NABL — N-able, Inc.

N-able Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Total ARR: $540 million, up 12% year-over-year (8% constant currency).
• Total Revenue: $130 million, exceeding guidance by $3 million, reflecting 12% year-over-year growth (9% constant currency).
• Subscription Revenue: $129 million, also up 12% year-over-year (9% constant currency).
• Adjusted EBITDA: $39 million in Q4, representing a 30% margin; full-year adjusted EBITDA was $153 million at the same margin.
• Gross Margin: 80% in Q4, down from 82% in Q4 2024; full-year gross margin was 81%, down from 84%.
• Unlevered Free Cash Flow: $28 million in Q4, $101 million for the full year.
• Net Leverage: Approximately 1.9x, with $112 million in cash and $400 million in outstanding loans.

2. Strategic Updates and Business Highlights

• Successful integration of the Adlumin acquisition, enhancing AI-powered cybersecurity offerings.
• Expansion into the VAR channel to broaden sales reach.
• Launched a new R&D center in India to bolster engineering capacity.
• Introduced AI-driven capabilities across the platform, including a new AI workflow assistant, N-zo, aimed at improving IT operations.
• Achieved recognition in the 2026 Gartner Magic Quadrant for endpoint management tools.

3. Forward Guidance and Outlook

• Q1 2026 Revenue Guidance: $131 million to $132 million, representing 11% to 12% growth year-over-year.
• Full Year 2026 Revenue Outlook: $554 million to $559 million, reflecting 8% to 9% growth.
• Full Year 2026 ARR Outlook: $581 million to $586 million, also indicating 8% to 9% growth.
• Adjusted EBITDA for 2026: Expected to be between $167 million and $171 million, with margins of 30% to 31%.
• Unlevered Free Cash Flow: Projected at $114 million to $118 million for 2026.

4. Bad News, Challenges, or Points of Concern

• Gross Margin Decline: Notable decrease in gross margins year-over-year, which may indicate rising costs or pricing pressures.
• Market Competition: Increased sophistication of cyber threats and competitive pressures from other cybersecurity solutions, particularly those leveraging AI.
• Economic Environment: Potential headwinds from macroeconomic factors affecting customer spending and IT budgets.

5. Notable Q&A Insights

• ARR Growth Confidence: Management expressed confidence in achieving slightly higher ARR growth in 2026 due to improved gross retention, new product offerings, and expanded reach within the VAR community.
• Adlumin Success: The cross-sell performance of Adlumin exceeded expectations, driven by its AI capabilities and compliance needs among MSPs.
• AI Monetization: Discussions highlighted the potential for AI to enhance revenue per customer, with plans for new AI-infused SKUs to increase the average selling price.
• Seasonality in Growth: Management indicated expected seasonality in revenue growth, with stronger performance anticipated in the second half of 2026 due to new product launches.

Overall, N-able demonstrated solid financial performance in Q4 2025, with strategic advancements in AI and cybersecurity positioning the company for continued growth, despite facing challenges related to margin pressures and competitive dynamics.