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Investing.com published a report on February 3, 2025, entitled “NAPCO Security stock tumbles after Q2 sales decline.” The report stated that “[s]hares of NAPCO Security Technologies, Inc. [. . .] plummeted 27% following the announcement of its fiscal 2025 second quarter results, which revealed a decrease in net sales and diluted earnings per share (EPS) compared to the same period last year.” The report continued to state that “Richard Soloway, Chairman and CEO, attributed the equipment revenue shortfall to lagging sales in intrusion and access alarm products and door locking devices. The company cited specific issues with two of its larger distributors; one reduced purchases to cut inventory levels, and another underwent a management restructuring that delayed transaction approvals. Soloway expressed disappointment in the overall equipment sales but remains optimistic about future improvements.”
Following this news, NAPCO stock fell over 26% on the same day.