NAPCO designs and manufactures electronic security products and provides communication services for security systems. NAPCO operates a razor-and-blade business model where it sells hardware upfront and then collects monthly subscription fees for cellular connectivity through its Networx Operations Center. Recurring services account for ~48% of FY26 revenue and generate gross margins above 90%. This segment is primarily driven by StarLink cellular communicators, with commercial fire alarm radios representing 75% of the ~1M active radios on the network. Hardware sales comprise ~52% of FY26 revenue and include door-locking products, alarm panels, and access control systems. Door-locking products, sold under brands like Alarm Lock and Marks USA, represent 66% of hardware revenue. NAPCO manufactures over 90% of its products at its facility in the Dominican Republic and sells through a network of 2,200 distributors and dealers. NAPCO centers its growth strategy on the phase-out of legacy copper landlines, which creates a replacement cycle for cellular communicators through 2030. NAPCO is also expanding its recurring revenue base by launching the MVP cloud-based platform for its locking hardware. NAPCO maintains a debt-free balance sheet and benefits from operating leverage in its Dominican Republic facility as equipment volumes increase.