10-K · August 10, 2026
N-able continued to grow recurring revenue and ARR in FY2025, supported by its AI-powered, partner-first cybersecurity platform and expansion in both U.S. and international markets. However, higher cloud, personnel,…
Earnings analysis · 10-Q
NABL earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
N-able delivered solid second-quarter growth, with revenue up 5.9% year over year to $138.223 million, ARR up 6.0% to $544.5 million, and GAAP operating margin improving to 11.9% from 7.1%. The company returned to…
Read full summary
N-able delivered solid second-quarter growth, with revenue up 5.9% year over year to $138.223 million, ARR up 6.0% to $544.5 million, and GAAP operating margin improving to 11.9% from 7.1%. The company returned to profitability with $1.760 million of net income, although gross margin declined to approximately 76.8% as cloud infrastructure and royalty costs increased by $4.0 million. Operating cash flow remained strong at $43.985 million for the first six months, but the unremediated revenue-control material weakness, $392.3 million of borrowings, variable-rate exposure, and 17% goodwill impairment sensitivity remain significant overhangs.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Revenue growth accelerated
Second-quarter revenue increased to $138.223 million from $130.521 million, up $7.702 million or 5.9% year over year, and was approximately 3.1% above the prior quarter's $134 million.
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Recurring revenue remains strong
Subscription revenue grew 6.1% year over year to $137.071 million and represented 99.2% of total revenue; annual dollar-based net revenue retention improved to 106% from 102%.
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Gross margin compressed
Gross margin was approximately 76.8%, versus 78.0% implied by the prior-year period's $28.771 million of total cost of revenue on $130.521 million of revenue, as total cost of revenue rose 11.3% to $32.021 million.
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Profitability materially improved
GAAP operating income increased to $16.476 million from $9.320 million, lifting operating margin to 11.9% from 7.1%; net income was $1.760 million versus a $4.631 million loss in the prior-year quarter.
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ARR and larger customers expanded
ARR increased 6.0% to $544.5 million from $513.7 million, while customers with ARR above $50,000 rose 6.5% to 2,706 from 2,540.
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Cash generation and debt improved
Six-month operating cash flow increased to $43.985 million from $43.864 million; quarter-end cash was $115.8 million, while borrowings declined to $392.3 million from $393.9 million at December 31, 2025.
What to watch
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Unremediated revenue-control weakness
Disclosure controls and internal control over financial reporting were not effective as of June 30, 2026. The material weakness involved manual subscription revenue processes outside the ERP and resulted in revisions to periods including the three months ended March 31, 2026 and quarterly periods in 2024 and 2025.
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Leverage and variable-rate exposure
Total borrowings were $392.3 million at June 30, 2026, and the company added a delayed-draw facility with $75.0 million of committed availability. A hypothetical 100-basis-point increase in rates would increase annual interest expense by approximately $4.0 million.
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Goodwill impairment sensitivity
Management identified goodwill impairment indicators from a sustained decline in stock price and market capitalization. A further decline of approximately 17% from the June 30, 2026 stock price would reduce estimated reporting-unit fair value to carrying value, creating potential for a material non-cash impairment charge.
Management's outlook
No quantitative revenue or EPS guidance was provided in the 10-Q; the filing states that cash and operating cash flows are expected to fund operations and capital expenditure commitments for at least the next twelve months. Management expects stock-based compensation expense to continue decreasing during the remainder of 2026 and expects to continue growing sales and marketing and research and development organizations.
Earlier filings 4
10-Q · May 7, 2026
N-able, Inc. reported a strong Q1 2026, with revenues of $133.7 million, surpassing expectations and showing a 13.1% increase year-over-year. Adjusted EPS reached $0.09, improving from a net loss in the prior year,…
10-K · February 26, 2026
N-able, Inc. reported $511.4 million in revenue for the year ended December 31, 2025, representing a 9.7% increase from $466.1 million in the prior year, driven by a significant rise in subscription revenue. However,…
10-Q · November 6, 2025
N-able, Inc. reported total revenue of $131.7 million for Q3 2025, up 13.1% year-over-year from $116.4 million. EPS came in at $0.13, exceeding the consensus estimate of $0.07, although overall operating income…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.