Exhibit 99.1

NAPCO Security Technologies, Inc. Reports Fiscal 2026 Q3 Results

Fiscal Q3 2026 Highlights

●

Q3 Net revenues of $49.2 million, a 11.8% YoY increase

●

Equipment revenue increased 8.4% YoY to $24.2 million

●

Recurring service revenue (“RSR”) increased 15.4% YoY to $24.9 million with a 90.4% gross margin

●

RSR had a prospective annual run rate of approximately $101 million based on April 2026 recurring service revenues.

●

Gross profit margin for Q3 2026 of 60.0% vs 57.2% in prior fiscal year quarter

●

Net (loss) income for the three and nine months ended March 31, 2026, of $(0.4) million and $25.3 million is inclusive of a $16.0 million litigation settlement charge

●

Non-GAAP Diluted Net Income per share increased YoY to $0.39 vs $0.28

●

Q3 Adjusted EBITDA increased 20.2% YoY to $15.8 million with an Adjusted EBITDA Margin of 32.2%

●

The Board declared a quarterly dividend of $0.15 per share, payable on July 3, 2026 to shareholders of record on June 12, 2026.

AMITYVILLE, N.Y., May 4, 2026 /PRNewswire/ -- NAPCO Security Technologies, Inc. (NASDAQ: NSSC), one of the leading manufacturers and designers of high-tech electronic security equipment, wireless communication devices for intrusion and fire alarm systems and the related recurring service revenues as well as a provider of school safety solutions, today announced financial results for its third quarter of fiscal 2026. Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release.


	Three months ended March 31,								Nine months ended March 31,
	(dollars in thousands)								(dollars in thousands)
							% Increase/								% Increase/
Financial Highlights	2026			2025			(decrease)		2026			2025			(decrease)
GAAP Results
Net Revenue	$	49,167		$	43,961		11.8	%	$	146,507		$	130,897		11.9	%
Gross Profit	$	29,489		$	25,127		17.4	%	$	85,573		$	74,232		15.3	%
Gross Profit Margin		60.0	%		57.2	%				58.4	%		56.7	%
Operating (Loss) Income	$	(1,188)		$	11,146		(110.7)	%	$	27,208		$	34,173		(20.4)	%
Net (Loss) Income	$	(408)		$	10,122		(104.0)	%	$	25,260		$	31,774		(20.5)	%
Diluted (Loss) Earnings Per Share	$	(0.01)		$	0.28		(103.6)	%	$	0.70		$	0.86		(18.6)	%

Non-GAAP Results
Operating Income	$	14,812		$	11,146		32.9	%	$	43,208		$	34,173		26.4	%
Net Income	$	13,859		$	10,122		36.9	%	$	39,527		$	31,774		24.4	%
Net Income Margin		28.2	%		23.0	%				27.0	%		24.3	%
Diluted Earnings Per Share	$	0.39		$	0.28		39.3	%	$	1.10			0.86		27.9	%
Adjusted EBITDA	$	15,820		$	13,161		20.2	%	$	46,112		$	37,877		21.7	%
Adjusted EBITDA Margin		32.2	%		29.9	%				31.5	%		28.9	%
Adjusted EBITDA Per Share	$	0.44		$	0.36		22.2	%	$	1.28		$	1.03	^%	24.3	%
Free Cash Flows	$	16,022		$	13,314		20.3	%	$	41,979		$	37,024		13.4	%
Free Cash Flows Margin		32.6	%		30.3	%				28.7	%		28.3	%

Richard Soloway, Chairman and CEO, commented, “Our Fiscal Q3 performance reflects positive financial results, including record Q3 Adjusted EBITDA of $15.8 million, which was sustained by our recurring service revenue with its continued year over year double digit growth, and the consistent demand for our door-locking products that drove growth in our equipment revenue and improved equipment gross margins, which increased to approximately 29%. Our RSR continues to sustain gross margins of over 90%, represents approximately 51% of total revenue in Q3, and has a prospective run rate of approximately $101 million based on our April 2026 recurring service revenue. Our revenue growth and margin expansion resulted in a 37% increase in Non-GAAP net income, a 20% increase in Adjusted EBITDA and our adjusted EBITDA margin was 32.2% as compared to 29.9% in Q3 of Fiscal 2025.

As such we are pleased to continue our dividend program and will be paying the next quarterly dividend of $0.15 per share on July 3, 2026 to shareholders of record on June 12, 2026.”

Conference Call Information

Management will conduct a conference call at 11 a.m. ET today, May 4, 2026, and in order to participate please go to the Investor Relations section of the Company website at https://investor.napcosecurity.com/events-presentations or choose https://app.webinar.net/Yr185qlxvQE. Alternatively, interested parties may participate in the call by dialing (US) 1-800-836-8184 or 1-646-357-8785. A replay of the webcast will be available on the Investor Relations section of the Company’s website.

About NAPCO Security Technologies, Inc.

NAPCO Security Technologies, Inc., is one of the leading manufacturers and designers of high-tech electronic security devices, wireless recurring communication services for intrusion and fire alarm systems as well as a provider of school safety solutions, The Company consists of four Divisions: NAPCO, plus three wholly owned subsidiaries: Alarm Lock, Continental Instruments, and Marks USA. Headquartered in Amityville, New York, its products are installed by tens of thousands of security professionals worldwide in commercial, industrial, institutional, residential and government applications. NAPCO products have earned a reputation for innovation, technical excellence and reliability, positioning the Company for growth in the multi-billion dollar and rapidly expanding electronic security market. For additional information on NAPCO, please visit the Company's web site at http://www.napcosecurity.com.

Safe Harbor Statement

This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, but are not limited to, statements relating to the impact of COVID-19 pandemic; supply chain challenges and developments; the growth of recurring service revenues and annual run rate; the strength of our balance sheet; our expectations regarding future results; the introduction of new access control and locking products; the opportunities for school security products; business trends , including the replacement of 3G radios, and our ability to execute our business strategies. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements because of certain factors, including those risk factors set forth in the Company's filings with the Securities and Exchange Commission, such as our annual report on Form 10-K and quarterly reports on Form 10-Q. Other unknown or unpredictable factors or underlying assumptions subsequently proved to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and the Company undertakes no duty to update such information, except as required under applicable law.

*Non-GAAP Financial Measures

Certain non-GAAP measures are included in this press release, including non-GAAP operating income, non-GAAP net income, non-GAAP net income per share (diluted), non-GAAP net income margin, Adjusted EBITDA, Adjusted EBITDA per share (diluted), Adjusted EBITDA per share margin, Free Cash Flow and Free Cash Flow margin. We define non-GAAP net income as GAAP net income plus litigation settlement costs. We define Adjusted EBITDA as GAAP net income plus income tax expense, net interest income (expense), stock-based compensation, non-recurring legal expense, litigation settlement costs, and depreciation and amortization expense. Non-GAAP net income margin is non-GAAP net income divided by revenue. Adjusted EBITDA margin is Adjusted EBITDA divided by revenue. We define Free Cash Flow (FCF) as net cash provided by operating activities less capital expenditures. FCF margin is the FCF divided by revenue. These non-GAAP measures are provided to enhance the user's overall understanding of our financial performance. By excluding these charges our non-GAAP results provide information to management and investors that is useful in assessing NAPCO's core operating performance and in comparing our results of operations on a consistent basis from period to period. Our use of non-GAAP financial measures has certain limitations in that such non-GAAP financial measures may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as Adjusted EBITDA, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. The presentation of this information is not meant to be a substitute for the corresponding financial measures prepared in accordance with generally accepted accounting principles. Investors are encouraged to review the reconciliation of GAAP to non-GAAP financial measures set forth above.

NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)



	March 31, 2026		June 30, 2025

	(in thousands, except share data)
Assets
Current Assets
Cash and cash equivalents	$	114,408	$	83,081
Marketable securities		10,544		16,095
Accounts receivable, net of allowance for credit losses of $27 and $25 as of March 31, 2026 and June 30, 2025, respectively		28,527		30,108
Inventories		33,384		29,962
Income tax receivable		2,765		—
Prepaid expenses and other current assets		3,146		3,198
Total Current Assets		192,774		162,444
Inventories - non-current		10,012		11,313
Property, plant and equipment, net		9,297		9,233
Intangible assets, net		3,064		3,287
Deferred income taxes		1,697		6,476
Operating lease - Right-of-use asset		4,975		5,188
Other assets		190		200
Total Assets	$	222,009	$	198,141

Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable	$	5,786	$	5,742
Accrued expenses		7,999		8,712
Accrued litigation costs		16,000		—
Accrued salaries and wages		3,834		4,398
Dividends payable		5,357		4,992
Accrued income taxes		—		213
Total Current Liabilities		38,976		24,057
Accrued income taxes		34		143
Operating lease liability		5,217		5,335
Total Liabilities		44,227		29,535
Commitments and Contingencies (Note 13)
Stockholders' Equity
Common Stock, par value $0.01 per share; 100,000,000 shares authorized as of March 31, 2026 and June 30, 2025; 39,841,951 and 39,771,035 shares issued; and 35,727,337 and 35,656,421 shares outstanding, respectively.		398		398
Additional paid-in capital		24,523		25,280
Retained earnings		209,001		199,083
Treasury Stock, at cost, 4,114,614 shares as of both March 31, 2026 and June 30, 2025		(56,315)		(56,315)
Accumulated other comprehensive income		175		160
Total Stockholders' Equity		177,782		168,606
Total Liabilities and Stockholders' Equity	$	222,009	$	198,141

NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


		Three Months ended March 31,
		2026		2025

		(in thousands, except for share and per share data)
Revenue:
Equipment revenue		$	24,238	$	22,351
Service revenue			24,929		21,610
Total revenue			49,167		43,961
Cost of Revenue:
Cost of equipment revenue			17,289		16,852
Cost of service revenue			2,389		1,982
Total cost of revenue			19,678		18,834

Gross Profit			29,489		25,127

Operating Expenses:
Research and development			3,418		3,185
Selling, general, and administrative			11,259		10,796
Litigation settlement cost			16,000		—
Total Operating Expenses			30,677		13,981

Operating (Loss) Income			(1,188)		11,146

Other Income:
Interest income, net			881		762
Other income, net			105		100
(Loss) Income before Provision for Income Taxes			(202)		12,008
Provision for Income Taxes			206		1,886
Net (Loss) Income		$	(408)	$	10,122

(Loss) Income Per Share:
Basic		$	(0.01)	$	0.28
Diluted		$	(0.01)	$	0.28

Weighted Average Number of Shares Outstanding:
Basic			35,691,000		36,111,000
Diluted			35,691,000		36,253,000

NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Nine Months Ended March 31,
	2026		2025

	(in thousands, except for share and per share data)
Revenue:
Equipment revenue	$	74,300	$	66,993
Service revenue		72,207		63,904
Total revenue		146,507		130,897
Cost of Revenue:
Cost of equipment revenue		53,942		50,968
Cost of service revenue		6,992		5,697
Total cost of revenue		60,934		56,665

Gross Profit		85,573		74,232

Operating Expenses:
Research and development		10,131		9,349
Selling, general, and administrative expenses		32,234		30,710
Litigation settlement cost		16,000		—
Total Operating Expenses		58,365		40,059

Operating Income		27,208		34,173

Other Income:
Interest income, net		2,618		2,631
Other income, net		346		296
Income before Provision for Income Taxes		30,172		37,100
Provision for Income Taxes		4,912		5,326
Net Income	$	25,260	$	31,774

Income Per Share:
Basic	$	0.71	$	0.87
Diluted	$	0.70	$	0.86

Weighted Average Number of Shares Outstanding:
Basic		35,689,000		36,511,000
Diluted		35,911,000		36,743,000

NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


	Nine Months ended March 31,
	2026		2025

	(in thousands)
Cash Flows from Operating Activities
Net Income	$	25,260	$	31,774
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,670		1,705
Change in accrued interest on other investments		—		(194)
Unrealized gain on marketable securities		—		(131)
Realized gain on sales of marketable securities		(296)		—
Charge (recovery) of credit losses		2		(12)
Change to inventory reserve		(580)		78
Deferred income taxes		4,779		(2,324)
Stock-based compensation expense		784		1,143
Changes in operating assets and liabilities:
Accounts receivable		1,579		7,660
Inventories		(1,541)		2,973
Prepaid expenses and other current assets		52		841
Income tax receivable		(2,769)		(905)
Other assets		10		84
Accounts payable, accrued expenses, accrued litigation costs, accrued salaries and wages, accrued income taxes		14,541		(3,789)
Net Cash Provided by Operating Activities		43,491		38,903
Cash Flows from Investing Activities
Purchases of property, plant, and equipment		(1,512)		(1,879)
Purchases of marketable securities		(7,825)		(10,222)
Proceeds from sales of marketable securities		13,691		—
Purchases of other investments		—		(78)
Redemption of other investments		—		27,252
Net Cash Provided by Investing Activities		4,354		15,073
Cash Flows from Financing Activates
Proceeds from stock option exercises		—		54
Dividends paid		(14,977)		(9,164)
Repurchase of common stock		—		(36,794)
Payment of tax withholdings related to stock option exercises		(1,541)		—
Net Cash Used in Financing Activities		(16,518)		(45,904)

Net increase in Cash and Cash Equivalents		31,327		8,072
Cash and Cash Equivalents - Beginning		83,081		65,341
Cash and Cash Equivalents - Ending	$	114,408	$	73,413
Supplemental Cash Flow Information
Interest paid	$	—	$	—
Income taxes paid	$	3,114	$	8,350
Non-Cash Investing and Financing Transactions
Dividends declared and not paid	$	5,357	$	4,467

NAPCO SECURITY TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL DATA*

(unaudited)

(in thousands, except share and per share data)


			Non-GAAP Adjustments
			Litigation
			Settlement		Tax
	GAAP		Cost		Adjustments ⁽¹⁾		Non-GAAP
Three months ended March 31, 2026
Revenue	$	49,167	$	—	$	—	$	49,167
Gross Profit		29,489		—		—		29,489
Operating Expenses		30,677		(16,000)		—		14,677
Operating (loss) Income		(1,188)		16,000		—		14,812
Net (loss) Income		(408)		16,000		(1,733)		13,859
Non-GAAP adjusted net income margin								28.2	%
Non-GAAP adjusted net income per share - diluted							$	0.39

Three months ended March 31, 2025
Revenue	$	43,961	$	—	$	—	$	43,961
Gross Profit		25,127		—		—		25,127
Operating Expenses		13,981		—		—		13,981
Operating (loss) Income		11,146		—		—		11,146
Net (loss) Income		10,122		—		—		10,122
Non-GAAP adjusted net income margin								23.0	%
Non-GAAP adjusted net income per share - diluted							$	0.28

Nine months ended March 31, 2026
Revenue	$	146,507	$	—	$	—	$	146,507
Gross Profit		85,573		—		—		85,573
Operating Expenses		58,365		(16,000)		—		42,365
Operating Income		27,208		16,000		—		43,208
Net Income		25,260		16,000		(1,733)		39,527
Non-GAAP adjusted net income margin								27.0	%
Non-GAAP adjusted net income per share - diluted							$	1.10

Nine months ended March 31, 2025
Revenue	$	130,897	$	—	$	—	$	130,897
Gross Profit		74,232		—		—		74,232
Operating Expenses		40,059		—		—		40,059
Operating Income		34,173		—		—		34,173
Net Income		31,774		—		—		31,774
Non-GAAP adjusted net income margin								24.3	%
Non-GAAP adjusted net income per share - diluted							$	0.86


	Three months ended March 31,				Nine months ended March 31,
	2026		2025		2026		2025
Denominator:
Weighted average shares outstanding
Basic, as reported		35,691,000		36,111,000		35,689,000		36,511,000
Effect of Dilutive Securities		—		142,000		222,000		232,000
Diluted, (Denominator)		35,691,000		36,253,000		35,911,000		36,743,000

The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

NAPCO SECURITY TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL DATA*

(unaudited)

(in thousands, except share and per share data)


	Three months ended March 31,						Nine months ended March 31,
	2026			2025			2026			2025
Non-GAAP adjusted EBITDA:
Net (loss) income, as reported	$	(408)		$	10,122		$	25,260		$	31,774
Interest income, net		(881)			(762)			(2,618)			(2,631)
Provision for income taxes		206			1,886			4,912			5,326
Depreciation and amortization		535			572			1,670			1,705
Non-GAAP EBITDA		(548)			11,818			29,224			36,174
Adjustments:
Stock based compensation		290			386			784			1,143
Nonrecurring legal expense⁽¹⁾		78			957			104			560
Litigation settlement cost⁽²⁾		16,000			—			16,000			—
Total adjustments		16,368			1,343			16,888			1,703
Non-GAAP adjusted EBITDA	$	15,820		$	13,161		$	46,112		$	37,877
Non-GAAP adjusted EBITDA margin		32.2	%		29.9	%		31.5	%		28.9	%

Non-GAAP per share data:
Non-GAAP adjusted EBITDA per share - diluted	$	0.44		$	0.36		$	1.28		$	1.03

Denominator:
Weighted average shares outstanding
Basic, as reported		35,691,000			36,111,000			35,689,000			36,511,000
Effect of Dilutive Securities		—			142,000			222,000			232,000
Diluted, (Denominator)		35,691,000			36,253,000			35,911,000			36,743,000

Nonrecurring Legal Expenses, which are net of any insurance reimbursements, are legal fees that are determined not to be of a normal recuring nature and expenses necessary to operate the business

Litigation settlement costs, which are net of any insurance reimbursements, were determined not to be of a recurring nature and costs that are not in the normal cost of business or necessary to operate the business


	Three months ended March 31,						Nine months ended March 31,
	(dollars in thousands)						(dollars in thousands)

	2026			2025			2026			2025
Free cash flow:
Net Cash Provided by Operating Activities	$	16,756		$	13,379		$	43,491		$	38,903
Less: Purchases of property, plant, and equipment		(734)			(65)			(1,512)			(1,879)
Free Cash Flow⁽¹⁾	$	16,022		$	13,314		$	41,979		$	37,024
Free Cash Flow Margin⁽¹⁾		32.6	%		30.3	%		28.7	%		28.3	%

1. Free cash flow is calculated as net cash provided by operating activities less capital expenditures. Free cash flow margin is the free cash flow divided by revenue.

Contacts:

Francis J. Okoniewski

Vice President of Investor Relations

NAPCO Security Technologies, Inc.

Office 800-645-9445 x 374

Mobile 516-404-3597

[email protected]