Crane Nxt Tightens Price Talk, Extends Deadline

Looking back on specialized technology stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including PAR Technology and its peers.

Companies in this sector, especially if they invest wisely, could see demand tailwinds as the world moves towards more IoT (Internet of Things), automation, and analytics. Enterprises across most industries will balk at taking these journeys solo and will enlist companies with expertise and scale in these areas. However, headwinds could include rising competition from larger technology firms, as digitization lowers barriers to entry in the space. Additionally, companies in the space will likely face evolving regulatory scrutiny over data privacy, particularly for surveillance and security technologies. This could make companies have to continually pivot and invest.

The 8 specialized technology stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.2% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.5% since the latest earnings results.

PAR Technology

Originally founded in 1968 as a defense contractor for the U.S. government, PAR Technology provides cloud-based software, payment processing, and hardware solutions that help restaurants manage everything from point-of-sale to customer loyalty programs.

PAR Technology reported revenues of $119.2 million, up 23.2% year on year. This print exceeded analysts’ expectations by 5.8%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

PAR Technology CEO, Savneet Singh, commented on the quarter, “PAR continues to scale our business as ARR approaches $300M and revenues in the quarter increased by 23% from Q3 last year. We continue to feel confident in our ability to grow our revenue base well above our market, while making progress on large tier 1 deals, all while maintaining strong financial discipline. In Q3 we launched PAR AI, a new intelligence layer embedded directly into the PAR product Suite. PAR AI delivers real-time intelligence across the restaurant tech stack without the need for extra apps or training. We expect our ability to utilize AI along with our “Better Together" multi-product strategy will drive better outcomes for enterprise customers and allow us to win new market share and increase ARPU with existing customers.

PAR Technology scored the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 1.8% since reporting and currently trades at $33.77.

Read why we think that PAR Technology is one of the best specialized technology stocks, our full report is free.

Best Q3: Napco

Protecting everything from schools to government facilities since 1969, Napco Security Technologies manufactures electronic security devices, access control systems, and communication services for intrusion and fire alarm systems.

Napco reported revenues of $49.17 million, up 11.7% year on year, outperforming analysts’ expectations by 4.8%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 9.6% since reporting. It currently trades at $39.91.

Is now the time to buy Napco? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Cognex

Founded in 1981 when computer vision was in its infancy, Cognex develops machine vision systems and software that help manufacturers and logistics companies automate quality inspection and tracking of products.

Cognex reported revenues of $276.9 million, up 18% year on year, exceeding analysts’ expectations by 5.2%. It was a satisfactory quarter as it also posted a solid beat of analysts’ revenue estimates but a significant miss of analysts’ full-year EPS guidance estimates.

As expected, the stock is down 18.8% since the results and currently trades at $38.50.

Read our full analysis of Cognex’s results here.

Crane NXT

Born from a corporate transformation completed in 2023, Crane NXT provides specialized technology solutions for payment processing, banknote security, and authentication systems for financial institutions and businesses.

Crane NXT reported revenues of $445.1 million, up 10.3% year on year. This print surpassed analysts’ expectations by 3.6%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ revenue estimates.

The stock is down 12.8% since reporting and currently trades at $56.01.

Read our full, actionable report on Crane NXT here, it’s free for active Edge members.

Mirion

With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.

Mirion reported revenues of $223.1 million, up 7.9% year on year. This number was in line with analysts’ expectations. It was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.

The stock is down 1.5% since reporting and currently trades at $24.82.

Read our full, actionable report on Mirion here, it’s free for active Edge members.

Crane NXT delivered third quarter results that surpassed Wall Street’s revenue and non-GAAP profit expectations, yet the market reacted negatively. Management attributed the quarter’s performance to sustained momentum in its international currency business, where strong order activity and new customer wins—particularly in Latin America—drove growth. CEO Aaron Saak emphasized that the company’s micro-optics technology was specified in nine new currency denominations year-to-date, highlighting ongoing demand for advanced anti-counterfeiting features. Despite robust performance in currency, management noted continued softness in CPI’s vending segment, citing customer delays after recent price increases driven by tariffs.

Is now the time to buy CXT? Find out in our full research report (it’s free for active Edge members).

Crane NXT (CXT) Q3 CY2025 Highlights:

• Revenue: $445.1 million vs analyst estimates of $429.8 million (10.3% year-on-year growth, 3.6% beat)
• Adjusted EPS: $1.28 vs analyst estimates of $1.26 (1.8% beat)
• Adjusted EBITDA: $122.4 million vs analyst estimates of $117.7 million (27.5% margin, 4% beat)
• Management lowered its full-year Adjusted EPS guidance to $4.05 at the midpoint, a 2.4% decrease
• Operating Margin: 18.4%, in line with the same quarter last year
• Backlog: $557 million at quarter end
• Organic Revenue rose 1.4% year on year vs analyst estimates of 1.7% declines (314.3 basis point beat)
• Market Capitalization: $3.52 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Crane NXT’s Q3 Earnings Call

• Matt Summerville (D.A. Davidson) asked if international currency backlog meant the company was effectively sold out for next year. CEO Aaron Saak clarified that while some 2027 orders were being taken, the company is confident in its 2026 backlog and is making investments to increase capacity.

• Bob Labick (CJS Securities) queried the source of vending weakness in CPI and whether it signaled a broader trend. Saak attributed it to ongoing customer purchase delays after tariff-driven price hikes and said the outlook remains cautious.

• Damian Karas (UBS) sought clarity on the timing and financial impact of U.S. currency redesigns, especially the $10 and $50 bills. Saak explained the $10 bill is on track for production next year, while the $50 redesign is in early stages and not expected to impact results until after 2027.

• Unknown Analyst (Baird) asked about customer receptivity to the transition from De La Rue holographic products to micro-optics. Saak reported minimal revenue loss and strong customer acceptance, with transitions driving higher margins.

• Robert Brooks (Northland Capital Markets) inquired about drivers behind international currency order strength and whether authentication contributed to growth. Saak and CFO Christina Cristiano confirmed order timing and emerging market demand were key, with some contribution from authentication.

Catalysts in Upcoming Quarters

Over the next few quarters, the StockStory team will closely watch (1) the pace at which Crane NXT ramps production and delivery of international currency orders, (2) the integration progress and initial financial contributions from the Antares Vision acquisition, and (3) whether vending demand in CPI stabilizes or remains under pressure. The successful launch of the new $10 bill and continued margin expansion in services will also serve as important signposts.

Crane NXT currently trades at $61.28, down from $64.12 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).

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Looking back on specialized technology stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Arlo Technologies and its peers.

Companies in this sector, especially if they invest wisely, could see demand tailwinds as the world moves towards more IoT (Internet of Things), automation, and analytics. Enterprises across most industries will balk at taking these journeys solo and will enlist companies with expertise and scale in these areas. However, headwinds could include rising competition from larger technology firms, as digitization lowers barriers to entry in the space. Additionally, companies in the space will likely face evolving regulatory scrutiny over data privacy, particularly for surveillance and security technologies. This could make companies have to continually pivot and invest.

The 8 specialized technology stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.2% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Arlo Technologies

Originally spun off from networking equipment maker Netgear in 2018, Arlo Technologies provides cloud-based smart security devices and subscription services that help consumers and businesses monitor and protect their homes, properties, and loved ones.

Arlo Technologies reported revenues of $139.5 million, up 1.4% year on year. This print exceeded analysts’ expectations by 0.6%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EPS guidance for next quarter estimates and a beat of analysts’ EPS estimates.

“Arlo again delivered another outstanding quarter fueled by our services business. Our ARR accelerated to $323 million, up about 34% year over year, driving non-GAAP subscriptions and services gross margin to over 85%, a record level and a spectacular increase of 770 basis points year over year,” said Matthew McRae, Chief Executive Officer of Arlo Technologies.

Arlo Technologies delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 6.7% since reporting and currently trades at $15.79.

We think Arlo Technologies is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

Best Q3: Napco

Protecting everything from schools to government facilities since 1969, Napco Security Technologies manufactures electronic security devices, access control systems, and communication services for intrusion and fire alarm systems.

Napco reported revenues of $49.17 million, up 11.7% year on year, outperforming analysts’ expectations by 4.8%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.2% since reporting. It currently trades at $42.25.

Is now the time to buy Napco? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Cognex

Founded in 1981 when computer vision was in its infancy, Cognex develops machine vision systems and software that help manufacturers and logistics companies automate quality inspection and tracking of products.

Cognex reported revenues of $276.9 million, up 18% year on year, exceeding analysts’ expectations by 5.2%. It was a satisfactory quarter as it also posted an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ full-year EPS guidance estimates.

As expected, the stock is down 19.9% since the results and currently trades at $38.

Read our full analysis of Cognex’s results here.

PAR Technology

Originally founded in 1968 as a defense contractor for the U.S. government, PAR Technology provides cloud-based software, payment processing, and hardware solutions that help restaurants manage everything from point-of-sale to customer loyalty programs.

PAR Technology reported revenues of $119.2 million, up 23.2% year on year. This result beat analysts’ expectations by 5.8%. It was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

PAR Technology pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 17.4% since reporting and currently trades at $38.99.

Read our full, actionable report on PAR Technology here, it’s free for active Edge members.

Crane NXT

Born from a corporate transformation completed in 2023, Crane NXT provides specialized technology solutions for payment processing, banknote security, and authentication systems for financial institutions and businesses.

Crane NXT reported revenues of $445.1 million, up 10.3% year on year. This print surpassed analysts’ expectations by 3.6%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ revenue estimates.

The stock is down 4.4% since reporting and currently trades at $61.33.

Read our full, actionable report on Crane NXT here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.