NABL — N-able, Inc.

N-able Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Annual Recurring Revenue (ARR): $548 million, an 8% increase year-over-year in constant currency.
• Total Revenue: $134 million, exceeding guidance by $2 million, reflecting a 13% year-over-year growth on a reported basis.
• Subscription Revenue: $132 million, also up 13% year-over-year.
• Adjusted EBITDA: $37 million, with a margin of 27%.
• Net Revenue Retention (NRR): 106% on a trailing 12-month basis.
• Customer Growth: 2,710 customers contributing over $50,000 in ARR, a 13% increase year-over-year.
• Gross Margin: 80%, slightly down from 81% year-over-year.
• Unlevered Free Cash Flow: $22 million.
• Cash Position: Approximately $118 million, with a net leverage of 1.8x.

2. Strategic Updates and Business Highlights:

• N-able is focusing on AI innovation to automate labor-intensive services, enhancing operational efficiency and expanding its Total Addressable Market (TAM).
• The company is experiencing strong momentum in the upmarket segment, with significant customer wins, including a partnership with Manchester City Football Club.
• The channel expansion strategy is yielding results, with four of the top five new customer wins coming through value-added resellers (VARs).
• Key product advancements include the introduction of N-zo, an AI workflow assistant, and Disaster Recovery as a Service (DRaaS), aimed at improving operational efficiency and security for customers.

3. Forward Guidance and Outlook:

• Q2 2026 Revenue Guidance: Expected between $137.5 million and $138.5 million, representing 5% to 6% year-over-year growth.
• Full Year 2026 Revenue Outlook: Projected between $554 million and $559 million, indicating 8% to 9% year-over-year growth.
• Full Year ARR Outlook: Estimated between $581 million and $586 million, also reflecting 8% to 9% growth.
• Adjusted EBITDA for 2026: Expected to be between $167 million and $171 million, with a margin of 30% to 31%.
• Unlevered Free Cash Flow for 2026: Revised to approximately $116 million to $120 million.

4. Bad News, Challenges, or Points of Concern:

• There is a noted lengthening of sales cycles and increased scrutiny on ROI as N-able moves upmarket, which may impact future revenue growth.
• The company is facing challenges related to the competitive landscape, particularly as AI advancements in cybersecurity create new threats.
• The introduction of new products like DRaaS is in limited preview, and while initial feedback is positive, full monetization is still pending.
• The macroeconomic environment remains stable, but geopolitical issues have not yet impacted operations, which could change.

5. Notable Q&A Insights:

• Management acknowledged a slight increase in sales cycle length as they pursue larger deals requiring higher-level approvals.
• There is a growing recognition among customers of the need for robust data recovery solutions, particularly in light of increasing cyber threats and the complexities introduced by AI.
• The company is optimistic about the potential of new offerings like DRaaS and Google Workspace backup, although these are not yet fully integrated into the financial outlook.
• The management emphasized the importance of their AI-driven solutions in helping customers manage the evolving threat landscape and improve operational efficiency.

Overall, N-able demonstrated strong financial performance in Q1 2026 while navigating challenges associated with market dynamics and competitive pressures. The focus on AI innovation and strategic partnerships positions the company for continued growth, albeit with some caution regarding sales cycles and market scrutiny.