Technology

Yunji Announces Fourth Quarter and Fiscal Year 2024 Unaudited Financial Results

Published

2 years ago

April 21, 2025

HANGZHOU, China, April 21, 2025 /PRNewswire/ — Yunji Inc. (“Yunji” or the “Company”) (NASDAQ: YJ), a leading membership-based social e-commerce platform, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024[1].

Fourth Quarter 2024 Highlights

Total revenues in the fourth quarter of 2024 were RMB97.1 million (US$13.3 million), compared with RMB149.1 million in the same period of 2023. The change was primarily due to soft consumer confidence and the Company’s continued strategy to refine its product selection across all categories and optimize its selection of suppliers and merchants, which had a near-term impact on sales.Repeat purchase rate[2] in the twelve months ended December 31, 2024 was 71.9%.

Mr. Shanglue Xiao, Chairman and Chief Executive Officer of Yunji, said, “As we navigate the current market landscape, we are making progress in repositioning Yunji as the leading platform for organic health products. We have focused our operations on high-margin, high-repeat purchase categories, particularly organic health foods and nutritional products. In 2025, we aim to transform Yunji into an experiential health and wellness destination through our expanding health-focused ecosystem.”

“In the fourth quarter, we optimized our cost structure by refining our staff structure and significantly reducing fulfillment and technology expenses year-over-year. As we enter 2025, we will maintain financial discipline while investing strategically to drive sustainable growth and improve profitability.” said Mr. Yeqing Cui, Senior Financial Director of Yunji.

Fourth Quarter 2024 Unaudited Financial Results

Total revenues were RMB97.1 million (US$13.3 million), compared with RMB149.1 million in the same period of 2023. This change was primarily due to soft consumer confidence and the Company’s continued strategy to refine its product selection across all categories and optimize its selection of suppliers and merchants, which had a near-term impact on sales.

Revenues from sales of merchandise were RMB75.5 million (US$10.3 million), compared with RMB112.3 million in the same period of 2023.Revenues from the marketplace business were RMB19.4 million (US$2.7 million), compared with RMB34.3 million in the same period of 2023.Other revenues were RMB2.2 million (US$0.3 million), compared with RMB2.5 million in the same period of 2023.

Total cost of revenues decreased by 36.9% to RMB50.2 million (US$6.9 million), or 51.7% of total revenues, from RMB79.6 million, or 53.4% of total revenues, in the same period of 2023. The decrease was primarily attributable to the change in merchandise sales, for which revenues and cost of revenues are recognized on a gross basis. Total cost of revenues, which primarily comprises the costs related to the sales of merchandise, decreased accordingly in the fourth quarter of 2024.

Total operating expenses increased by 14.9% to RMB126.2 million (US$17.3 million) from RMB109.8 million in the same period of 2023.

Fulfillment expenses decreased by 33.9% to RMB16.4 million (US$2.3 million), or 16.9% of total revenues, from RMB24.8 million, or 16.6% of total revenues, in the same period of 2023. The decrease was primarily due to (i) reduced personnel costs as a result of staffing structure refinements, (ii) reduced warehousing and logistics expenses due to lower merchandise sales, and (iii) decreased service fees charged by third-party payment settlement platforms.Sales and marketing expenses increased by 6.0% to RMB30.2 million (US$4.1 million), or 31.1% of total revenues, from RMB28.5 million, or 19.1% of total revenues, in the same period of 2023. The increase was primarily due to an increase in business promotion expenses.Technology and content expenses decreased by 29.2% to RMB8.5 million (US$1.2 million), or 8.8% of total revenues, from RMB12.0 million, or 8.1% of total revenues, in the same period of 2023. The decrease was primarily due to (i) the reduction in personnel costs as a result of staffing structure refinements, and (ii) reduced server costs.General and administrative expenses increased by 59.8% to RMB71.1 million (US$9.7 million), or 73.2% of total revenues, from RMB44.5 million, or 29.8% of total revenues, in the same period of 2023. The increase was primarily due to (i) an increase in severance pay as a result of staffing structure refinements, and (ii) an impairment of long-lived assets other than goodwill, partially offset by a decrease in an allowance for credit losses.

Loss from operations was RMB77.7 million (US$10.6 million), compared with RMB39.5 million in the same period of 2023.

Financial loss, net was RMB2.6 million (US$0.4 million), compared with financial loss, net of RMB23.4 million in the same period of 2023, primarily due to a decrease in the fair value changes of equity securities investments.

Net loss was RMB85.0 million (US$11.7 million), compared with RMB65.9 million in the same period of 2023.

Adjusted net loss (non-GAAP)[3] was RMB84.5 million (US$11.6 million), compared with RMB65.0 million in the same period of 2023.

Basic and diluted net loss per share attributable to ordinary shareholders were both RMB0.04 (US$0.01), compared with RMB0.03 in the same period of 2023.

Fiscal Year 2024 Unaudited Financial Results

Total revenues were RMB417.7 million (US$57.2 million), compared with RMB640.2 million in the full year of 2023. The decrease was primarily due to the same factors that led to the quarterly decrease.

Revenues from sales of merchandise were RMB330.5 million (US$45.3 million), compared with RMB500.7 million in the full year of 2023.Revenues from the marketplace business were RMB79.5 million (US$10.9 million), compared with RMB130.2 million in the full year of 2023.Other revenues were RMB7.7 million (US$1.0 million), compared with RMB9.3 million in the full year of 2023.

Total cost of revenues decreased by 36.5% to RMB211.3 million (US$28.9 million) from RMB332.8 million in the full year of 2023. This decrease was primarily attributable to the same factors that led to the quarterly decrease.

Total operating expenses were RMB349.2 million (US$47.8 million), compared with RMB403.0 million in the full year of 2023.

Fulfillment expenses decreased by 29.2% to RMB76.1 million (US$10.4 million), or 18.2% of total revenues, from RMB107.5 million, or 16.8% of total revenues, in the full year of 2023. The decrease was primarily due to the same factors that led to the quarterly decrease.Sales and marketing expenses decreased by 19.8% to RMB97.0 million (US$13.3 million), or 23.2% of total revenues, from RMB121.0 million, or 18.9% of total revenues, in the full year of 2023. The decrease was mainly due to the reduction in member management fees.Technology and content expenses decreased by 14.8% to RMB45.6 million (US$6.3 million), or 10.9% of total revenues, from RMB53.5 million, or 8.4% of total revenues, in the full year of 2023. The decrease was primarily due to the same factors that led to the quarterly decrease.General and administrative expenses increased by 7.9% to RMB130.5 million (US$17.9 million), or 31.2% of total revenues, from RMB121.0 million, or 18.9% of total revenues, in the full year of 2023. The increase was primarily due to the same factors that led to the quarterly decrease.

Loss from operations was RMB136.3 million (US$18.7 million), compared with RMB80.6 million in the full year of 2023.

Financial income, net was RMB17.3 million (US$2.4 million), compared with financial loss, net of RMB60.2 million in the full year of 2023, primarily due to an increase in the fair value changes of equity securities investments.

Net loss was RMB123.1 million (US$16.9 million), compared with RMB165.1 million in the full year of 2023.

Adjusted net loss[3] was RMB120.7 million (US$16.5 million), compared with RMB166.0 million in the full year of 2023.

Basic and diluted net loss per share attributable to ordinary shareholders were both RMB0.06 (US$0.01), compared with RMB0.08 in the full year of 2023.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses adjusted net loss as a supplemental measure to review and assess operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines adjusted net loss as net loss excluding share-based compensation.

The Company presents adjusted net loss because it is used by management to evaluate operating performance and formulate business plans. Adjusted net loss enables management to assess operating performance without considering the impact of share-based compensation recorded under ASC 718, “Compensation-Stock Compensation.” The Company also believes that the use of this non-GAAP measure facilitates investors’ assessment of operating performance.

This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as an analytical tool. One of the key limitations of using adjusted net loss is that it does not reflect all items of income and expense that affect the Company’s operations. Share-based compensation has been and may continue to be incurred in Yunji’s business and is not reflected in the presentation of adjusted net loss. Further, this non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited.

The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. Yunji encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

For more information on the non-GAAP financial measures, please see the table captioned “Reconciliation of Non-GAAP Measures to the Most Directly Comparable Financial Measures” set forth at the end of this press release.

Conference Call

The Company will host a conference call on Monday, April 21, 2025 at 7:30 A.M. Eastern Time or 7:30 P.M. Beijing/Hong Kong Time to discuss its earnings. Listeners may access the call by dialing the following numbers:

International:

1-412-902-4272

United States Toll Free:

1-888-346-8982

Mainland China Toll Free:

4001-201203

Hong Kong Toll Free:

800-905945

Conference ID:

Yunji Inc.

A telephone replay of the call will be available after the conclusion of the conference call for one week.

Dial-in numbers for the replay are as follows:

United States Toll Free

1-877-344-7529

International

1-412-317-0088

Replay Access Code

1068073

Safe Harbor Statements

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Among other things, the quotations from management in this announcement, as well as Yunji’s strategic and operational plans, contain forward-looking statements. Yunji may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Yunji’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Yunji’s growth strategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide products and services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely on merchants and third-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with merchants; trends and competition in China’s e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of China’s e-commerce market; PRC governmental policies and regulations relating to Yunji’s industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Yunji’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Yunji undertakes no obligation to update any forward-looking statement, except as required under applicable law.

About Yunji Inc.

Yunji Inc. is a leading social e-commerce platform in China that has pioneered a unique, membership-based model to leverage the power of social interactions. The Company’s e-commerce platform offers high-quality products at attractive prices across a wide variety of categories catering to the day-to-day needs of Chinese consumers. In addition, the Company uses advanced technologies including big data and artificial intelligence to optimize user experience and incentivize members to promote the platform as well as share products with their social contacts. Through deliberate product curation, centralized merchandise sourcing, and efficient supply chain management, Yunji has established itself as a trustworthy e-commerce platform with high-quality products and exclusive membership benefits, including discounted prices.

For more information, please visit https://investor.yunjiglobal.com/

Investor Relations Contact

Yunji Inc.
Investor Relations
Email: Yunji.IR@icrinc.com
Phone: +1 (646) 224-6957

ICR, LLC
Robin Yang
Email: Yunji.IR@icrinc.com
Phone: +1 (646) 224-6957

YUNJI INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except for share and per share data, unless otherwise noted)

As of

December 31,

2023

December 31,

2024

RMB

US$

ASSETS

Current Assets

Cash and cash equivalents

517,542

219,365

30,053

Restricted cash

27,169

23,467

3,215

Short-term investments

7,195

–

Accounts receivable, net

64,312

56,233

7,704

Advance to suppliers

14,058

9,810

1,344

Inventories, net

42,716

29,448

4,034

Amounts due from related parties

1,361

662

Prepaid expenses and other current assets[4]

134,247

177,187

24,275

Total current assets

808,600

516,172

70,716

Non-current assets

Property and equipment, net

175,451

205,450

28,147

Land use rights, net[5]

–

174,437

23,898

Long-term investments

364,159

364,534

49,941

Operating lease right-of-use assets, net

16,507

13,809

1,892

Other non-current assets[6]

189,067

78,050

10,692

Total non-current assets

745,184

836,280

114,570

Total assets

1,553,784

1,352,452

185,286

YUNJI INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(All amounts in thousands, except for share and per share data, unless otherwise noted)

As of

December 31,

2023

December 31,

2024

RMB

US$

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current Liabilities

Accounts payable

96,782

54,678

7,491

Deferred revenue

9,412

8,596

1,178

Incentive payables to members[7]

124,889

66,039

9,047

Member management fees payable

4,373

1,263

173

Other payable and accrued liabilities

109,200

126,177

17,286

Amounts due to related parties

3,535

1,645

225

Operating lease liabilities – current

3,376

3,845

527

Total current liabilities

351,567

262,243

35,927

Non-current liabilities

Operating lease liabilities

11,122

7,808

1,070

Other non-current liabilities

–

4,355

597

Total non-current liabilities

11,122

12,163

1,667

Total Liabilities

362,689

274,406

37,594

YUNJI INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(All amounts in thousands, except for share and per share data, unless otherwise noted)

As of

December 31,

2023

December 31,

2024

RMB

US$

Shareholders’ equity

Ordinary shares

Less: Treasury stock

(116,108)

(113,334)

(15,527)

Additional paid-in capital

7,328,680

7,328,336

1,003,978

Statutory reserve

16,254

16,726

2,291

Accumulated other comprehensive income

85,291

93,145

12,761

Accumulated deficit

(6,123,971)

(6,247,557)

(855,911)

Total Yunji Inc. shareholders’ equity

1,190,216

1,077,386

147,602

Non-controlling interests

879

660

Total shareholders’ equity

1,191,095

1,078,046

147,692

Total liabilities and shareholders’ equity

1,553,784

1,352,452

185,286

YUNJI INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(All amounts in thousands, except for share and per share data, unless otherwise noted)

For the Three Months Ended

For the Year Ended

December 31,

2023

December 31,

2024

December 31,

2023

December 31,

2024

RMB

US$

RMB

US$

Revenues:

Sales of merchandise, net

112,330

75,499

10,343

500,651

330,535

45,283

Marketplace revenue

34,259

19,451

2,665

130,188

79,466

10,887

Other revenues

2,558

2,173

298

9,370

7,650

1,048

Total revenues

149,147

97,123

13,306

640,209

417,651

57,218

Operating cost and expenses:

Cost of revenues

(79,613)

(50,240)

(6,883)

(332,774)

(211,311)

(28,949)

Fulfilment

(24,845)

(16,372)

(2,243)

(107,472)

(76,126)

(10,429)

Sales and marketing

(28,478)

(30,173)

(4,134)

(121,039)

(96,965)

(13,284)

Technology and content

(12,033)

(8,492)

(1,163)

(53,490)

(45,627)

(6,251)

General and administrative

(44,477)

(71,146)

(9,747)

(120,951)

(130,462)

(17,873)

Total operating cost and expenses

(189,446)

(176,423)

(24,170)

(735,726)

(560,491)

(76,786)

Other operating income

780

1,650

226

14,898

6,544

896

Loss from operations

(39,519)

(77,650)

(10,638)

(80,619)

(136,296)

(18,672)

Financial (loss)/ income, net

(23,427)

(2,578)

(353)

(60,226)

17,333

2,375

Foreign exchange income/(loss), net

723

(2,608)

(357)

(6,743)

2,127

291

Other non-operating income/(loss),

net

158

(2,405)

785

108

Loss before income tax expense, and
equity in loss of affiliates, net of tax

(62,192)

(82,678)

(11,326)

(149,993)

(116,051)

(15,898)

Income tax expense

(1,328)

(368)

(50)

(7,851)

(2,009)

(275)

Equity in loss of affiliates, net of tax

(2,331)

(1,998)

(274)

(7,276)

(5,061)

(693)

Net loss

(65,851)

(85,044)

(11,650)

(165,120)

(123,121)

(16,866)

Less: net income/(loss) attributable to
non-controlling interests shareholders

(11)

(2)

Net loss attributable to YUNJI INC.

(65,862)

(85,053)

(11,651)

(165,129)

(123,110)

(16,864)

YUNJI INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONTINUED)

(All amounts in thousands, except for share and per share data, unless otherwise noted)

For the Three Months Ended

For the Year Ended

December 31,

2023

December 31,

2024

December 31,

2023

December 31,

2024

RMB

US$

RMB

US$

Net loss attributable to ordinary shareholders

(65,862)

(85,053)

(11,651)

(165,120)

(123,110)

(16,864)

Net loss

(65,851)

(85,044)

(11,650)

(165,120)

(123,121)

(16,866)

Other comprehensive income

Foreign currency translation adjustment

(10,302)

12,023

1,647

22,178

7,854

1,076

Total comprehensive loss

(76,153)

(73,021)

(10,003)

(142,942)

(115,267)

(15,790)

Less: total comprehensive income/(loss) attributable to non-
controlling interests shareholders

(11)

(2)

Total comprehensive loss attributable to YUNJI INC.

(76,164)

(73,030)

(10,004)

(142,951)

(115,256)

(15,788)

Net loss attributable to ordinary shareholders

(65,862)

(85,053)

(11,651)

(165,129)

(123,110)

(16,864)

Weighted average number of ordinary shares used in computing
net loss per share, basic and diluted

1,966,998,532

1,968,797,989

1,971,108,505

1,967,498,669

Net loss per share attributable to ordinary shareholders

Basic

(0.03)

(0.04)

(0.01)

(0.08)

(0.06)

(0.01)

Diluted

(0.03)

(0.04)

(0.01)

(0.08)

(0.06)

(0.01)

YUNJI INC.

NOTES TO UNAUDITED FINANCIAL INFORMATION

(All amounts in thousands, except for share and per share data, unless otherwise noted)

For the Three Months Ended

For the Year Ended

December 31,

2023

December 31,

2024

December 31,

2023

December 31,

2024

RMB

US$

RMB

US$

Share-based compensation expenses included in:

Technology and content

401

349

1,554

1,450

198

General and administrative

377

164

503

774

106

Fulfillment

(2,525)

Sales and marketing

(417)

114

Total

881

583

(885)

2,430

333

YUNJI INC.

RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE FINANCIAL MEASURES

(All amounts in thousands, except for share and per share data, unless otherwise noted)

For the Three Months Ended

For the Year Ended

December 31,

2023

December 31,

2024

December 31,

2023

December 31,

2024

RMB

US$

RMB

US$

Reconciliation of Net Loss to Adjusted Net Loss:

Net loss

(65,851)

(85,044)

(11,650)

(165,120)

(123,121)

(16,866)

Add: Share-based compensation

881

583

(885)

2,430

333

Adjusted net loss

(64,970)

(84,461)

(11,570)

(166,005)

(120,691)

(16,533)

[1]. This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.2993 to US$1.00, the exchange rate in effect as of December 31, 2024 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.
[2]. “Repeat purchase rate” in a given period is calculated as the number of transacting members who purchased not less than twice divided by the total number of transacting members during such period. “Transacting member” in a given period refers to a member who successfully promotes Yunji’s products to generate at least one order or places at least one order on Yunji’s platform, regardless of whether any product in such order is ultimately sold or delivered or whether any product in such order is returned. “Repeat purchase rate” only considers orders placed through the Company’s app. Repeat purchases made through the Company’s mini-programs are excluded from the calculation.
[3]. Adjusted net loss is a non-GAAP financial measure, which is defined as net loss excluding share-based compensation expense. See “Reconciliation of Non-GAAP Measures to the Most Directly Comparable Financial Measures” set forth at the end of this press release.
[4]. As of December 31, 2024, Short-term loan receivables of amount RMB149,570 were included in the prepaid expenses and other current assets balance, which represent the principal and interest to be collected on loans provided by the Group to third-party companies.
[5]. In June 2024, the Company won the bid for a parcel of land located in Xiaoshan District, Hangzhou, China, covering approximately 10 thousand square meters (the “Hangzhou Land Parcel”) and entered into an agreement with the local government to acquire the land use right of the Hangzhou Land Parcel for an aggregate consideration of approximately RMB171.5 million. In July 2024, the Company obtained the certificate of the land use right and carried the land use right at cost less accumulated amortization and impairment losses, if any. The Company intends to construct a new office building on the Hangzhou Land Parcel to use it as its new headquarters and also lease offices to external parties. The total amount for the land acquisition and office building construction is expected to be approximately RMB600.0 million. The Company intends to fund the land acquisition and building construction through cash on hand and bank financing.
[6]. Impairment of long-lived assets other than goodwill recognized for the years ended December 31, 2023 and 2024 was nil and RMB26.1 million, respectively, which was recorded in general and administrative expenses.
[7]. As of December 31, 2024, the decrease in incentive payables was primarily due to derecognition of long-aged payables to inactive members.

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SOURCE Yunji Inc.

Technology

Self-Driving Cars Market worth 51,213 thousand units in 2035 | MarketsandMarkets™

Published

48 seconds ago

November 2, 2026

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.

Download PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=1220

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

49 seconds ago

November 2, 2026

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

51 seconds ago

November 2, 2026

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

—

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

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)

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

(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

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

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

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

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

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

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SOURCE NAPCO Security Technologies, Inc.