Napco Security Technologies delivered a record-breaking QQ4 2024, with net sales of $50.3 million, marking the 15th consecutive quarter of record quarterly sales. Recurring monthly service revenues surged 27% year over year in Q4 and now run at an annualized rate of approximately $84 million, underpinning earnings durability and high-margin recurring income. The company holds a strong balance sheet with no debt and cash and investments totaling $97.7 million, supporting a very healthy current ratio of 7.6x and robust operating cash flow generation. Management emphasized a strategic pivot toward higher-margin recurring revenues, expansion of the StarLink radio ecosystem, and the Prima All-in-One security panel to capture a much larger residential/small business addressable market. While hardware margins benefited from favorable mix and overhead absorption, the firm reiterated plans to improve hardware gross margins in fiscal 2025 and beyond and continues to invest in R&D and SG&A to support product development and go-to-market initiatives. The dividend was raised to $0.125 per share, signaling confidence in sustained cash generation and profitability trajectory. Near-term drivers include continued penetration of locking hardware in schools, healthcare, airports, and multifamily markets, coupled with greater distributor collaboration (including ADI) to scale radio and recurring revenue adoption. Risks center on radio mix volatility, distributor inventory dynamics, and the ongoing need to convert legacy fire protection installs (3G sunset retrofit cycle) into StarLink-enabled systems. Overall, the QQ4 2024 results reinforce Napco’s position as a cash-generative, asset-light growth story within the security/industrials space, with meaningful upside from Prima and expanded recurring revenue streams.