0001834488-26-000007
SEC filingRevenue grew 9.7% to $511M, but GAAP net loss of $17M due to acquisition costs; ARR growth at 11.9% signals recurring momentum.
N-able, Inc. describes itself as a leading global cybersecurity provider. The company delivers a software platform designed to provide end-to-end coverage across the IT environment, with capabilities spanning Unified Endpoint Management (UEM), Security Operations, and Data Protection. The platform is built on a multi-tier, multi-tenant architecture and is delivered through a channel-led model, partnering with Managed Service Providers (MSPs), Value Added Resellers (VARs), distributors, and other channel partners. N-able focuses on organizations with up to 2,500 employees and the channel partners that support them.
N-able reports its solutions across three primary vectors, though it does not disclose revenue breakdown by segment. The three vectors are:
Additionally, N-able offers business management solutions such as professional services automation, password management, and desktop management.
N-able's platform includes a range of named solutions: UEM, RMM, Data Protection as a Service, Backup/Recovery/Disaster Recovery, Endpoint Protection (traditional and next-generation), Extended Detection and Response (XDR), Managed Detection and Response (MDR), Web Protection and Content Filtering, Mail Protection and Archiving, Professional Services Automation and Ticketing, Password and Documentation Management, and Desktop Management. The platform features extensibility through an open ecosystem framework, multi-tier multi-tenancy, automation with over 100 out-of-the-box policies, unified agent management, and a common user interface.
N-able's go-to-market approach is channel-led and multi-dimensional. The company employs a low-touch, high-velocity inside sales motion complemented by a field sales organization. Marketing is analytics-driven, leveraging SEO, events, webinars, and free trials. The company also uses distributors and resellers internationally. As of December 31, 2025, N-able had 2,671 customers with annualized recurring revenue (ARR) over $50,000, representing 61% of total ARR. Revenue was $511.4 million in 2025, with 50.4% from outside the United States.
N-able operates in a fragmented market. It competes with MSP pure-play vendors such as ConnectWise, Kaseya, and NinjaOne, as well as category-specific vendors including Acronis, Veeam, ArcticWolf, Sophos, TeamViewer, and LogMeIn. Key competitive factors include breadth of features, scalability, ease of use, total cost of ownership, and alignment with partner success.
N-able's growth strategy comprises six pillars: (1) expand customer footprint by adding new partners, (2) facilitate MSP-enabled growth as MSPs expand their customer bases, (3) widen surface area by managing more networks, devices, and users, (4) drive innovation through internal development and partnerships, (5) broaden co-managed IT footprint, and (6) deliver globally by expanding into new markets.
As of December 31, 2025, N-able had 1,852 employees, with 398 in the United States and 1,454 outside. Of these, 1,847 were full-time. The company is not party to any collective bargaining agreements. N-able emphasizes employee engagement through regular surveys, belonging initiatives (e.g., Communities of Interest), wellness programs, and learning and development opportunities.
Revenue for fiscal year 2025 increased 9.7% to $511.4 million, driven primarily by subscription revenue growth of 10.3% to $506.2 million. Other revenue declined 27.9% to $5.2 million due to lower maintenance revenue. Gross profit grew only 2.3% to $394.4 million, as total cost of revenue surged 45.1% to $117.1 million, reflecting higher cloud infrastructure costs, amortization of acquired technologies from the Adlumin acquisition, and increased personnel expenses. Consequently, gross margin compressed from 82.7% to 77.1%. Operating expenses rose 18.0% to $357.6 million, with sales and marketing up 20.3%, R&D up 11.0%, and G&A up 19.9%, driven by headcount growth, transaction costs, and stock-based compensation. GAAP operating income fell to $36.8 million from $82.4 million, and operating margin dropped from 17.7% to 7.2%. Net income turned to a net loss of $(17.0) million compared to income of $31.0 million in the prior year, primarily due to higher interest expense and lower operating income.
The company reports two revenue streams: Subscription and Other. Subscription revenue, representing 99.0% of total revenue, accelerated 10.3% YoY, supported by strong demand for data protection, security, and unified endpoint management solutions, including the positive impact of long-term committed contracts. Annual Recurring Revenue (ARR) reached $539.7 million, up 11.9%, and the number of customers with ARR over $50,000 grew 14% to 2,671, now comprising 61% of total ARR. The dollar-based net revenue retention rate was 103%, down from 110% in FY23 due to pricing and packaging changes and the Long-Term Contract Initiative. Other revenue declined 27.9% as maintenance attrition continued.
Management emphasizes investments in sales, R&D, and the partner ecosystem to drive growth, though near-term margins will be pressured by acquisition-related costs and the shift to long-term contracts. The company expects stock-based compensation to increase in FY26. Adjusted EBITDA margin declined from 36.3% to 30.0%, and management uses non-GAAP measures to highlight core profitability. No specific forward guidance is provided, but the focus on ARR growth and high-value customer expansion suggests confidence in recurring revenue momentum. Cash from operations was $93.2 million, and total liquidity remains adequate with $111.8 million in cash and equivalents.
Cash and cash equivalents totaled $111.8M as of December 31, 2025, up from $85.2M a year earlier. Total debt (principal) stood at $400.0M, consisting entirely of the term loan facility; the revolving credit facility was undrawn. Net debt (total debt less cash) was $288.2M. Shareholders' equity was $804.7M, including $30.0M of treasury stock from the buyback. The company had $68.2M in money market fund financial assets classified as Level 1.
Operating lease commitments totaled $41.8M in undiscounted minimum payments, with $9.0M due within one year, $15.2M in years 1-3, and $17.6M thereafter. The weighted-average remaining lease term was 5.3 years. Deferred consideration from the Adlumin acquisition was $60.7M (current) and $0 (non-current) as of year-end, after $51.7M in payments during Q4 2025. Contingent consideration of $10.8M (Level 3) remained, with up to $15.0M in potential earn-out payments. No other material purchase commitments were disclosed.
The company repurchased 3.8M shares for $30.0M in 2025; no new buyback authorization was announced. No dividends were paid. Debt activity was significant: the term loan was increased from $336M to $400M via Amendment No. 2 on November 26, 2025, with maturity extended to 2032. Proceeds of $400M were drawn, and $338.6M was repaid (net increase of $61.4M). Debt issuance costs of $4.1M were deferred. Capital expenditures totaled $18.1M (3.5% of revenue).
The company operates in a single reportable segment. No segment-level revenue or operating income breakdown is provided in the Notes. Geographic revenue information is not disclosed in the Notes section.
Cybersecurity is the most heavily emphasized risk. The filing details sophisticated nation-state and supply-chain attacks, past incidents, and the potential for extensive damage including data theft, ransomware, regulatory action, and reputational harm. The company acknowledges that its products' security role makes it a high-value target. AI introduces new and complex risks: flawed or biased outputs, intellectual property uncertainty, and a rapidly evolving regulatory landscape (e.g., EU AI Act). The filing also notes that competitors may adopt AI more effectively, posing a competitive threat.
With 50.4% of revenue from outside the US and 79% of employees abroad, international operations are a major risk factor. Operations in Belarus (civil unrest, sanctions) and exposure to the Russia-Ukraine conflict are specifically called out. Foreign exchange fluctuations, complex tax and regulatory regimes, and potential trade barriers (tariffs, export controls) add further challenges.
The company carries $393.9 million in debt under a credit agreement with variable interest rates and restrictive covenants. This indebtedness could limit financial flexibility, strategic investments, and ability to react to market changes. The filing also warns of potential goodwill impairment from acquisitions.
Competition is intense from established MSP-focused vendors (Kaseya, ConnectWise, NinjaOne) and larger IT vendors. The company faces pricing pressure, potential loss of market share, and dependence on subscription renewals and customer retention. Fluctuations in net revenue retention and the shift toward longer-term contracts introduce revenue visibility challenges.
The Adlumin acquisition in November 2024 is a specific risk. Integration difficulties, brand confusion, and failure to achieve expected synergies could harm results. The filing notes that past acquisitions have revealed intellectual property ownership issues.
Global data privacy regulations (GDPR, CCPA) and evolving AI laws create compliance costs and liability exposure. Export controls and anti-corruption laws (FCPA) are also cited. The filing notes potential litigation from intellectual property claims and class actions related to stock volatility.
Inflation, recession fears, and reduced IT spending could slow growth. The company also highlights risks related to reliance on third-party cloud providers (AWS, Azure), open source software, and the need to attract and retain key talent. Climate change is mentioned as a long-term risk, primarily through physical disruption and regulatory costs.
The document excerpt does not include the Consolidated Statements of Cash Flows, which are referenced on page F-8 but not reproduced. Therefore, no cash flow analysis can be performed.