Back
10-Q2025-11-06· merged:deepseek-v4-flash

NABL · N-able, Inc.

0001834488-25-000172

SEC filing

Summary

N-able operates as a single segment; $20M share buybacks in 9M25 with $55M remaining; $243.8M in remaining performance obligations.

Key takeaways

Full analysis

Notes & Operating Detail

Balance Sheet & Liquidity

As of September 30, 2025, the company's total debt (term loan principal) stood at $336.0M, down from $338.6M at December 31, 2024, reflecting quarterly repayments of $2.6M. Deferred revenue decreased to $21.4M from $27.0M, driven by $26.1M recognized and $20.5M deferred. Contract assets (current) increased to $22.8M from $12.8M, driven by the Long-Term Contract Initiative. Remaining performance obligations totaled $243.8M, with $174.7M expected to be recognized within one year.

Commitments & Contractual Obligations

The Notes disclose no material purchase commitments for inventory or capacity. Commitments primarily arise from acquisition-related contingent and deferred consideration: $12.2M in contingent consideration (Level 3) and $109.5M in deferred consideration (undiscounted) related to the Adlumin acquisition. These are recorded at fair value and subject to quarterly remeasurement.

Capital Allocation

During the nine months ended September 30, 2025, the company repurchased $20.0M of its common stock under a $75.0M authorization, leaving $55.0M remaining. No dividends were paid or declared. Debt repayments totaled $2.6M. Capital expenditures are not detailed in the Notes; however, depreciation and amortization for the nine months was $32.4M (including $12.6M amortization of acquired technologies). The company has no material off-balance-sheet arrangements.

Segment / Geographic Mix

N-able operates as a single operating segment. Revenue for the three months ended September 30, 2025 was $131.7M, with subscription revenue representing 99.1%. Geographically, United States contributed $64.9M (49.3%), United Kingdom $13.5M (10.2%), and all other international $53.3M (40.5%). No other country exceeded 10% of revenue. The company's long-lived assets are concentrated in Switzerland ($12.8M), United States ($12.3M), and United Kingdom ($5.8M).

Cash Flow Quality

Cash Flow Quality

Operating cash flow (CFO) of $67.9M significantly exceeded net loss of ($9.8M), driven by large non-cash add-backs: depreciation & amortization ($32.4M), stock-based compensation ($36.4M), and deferred consideration expense ($11.4M). The divergence between CFO and net income is typical for a growing SaaS company with heavy non-cash charges.

Capex intensity (PP&E + intangible purchases) rose to $22.3M (33% of CFO), up from $15.6M (29% of CFO) in the prior period, reflecting increased investment in property, equipment, and software. Free cash flow (CFO minus capex) was approximately $45.6M, providing ample coverage for the $20.0M in share repurchases.

Working capital changes were mixed: a large $16.9M inflow from recoverable taxes and a $10.1M outflow from contract assets. The $20.0M share repurchase is a notable new capital allocation action, absent in the prior period. Overall, cash generation remains strong, supporting both organic investment and shareholder returns.