend maintained at $0.15/share, payable July 3, 2026
Financial Impact
The $16M litigation settlement (0.94% of $1.7B market cap) caused a GAAP net loss, but the charge is non-recurring and underlying non-GAAP profitability grew strongly.
Risk Factors
- Further litigation costs or unfavorable rulings
- Revenue growth deceleration in equipment sales
- Potential dilution from stock option exercises
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-054691 |
| Document: nssc-20260430x8k.htm | 0001104659-26-054691 |
| Document: 0001104659-26-054691-index-headers.html | 0001104659-26-054691 |
| Document: 0001104659-26-054691-index.html | 0001104659-26-054691 |
| Document: 0001104659-26-054691.txt | 0001104659-26-054691 |
| 8-K Data (Synthetic) | 0001104659-26-054691 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 13, 2026 14d ago | SC 13G | $36.18 | awaiting T+20 | — | $39.73 (+9.81%) |
Aug 28, 2026 8w ago | Insider Cluster | $35.35 $35.06 | ▲ +0.82% | ▲ +1.08% | $39.73 (−12.39%) |
Aug 24, 2026 9w ago | 8-K | $37.59 $35.88 | ▼ −4.55% | ▼ −5.86% | $39.73 (+5.69%) |
May 4, 2026 25w ago | 8-K | $39.61 $35.27 | ▼ −10.96% | ▼ −16.60% | $39.73 (+0.30%) |
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