Recurring service revenue surged 12.9% to $25.3 million, driving gross margin expansion to 61.3% in the quarter.
NAPCO Security Technologies reported fiscal fourth-quarter revenue of $55.8 million, a 10% year-over-year increase, marking a record for the period. The growth was fueled by a 12.9% rise in recurring service revenue to $25.3 million and a 7.7% increase in equipment revenue to $30.5 million.
Gross profit jumped 27.7% to $34.2 million, with consolidated gross margin expanding to 61.3% from 52.8% in the prior-year quarter. The company attributed approximately 600 basis points of the margin improvement to IEEPA tariff refunds. Recurring service revenue achieved a 90.1% gross margin during the quarter.
The company also announced a leadership transition, with Kevin Buchel promoted to CEO and President, while founder Dick Soloway became Executive Chairman.