N-able (NYSE:NABL) executives said the company exited fiscal 2025 with “momentum,” pointing to steady growth, expanding profitability, and progress integrating AI across its cybersecurity platform, according to management’s prepared remarks and Q&A on the company’s fourth-quarter 2025 earnings call.
Fourth-quarter and full-year performance
President and CEO John Pagliuca said fourth-quarter and full-year 2025 revenue grew 9% year-over-year in constant currency, and the company exited 2025 with annual recurring revenue (ARR) of $540 million, up 8% in constant currency. He added that adjusted EBITDA was $39 million in the fourth quarter and $153 million for the full year, with both periods reflecting a 30% adjusted EBITDA margin.
For the full year, O’Brien said N-able finished ahead of its outlook with total revenue of $511 million, up 10% reported and 9% in constant currency, while subscription revenue was $506 million, also up about 10% reported and 9% in constant currency. He noted that approximately 45% of revenue came from outside North America in both the quarter and the full year.
On profitability, O’Brien said fourth-quarter gross margin was 80% versus 82% in the prior-year period, and full-year gross margin was 81% versus 84% in 2024. Unlevered free cash flow was $28 million in the fourth quarter and $101 million for the full year.
Customer metrics and upmarket momentum
O’Brien said the company ended the quarter with 2,671 customers contributing $50,000 or more of ARR, up about 14% year over year. He said those customers represented about 61% of total ARR, up from roughly 57% a year ago, and compared that mix to 46% at the time of N-able’s 2021 spinoff. He also said this cohort has historically retained at rates roughly 2% to 3% above the total company average.
Dollar-based net revenue retention (trailing 12 months) was approximately 103% reported and 102% in constant currency, O’Brien said.
AI strategy and product roadmap
Pagliuca emphasized AI as a “fundamental tailwind,” saying N-able is combining a “SaaS system of record and context with an AI system of action.” He argued AI does not erode the company’s moat in cybersecurity, but “widens it,” and also said the democratization of coding is contributing to an increase in the “scale, speed, and sophistication of attacks.”
Management highlighted several AI-driven initiatives and product developments:
- Unified Endpoint Management (UEM): Pagliuca said the company plans to debut “N-zo,” an AI workflow assistant intended to help customers complete tasks and run IT and security operations more efficiently. In Q&A, he clarified N-zo is in customers’ hands now in a limited preview, with plans to embed similar in-product AI agents across more offerings over time.
- Security operations automation: Pagliuca said within N-able’s security operations solution, AI now handles 90% of identified threats automatically, up from 70% a year ago, and described a new cyber warranty program intended to “de-risk adoption and bolster customer confidence.”
- Data protection expansion: Pagliuca said the company crossed $200 million of ARR in data protection in 2025 and plans to add Disaster Recovery as a Service (DRaaS) and Google Workspace workload coverage, calling them highly requested billable capabilities among its 14,000 data protection customers.
Pagliuca also described a fourth-quarter customer win of nearly $300,000 in ARR, in which the customer consolidated UEM, security operations, and data protection on N-able’s platform, displacing five competitors. He said the deal addressed automation gaps, alert fatigue, and high data protection overhead costs.
Adlumin integration and go-to-market expansion
N-able executives said the integration of Adlumin helped solidify the company’s presence in the AI SOC market. O’Brien noted Adlumin was acquired on Nov. 20, 2024, and said the fourth quarter of 2025 reflected a full quarter of Adlumin revenue contribution, which he said boosted fourth-quarter 2025 growth relative to the company’s Q1 2026 revenue growth expectations.
In Q&A, Pagliuca said cross-sell to the existing managed service provider (MSP) base was performing well and “ahead” of the acquisition plan. He attributed adoption to the technology’s AI capabilities, its agnostic ability to ingest data across different environments, and what he described as fast threat assessment and action. O’Brien added that roughly 70% to 75% of opportunities were “greenfield,” which he said contributed to performance.
Pagliuca also discussed expansion into the VAR channel to broaden sales reach, citing investments in field representatives and channel account managers and noting “particularly strong traction” with UEM in the VAR channel.
Balance sheet, capital allocation, and 2026 outlook
O’Brien said the company ended the year with about $112 million of cash and an outstanding loan principal balance of roughly $400 million, representing net leverage of about 1.9 times. He said N-able refinanced its credit facility in the fourth quarter, increasing the commitment from about $336 million to $400 million, and said the new facility supports capital allocation flexibility, including evaluating share buybacks and M&A.
He also said N-able executed $30 million of share repurchases during the year and that non-GAAP EPS was $0.06 in the fourth quarter and $0.39 for the full year, noting a roughly $0.02 negative impact to EPS from one-time fees related to the new debt facility.
For guidance, O’Brien said N-able expects first-quarter 2026 revenue of $131 million to $132 million and adjusted EBITDA of $35.5 million to $36.5 million (27% to 28% margin). For full-year 2026, the company guided to revenue of about $554 million to $559 million, ARR of $581 million to $586 million, and adjusted EBITDA of $167 million to $171 million (30% to 31% margin). He also guided to unlevered free cash flow of about $114 million to $118 million.
In Q&A, management said its ARR guidance assumes steady demand trends, stable retention, and contributions from improving gross retention, cross-sell, new product introductions, and VAR expansion. O’Brien also said the company expects seasonality similar to 2025, with stronger performance in the second half of 2026 as newer product initiatives move from preview toward broader availability.
About N-able (NYSE:NABL)
N-able (NYSE:NABL) is a cloud-based software provider specializing in solutions for managed service providers (MSPs). The company’s platform offers remote monitoring and management (RMM), backup and disaster recovery, endpoint detection and response (EDR), security information and event management (SIEM), and automation tools. By integrating these services into a unified interface, N-able enables MSPs to streamline IT operations, enhance security posture, and deliver proactive maintenance across on-premises, cloud, and hybrid environments.
Headquartered in Toronto, Canada, N-able traces its origins to the managed services division of SolarWinds before completing a spin-off and initial public offering in mid-2021.
