Delivers ARR Growth of 6% Year-Over-Year at Constant Currency
Appoints Russell Rosa as Chief Revenue Officer
Updates Full-Year 2026 ARR Outlook to $562M--$565M
BURLINGTON, Mass.--(BUSINESS WIRE)--August 10, 2026--
N-able, Inc. (NYSE:NABL), a global cybersecurity company delivering business resilience, today reported results for its second quarter ended June 30, 2026.
"AI is reshaping the security landscape, making our mission to democratize cyber-defense more critical than ever," said N-able president and CEO John Pagliuca. "We are taking decisive action across the business to better capture this demand. We welcomed Russell Rosa as our new Chief Revenue Officer, we are making organizational changes to align resources with our highest-priority opportunities, and we are sharpening our roadmaps to bring new products to market faster. Our award-winning platform protects approximately 500,000 businesses across the globe and our confidence in the road ahead remains strong."
"The business continues to deliver growth and cash flow as we execute against a compelling cybersecurity and AI opportunity," added N-able CFO Tim O'Brien. "We are executing strategic initiatives to strengthen our position in the market while delivering disciplined profitability. We also intend to be active with our share repurchase program, a reflection of our conviction in the long-term value of the business."
Second quarter 2026 financial highlights:
-- Total revenue of $138.2 million, representing 5.9% year-over-year
growth, or 4.7% year-over-year growth on a constant currency basis.
-- Subscription revenue of $137.1 million, representing 6.1%
year-over-year growth, or 5.0% year-over-year growth on a constant
currency basis.
-- Total ARR of $544.5 million, representing 6.0% year-over-year growth,
or 5.7% year-over-year growth on a constant currency basis.
-- GAAP gross margin of 76.8% and non-GAAP gross margin of 80.2%.
-- GAAP net income of $1.8 million, or $0.01 per diluted share, and
non-GAAP net income of $18.7 million, or $0.10 per diluted share.
-- Adjusted EBITDA of $39.9 million, representing an adjusted EBITDA
margin of 28.9%.
For a reconciliation of our GAAP to non-GAAP results, please see the tables below.
Additional recent business highlights:
-- N-able strengthened its go-to-market leadership with the appointment of
Russell Rosa as Chief Revenue Officer, supporting its strategy to
accelerate partner-led growth, expand further upmarket, strengthen
execution across its global partner and channel ecosystem, and drive its
next phase of growth.
-- N-able was named a Champion in the 2026 Omdia Global Managed Backup and
Disaster Recovery Leadership Matrix for the third consecutive year,
recognizing continued innovation in cyber resilience, data protection,
cyber recovery, and business continuity capabilities.
-- N-able advanced its AI-powered cybersecurity capabilities with the
launch of Shadow AI Visibility, enabling organizations to better
understand, govern, and secure AI usage across their environments while
addressing growing security, compliance, and AI governance blind spots.
-- N-able announced Empower 2027 and launched its global "Empower on the
Move" series to expand customer engagement, peer collaboration, and
cybersecurity education worldwide. This builds on the success of its
sold-out Empower 2026 conference.
-- N-able expanded its global security and innovation footprint with the
official opening of a Global Capability Centre in Bengaluru, India,
strengthening access to technical talent, expanding engineering, product
management, and security operations capabilities, and accelerating
AI-driven innovation across its platform.
Balance Sheet
As of June 30, 2026, total cash and cash equivalents were $115.8 million and total debt, net of debt issuance costs, was $392.3 million.
The financial results included in this press release are preliminary and pending final review by the company and its external auditors. Financial results will not be final until N-able files its quarterly report on Form 10-Q for the period. Information about N-able's use of non-GAAP financial measures is provided below under "Non-GAAP Financial Measures."
Financial Outlook
As of August 10, 2026, N-able is providing its financial outlook for the third quarter of 2026 and its updated financial outlook for full-year 2026. The financial information below includes forward-looking non-GAAP financial information, including adjusted EBITDA. These non-GAAP financial measures exclude, among other items mentioned below, amortization of acquired intangible assets and developed technology, depreciation expense, income tax expense, interest expense, net, unrealized foreign currency (gains) losses, transaction related costs, spin-off costs, stock-based compensation expense and related employer-paid payroll taxes and restructuring and other costs. We have not reconciled our estimates of these non-GAAP financial measures to their most directly comparable GAAP measure as a result of uncertainty regarding, and the potential variability of, these excluded items in future periods. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these excluded items could be material to our results computed in accordance with GAAP in future periods. Our reported results provide reconciliations of non-GAAP financial measures to their nearest GAAP equivalents.
The financial outlook provided below reflects N-able's expectations, as of the date of this release, regarding the impact on its business of changing foreign exchange rates and current macroeconomic dynamics.
Financial Outlook for the Third Quarter of 2026
N-able management currently expects to achieve the following results for the third quarter of 2026:
-- Total revenue in the range of $134.5 to $135.5 million, representing
approximately 3% year-over-year growth on a reported basis and 3% to 4%
on a constant currency basis.
-- Adjusted EBITDA in the range of $41.0 to $42.0 million, representing
approximately 30% to 31% of total revenue.
Financial Outlook for Full-Year 2026
N-able management currently expects to achieve the following results for the full-year 2026:
-- Total ARR in the range of $562 to $565 million, representing
approximately 4% to 5% year-over-year growth on a reported basis and 5%
on a constant currency basis.
-- Total revenue in the range of $539 to $542 million, representing
approximately 6% to 7% year-over-year growth on a reported basis and 5%
on a constant currency basis.
-- Adjusted EBITDA in the range of $158 to $161 million, representing
approximately 29% to 30% of total revenue.
Additional details on the company's outlook will be provided on the conference call.
Conference Call and Webcast
In conjunction with this announcement, N-able will host a conference call to discuss its financial results, business and business outlook at 8:30 a.m. ET on August 10, 2026. A live webcast of the call will be available on the N-able Investor Relations website at http://investors.n-able.com. A replay of the webcast will be available on a temporary basis shortly after the event on the N-able Investor Relations website.
Forward-Looking Statements
This press release contains "forward-looking" statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the third quarter and full-year 2026, our product development and market opportunity, and the impact of AI and macroeconomic conditions on our business. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and may be signified by terms such as "aim," "anticipate," "believe," "continue, " "expect," "feel," "intend," "estimate," "seek," "plan," "may," "can," "could," "should," "will," "would" or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially and adversely different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the following: (a) the impact of adverse economic conditions; (b) our ability to sell subscriptions to new customers, to sell additional solutions to our existing customers and to increase the usage of our solutions by our existing customers, as well as our ability to generate and maintain customer loyalty; (c) our ability to sell our solutions through distributors and resellers; (d) any decline in our renewal or net retention rates; (e) our ability to successfully incorporate AI-powered features into our solutions, market and sell any AI-powered solutions we develop, garner increased market share projected for AI-powered solutions, and realize efficiencies from the internal use of AI tools, as well as other risks related to our use of AI; (f) the possibility that general economic, political, legal and regulatory conditions and uncertainty may cause information technology spending to be reduced or purchasing decisions to be delayed, including as a result of inflation, actions taken by central banks to counter inflation, rising interest rates, war and political unrest, military conflict (including between Russia and Ukraine and in the Middle East), terrorism, sanctions, trade or other issues in the U.S. and internationally, including increased tariffs or trade
wars, or other geopolitical events globally, or that such factors may otherwise harm our business, financial condition or results of operations; (g) recent significant changes to U.S. trade policies and reciprocal trade measures enacted or threatened, which have led and may continue to lead to volatility and uncertainty, including increased market volatility and currency exchange rate fluctuations, which may also cause information technology spending to be reduced or purchasing decisions to be delayed; (h) any inability to generate significant volumes of high-quality sales leads from our digital marketing initiatives and convert such leads into new business at acceptable conversion rates; (i) any inability to successfully identify, complete and integrate acquisitions and manage our growth effectively; (j) any inability to resell third-party software or integrate third-party software into our solutions, or find suitable replacements for such third-party software; (k) risks associated with our international operations; (l) foreign exchange gains and losses related to expenses and sales denominated in currencies other than the functional currency of an associated entity; (m) risks that cyberattacks and other security incidents may result in compromises or breaches of our, our customers', or their SMB and mid-market customers' systems, the insertion of malicious code, malware, ransomware or other vulnerabilities into our, our customers', or their SMB and mid-market customers' environments, the exploitation of vulnerabilities in our, our customers', or their SMB and mid-market customers' security, the theft or misappropriation of our, our customers', or their SMB and mid-market customers' proprietary and confidential information, and interference with our, our customers', or their SMB and mid-market customers' operations, exposure to legal and other liabilities, higher customer and employee attrition and the loss of key personnel, negative impacts to our sales, renewals and upgrades and reputational harm and other serious negative consequences, any or all of which could materially harm our business; (n) our status as a controlled company; (o) our ability to attract and retain qualified employees and key personnel; (p) the timing and success of new product introductions and product upgrades by us or our competitors; (q) our ability to maintain or grow our brands, including the Adlumin brand; (r) our ability to protect and defend our intellectual property and not infringe upon others' intellectual property; (s) the possibility that our operating income could fluctuate and may decline as a percentage of revenue as we make further expenditures to expand our operations in order to support growth in our business; (t) our indebtedness, including increased borrowing costs resulting from rising interest rates, potential restrictions on our operations and the impact of events of default; (u) our ability to operate our business internationally and increase sales of our solutions to our customers located outside of the United States; and (v) the risk that any unremediated material weakness could result in a material misstatement in our financial statements, and the increased costs associated with implementing remediation efforts relating to any material weakness, including the material weakness identified in the second quarter 2026; and (w) such other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission, including the risk factors described in N-able's Annual Report on Form 10-K for the year ended December 31, 2025, that N-able filed with the SEC on February 26, 2026. All information provided in this press release is as of the date hereof and N-able undertakes no duty to update this information except as required by law.
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with GAAP, we use certain non-GAAP financial measures to clarify and enhance our understanding, and aid in the period-to-period comparison, of our performance. We believe that these non-GAAP financial measures provide supplemental information that is meaningful when assessing our operating performance because they exclude the impact of certain amounts that our management and board of directors do not consider part of core operating results when assessing our operational performance, allocating resources, preparing annual budgets and determining compensation. Accordingly, these non-GAAP financial measures may provide insight to investors into the motivation and decision-making of management in operating the business.
N-able also believes that these non-GAAP financial measures are used by investors and securities analysts to (a) compare and evaluate its performance from period to period and (b) compare its performance to those of its competitors. These non-GAAP measures exclude certain items that can vary substantially from company to company depending upon their financing and accounting methods, the book value of their assets, their capital structures and the method by which their assets were acquired.
As a result, these non-GAAP financial measures have limitations and should not be considered in isolation from, or as a substitute for, their most comparable GAAP measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Certain items that are excluded from these non-GAAP financial measures can have a material impact on operating and net income.
N-able's management and board of directors compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measure. Set forth in the tables below are the corresponding GAAP financial measures for each non-GAAP financial measure presented. Investors are encouraged to review the reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures that are set forth in the tables below.
Definitions of Non-GAAP and Other Metrics
Annual Recurring Revenue $(ARR)$. We calculate ARR by annualizing the recurring revenue and related usage revenue inclusive of discounts, excluding the impacts of credits and reserves, recognized during the last day of the reporting period from both long-term and month-to-month subscriptions. We believe ARR enhances the understanding of our business performance and the growth of our relationships with our customers.
Non-GAAP Gross Margin, Non-GAAP Operating Income and Non-GAAP Operating Margin. We provide non-GAAP total cost of revenue, non-GAAP gross profit, non-GAAP operating expense and non-GAAP operating income and related non-GAAP gross and operating margins excluding such items as stock-based compensation expense and related employer-paid payroll taxes, amortization of acquired intangible assets, transaction related costs, spin-off costs and restructuring costs and other. We define non-GAAP gross and operating margins as non-GAAP gross profit and operating income, respectively, divided by total revenue. Management believes these measures are useful for the following reasons:
-- Stock-Based Compensation Expense and Related Employer-Paid Payroll
Taxes. We provide non-GAAP information that excludes expenses related to
stock-based compensation and related employer-paid payroll taxes
associated with our employees' participation in N-able's stock-based
incentive compensation plans. We believe that the exclusion of
stock-based compensation expense provides for a better comparison of our
operating results to prior periods and to our peer companies as the
calculations of stock-based compensation vary from period to period and
company to company due to different valuation methodologies, subjective
assumptions and the variety of award types. Employer-paid payroll taxes
on stock-based compensation is dependent on our stock price and the
timing of the taxable events related to the equity awards, over which our
management has little control, and does not necessarily correlate to the
core operation of our business. Because of these unique characteristics
of stock-based compensation and related employer-paid payroll taxes,
management excludes these expenses when analyzing the organization's
business performance.
-- Amortization of Acquired Technologies and Intangible Assets. We provide
non-GAAP information that excludes expenses related to purchased
technologies and intangible assets associated with our acquisitions. We
believe that eliminating this expense from our non-GAAP measures is
useful to investors because the amortization of acquired technologies and
intangible assets can be inconsistent in amount and frequency and is
significantly impacted by the timing and magnitude of our acquisition
transactions, which also vary in frequency from period to period.
Accordingly, we analyze the performance of our operations in each period
without regard to such expenses.
-- Transaction Related Costs. We exclude certain expense items resulting
from proposed and completed acquisitions, dispositions and similar
transactions, such as legal, accounting and advisory fees, changes in
fair value of contingent consideration, costs related to integrating the
acquired businesses, deferred compensation, severance and retention
expense. We consider these adjustments, to some extent, to be
unpredictable and dependent on a significant number of factors that are
outside of our control. Furthermore, such proposed and completed
transactions result in operating expenses that would not otherwise have
been incurred by us in the normal course of our organic business
operations. We believe that providing non-GAAP measures that exclude
transaction related costs allows investors to better review and
understand the historical and current results of our continuing
operations and also facilitates comparisons to our historical results and
results of peer companies with different transaction related activities,
both with and without such adjustments.
-- Spin-off Costs. We exclude certain expense items resulting from the
spin-off into a newly created and separately traded public company. These
costs include legal, accounting and advisory fees, system implementation
costs and other incremental costs incurred by us related to the
separation from SolarWinds. The spin-off transaction results in operating
expenses that would not otherwise have been incurred by us in the normal
course of our organic business operations. We believe that providing
non-GAAP measures that exclude these costs facilitates a more meaningful
evaluation of our operating performance and comparisons to our past
operating performance.
-- Restructuring Costs and Other. We provide non-GAAP information that
excludes restructuring costs such as severance, certain employee
relocation costs, the estimated costs of exiting and terminating facility
lease commitments, and the costs of intra-group transfers of IP rights,
as they relate to our corporate restructuring and exit activities. These
costs are inconsistent in amount and are significantly impacted by the
timing and nature of these events. Therefore, although we may incur these
types of expenses in the future, we believe that eliminating these costs
for purposes of calculating the non-GAAP financial measures facilitates a
more meaningful evaluation of our operating performance and comparisons
to our past operating performance.
Non-GAAP Net Income and Non-GAAP Net Income Per Diluted Share. We believe that the use of non-GAAP net income and non-GAAP net income per diluted share is helpful to our investors to clarify and enhance their understanding of past performance and future prospects. Non-GAAP net income is calculated as net income excluding the adjustments to non-GAAP gross profit and non-GAAP operating income, interest on deferred consideration, and the income tax effect of the non-GAAP exclusions. We define non-GAAP net income per diluted share as non-GAAP net income divided by the weighted average diluted outstanding common shares.
Adjusted EBITDA and Adjusted EBITDA Margin. We regularly monitor adjusted EBITDA and adjusted EBITDA margin, as they are measures we use to assess our operating performance. We define adjusted EBITDA as net income or loss, excluding amortization of acquired intangible assets and developed technology, depreciation expense, income tax expense, interest expense, net, unrealized foreign currency losses (gains), transaction related costs, spin-off costs, stock-based compensation expense and related employer-paid payroll taxes and restructuring and other costs. We define adjusted EBITDA margin as adjusted EBITDA divided by total revenue. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations include: although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our related party debt; adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us; and other companies, including companies in our industry, may calculate adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Non-GAAP Revenue on a Constant Currency Basis. We provide non-GAAP revenue on a constant currency basis to provide a framework for assessing our performance excluding the effect of foreign currency rate fluctuations. To present this information, current period results for revenue contracts denominated in currencies other than U.S. Dollars are converted into U.S. Dollars at the average exchange rates in effect during the corresponding prior period presented. We believe that providing non-GAAP revenue on a constant currency basis facilitates the comparison of non-GAAP revenue to prior periods.
Unlevered Free Cash Flow. Unlevered free cash flow is a measure of our liquidity used by management to evaluate cash flow from operations, after the deduction of capital expenditures and prior to the impact of our capital structure, transaction related costs, restructuring costs, spin-off costs, employer-paid payroll taxes on stock awards and certain one-time items, that can be used by us for strategic opportunities and strengthening our balance sheet. However, given our debt obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses. Effective July 1, 2025, we have removed from our computation of unlevered free cash flow non-cash items generally relating to cash paid for transaction related costs, restructuring costs, spin-off costs, employer-paid payroll taxes on stock awards and other one-time items. Unlevered free cash flow for all prior periods presented has been revised to the current period computation.
About N-able
N-able protects businesses from evolving cyberthreats. Our AI-powered cybersecurity platform delivers business resilience to approximately 500,000 organizations worldwide, leveraging advanced end-to-end capabilities, simplified workflows, market-leading integrations, and flexible deployment options to improve efficiency and drive critical security outcomes. Our partner-first approach pairs our technology with experts, training, and peer-led events that empower customers to be secure, resilient, and successful. n-able.com
(c) 2026 N-able, Inc. All rights reserved.
Category: Financial
N-able, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
June 30, December 31,
----------- ----------------
2026 2025
--------- ---------
Assets
Current assets:
Cash and cash equivalents $ 115,812 $ 111,837
Accounts receivable, net of allowances
of $3,989 and $4,059 as of June 30,
2026 and December 31, 2025,
respectively 46,340 49,972
Income tax receivable 3,181 3,432
Recoverable taxes 7,319 9,807
Current contract assets 15,420 19,528
Prepaid and other current assets 23,773 21,494
--------- ---------
Total current assets 211,845 216,070
Property and equipment, net 43,370 38,392
Operating lease right-of-use assets 36,723 28,666
Deferred taxes 4,011 4,164
Goodwill 1,012,144 1,024,300
Intangible assets, net 55,249 64,786
Other assets, net 32,187 33,340
--------- ---------
Total assets $1,395,529 $ 1,409,718
========= =========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 17,663 $ 8,999
Accrued liabilities and other 42,742 55,283
Current contingent consideration -- 10,840
Current deferred consideration 64,024 60,720
Current operating lease liabilities 7,328 7,203
Income taxes payable 5,668 9,986
Current portion of deferred revenue 20,937 27,207
Current debt obligation 4,000 4,000
--------- ---------
Total current liabilities 162,362 184,238
Long-term liabilities:
Deferred revenue, net of current
portion 878 1,747
Non-current deferred taxes 1,722 1,847
Non-current operating lease
liabilities 36,861 29,284
Long-term debt, net of current portion 388,327 389,873
Other long-term liabilities 751 685
--------- ---------
Total liabilities 590,901 607,674
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value:
550,000,000 shares authorized,
192,681,679 and 190,459,837 shares
issued, and 188,905,524 and
186,683,682 shares outstanding as of
June 30, 2026 and December 31, 2025,
respectively 193 190
Preferred stock, $0.001 par value:
50,000,000 shares authorized and no
shares issued and outstanding as of
June 30, 2026 and December 31, 2025,
respectively -- --
Treasury stock, at cost: 3,776,155
shares as of June 30, 2026 and
December 31, 2025 (30,000) (30,000)
Additional paid-in capital 763,948 746,599
Accumulated other comprehensive income 17,669 32,514
Retained earnings 52,818 52,741
--------- ---------
Total stockholders' equity 804,628 802,044
--------- ---------
Total liabilities and stockholders'
equity $1,395,529 $ 1,409,718
========= =========
N-able, Inc.
Consolidated Statements of Operations
(In thousands, except per share information)
(Unaudited)
Three Months Ended Six Months Ended June
June 30, 30,
-------------------- ----------------------
2026 2025 2026 2025
------- ------- ------- -------
Revenue:
Subscription
and other
revenue $138,223 $130,521 $270,592 $248,609
Cost of revenue:
Cost of revenue 27,784 24,542 55,386 48,108
Amortization of
acquired
technologies 4,237 4,229 8,478 8,396
------- ------- ------- -------
Total cost
of revenue 32,021 28,771 63,864 56,504
------- ------- ------- -------
Gross profit 106,202 101,750 206,728 192,105
Operating
expenses:
Sales and
marketing 42,686 42,362 85,272 82,766
Research and
development 26,627 26,336 52,765 50,220
General and
administrative 19,916 23,229 40,163 47,137
Amortization of
acquired
intangibles 497 503 993 1,002
------- ------- ------- -------
Total
operating
expenses 89,726 92,430 179,193 181,125
------- ------- ------- -------
Operating income 16,476 9,320 27,535 10,980
Other expense,
net:
Interest
expense, net (8,343) (8,090) (15,932) (15,161)
Other (expense)
income, net (413) (815) (1,096) 693
------- ------- ------- -------
Total other
expense,
net (8,756) (8,905) (17,028) (14,468)
------- ------- ------- -------
Income (loss)
before income
taxes 7,720 415 10,507 (3,488)
Income tax
expense 5,960 5,046 10,430 8,364
------- ------- ------- -------
Net income (loss) $ 1,760 $ (4,631) $ 77 $(11,852)
======= ======= ======= =======
Net income (loss)
per share:
Basic income
(loss) per
share $ 0.01 $ (0.02) $ 0.00 $ (0.06)
======= ======= ======= =======
Diluted income
(loss) per
share $ 0.01 $ (0.02) $ 0.00 $ (0.06)
======= ======= ======= =======
Weighted-average
shares used to
compute net income
(loss) per share:
Shares used in
computation of
basic income
(loss) per
share: 188,632 188,823 188,091 188,527
======= ======= ======= =======
Shares used in
computation of
diluted income
(loss) per
share: 189,115 188,823 189,225 188,527
======= ======= ======= =======
N-able, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended June
June 30, 30,
-------------------- ----------------------
2026 2025 2026 2025
------- ------- ------- -------
Cash flows from
operating
activities
Net income (loss) $ 1,760 $ (4,631) $ 77 $(11,852)
Adjustments to
reconcile net
income (loss) to
net cash provided
by operating
activities:
Depreciation
and
amortization 10,565 10,938 22,013 21,410
(Benefit from)
provision for
doubtful
accounts (243) 177 (70) 237
Stock-based
compensation
expense 10,145 12,884 21,196 24,553
Gain on asset
disposal -- (39) -- (162)
Deferred taxes (6) 59 (19) 79
Amortization of
debt issuance
costs and
discounts 228 394 454 784
Loss on foreign
currency
exchange
rates 1,254 2,377 2,400 1,594
Loss (gain) on
contingent
consideration 284 918 (303) 1,618
Deferred
consideration
expense 1,661 3,842 3,304 7,530
(Gain) loss on
lease
modification -- (28) 11 (441)
Other non-cash
expenses 1 380 2 521
Changes in
operating assets
and liabilities,
net of assets
acquired and
liabilities
assumed in
business
combinations:
Accounts
receivable (403) (3,106) 3,701 (2,838)
Income taxes
receivable (9) (142) 234 (231)
Recoverable
taxes (1,224) 4,293 2,377 16,713
Current
contract
assets (1,172) (6,005) 4,108 (3,099)
Operating lease
right-of-use
assets, net (1,047) 202 (1,455) (163)
Prepaid
expenses and
other current
assets 2,064 2,252 (47) (4,446)
Accounts
payable 4,173 3,363 5,669 653
Accrued
liabilities
and other 4,483 (1,778) (10,473) (5,679)
Income taxes
payable (2,720) (944) (4,150) (577)
Deferred
revenue (4,239) (2,402) (7,140) (2,898)
Other long-term
assets 913 1,085 2,030 424
Other long-term
liabilities 46 98 66 134
------- ------- ------- -------
Net cash
provided by
operating
activities 26,514 24,187 43,985 43,864
Cash flows from
investing
activities
Purchases of
property and
equipment (9,808) (3,788) (11,495) (7,076)
Purchases of
intangible
assets and
other (2,695) (3,009) (5,247) (5,797)
Return of
deposits in
escrow -- 299 -- 299
------- ------- ------- -------
Net cash
used in
investing
activities (12,503) (6,498) (16,742) (12,574)
Cash flows from
financing
activities
Payments of tax
withholding
obligations
related to
restricted
stock units (771) (2,058) (5,375) (9,770)
Exercise of
stock options (3) -- -- 2
Proceeds from
issuance of
common stock
under employee
stock purchase
plan -- -- 1,177 1,296
Repurchase of
common stock -- (10,000) -- (10,000)
Deferred
acquisition
payments (10,537) (5,358) (10,537) (5,358)
Repayments of
borrowings
under Credit
Agreement (1,000) (875) (2,000) (1,750)
Payments of
debt issuance
costs (2,298) -- (2,298) --
------- ------- ------- -------
Net cash
used in
financing
activities (14,609) (18,291) (19,033) (25,580)
Effect of exchange
rate changes on
cash and cash
equivalents (1,402) 386 (4,235) 2,968
------- ------- ------- -------
Net
(decrease)
increase in
cash and
cash
equivalents (2,000) (216) 3,975 8,678
Cash and cash
equivalents
Beginning of
period 117,812 94,090 111,837 85,196
------- ------- ------- -------
End of period $115,812 $ 93,874 $115,812 $ 93,874
======= ======= ======= =======
Supplemental
disclosure of cash
flow information
Cash paid for
interest $ 6,546 $ 6,259 $ 13,402 $ 12,706
======= ======= ======= =======
Cash paid for
income taxes $ 8,012 $ 3,740 $ 13,604 $ 5,897
======= ======= ======= =======
Supplemental
disclosure of
non-cash
activities:
Change in
purchases of
property,
equipment and
leasehold
improvements
included in
accounts payable
and accrued
expenses $ (617) $ 462 $ 2,403 $ 491
======= ======= ======= =======
Right-of-use
assets obtained
in exchange for
operating lease
liabilities $ 3,075 $ 2,242 $ 10,877 $ 5,580
======= ======= ======= =======
Assets acquired in
exchange for
vendor credits $ -- $ 39 $ -- $ 162
======= ======= ======= =======
N-able, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share information)
(Unaudited)
Three Months Ended June
30, Six Months Ended June 30,
-------------------------- --------------------------
2026 2025 2026 2025
------- ------- ------- -------
GAAP cost of
revenue . $ 32,021 $ 28,771 $ 63,864 $ 56,504
Stock-based
compensation
expense and
related
employer-paid
payroll
taxes (370) (473) (803) (941)
Amortization
of acquired
technologies (4,237) (4,229) (8,478) (8,396)
Transaction
related
costs 20 (107) 83 (254)
------- ------- ------- -------
Non-GAAP cost of
revenue $ 27,434 $ 23,962 $ 54,666 $ 46,913
======= ======= ======= =======
GAAP gross profit
. $106,202 $101,750 $206,728 $192,105
Stock-based
compensation
expense and
related
employer-paid
payroll
taxes 370 473 803 941
Amortization
of acquired
technologies 4,237 4,229 8,478 8,396
Transaction
related
costs (20) 107 (83) 254
------- ------- ------- -------
Non-GAAP gross
profit $110,789 $106,559 $215,926 $201,696
======= ======= ======= =======
GAAP sales and
marketing
expense $ 42,686 $ 42,362 $ 85,272 $ 82,766
Stock-based
compensation
expense and
related
employer-paid
payroll
taxes (3,775) (4,715) (7,947) (9,180)
Transaction
related
costs 59 (1,369) 122 (2,320)
Restructuring
costs and
other (20) (69) (563) (229)
------- ------- ------- -------
Non-GAAP sales
and marketing
expense $ 38,950 $ 36,209 $ 76,884 $ 71,037
======= ======= ======= =======
GAAP research and
development
expense $ 26,627 $ 26,336 $ 52,765 $ 50,220
Stock-based
compensation
expense and
related
employer-paid
payroll
taxes (2,548) (3,084) (5,404) (6,059)
Transaction
related
costs 18 (206) 18 (286)
Restructuring
costs and
other (34) -- 13 (122)
------- ------- ------- -------
Non-GAAP research
and development
expense $ 24,063 $ 23,046 $ 47,392 $ 43,753
======= ======= ======= =======
GAAP general and
administrative
expense $ 19,916 $ 23,229 $ 40,163 $ 47,137
Stock-based
compensation
expense and
related
employer-paid
payroll
taxes (3,569) (4,878) (7,870) (9,654)
Transaction
related
costs (1,217) (3,895) (1,522) (8,971)
Restructuring
costs and
other (572) (322) (590) 98
------- ------- ------- -------
Non-GAAP general
and
administrative
expense $ 14,558 $ 14,134 $ 30,181 $ 28,610
======= ======= ======= =======
GAAP operating
income $ 16,476 $ 9,320 $ 27,535 $ 10,980
Amortization
of acquired
technologies 4,237 4,229 8,478 8,396
Amortization
of acquired
intangibles 497 503 993 1,002
Stock-based
compensation
expense and
related
employer-paid
payroll
taxes 10,262 13,150 22,024 25,834
Transaction
related
costs 1,120 5,577 1,299 11,831
Restructuring
costs and
other 626 391 1,140 253
------- ------- ------- -------
Non-GAAP
operating
income $ 33,218 $ 33,170 $ 61,469 $ 58,296
======= ======= ======= =======
GAAP operating
margin 11.9% 7.1% 10.2% 4.4%
======= ======= ======= =======
Non-GAAP
operating
margin 24.0% 25.4% 22.7% 23.4%
======= ======= ======= =======
GAAP net income
(loss) $ 1,760 $ (4,631) $ 77 $(11,852)
Amortization
of acquired
technologies 4,237 4,229 8,478 8,396
Amortization
of acquired
intangibles 497 503 993 1,002
Stock-based
compensation
expense and
related
employer-paid
payroll
taxes 10,262 13,150 22,024 25,834
Transaction
related
costs 1,120 5,577 1,299 11,831
Interest on
deferred
consideration 799 1,424 1,589 2,833
Restructuring
costs and
other 626 391 1,140 253
Tax benefits
associated
with above
adjustments
(1) (584) (857) (1,316) (1,540)
------- ------- ------- -------
Non-GAAP net
income $ 18,717 $ 19,786 $ 34,284 $ 36,757
======= ======= ======= =======
GAAP diluted
income (loss)
per share $ 0.01 $ (0.02) $ 0.00 $ (0.06)
======= ======= ======= =======
Non-GAAP diluted
income per
share $ 0.10 $ 0.10 $ 0.18 $ 0.19
======= ======= ======= =======
Shares used in
computation
of GAAP
diluted
income (loss)
per share: 189,115 188,823 189,225 188,527
======= ======= ======= =======
Shares used in
computation
of non-GAAP
diluted
income per
share: 189,115 189,302 189,225 189,244
======= ======= ======= =======
_________________
(1) The tax benefits associated with non-GAAP adjustments for the three
months ended June 30, 2026 and 2025, respectively, is calculated
utilizing the Company's individual statutory tax rates for each
impacted subsidiary.
N-able, Inc.
Reconciliation of GAAP Net Income to Adjusted EBITDA
(In thousands, except percentages)
(Unaudited)
Three Months Ended June
30, Six Months Ended June 30,
------------------------- -------------------------
2026 2025 2026 2025
------ ------ --- ------ -------
Net income (loss) $ 1,760 $(4,631) $ 77 $(11,852)
Amortization 6,755 6,262 13,319 12,440
Depreciation 3,810 4,676 8,694 8,970
Income tax
expense 5,960 5,046 10,430 8,364
Interest
expense, net 8,343 8,090 15,932 15,161
Unrealized
foreign
currency
losses 1,254 2,377 2,400 1,594
Transaction
related
costs 1,120 5,577 1,299 11,831
Stock-based
compensation
expense and
related
employer-paid
payroll
taxes 10,262 13,150 22,024 25,834
Restructuring
costs and
other 626 391 1,140 253
------ ------ --- ------ -------
Adjusted EBITDA $39,890 $40,938 $75,315 $ 72,595
====== ====== === ====== =======
Adjusted EBITDA
margin 28.9% 31.4% 27.8% 29.2%
====== ====== ====== =======
N-able, Inc. Reconciliation of GAAP Revenue to Non-GAAP Revenue on a Constant
Currency Basis (In thousands, except percentages) (Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
------------------------------- -------------------------------
Growth Growth
2026 2025 Rate 2026 2025 Rate
------- ------- ---------- ------- ------- ----------
GAAP
subscription
revenue $137,071 $129,146 6.1% $268,224 $245,886 9.1%
Estimated
foreign
currency
impact
(1) (1,514) -- (1.2) (7,087) -- (2.9)
------- ------- ----- ------- ------- -----
Non-GAAP
subscription
revenue on a
constant
currency
basis $135,557 $129,146 5.0% $261,137 $245,886 6.2%
======= ======= ===== ======= ======= =====
GAAP other
revenue $ 1,152 $ 1,375 (16.2)% $ 2,368 $ 2,723 (13.0)%
Estimated
foreign
currency
impact
(1) (10) -- (0.7) (40) -- (1.5)
------- ------- ----- ------- ------- -----
Non-GAAP
other
revenue on a
constant
currency
basis $ 1,142 $ 1,375 (16.9)% $ 2,328 $ 2,723 (14.5)%
======= ======= ===== ======= ======= =====
GAAP
subscription
and other
revenue $138,223 $130,521 5.9% $270,592 $248,609 8.8%
Estimated
foreign
currency
impact
(1) (1,524) -- (1.2) (7,127) -- (2.9)
------- ------- ----- ------- ------- -----
Non-GAAP
subscription
and other
revenue on a
constant
currency
basis $136,699 $130,521 4.7% $263,465 $248,609 6.0%
======= ======= ===== ======= ======= =====
_________________
(1) The estimated foreign currency impact is calculated using the average
foreign currency exchange rates in the comparable prior year monthly
periods and applying those rates to foreign-denominated revenue in the
corresponding monthly periods for the three and six months ended June
30, 2026, respectively.
N-able, Inc.
Reconciliation of Unlevered Free Cash Flow
(In thousands, except percentages)
(Unaudited)
Three Months Ended Six Months Ended June
June 30, 30,
------------------ ---------------------
2026 2025 2026 2025
------ ------ ------- ------
Net cash provided
by operating
activities $26,514 $24,187 $ 43,985 $43,864
Purchases of
property and
equipment (9,808) (3,788) (11,495) (7,076)
Purchases of
intangible
assets and
other (2,695) (3,009) (5,247) (5,797)
------ ------ ------- ------
Free cash flow 14,011 17,390 27,243 30,991
Cash paid for
interest, net
of cash
interest
received 6,546 6,259 13,402 12,706
Cash paid for
transaction
related
costs,
restructuring
costs,
spin-off
costs,
employer-paid
payroll taxes
on stock
awards and
other
one-time
items (1) 2,315 1,522 4,079 6,564
------ ------ ------- ------
Unlevered free
cash flow (1) $22,872 $25,171 $ 44,724 $50,261
====== ====== ======= ======
_________________
(1) Effective July 1, 2025, we have removed from our computation of
unlevered free cash flow non-cash items generally relating to cash paid
for transaction related costs, restructuring costs, spin-off costs,
employer-paid payroll taxes on stock awards and other one-time items.
Unlevered free cash flow for all prior periods presented has been
revised to the current period computation.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260808529925/en/
CONTACT: Investors:
Griffin Gyr
ir@n-able.com
Media:
Kim Cecchini
Phone: 202.391.5205
pr@n-able.com