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(NSSC:NASDAQ) November 2026
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Disclaimer Special Note on Forward-Looking Statements This presentation contains forward-looking statements that are based on current expectations, estimates, forecasts and projectio ns of future performance based on management's judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, statements relating to growth drivers of Napco Security Technologies, Inc.’s (the “Company”) business such as school security products and recurring revenue services; potential market opportuniti es; the benefits of our recurring service revenue products to customers and dealers; our ability to control expenses and costs; and expected annual run rate for recurring service revenue. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, such risk factors described in our SEC filings, including our Annual Report on Form 10-K and Quarterly Reports on form 10-Q. Other unknown or unpredictable factors or underlying assumptions subsequently proving 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 thes e forward-looking statements. This presentation also contains estimates and other statistical data made by independent parties and by us. Management bases all estimates as to events that may occur in the future upon their best judgment as of the date of this presentation. Whether or not such estimates may be achieved will depend upon the Company achieving its overall business objectives and the availability of funds. Actual results will vary from the estimates, and such variations may be material. Moreover, except as required by law, neither the Company nor any oth er person assumes responsibility for the accuracy and completeness of the forward-looking statements included in this presentation. All information provided in this presentation speaks only as of the date on which it was made, unless otherwise stated, and we undertake no duty to update such information, except as required under applicable law. Use of Non-GAAP Financial Measures We disclose certain non-GAAP financial measures in this presentation for our historical performance, including EBITDA, non-GAAP operating income, non-GAAP net income, non-GAAP earnings per share, Adjusted EBITDA, Free Cash Flow and Free Cash Flow margin. We define EBITDA as GAAP net income (loss) plus income tax expense (benefit), net interest income (expense) and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA plus stock-based compensation, non-recurring legal fees and litigation settlement costs. Non-GAAP operating income and non-GAAP net income excludes litigation settlement costs and other infrequent or unusual charges. We define Free Cash Flow (FCF) as net cash provided by operating activities less capital expenditures. FCF margin is the FCF divided by revenue. We believe that these historical non-GAAP financial measures provide useful information to both management and investors by excluding certain items and expenses that are not indicative of our core operating results or do not reflect our normal busin ess operations. In addition, our management uses non-GAAP measures to compare our performance relative to forecasts and to benchmark our performance externally against competitors. Th e presentation of this information is not meant to be a substitute for the corresponding financial measures prepared in accordance with generally accepted accounting principles. 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 term s used in this presentation, such as Non-GAAP operating income, non-GAAP net income and Adjusted EBITDA, do not have a standardized meaning. Other companies may use the same or similar ly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP measures in the tables attached hereto. Readers are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures. 2
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Richard L. Soloway / Executive Chairman & Founder – Founder, 30+ years security, electronics experience. Founded two previous companies, the first of which installed electric garage door openers and the second manufactured guitar amplifiers, buzz boxes and wah wah pedals. Winner of numerous awards including Ernst &Young’s Entrepreneur of the Year and holder of patents relating to security products. Introductions and Management Team Michael Carrieri / Executive VP of Engineering & CTO– Over 24 years of experience in the security industry. Extensive knowledge of developing advanced electronic products with applications in military/defense, media/broadcasting and consumer electronics. Fire Chief Emeritus of the Fire Department of Melville, Long Island. Francis J. Okoniewski / Vice President, Investor Relations – Over 30 years experience in financial services industry including senior partner level equity portfolio management , corporate investor relations and US capital markets. Will also focus Company's efforts to effectively communicate its financial performance and strategic direction to current & prospective stakeholders. Kevin S. Buchel / Chief Executive Officer & President – Over 35 years of experience in the security industry and 30+ years with NAPCO in various roles, now charged with growing both revenues and earning metrics. Having begun his career at Coopers & Lybrand (merged to form PricewaterhouseCoopers, the Big 4 Audit Firm), he is a Certified Public Accountant. Stephen Spinelli / SVP Sales – 25 years of sales experience in the security industry. Previously, with a global leader in commercial & residential security systems, comprising alarms, access control and locking. He has a proven track record of leading sales teams and consistently surpassing sales goals. 3 Andrew J. Vuono / SVP Finance & CFO – Over 35 years of public accounting experience, including over 20 years as a partner at a Top 10 CPA firm. Servicing both public registrants & private companies, with a deep knowledge in financial reporting, internal controls and conducting due diligence for M&A transactions. Ooversees NAPCO’s day-to-day accounting and financial reporting activities. Joseph C. Pipczynski, Jr. / Chief Revenue Officer (CRO)– 35 years of domestic and international leadership experience across sales, business development, marketing, program management, and global expansion within the commercial, security, and defense markets . Has held Senior Leadership positions with large multinational Long Island-based companies, building teams, strategic partnerships and leading growth initiatives.
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NAPCO Investment Highlights Security Market Leader with Multiple Secular Tailwinds Driving Growth Integrated Platform Serving Large, Loyal, Professional Market Across All Security Verticals Differentiated Hardware-Enabled Recurring Revenue Services Business Model Innovation DNA – 80 engineers, Track Record of Delivering New Products Highly Visible Growth and Attractive Profitability 4
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NAPCO Security At-a-Glance Delivering Advanced Technology and High-Quality Security Solutions to Professional Installers Commercial Residential $50.0MM (+1.70%) FQ1 2027 Sales (YoY Growth) 52% FQ1 2027 Recurring Revenue % of Total 31% FQ1 2027 Adj. EBITDA Margin 90.1% FQ1 2027 Recurring Gross Margin Estimated Revenue by Market Segment Our Brands ALARMS & CONNECTIVITY ACCESS CONTROL 11.5% FQ1 2027 Recurring Revenue Growth $106MM Annual Run-rate Recurring Revenue LOCKING 5
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Multiple Growth Trends Driving Increased Investment in Security and Safety Copper Phone Line Obsolescence School Safety Regulatory Mandated Fire Alarm Upgrades Building Retrofits IoT-Enhanced Systems Building Automation Increased Retail Theft Enhanced Security Key NAPCO Growth Drivers 6
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Commercial Security (1) U.S. Market Size $Bn Residential Security (3) U.S. Market Size $Bn School Security (2) U.S. Market Size $Bn Large and Growing Markets with Significant Whitespace Multi-Billion Dollar Opportunity for Retrofits and New Installs Across Markets ✓ 5MM+ commercial buildings in the U.S. ✓ Multi-decade upgrade cycle underway for alarm systems - #1 driver of recurring services ✓ Security top of mind for new installs and building upgrades ✓ Fire alarm system convergence to cellular in early stages – cost savings, reliability, and carriers not supporting old copper telephone service ✓ 144MM+ total homes in the U.S.; limited penetration of professionally monitored security ✓ Increasing awareness and desire for smart home technologies with security being the primary driver ✓ Copper line upgrade cycle also influencing this market ✓ Increasing demand for Integrated Video for both commercial forensic analysis & liability reduction; and integrated residential HD video system options, driven by Wi-Fi & broadband availability ✓ 135k+ K-12 / colleges and universities and 350k houses of worship in the U.S. with limited overall penetration today ✓ Significant need to harden buildings against trespassing and active shooters ✓ School safety has become critical ✓ Large increase in government and school-specific funding for security across education landscape CAGR: 6.1% CAGR: 7.5% CAGR 15.6% 7 Notes: Source: Napco management estimates unless otherwise noted 1. MarketsandMarkets Commercial Security 2. US School Campus Security Market, Education Security Market, Mordor Intelligence 3. MarketDataForcast 16.1 23.5 2025A 2030E 1.8 3.8 2025A 2030E 17.7 23.8 2025A 2030E
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NAPCO Products Address Full Suite of Building Security and Safety Needs Significant Security Presence in Commercial Settings (Majority Commercial Revenue) Alarms and Connectivity Locking Access Control Keyless Access Control ID Reader Fire Alarm Remote Annunciator Cell-Based Communicators Wireless Access Control Network Lock Enterprise Security Management Platform Fire Alarm Control Panel /FACU Sensors / Detectors Keyless Access Control Lock Surveillance Cameras Smoke Detectors Wireless Locks w/ Mobile Credentials & Smartphone Control Security Touchscreen 8
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ALARMS & CONNECTIVITY Key End Markets Served Unique Integrated Platform Across Full Security Spectrum Professional-Focused Integrated Platform Across all Security Verticals • Intrusion, Cellular and Fire Alarm Systems • Connected Home and Small & Larger Business • StarLink Communications LOCKING: ACCESS & ARCHITECTURAL • Architectural & Mechanical Locking Solutions • Wireless Locking Standalone or Networked for Instant Lockdown • Healthcare, Campus & School, Multifamily ACCESS CONTROL: MULTI-PLATFORMS • Integrated ID Readers / Control Panels / Wireless Locks / Video / Software Solutions • Enterprise, Web-Browser-Based & Hosted Systems • Corporate, Campus, Healthcare, Schools & SMBs Residential Homes/ New Construction Schools Correction Centers Healthcare Transportation General Commercial / Small Business Recurring Revenue Services 9 Pharmaceuticals
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Award-Winning Products Wins “SSI MVP Home Controls Award” from Security Sales & Integration Magazine 2019 Winner for the ESX Innovation Award & SSI MVP Award from Security Sales & Integration Magazine 2023 Winner for the ESX Innovation Award & SSI MVP Award from Security Sales & Integration Magazine 2018 Winner for the ESX Innovation Award Wins SIA NPS Monitoring Solutions Award 2017 Wins “SSI Top 30 Technology Innovations Award” from Security Sales & Integration Magazine 2021 Wins Gold for the Stellar Service “Best Warranty Policies” 2021 Winner for the ESX Innovation Award 2022 Wins Silver for the Stellar Service “Best Training Programs” 2021 2026 Annual Dean’s List Award Winner- Recognizing Premier Providers Serving Private Colleges & Universities 2026 10 Winner SSI MVP Award from Security Sales & Integration Magazine, for Access Control 2024 Winner for the ESX Innovation Award Commercial Fire Communications 2024 Wins Readers’ Choice Awards Top Product Fire & Life Safety Products S.I.W. Security Info Watch.Com 2025 2021
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Majority Commercial End Users Distributors (1) (~350+ in US) Strong Position with the Professional Channel is Key Strategic Advantage Diversified Distribution Strategy Focused on the Professional Family of Companies Independent Integrators ~2,000+ Independent Dealers ~10,000+ Longstanding partner Robust product portfolio Fully integrated solutions and easy to install Proven reliability, high quality, ISO certified Support professional’s growth and profitability Notes: Source: Napco management estimates 1. Distributors count contain multiple branches 11
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Differentiated Portfolio of High Margin Recurring Services Large Current Installed Base with Significant White Space for Future Growth COMMERCIAL FIRE $10-26 per month SOLE & DUAL PATH CELLULAR /IP EXCLUSIVE DUAL PATH SUPERVISED DUAL CELL-ONLY FIRELINK PANELS W/STARLINK COMMUNICATOR BUILT IN Small / Mid Size Business &/Or Residential Commercial Fire Locking and Access Control SMALL MID SIZE BUSINESS / RESI TRICARRIER CELL & REMOTE SERVICES $7 to $26 per month SMALL MID SIZE BUSINESS / RESIDENTIAL TRI-CARRIER CELL $3 to $26 per month SMALL MID SIZE RESIDENTIAL/SMB CELL/WI-FI SELF- CONTAINED PANEL $8 to $13 per month ACCESS CONTROL PANELS APP & CLOUD-BASED HOSTED SERVICE PLANS: $3/DOOR RADIO CONTROLLED ACCESS CONTROL & DEADBOLT LOCKS 12 & Napco Comnet Cell/IP Backend Services <NAPCO CLOUD-READY> UNIFIED HARDWARE &Cloud
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Competitive Landscape NAPCO is the only Company with Products in All Three Security Verticals 13 Alarms & Connectivity Locking Access Control Johnson Controls - Wikipedia
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MVP Access : Cloud-Based Scalable Enterprise Access Control Platform Combining the Advantages of CA4K Enterprise Management & Ease of AirAccess, in a MultiVariable Platform for Different Target Customers Significant Market Opportunity: Now Recurring Revenue from Access Control & Locking Additional Recurring Service Revenue generator for NAPCO and dealers High-security features including multifactor authentication, biometrics, auto-erasing operator passcodes Cloud-based services, no on-prem. server required, saves on upfront hardware costs and system updates Fast to deploy, highly scalable. Costing Model ($3/door ) 14 Integrates NAPCO’s Enterprise Access Control Panels, Alarm Lock Wireless locks & ID readers (prox, smart card, DesFire & Mobile Wallet NFC Solutions) Provides Customized Alerts to Users & Occupants, 2-way w/ Emergency Responders (SMS & Email) New! App-Only Version MVP EZ
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New! Marks Interconnected Smart Deadbolts also on MVP Platforms Combining RMR & Hardware Designed for Multifamily Residences – 400,000 MDU units built in 2024, with numbers growing – 1st Time Homebuyers/ Downsizing Retirees Another Significant Market Opportunity: Recurring Revenue from Access Control & Locking Easy remote management for building owners, developers & property managers Deadbolt security with faster prep & installation, ADA code compliance and mobile convenience & control 14 15
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Home or Business: Crime is on Everyone’s Minds: And Property Crimes & Theft Account for Most US Crimes Intrusion Alarm System Demand Will Likely Follow Property Crimes in US 16
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7.9 12.0 17.4 24.0 33.9 46.0 59.9 75.7 86.3 97.5 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Reported Recurring Revenue (1) Significant Growth in Recurring Revenue with Highly Attractive Margins $MM NA 51.2% 45.2% 38.0% 41.0% 35.6% 75.2% 76.8% 78.2% 82.0% 85.6% 9.1% 13.1% 16.9% 23.7% 29.7% 87.0% 32.0% ~90% ~44% YoY growth Gross Margin % of Total Revenue 30% 89% 35% Notes: 1. FYE June 30 17 27% 40% 90% 14% ~47.5% ~91% 13% ~48.2% ~90.2%
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Significant Focus on School and Campus Security Opportunity Best-In-Class Solutions Across Full Spectrum of Technology-Driven Products and Services Total U.S. K-12 Market: ~131,000 Schools plus many more. . . Total U.S. Colleges & Universities Market: ~5,300 Schools plus many more. . . Top Institutions Trust NAPCO’s School SolutionsRepresentative School Security Solutions LocDown Locking Retrofit Classrooms & Exit Doors Door Access Fire & Security Alarms Enterprise Access Security & Video Solutions range from basic classroom locking to radio-controlled lockdown 18
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Financial Overview
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FQ1 2027 Highlights As of September 30, 2026 FQ1 Record Adj. EBITDA $15.5 MM FQ1 Adj. EBITDA +3.8% YoY FQ1 Adj. EBITDA per share (diluted) $0.43 Margin 31% FQ1 Adjusted EBITDA FQ1 Recurring Revenue +11.5% YoY to $26.1MM Recurring Revenue FQ1 Record $13 MM FQ1 +6.9% YoY FQ1 EPS (diluted) $0.36 Margin 26% FQ1 GAAP Net Income & EPS FQ1 FCF $2.3 MM FQ1 FCF Margin 4.6% Cash, Marketable Securities $135 MM $0 Debt FQ1 Free Cash Flow & Balance Sheet FQ1 Record Sales +1.7% YoY to $50MM FQ1 2027 Sales FQ1 Recurring Revenue Gross Margin 90.1%, Total Gross Margin 58.7% +210 BPS YoY FQ1 Gross Margin 20
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Notes: 1. FYE June 30 2. See Appendix for Adj. EBITDA reconciliation 24.0 33.9 46.0 59.9 75.5 86.3 97.5 77.3 80.1 97.6 110.0 113.0 95.2 104.8 101.4 114.0 143.6 5.2% 26.3% 169.9 Reported Revenue (1) Adjusted EBITDA (1)(2) Strong Long Term Financial Profile Growth and Margin Expansion $MM $MM Adjusted EBITDA Margin 13.8% 17.6% 20%15.8% 21 188.8 31% 19.2% expansion 2020 2021 2022 2023 2024 181.6 2025 28.7% 2020 2021 2022 2023 2024 2025 2026 33.0% 14.0 20.1 22.6 34.3 58.9 52.1 66.7 2026 202.3
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Selected Balance Sheet Highlights As of September 30, 2026 ($MM) ISO-certified factory in Dominican Republic Headquarters and factory in Amityville, NY Cash, Marketable Securities and Investments $135 Working Capital $175 Total Assets $231 Debt $0.0 Total Liabilities $33 Stockholders’ Equity $198 Diluted Shares Outstanding (MM) 36 NAPCO’S FACILITIES 180,000 square foot 95,000 square foot Facilities in New York and the Dominican Republic allow for receiving products within approximately 6 days versus ~6 weeks if were sourced from China Amityville, NY and Dominican Republic company owned facilities Manufacturing components imported into DR for processing not subjected to US tariffs 22
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NAPCO Investment Highlights Security Market Leader with Multiple Secular Tailwinds Driving Growth Integrated Platform Serving the Professional Across All Security Verticals Differentiated Hardware-Enabled Recurring Services Business Model Innovation DNA Highly Visible Growth and Attractive Profitability • Broad portfolio of security products for security professionals • Large market with multiple long-term secular tail winds • Growing recurring services adoption driving above market growth • Robust product portfolio with integration across all key security verticals • Open architecture allows easy integration with any systems • Powerful professional- focused distribution channel • Significant growth of hardware-enabled recurring services • High margin, stable revenue streams • Market-leading technology driving large and growing installed base • Long term target of ~50% recurring revenue as % of total • Long track record of security innovation • Relationship with distribution network drives feedback loop • Substantial proprietary intellectual property • Multiple vectors to accelerate long term growth and increase wallet share • Significant visibility from increasing mix of sticky recurring revenues • Recurring services drive highly visible margin expansion 23
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APPENDIX Supplemental Financial Information
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Select Financial Data Fiscal Year Ended June 30 | ($ in thousands, except per share data) 25 Statement of Operations Data: 2022 2023 2024 2025 2026 Equipment revenue $ 97,612 $ 110,062 $ 113,071 $ 95,291 $ 104,788 Service revenue 45,981 59,935 75,749 86,330 97,528 Total Revenue $ 143,593 $ 169,997 $ 188,820 $ 181,621 $ 202,316 Cost of equipment revenue 78,471 90,197 79,862 72,795 73,031 Cost of service revenue 5,966 6,567 7,204 7,796 9,494 Total Cost of Revenue $ 84,437 $ 96,764 $ 87,066 $ 80,591 $ 82,525 Net income $ 19,599 $ 27,127 $ 49,818 $ 43,406 $ 43,027 Net income per share, diluted $ 0.53 $ 0.73 $ 1.34 $ 1.19 $ 1.20 Weighted-average shares outstanding - diluted 36,867,000 37,005,000 37,066,000 36,499,000 35,891,000 Balance Sheet Data (as of): Cash, cash equivalents and marketable securities $ 46,798 $ 66,753 $ 97,719 $ 99,176 $ 137,565 Non-GAAP Financial Measures: * Non-GAAP adjusted EBITDA * $ 22,626 $ 34,295 $ 58,934 $ 52,126 $ 66,670 Non-GAAP adjusted Net Income * $ 16,097 $ 27,127 $ 49,818 $ 43,406 $ 57,294 Non-GAAP Free Cash Flow* $ 6,850 $ 21,738 $ 43,774 $ 51,411 $ 59,228 * Non-GAAP adjusted EBITDA, adjusted net income and free cash flow are non -GAAP financial measures - see next page for reconciliation to GAAP
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Non-GAAP Reconciliations Fiscal Year Ended June 30 | ($ in thousands, except per share data) 26 Non-GAAP Adjusted EBITDA: 2022 2023 2024 2025 2026 Net income, as reported $ 19,599 $ 27,127 $ 49,818 $ 43,406 $ 43,027 Adjustments: Interest (income) expense, net 283 (903) (2,568) (3,356) (3,587) Provision for income taxes 2,247 4,101 6,568 6,663 6,795 Depreciation and amortization 1,771 1,930 2,163 2,276 2,208 Stock based compensation 1,649 1,464 1,733 1,513 989 Nonrecurring legal expense 981 576 1,220 1,624 1,238 Litigation settlement costs - - - - 16,000 Gain on debt extinguisment (3,904) - - - - Total adjustments 3,027 7,168 9,116 8,720 23,643 Non-GAAP Adjusted EBITDA $ 22,626 $ 34,295 $ 58,934 $ 52,126 $ 66,670 Net Income Margin 14% 16% 26% 24% 21% Non-GAAP Adjusted EBITDA Margin 16% 20% 31% 29% 33% Non-GAAP Adjusted Net Income: Net income, as reported $ 19,599 $ 27,127 $ 49,818 $ 43,406 $ 43,027 Adjustments: Litigation settlement costs - - - - 16,000 Gain on debt extinguisment (3,904) - - - - Total adjustments (3,904) - - - 16,000 Income taxes 402 - - - (1,733) Non-GAAP Adjusted Net Income $ 16,097 $ 27,127 $ 49,818 $ 43,406 $ 57,294 Non-GAAP Free Cash Flow: Cash flows from operating activities 8,332 24,700 45,368 53,527 61,145 Additions to property and equipment (1,482) (2,962) (1,594) (2,116) (1,917) Non-GAAP Free Cash Flow $ 6,850 $ 21,738 $ 43,774 $ 51,411 $ 59,228
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Supplemental Financial Data Fiscal Year Ended June 30 | ($ in thousands, except per share data) 27 Statement of Operations Data: 2022 2023 2024 2025 2026 Equipment revenue $ 97,612 $ 110,062 $ 113,071 $ 95,291 $ 104,788 Service revenue 45,981 59,935 75,749 86,330 97,528 Total revenue 143,593 169,997 188,820 181,621 202,316 Cost of equipment revenue 78,471 90,197 79,862 72,795 73,031 Cost of service revenue 5,966 6,567 7,204 7,796 9,494 Total cost of revenue 84,437 96,764 87,066 80,591 82,525 Research and development 8,024 9,328 10,763 12,581 13,791 Selling, general and administrative 32,907 33,580 37,173 42,190 44,362 Litigation settelment costs - - - - 16,000 Total operating expenses 40,931 42,908 47,936 54,771 74,153 Operating income 18,225 30,325 53,818 46,259 45,638 Interest and other income (expense), net (283) 903 2,568 3,810 4,184 Gain on extinguishment of debt 3,904 - - - - Income before income taxes 21,846 31,228 56,386 50,069 49,822 Provision for income taxes 2,247 4,101 6,568 6,663 6,795 Net Income $ 19,599 $ 27,127 $ 49,818 $ 43,406 $ 43,027 As a Percentage of Revenue: Cost of equipment revenue as % of equipment revenue 80% 82% 71% 76% 70% Cost of service revenue as % of service revenue 13% 11% 10% 9% 10% Research and development 6% 5% 6% 7% 7% Selling, general and administrative 23% 20% 20% 23% 22% Litigation settelment costs 0% 0% 0% 0% 8% Total operating expenses 29% 25% 25% 30% 37% Operating income 13% 18% 29% 25% 23% Net Income 14% 16% 26% 24% 21%
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BACK COVER – Reversed Color © NAPCO August 2026 NASDAQ: NSSC