Technology
Palo Alto Networks Reports Fiscal Fourth Quarter and Fiscal Year 2024 Financial Results
Published
2 years agoon
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Fiscal fourth quarter revenue grew 12% year over year to $2.2 billion. Fiscal year 2024 revenue grew 16% year over year to $8.0 billion.Next-Generation Security ARR grew 43% year over year to $4.2 billion.Remaining performance obligation grew 20% year over year to $12.7 billion.
SANTA CLARA, Calif., Aug. 19, 2024 /PRNewswire/ — Palo Alto Networks (NASDAQ: PANW), the global cybersecurity leader, announced today financial results for its fiscal fourth quarter and fiscal year ended July 31, 2024.
Total revenue for the fiscal fourth quarter 2024 grew 12% year over year to $2.2 billion, compared with total revenue of $2.0 billion for the fiscal fourth quarter 2023. GAAP net income for the fiscal fourth quarter 2024 was $357.7 million, or $1.01 per diluted share, compared with GAAP net income of $227.7 million, or $0.64 per diluted share, for the fiscal fourth quarter 2023.
Non-GAAP net income for the fiscal fourth quarter 2024 was $522.2 million, or $1.51 per diluted share, compared with non-GAAP net income of $482.5 million, or $1.44 per diluted share, for the fiscal fourth quarter 2023. A reconciliation between GAAP and non-GAAP information is contained in the tables below.
“We finished off the year with strong execution on our platformization strategy in Q4,” said Nikesh Arora, chairman and CEO of Palo Alto Networks. “As we look forward to fiscal year 2025 and beyond, we are focused on scaling our Next-Generation Security business through continued innovation and execution.”
“Our top-line strength showed through in our remaining performance obligation and Next-Generation Security ARR,” said Dipak Golechha, chief financial officer of Palo Alto Networks. “At the same time we successfully balanced profitable growth, as our non-GAAP operating margins increased by more than 300 basis points for the year with strong cash generation, marking one of the best years for Palo Alto Networks.”
Financial Outlook
Palo Alto Networks provides guidance based on current market conditions and expectations.
For the fiscal first quarter 2025, we expect:
Total revenue in the range of $2.10 billion to $2.13 billion, representing year-over-year growth of between 12% and 13%.Diluted non-GAAP net income per share in the range of $1.47 to $1.49, representing year-over-year growth of between 7% and 8%.
For the fiscal year 2025, we expect:
Total revenue in the range of $9.10 billion to $9.15 billion, representing year-over-year growth of between 13% and 14%.Non-GAAP operating margin in the range of 27.5% to 28.0%.Diluted non-GAAP net income per share in the range of $6.18 to $6.31, representing year-over-year growth of between 9% and 11%.Adjusted free cash flow margin in the range of 37% to 38%.
The board of directors authorized an additional $500 million for share repurchases, increasing the remaining authorization for future share repurchases to $1 billion, expiring December 31, 2025.
Guidance takes into account the expected financial impact of the pending acquisition of IBM’s QRadar SaaS assets. Guidance for non-GAAP financial measures excludes share-based compensation-related charges, including share-based payroll tax expense, acquisition-related costs, amortization expense of acquired intangible assets, litigation-related charges, including legal settlements, restructuring and other costs, non-cash charges related to convertible notes, foreign currency gains (losses), and income tax and other tax adjustments related to our long-term non-GAAP effective tax rate, along with certain non-recurring expenses and certain non-recurring cash flows. We have not reconciled non-GAAP operating margin guidance to GAAP operating margin, diluted non-GAAP net income per share guidance to GAAP net income per diluted share or adjusted free cash flow margin guidance to GAAP net cash from operating activities because we do not provide guidance on GAAP operating margin, GAAP net income or net cash from operating activities and would not be able to present the various reconciling cash and non-cash items between GAAP and non-GAAP financial measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted, including share-based compensation expense, without unreasonable effort. The actual amounts of such reconciling items will have a significant impact on the company’s GAAP net income per diluted share and GAAP net cash from operating activities.
Earnings Call Information
Palo Alto Networks will host a video webcast for analysts and investors to discuss the company’s fiscal fourth quarter and fiscal year 2024 results as well as the outlook for its fiscal first quarter and fiscal year 2025 today at 4:30 p.m. Eastern time/1:30 p.m. Pacific time. Open to the public, investors may access the webcast, supplemental financial information and earnings slides from the “Investors” section of the company’s website at investors.paloaltonetworks.com. A replay will be available three hours after the conclusion of the webcast and archived for one year.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks, uncertainties, and assumptions including statements regarding our platformization strategy and financial outlook for the fiscal first quarter 2025 and fiscal year 2025. In addition, the financial outlook for the fiscal first quarter 2025 and fiscal year 2025 assumes consummation of the pending acquisition of IBM’s QRadar SaaS assets during the fiscal first quarter of 2025, and reflects revenue contribution and ongoing expenses from such acquisition. There are a significant number of factors that could cause actual results to differ materially from forward-looking statements made in this press release, including: developments and changes in general market, political, economic, and business conditions; failure of our platformization product offerings; failure to achieve the expected benefits of our strategic partnerships and acquisitions; risks associated with managing our growth; risks associated with new product, subscription and support offerings, including our efforts to leverage AI; shifts in priorities or delays in the development or release of new offerings, or the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing product, subscription and support offerings; failure of our business strategies; rapidly evolving technological developments in the market for security products, subscriptions and support offerings; defects, errors, or vulnerabilities in our products, subscriptions or support offerings; our customers’ purchasing decisions and the length of sales cycles; our competition; our ability to attract and retain new customers; our ability to acquire and integrate other companies, products, or technologies in a successful manner; our debt repayment obligations; and our share repurchase program, which may not be fully consummated or enhance shareholder value, and any share repurchases which could affect the price of our common stock.
Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Quarterly Report on Form 10-Q filed with the SEC on May 21, 2024, which is available on our website at investors.paloaltonetworks.com and on the SEC’s website at www.sec.gov. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
Non-GAAP Financial Measures and Other Key Metrics
Palo Alto Networks has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). The company uses these non-GAAP financial measures and other key metrics internally in analyzing its financial results and believes that the use of these non-GAAP financial measures and key metrics are helpful to investors as an additional tool to evaluate ongoing operating results and trends, and in comparing the company’s financial results with other companies in its industry, many of which present similar non-GAAP financial measures or key metrics.
The presentation of these non-GAAP financial measures and key metrics are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the company’s consolidated financial statements prepared in accordance with GAAP. A reconciliation of the company’s historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.
Non-GAAP operating margin. Palo Alto Networks defines non-GAAP operating margin as non-GAAP operating income divided by total revenue. The company defines non-GAAP operating income as operating income plus share-based compensation-related charges, including share-based payroll tax expense, acquisition-related costs, amortization expense of acquired intangible assets, litigation-related charges, including legal settlements, and restructuring and other costs. The company believes that non-GAAP operating margin provides management and investors with greater visibility into the underlying performance of the company’s core business operating results.
Non-GAAP net income and net income per share, diluted. Palo Alto Networks defines non-GAAP net income as net income plus share-based compensation-related charges, including share-based payroll tax expense, acquisition-related costs, amortization expense of acquired intangible assets, litigation-related charges, including legal settlements, restructuring and other costs, and non-cash charges related to convertible notes. The company also excludes from non-GAAP net income foreign currency gains (losses) and tax adjustments related to our long-term non-GAAP effective tax rate in order to provide a complete picture of the company’s recurring core business operating results. The company defines non-GAAP net income per share, diluted, as non-GAAP net income divided by the weighted-average diluted shares outstanding, which includes the potentially dilutive effect of the company’s employee equity incentive plan awards and the company’s convertible senior notes outstanding and related warrants, after giving effect to the anti-dilutive impact of the company’s note hedge agreements, which reduces the potential economic dilution that otherwise would occur upon conversion of the company’s convertible senior notes. Under GAAP, the anti-dilutive impact of the note hedge is not reflected in diluted shares outstanding. The company considers these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that it uses non-GAAP operating margin.
Next-Generation Security ARR. Palo Alto Networks defines Next-Generation Security ARR as the annualized allocated revenue of all active contracts as of the final day of the reporting period for Prisma and Cortex offerings inclusive of the VM-Series and related services, and certain cloud-delivered security services. The company considers Next-Generation Security ARR to be a useful metric for management and investors to evaluate the performance of the company because Next-Generation Security is where the company has focused its innovation and the company expects its overall revenue to be disproportionately driven by this Next-Generation Security portfolio. Because Next-Generation Security ARR does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure.
Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures and key metrics as analytical tools. Many of the adjustments to the company’s GAAP financial measures reflect the exclusion of items that are recurring and will be reflected in the company’s financial results for the foreseeable future, such as share-based compensation, which is an important part of Palo Alto Networks employees’ compensation and impacts their performance. Furthermore, these non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP, and the components that Palo Alto Networks excludes in its calculation of non-GAAP financial measures may differ from the components that its peer companies exclude when they report their non-GAAP results of operations. Palo Alto Networks compensates for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures. In the future, the company may also exclude non-recurring expenses and other expenses that do not reflect the company’s core business operating results.
About Palo Alto Networks
Palo Alto Networks is the global cybersecurity leader, committed to making each day safer than the one before with industry-leading, AI-powered solutions in network security, cloud security and security operations. Powered by Precision AI, our technologies deliver precise threat detection and swift response, minimizing false positives and enhancing security effectiveness. Our platformization approach integrates diverse security solutions into a unified, scalable platform, streamlining management and providing operational efficiencies with comprehensive protection. From defending network perimeters to safeguarding cloud environments and ensuring rapid incident response, Palo Alto Networks empowers businesses to achieve Zero Trust security and confidently embrace digital transformation in an ever-evolving threat landscape. This unwavering commitment to security and innovation makes us the cybersecurity partner of choice.
At Palo Alto Networks, we’re committed to bringing together the very best people in service of our mission, so we’re also proud to be the cybersecurity workplace of choice, recognized among Newsweek’s Most Loved Workplaces (2021-2024), with a score of 100 on the Disability Equality Index (2024, 2023, 2022), and HRC Best Places for LGBTQ+ Equality (2022). For more information, visit www.paloaltonetworks.com.
Palo Alto Networks, the Palo Alto Networks logo, and Precision AI are trademarks of Palo Alto Networks, Inc. in the United States and in jurisdictions throughout the world. All other trademarks, trade names, or service marks used or mentioned herein belong to their respective owners. Any unreleased services or features (and any services or features not generally available to customers) referenced in this or other press releases or public statements are not currently available (or are not yet generally available to customers) and may not be delivered when expected or at all. Customers who purchase Palo Alto Networks applications should make their purchase decisions based on services and features currently generally available.
Palo Alto Networks, Inc.
Preliminary Condensed Consolidated Statements of Operations
(In millions, except per share data)
(Unaudited)
Three Months Ended
Year Ended
July 31,
July 31,
2024
2023
2024
2023
Revenue:
Product
$ 480.5
$ 507.4
$ 1,603.3
$ 1,578.4
Subscription and support
1,709.0
1,445.9
6,424.2
5,314.3
Total revenue
2,189.5
1,953.3
8,027.5
6,892.7
Cost of revenue:
Product
104.7
104.3
348.2
418.3
Subscription and support
469.0
402.5
1,711.0
1,491.4
Total cost of revenue
573.7
506.8
2,059.2
1,909.7
Total gross profit
1,615.8
1,446.5
5,968.3
4,983.0
Operating expenses:
Research and development
494.8
414.4
1,809.4
1,604.0
Sales and marketing
742.3
664.0
2,794.5
2,544.0
General and administrative
140.3
114.6
680.5
447.7
Total operating expenses
1,377.4
1,193.0
5,284.4
4,595.7
Operating income
238.4
253.5
683.9
387.3
Interest expense
(0.3)
(5.7)
(8.3)
(27.2)
Other income, net
80.9
68.7
312.7
206.2
Income before income taxes
319.0
316.5
988.3
566.3
Provision for (benefit from) income taxes
(38.7)
88.8
(1,589.3)
126.6
Net income
$ 357.7
$ 227.7
$ 2,577.6
$ 439.7
Net income per share, basic
$ 1.10
$ 0.74
$ 8.07
$ 1.45
Net income per share, diluted
$ 1.01
$ 0.64
$ 7.28
$ 1.28
Weighted-average shares used to compute net income per share, basic
324.4
306.9
319.2
303.2
Weighted-average shares used to compute net income per share, diluted
353.9
354.5
354.0
342.3
Palo Alto Networks, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In millions, except per share amounts)
(Unaudited)
Three Months Ended
Year Ended
July 31,
July 31,
2024
2023
2024
2023
GAAP operating income
$ 238.4
$ 253.5
$ 683.9
$ 387.3
Share-based compensation-related charges
287.1
274.1
1,161.7
1,145.1
Acquisition-related costs(1)
3.5
—
13.6
19.5
Amortization expense of acquired intangible assets
33.7
24.7
119.0
103.1
Litigation-related charges(2)
25.6
1.7
211.5
7.1
Restructuring and other costs(3)
—
—
—
(2.2)
Non-GAAP operating income
$ 588.3
$ 554.0
$ 2,189.7
$ 1,659.9
Non-GAAP operating margin
26.9 %
28.4 %
27.3 %
24.1 %
GAAP net income
$ 357.7
$ 227.7
$ 2,577.6
$ 439.7
Share-based compensation-related charges
287.1
274.1
1,161.7
1,145.1
Acquisition-related costs(1)
3.5
—
13.6
19.5
Amortization expense of acquired intangible assets
33.7
24.7
119.0
103.1
Litigation-related charges(2)
25.6
1.7
211.5
7.1
Restructuring and other costs(3)
—
—
—
(2.2)
Non-cash charges related to convertible notes(4)
0.6
1.5
3.5
6.8
Foreign currency loss associated with non-GAAP adjustments
—
—
—
0.5
Income tax and other tax adjustments(5)
(186.0)
(47.2)
(2,138.8)
(279.6)
Non-GAAP net income
$ 522.2
$ 482.5
$ 1,948.1
$ 1,440.0
GAAP net income per share, diluted
$ 1.01
$ 0.64
$ 7.28
$ 1.28
Share-based compensation-related charges
0.85
0.86
3.44
3.59
Acquisition-related costs(1)
0.01
0.00
0.04
0.06
Amortization expense of acquired intangible assets
0.10
0.07
0.34
0.30
Litigation-related charges(2)
0.07
0.00
0.60
0.02
Restructuring and other costs(3)
0.00
0.00
0.00
(0.01)
Non-cash charges related to convertible notes(4)
0.00
0.00
0.01
0.02
Foreign currency loss associated with non-GAAP adjustments
0.00
0.00
0.00
0.00
Income tax and other tax adjustments(5)
(0.53)
(0.13)
(6.04)
(0.82)
Non-GAAP net income per share, diluted
$ 1.51
$ 1.44
$ 5.67
$ 4.44
GAAP weighted-average shares used to compute net income per share, diluted
353.9
354.5
354.0
342.3
Weighted-average anti-dilutive impact of note hedge agreements
(7.4)
(19.3)
(10.4)
(17.9)
Non-GAAP weighted-average shares used to compute net income per share, diluted
346.5
335.2
343.6
324.4
(1)
Consists of acquisition transaction costs, share-based compensation related to the cash settlement of certain equity awards, and costs to terminate certain employment, operating lease, and other contracts of the acquired companies.
(2)
Consists of the amortization of intellectual property licenses and covenant not to sue. During the three months and fiscal year ended July 31, 2024, it also includes a legal contingency charge and a litigation settlement charge.
(3)
Consists of adjustments to restructuring and other costs.
(4)
Consists of non-cash interest expense for amortization of debt issuance costs related to the company’s convertible senior notes.
(5)
Consists of income tax adjustments related to our long-term non-GAAP effective tax rate. During fiscal year 2024, it included a tax benefit from a release of our valuation allowance on U.S. federal, U.S. states other than California, and United Kingdom deferred tax assets. During fiscal year 2023, it included tax benefits from releases of tax reserves related to uncertain tax positions resulting from tax settlements.
Palo Alto Networks, Inc.
Preliminary Condensed Consolidated Balance Sheets
(In millions)
July 31, 2024
July 31, 2023
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$ 1,535.2
$ 1,135.3
Short-term investments
1,043.6
1,254.7
Accounts receivable, net
2,618.6
2,463.2
Short-term financing receivables, net
725.9
388.8
Short-term deferred contract costs
369.0
339.2
Prepaid expenses and other current assets
557.4
466.8
Total current assets
6,849.7
6,048.0
Property and equipment, net
361.1
354.5
Operating lease right-of-use assets
385.9
263.3
Long-term investments
4,173.2
3,047.9
Long-term financing receivables, net
1,182.1
653.3
Long-term deferred contract costs
562.0
547.1
Goodwill
3,350.1
2,926.8
Intangible assets, net
374.9
315.4
Deferred tax assets
2,399.0
23.1
Other assets
352.9
321.7
Total assets
$ 19,990.9
$ 14,501.1
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$ 116.3
$ 132.3
Accrued compensation
554.7
548.3
Accrued and other liabilities
506.7
390.8
Deferred revenue
5,541.1
4,674.6
Convertible senior notes, net
963.9
1,991.5
Total current liabilities
7,682.7
7,737.5
Long-term deferred revenue
5,939.4
4,621.8
Deferred tax liabilities
387.7
28.1
Long-term operating lease liabilities
380.5
279.2
Other long-term liabilities
430.9
86.1
Total liabilities
14,821.2
12,752.7
Stockholders’ equity:
Preferred stock
—
—
Common stock and additional paid-in capital
3,821.1
3,019.0
Accumulated other comprehensive loss
(1.6)
(43.2)
Retained earnings (accumulated deficit)
1,350.2
(1,227.4)
Total stockholders’ equity
5,169.7
1,748.4
Total liabilities and stockholders’ equity
$ 19,990.9
$ 14,501.1
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SOURCE Palo Alto Networks, Inc.
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Self-Driving Cars Market worth 51,213 thousand units in 2035 | MarketsandMarkets™
Published
3 minutes agoon
November 2, 2026By
DELRAY BEACH, Fla., Nov. 2, 2026 /PRNewswire/ — According to MarketsandMarkets™, the Self-Driving Cars Market is projected to grow from 31,509 thousand units in 2026 and to reach 51,213 thousand units in 2035, at a Compound Annual Growth Rate (CAGR) of 5.5% during the forecast period.
Browse 250 market data Tables and 75 Figures spread through 300 Pages and in-depth TOC on ‘Self-Driving Cars Market’
Self-Driving Cars Market Size & Forecast:
Market Size Available for Years: 2022-20352026 Market Size: 31,509 thousand Units2035 Projected Market Size: 51,213 thousand UnitsCAGR (2026–2035): 5.5%
Self-driving Cars Market Trends & Insights:
Personal mobility is estimated to hold the largest share during the forecast period.The Level 3 segment is to witness the fastest growth in the self-driving cars market during the forecast period.North America is expected to grow significantly during the forecast period.
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Self-driving cars are progressing from controlled testing toward commercial deployment, supported by advances in AI, computing architecture, and vehicle automation. The commercial operation of Level 4 robotaxis in multiple cities is accelerating investment in autonomous driving technologies, including perception, sensor fusion, decision-making software, and high-performance computing. These developments are also influencing passenger vehicle programs, where automakers are expanding Level 2+ driver assistance and developing new off-driving capabilities. Over the next few years, progress in AI models, simulation-based validation, and sensor integration is expected to improve system performance and support the wider deployment of automated driving across vehicle segments. Volkswagen is developing localized AI driving solutions in China through its CARIZON joint venture with Horizon Robotics, aligning its technology strategy with local market requirements. These strategies reflect a broader shift toward controlling software development, computing costs, and system integration. The competitive advantage will depend on how effectively automakers scale validated driving functions across vehicle portfolios, improve affordability, and meet regional regulatory requirements without compromising safety performance.
Hyundai Motor Group Builds an AI Data Strategy to Accelerate Self-driving Technology
In September 2026, Hyundai Motor Group activated its Data Flywheel strategy, linking real-world driving data collection, AI training, simulation, validation, and software deployment. The group is targeting NVIDIA-based Level 2+ production vehicles in the first half of 2028 and Level 2++ vehicles in the second half of 2028, followed by proprietary Atria AI-powered Level 2++ vehicles in the second half of 2029.Hyundai’s two-track strategy allows it to deploy technology developed with NVIDIA while continuing to develop its own end-to-end Atria AI system through 42dot. By standardizing sensor systems across Hyundai, Kia and its technology subsidiaries, the group aims to improve data consistency and software reuse across vehicle platforms. This approach can reduce duplicated development efforts and accelerate the identification of difficult driving scenarios, although the commercial advantage will depend on translating larger data volumes into measurable safety and performance improvements.
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Personal mobility is estimated to hold the largest share during the forecast period.
Personal mobility is emerging as a commercial opportunity in the self-driving cars market, as OEMs focus on making automated driving a practical feature that improves convenience and strengthens premium vehicle differentiation. According to China’s Ministry of Industry and Information Technology, 69.15% of passenger cars sold in January and February 2026 had Level 2 driving assistance, up 10 percentage points year on year. The US National Highway Traffic Safety Administration (NHTSA) added pass or fail assessments for advanced driver assistance systems to its New Car Assessment Program, encouraging automakers to improve safety features that protect drivers and pedestrians. The near-term opportunity lies in expanding assisted driving capabilities across urban roads and highways, while improving the reliability of AI-based perception, navigation, and decision-making. In January 2026, Mercedes-Benz presented MB. DRIVE ASSIST PRO on the new CLA, combining navigation with Level 2 driving assistance for supported urban journeys, with the system already available in China and a US launch planned for later in 2026. The development highlights how OEMs are leveraging automated driving capabilities to enhance the vehicle ownership experience and create opportunities for software-based feature upgrades. For automakers, the competitive advantage depends on delivering reliable automation across more vehicle models and price points, turning driving convenience into a stronger purchase incentive.
The Level 3 segment is to witness the fastest growth in the self-driving cars market during the forecast period.
The Level 3 segment is expected to be the fastest-growing segment in the self-driving cars market as automakers move beyond Level 2 driver assistance toward conditional automation. Adoption remains concentrated in specific driving conditions because Level 3 systems must operate within defined conditions and transfer control back to the driver when required. For instance, in December 2025, China approved its first two Level 3 passenger car models from Changan Automobile and BAIC’s ARCFOX brand. The Changan model was approved for operation during highway traffic congestion at speeds of up to 50 km/h on designated roads in Chongqing, while the ARCFOX model was permitted to operate at speeds of up to 80 km/h on designated roads in Beijing. These restricted approvals show that Level 3 deployment is progressing through controlled operating conditions rather than unrestricted use. Automakers that align system capabilities with approved road conditions and reliable driver handover requirements will be better positioned to expand Level 3 passenger car offerings.
North America is expected to grow significantly during the forecast period.
North America is strengthening its position in the self-driving cars market as automakers expand AI-based driving assistance and autonomous mobility programs. A key focus is extending automation to complex urban environments while maintaining driver supervision in passenger vehicles. In May 2026, Stellantis partnered with Wayve to integrate Wayve’s AI Driver into its STLA Auto Drive platform, targeting supervised, hands-free driving across urban and highway routes, with North American deployment planned from 2028. In a separate development, Volkswagen Group’s MOIA America partnered with Uber to introduce autonomous ID. Buzz vehicles in Los Angeles, with on-road testing and plans to launch ride-hailing services by the end of 2026. The two initiatives highlight distinct development paths in the region: integrating AI-powered driving capabilities into passenger vehicle platforms and deploying autonomous electric vehicles for commercial mobility services. Progress will depend on system validation, regulatory approvals, operational safety, and the ability to handle diverse traffic conditions.
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Top Companies in Self-Driving Cars Market:
The Top Companies in Self-Driving Cars Market are Toyota Motor Corporation (Japan), Volkswagen Group (Germany), BYD Co., Ltd. (China), Stellantis (Netherlands), and Hyundai Motor Group (South Korea).
Self-driving Cars Market – Investment and Funding Scenario
Investment Funding Context
The global self-driving cars market is projected to reach 51,213 thousand units by 2033, from 31,509 thousand units in 2026, at a CAGR of 5.5% during 2026–2035. Growth will be supported by AI-based perception, sensor fusion, and software-defined vehicle architecture. Automakers should prioritize scalable automation platforms, cost optimization, and software integration to strengthen competitiveness and capture future demand.
Revenue Shift Context
Revenue in the global self-driving cars market is shifting toward higher-value ADAS hardware, AI-powered driving software, and advanced perception systems, including cameras, radar, LiDAR, and high-performance computing platforms. Growing adoption of Level 2 and Level 2+ systems is driving demand for sensor fusion, driver monitoring, and hands-free driving capabilities. Additional revenue opportunities are emerging from software licensing, over-the-air upgrades, and technology partnerships. For instance, in February 2026, Waymo raised USD 16 billion to expand its autonomous ride-hailing operations and accelerate technology development. This investment highlights growing capital allocation toward scalable AI-driven autonomy and commercial deployment. Consequently, market value creation is increasingly driven by advanced technology content per vehicle, software monetization, and autonomous mobility services rather than vehicle volumes alone.
Mergers and Acquisitions
From September 2025 to September 2026, eight notable strategic transactions involving major self-driving cars market players were identified, including partnerships, funding rounds, technology agreements, and collaborations. The transactions mainly focused on autonomous driving software development, AI-powered vehicle systems, robotaxi expansion, advanced sensor technologies, and commercialization of self-driving solutions.
SELF-DRIVING CARS MARKET: MERGERS AND ACQUISITIONS, SEPTEMBER 2025 – SEPTEMBER 2026
Month & Year
Deal Type
Company 1
Company 2
Description
September 2026
Agreement
Mercedes-Benz Group AG (Germany)
Wayve (UK)
Mercedes-Benz (Germany) and Wayve (UK) signed an agreement to integrate Wayve’s autonomous driving system into future Mercedes-Benz vehicles, with deployment expected to begin within two years.
July 2026
Partnership
Ford (US)
Apple (US)
Ford (US) partnered with Apple (US) to integrate Apple Maps navigation into Ford’s next-generation Universal Electric Vehicle platform, providing drivers with navigation and route planning capabilities through Apple Maps.
July 2026
Partnership
BMW Group (Germany)
Qualcomm (US)
Qualcomm made an agreement with BMW to supply Snapdragon Digital Chassis solutions for BMW’s future vehicle platforms. The agreement covers cockpit processors, automated driving chips, and AI accelerators for BMW’s next-generation digital and advanced driver assistance systems.
July 2026
Partnership
Waymo LLC (US)
Hyundai Motor Group
Hyundai Motor (South Korea) and Waymo (US) partnered to test Hyundai IONIQ 5 vehicles equipped with Waymo’s sixth-generation Waymo Driver. The test began with an autonomous specialist onboard and is intended to validate the system ahead of fully autonomous operations.
April 2026
Joint Venture
Volkswagen AG (Germany)
Horizon Robotics (China)
Volkswagen partnered with Horizon Robotics through their CARIZON joint venture to develop automated driving solutions for the Chinese market. The joint venture integrates CARIZON’s ADAS solution into Volkswagen vehicles, including the ID. AURA T6.
March 2026
Partnership
BYD (China)
NVIDIA (US), BYD (China), Geely (China), Isuzu (Japan), and Nissan (Japan)
BYD partnered with NVIDIA, Geely, Isuzu, and Nissan to adopt its Hyperion platform for Level 4 autonomous vehicle programs. The platform integrates compute, sensors, networking, and safety systems to support development and deployment of Level 4 autonomous vehicles.
January 2026
Partnership
Mercedes-Benz Group AG (Germany)
NVIDIA Corporation (US), Uber (US)
Mercedes-Benz (Germany), NVIDIA (US), and Uber partnered to develop a global robotaxi platform. The platform will integrate Mercedes-Benz’s MB. OS with NVIDIA’s autonomous driving technologies, enabling highly automated driving applications while allowing Mercedes-Benz to retain control of its core vehicle software.
September 2025
Partnership
Waymo LLC (US)
Lyft (US)
Waymo (US) partnered with Lyft (US) to bring fully autonomous ride-hailing services to Nashville. Waymo will provide autonomous driving technology, while Lyft’s Flexdrive subsidiary will support vehicle fleet management.
Company Revenue Share Details
The top five players are estimated to account for approximately 41%–46% of the self-driving cars market, indicating a moderately concentrated competitive landscape with strong competition among established automotive manufacturers. Leading players such as Toyota Motor Corporation (Japan), Volkswagen AG (Germany), BYD Company Limited (China), Stellantis N.V. (Netherlands), and Hyundai Motor Company (South Korea) are expanding their autonomous driving capabilities across passenger vehicle platforms. Their strategies include ADAS integration, AI-powered driving software, sensor fusion, automated driving platforms, and partnerships with autonomous technology providers to enhance vehicle safety, improve driving automation, and accelerate commercialization across global markets.
Browse Adjacent Market: Automotive and Transportation Market Research Reports & Consulting
Related Reports:
Autonomous Driving Software Market
Autonomous Vehicle Sensor Market
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Technology
Q-Ball Intelligence launches to bring Predictive Intelligence into the AI era
Published
3 minutes agoon
November 2, 2026By
19 years of predictive research, backed by a nine-year real-world investment record returning 235.19%
SAN FRANCISCO, Nov. 2, 2026 /PRNewswire/ — Q-Ball Intelligence today announces its launch as a new AI-native Predictive Intelligence venture, building on nearly two decades of research and practical applications dating back to 2007.
The company is developing a new generation of artificial intelligence capable of identifying emerging signals, recognising patterns and anticipating future developments moving beyond analysing what has happened to understanding what is likely to happen next.
The research behind Q-Ball has already been applied in practice. Between 17 February 2016 and 17 February 2025, a Q-Ball-informed investment portfolio delivered a cumulative return of 235.19%.
For comparison, the portfolio analysis shows returns of 129.86% for OMX Stockholm All-Share Gross Index (OMXSGI), representing the broader Swedish equity market, and 106.55% for OMX Stockholm 30 Index (OMXS30) over the same period. This represents an outperformance of 105.33 and 128.64 percentage points respectively.
The nine-year investment record provides a tangible example of the practical application of predictive research developed under the leadership of Assistant Professor Peter Majanen. It represents an actual investment portfolio record rather than a simulated backtest.
From analysing information to anticipating change
Most analytical systems are designed to process information, identify historical trends and explain developments that have already taken place.
Q-Ball is pursuing a different objective: recognising the signals and changing expectations that may reveal what comes next.
Its predictive methodology connects information, expectations, emerging patterns and momentum with potential catalysts and future outcomes. The objective is to translate complex information into structured, measurable forecasts.
The underlying research originated in 2007 and has evolved through nearly two decades of development and practical application. Q-Ball Intelligence represents the next stage: transforming this foundation into a scalable technology platform designed for international markets.
Building a new Predictive Intelligence platform
Q-Ball is developing an AI-native platform designed to identify relevant signals, assess emerging developments, generate structured forecasts and measure predictions against actual outcomes.
The company’s approach places particular emphasis on understanding changes in expectations and behaviour, rather than relying exclusively on historical data and conventional trend analysis.
By combining predictive methodology with AI-driven analysis, Q-Ball aims to create technology that helps organisations and individuals anticipate change, assess opportunities and make better-informed decisions.
An important part of the development philosophy is accountability: predictions should be structured, time-stamped and evaluated against what actually happens. This creates a foundation for continuous measurement, refinement and learning.
Applications across multiple markets
Q-Ball Intelligence is developing its technology for institutional and commercial customers, with additional applications across financial markets, sports and gaming.
Initial areas of focus include:
Enterprise Predictive Intelligence helping organisations anticipate market developments, changing conditions, emerging risks and strategic opportunities.
Financial Markets developing predictive intelligence for equities and financial markets, identifying emerging patterns and assessing the probability of potential market developments.
Sports and Gaming applying predictive models to sporting outcomes, competitive environments and gaming-related markets.
The company is building these applications on a shared predictive foundation, extending its core intelligence capabilities across different markets and customer segments.
A new chapter for predictive intelligence
“Prediction is not about knowing the future. It is about understanding the present well enough to recognize what the future is beginning to become,” says Peter Majanen, Founder and Chief Predictive Intelligence Architect.
Q-Ball Intelligence aims to establish Predictive Intelligence as a distinct category within the evolving AI landscape moving beyond systems that primarily describe the world towards technology designed to anticipate how it may change.
With research foundations dating back to 2007, the company now enters a new phase focused on technology development, commercialisation and international expansion.
Q-Ball Intelligence Predicting What Comes Next.
About Q-Ball Intelligence
Q-Ball Intelligence is an AI-native Predictive Intelligence venture developing technology designed to identify emerging signals, recognise patterns and anticipate future developments.
Its foundations combine predictive research, proprietary analytical methodology and practical applications developed since 2007. The company is focused on transforming this foundation into a scalable predictive intelligence platform for institutional, commercial and consumer applications.
Website: www.qballintel.com
Press contact:
Richard Sjoberg
Q-Ball Intelligence
press@qballintel.com
www.qballintel.com
Historical performance disclosure: The portfolio return of 235.19% relates to the period 17 February 2016 to 17 February 2025. Benchmark figures are based on Avanza data for OMX Stockholm All-Share Gross Index (OMXSGI) and OMX Stockholm 30 Index (OMXS30) over the same period. Historical performance is not indicative of future results. The historical portfolio performance should not be interpreted as performance generated by the new Q-Ball Intelligence platform or as a guarantee of future investment outcomes.
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SOURCE Q-Ball Intelligence
Technology
NAPCO Security Technologies, Inc. Reports Fiscal Q1 2027 Results
Published
3 minutes agoon
November 2, 2026By
AMITYVILLE, N.Y., Nov. 2, 2026 /PRNewswire/ — NAPCO Security Technologies, Inc. (NASDAQ: NSSC), one of the leading manufacturers and designers of high-tech electronic security equipment, wireless communication devices for intrusion and fire alarm systems and the related recurring service revenues as well as a provider of school safety solutions, today announced financial results for its first quarter of fiscal year 2027. Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release.
First Quarter 2027 Financial Results as Compared to First Quarter 2026
Net revenue increased 1.7% to a First Quarter record $50.0 millionRecurring service revenue (“RSR”) increased 11.5% to a Quarterly record $26.1 million, with over 90% gross marginRSR has a prospective annual run rate of approximately $106 million based on October 2026 recurring service revenuesEquipment revenue decreased 7.3% to $23.9 millionGross profit margin increased to 58.7.% vs 56.6% in prior fiscal year quarterNet Income increased 6.9% YoY to a First Quarter record $13.0 millionDiluted Net Income per share increased 5.9% to $0.36Non-GAAP Adjusted EBITDA increased 3.8% to a First Quarter record $15.5 million with an Adjusted EBITDA Margin of 31.0%, compared to $14.9 million with an Adjusted EBITDA Margin of 30.4% in the prior fiscal year quarterThe board declared a quarterly dividend of $.17 per share, payable on January 4, 2027, to shareholders of record on December 14, 2026.
Kevin Buchel, CEO and President, commented, “Our Fiscal Q1 performance reflects continued positive financial results. We achieved record Q1 revenue of $50.0 million and record Q1 Adjusted EBITDA of $15.5 million, which was bolstered by our recurring service revenue. Our RSR continues to deliver gross margins of over 90% and has a prospective run rate of approximately $106 million, a $3 million increase from the run rate we reported in July 2026. While equipment revenue declined year-over-year, the decrease was driven by two locking distributors reducing their purchases during the quarter. Importantly, sell-through at both distributors grew year-over-year and strengthened meaningfully on a sequential basis. We view sell-through as the truest indicator of end-market demand, and these trends reinforce our confidence in the underlying health of the business.
We are pleased to continue our dividend program of which the quarterly dividend will be $0.17 per share, which will be paid on January 4, 2027, to shareholders of record on December 14, 2026.”
Three months ended September 30,
(dollars in thousands)
% Increase/
Financial Highlights
2026
2025
(decrease)
GAAP Results
Net Revenue
$
49,980
$
49,168
1.7
%
Gross Profit
$
29,352
$
27,846
5.4
%
Gross Profit Margin
58.7
%
56.6
%
Operating Income
$
14,117
$
13,643
3.5
%
Net Income
$
13,009
$
12,165
6.9
%
Diluted Earnings Per Share
$
0.36
$
0.34
5.9
%
Non-GAAP Results
Adjusted EBITDA
$
15,509
$
14,942
3.8
%
Adjusted EBITDA Margin
31.0
%
30.4
%
Adjusted EBITDA Per Share
$
0.43
$
0.42
2.4
%
Free Cash Flows
$
2,317
$
11,444
(79.8)
%
Free Cash Flows Margin
4.6
%
23.3
%
Conference Call Information
Management will conduct a conference call at 11 a.m. ET today, November 2, 2026, and in order to participate please go to the Investor Relations section of the Company website at https://investor.napcosecurity.com/events-presentations or choose https://app.webinar.net/ndlaQ1yQy3W. Alternatively, interested parties may participate in the call by dialing (US) 1-800-836-8184 or (International) 1-646-357-8785. A replay of the webcast will be available on the Investor Relations section of the Company’s website.
About NAPCO Security Technologies, Inc.
NAPCO Security Technologies, Inc., is one of the leading manufacturers and designers of high-tech electronic security devices, wireless recurring communication services for intrusion and fire alarm systems as well as a provider of school safety solutions, The Company consists of four Divisions: NAPCO, plus three wholly owned subsidiaries: Alarm Lock, Continental Instruments, and Marks USA. Headquartered in Amityville, New York, its products are installed by tens of thousands of security professionals worldwide in commercial, industrial, institutional, residential and government applications. NAPCO products have earned a reputation for innovation, technical excellence and reliability, positioning the Company for growth in the multi-billion dollar and rapidly expanding electronic security market. For additional information on NAPCO, please visit the Company’s web site at http://www.napcosecurity.com.
Safe Harbor Statement
This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, but are not limited to, statements relating to supply chain challenges and developments; the growth of recurring service revenues and annual run rate; the strength of our balance sheet; our expectations regarding future results; the introduction of new access control and locking products; the opportunities for school security products; the opportunities for fire alarm products; and our ability to execute our business strategies. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements because of certain factors, including those risk factors set forth in the Company’s filings with the Securities and Exchange Commission, such as our annual report on Form 10-K and quarterly reports on Form 10-Q. Other unknown or unpredictable factors or underlying assumptions subsequently proved 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 these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and the Company undertakes no duty to update such information, except as required under applicable law.
*Non-GAAP Financial Measures
Certain non-GAAP measures are included in this press release, including non-GAAP operating income, non-GAAP net income, non-GAAP net income per share (diluted), non-GAAP net income margin, Adjusted EBITDA, Adjusted EBITDA per share (diluted), Adjusted EBITDA per share margin, Free Cash Flow and Free Cash Flow margin. We define non-GAAP net income as GAAP net income plus litigation settlement costs. We define Adjusted EBITDA as GAAP net income plus income tax expense, less net interest income (expense), stock-based compensation, non-recurring legal expenses, litigation settlement costs, and depreciation and amortization expenses. Non-GAAP net income margin is non-GAAP net income divided by revenue. Adjusted EBITDA margin is Adjusted EBITDA divided by revenue. We define Free Cash Flow (FCF) as net cash provided by operating activities less capital expenditures. FCF margin is the FCF divided by revenue. These non-GAAP measures are provided to enhance the user’s overall understanding of our financial performance. By excluding these charges our non-GAAP results provide information to management and investors that is useful in assessing NAPCO’s core operating performance and in comparing our results of operations on a consistent basis from period to period. 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 terms used in this press release, such as Adjusted EBITDA, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. The presentation of this information is not meant to be a substitute for the corresponding financial measures prepared in accordance with generally accepted accounting principles. Investors are encouraged to review the reconciliation of GAAP to non-GAAP financial measures set forth above.
NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, 2026
June 30, 2026
(in thousands, except share data)
Assets
Current Assets
Cash and cash equivalents
$
123,882
$
126,928
Marketable securities
10,734
10,637
Accounts and other receivable, net of allowance for credit losses of $129 and $101 as of
September 30, 2026 and June 30, 2026, respectively
29,248
35,975
Inventories
34,130
30,118
Income tax receivable
1,523
—
Prepaid expenses and other current assets
3,838
4,325
Total Current Assets
203,355
207,983
Inventories – non-current
9,195
9,256
Property, plant and equipment, net
9,202
9,238
Intangible assets, net
2,919
2,990
Deferred income taxes
1,777
4,105
Operating lease – Right-of-use asset
4,838
4,906
Other assets
185
190
Total Assets
$
231,471
$
238,668
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable
$
7,749
$
6,925
Accrued expenses
9,275
8,546
Accrued litigation costs
—
16,000
Accrued salaries and wages
5,036
4,484
Dividends payable
6,081
5,365
Accrued income taxes
—
1,134
Total Current Liabilities
28,141
42,454
Accrued income taxes
—
33
Operating lease liability
5,142
5,179
Total Liabilities
33,283
47,666
Commitments and Contingencies (Note 13)
Stockholders’ Equity
Common Stock, par value $0.01 per share; 100,000,000 shares authorized; 39,883,051 shares
issued; and 35,768,437 shares outstanding as of both September 30, 2026 and June 30, 2026,
respectively.
399
399
Additional paid-in capital
25,628
25,355
Retained earnings
228,331
221,403
Treasury Stock, at cost, 4,114,614 shares as of both September 30, 2026 and June 30, 2026
(56,315)
(56,315)
Accumulated other comprehensive income
145
160
Total Stockholders’ Equity
198,188
191,002
Total Liabilities and Stockholders’ Equity
$
231,471
$
238,668
NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months ended September 30,
2026
2025
(in thousands, except for share and per share data)
Revenue:
Equipment revenue
$
23,850
$
25,739
Service revenue
26,130
23,429
Total revenue
49,980
49,168
Cost of Revenue:
Cost of equipment revenue
18,043
19,046
Cost of service revenue
2,585
2,276
Total cost of revenue
20,628
21,322
Gross Profit
29,352
27,846
Operating Expenses:
Research and development
4,053
3,240
Selling, general, and administrative
12,182
10,963
Litigation settlement
(1,000)
—
Total operating expenses
15,235
14,203
Operating Income
14,117
13,643
Other Income:
Interest income, net
1,117
854
Other income, net
115
138
Income before Provision for Income Taxes
15,349
14,635
Provision for Income Taxes
2,340
2,470
Net Income
$
13,009
$
12,165
Income Per Share:
Basic
$
0.36
$
0.34
Diluted
$
0.36
$
0.34
Weighted Average Number of Shares Outstanding:
Basic
35,768,000
35,658,000
Diluted
35,881,000
35,865,000
NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Three Months ended September 30,
2026
2025
(in thousands)
Cash Flows from Operating Activities
Net Income
$
13,009
$
12,165
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
540
570
Realized gain on sales of marketable securities
(114)
(92)
Charge (recovery) of credit losses
28
(1)
Change to inventory reserve
(109)
(354)
Deferred income taxes
2,328
1,681
Stock-based compensation expense
273
309
Changes in operating assets and liabilities:
Accounts and other receivable
6,699
(561)
Inventories
(3,842)
(177)
Prepaid expenses and other current assets
487
(305)
Income tax receivable
(1,523)
(1,993)
Other assets
5
4
Accounts payable, accrued expenses, accrued litigation costs, accrued salaries and wages,
accrued income taxes
(15,031)
391
Net Cash Provided by Operating Activities
2,750
11,637
Cash Flows from Investing Activities
Purchases of property, plant, and equipment
(433)
(193)
Purchases of marketable securities
(3,570)
(2,540)
Proceeds from sales of marketable securities
3,572
8,407
Net Cash (Used In) Provided by Investing Activities
(431)
5,674
Cash Flows from Financing Activates
Dividends paid
(5,365)
(4,992)
Net Cash Used in Financing Activities
(5,365)
(4,992)
Net (decrease) increase in Cash and Cash Equivalents
(3,046)
12,319
Cash and Cash Equivalents – Beginning
126,928
83,081
Cash and Cash Equivalents – Ending
$
123,882
$
95,400
Supplemental Cash Flow Information
Income taxes paid, net of refunds received
$
2,701
$
3,104
Non-Cash Investing and Financing Transactions
Dividends declared and not paid
$
6,081
$
4,992
NAPCO SECURITY TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL DATA*
(unaudited)
(in thousands, except share and per share data)
Non-GAAP Adjustments
Litigation
Tax
GAAP
Settlement
Adjustments (1)
Non-GAAP
Three months ended September 30, 2026
Revenue
$
49,980
$
—
$
—
$
49,980
Gross Profit
29,352
—
—
29,352
Operating Expenses
15,235
1,000
—
16,235
Operating Income
14,117
(1,000)
—
13,117
Net Income
13,009
(1,000)
108
12,117
Non-GAAP adjusted net income margin
24.2
%
Non-GAAP adjusted net income per share – diluted
$
0.34
Three months ended September 30, 2025
Revenue
$
49,168
$
—
$
—
$
49,168
Gross Profit
27,846
—
—
27,846
Operating Expenses
14,203
—
—
14,203
Operating Income
13,643
—
—
13,643
Net Income
12,165
—
—
12,165
Non-GAAP adjusted net income margin
24.7
%
Non-GAAP adjusted net income per share – diluted
$
0.34
Three months ended September 30,
2026
2025
Denominator:
Weighted average shares outstanding
Basic, as reported
35,768,000
35,658,000
Effect of Dilutive Securities
113,000
207,000
Diluted, (Denominator)
35,881,000
35,865,000
1.
The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.
NAPCO SECURITY TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL DATA*
(unaudited)
(in thousands, except share and per share data)
Three months ended September 30,
2026
2025
Non-GAAP adjusted EBITDA:
Net income, as reported
$
13,009
$
12,165
Interest income, net
(1,117)
(854)
Provision for income taxes
2,340
2,470
Depreciation and amortization
540
570
Non-GAAP EBITDA
14,772
14,351
Adjustments:
Stock based compensation
273
309
Nonrecurring legal expense(1)
1,464
282
Litigation settlement(2)
(1,000)
—
Total adjustments
737
591
Non-GAAP adjusted EBITDA
$
15,509
$
14,942
Non-GAAP adjusted EBITDA margin
31.0
%
30.4
%
Non-GAAP per share data:
Non-GAAP adjusted EBITDA per share – diluted
$
0.43
$
0.42
Denominator:
Weighted average shares outstanding
Basic, as reported
35,768,000
35,658,000
Effect of Dilutive Securities
113,000
207,000
Diluted, (Denominator)
35,881,000
35,865,000
1.
Nonrecurring Legal Expenses, which are net of any insurance reimbursements, are legal fees that are determined not to be of a normal recuring nature and expenses necessary to operate the business
2.
Litigation settlement costs, which are net of any insurance reimbursements, were determined not to be of a recurring nature and costs that are not in the normal cost of business or necessary to operate the business
Three months ended September 30,
(dollars in thousands)
2026
2025
Free cash flow:
Net Cash Provided by Operating Activities
$
2,750
$
11,637
Less: Purchases of property, plant, and equipment
(433)
(193)
Free Cash Flow(1)
$
2,317
$
11,444
Free Cash Flow Margin(1)
4.6
%
23.3
%
1.
Free cash flow is calculated as net cash provided by operating activities less capital expenditures. Free cash flow margin is the free cash flow divided by revenue.
Contacts:
Francis J. Okoniewski
Vice President of Investor Relations
NAPCO Security Technologies, Inc.
Office 800-645-9445 x 374
Mobile 516-404-3597
fokoniewski@napcosecurity.com
View original content:https://www.prnewswire.com/news-releases/napco-security-technologies-inc-reports-fiscal-q1-2027-results-302925823.html
SOURCE NAPCO Security Technologies, Inc.
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