Jim Ricchiuti's questions to NAPCO SECURITY TECHNOLOGIES (NSSC) leadership • Q4 2025
Question
Jim Ricchiuti from Needham & Company asked for quantification of the equipment sales pull-forward, elaboration on sell-through statistics, and the specific impact of tariffs on equipment gross margins during the quarter.
Answer
President and COO Kevin Buchel stated that sell-through stats were strong across the board in June and that distributor ordering activity remains healthy. CFO Andrew Bono addressed the margin question, clarifying that there was limited benefit from price increases in Q4. He quantified the negative tariff impact on COGS at approximately $1 million for the quarter, noting that the company expects to see a lift in margins in Q1 as new pricing is fully effective. Chairman and CEO Dick Soloway added that the company is focused on releasing additional recurring revenue products.