GICS Sector : Technology
N-able, Inc.provides cloud-based software solutions for managed service providers (MSPs) in the United States, the United Kingdom, and internationally.The company's solutions enable MSPs to support digital transformation and growth within small and medium-sized enterprises.
N-able delivered a robust third-quarter performance, with total revenue reaching $131.7 million, up 13% year-over-year on a reported basis and 12% on a constant currency basis. The company's adjusted EBITDA margin stood at 31%, with adjusted EBITDA of $41.4 million, exceeding guidance. Earnings per share (EPS) came in at $0.00734, below estimates of $0.09. Gross margin was 81.1%, and unlevered free cash flow was $22.6 million. The company's financial highlights also included a 14% year-over-year growth in Annual Recurring Revenue (ARR) to $528 million.
Publication Date: Nov -07
N-able's growth strategy is centered around driving security success, scaling its go-to-market efforts, and boosting customer expansion. The company is leveraging AI to enhance its cyber resilience platform, with initiatives such as embedding innovative AI capabilities, automating key workflows, and developing AI agents for IT and security teams. The launch of Anomaly Detection as a Service is a notable example of its advancements in data protection. As the company's management noted, "We're introducing Agentic agents to improve efficiency and open new monetization avenues for N-able and our customers."
With a P/S Ratio of 3.22 and an EV/EBITDA of 22.52, the market appears to be pricing in a certain level of growth for N-able. Analysts estimate revenue growth at 8.7% for the next year. The company's commitment to returning to a 30% adjusted EBITDA margin in 2026 and its investments in AI are expected to drive long-term success. N-able's focus on cyber resilience for small and mid-market businesses has driven results, with constant currency year-over-year ARR growth accelerating for the second consecutive quarter.
N-able ended the quarter with 2,611 customers contributing $50,000 or more of ARR, up 15% year-over-year. Dollar-based net revenue retention was approximately 102% on a reported basis. The acquisition of Adlumin is performing well, with the company scaling the business and adding hundreds of end customers at the SMB level. The largest deal in the quarter was driven by the UEM solution, representing an ARR win of nearly $0.5 million.
N-able to Host Fourth Quarter Earnings Conference Call on February 19, 2026
Feb -05
N-able Channel Leaders Included in CRN's 2026 Channel Chiefs List
Feb -03
Why N-able (NABL) is Poised to Beat Earnings Estimates Again
Feb -02
N-able Ushers in New Era of Business Resilience Fueled by AI
Jan -29
SG Americas Securities LLC Makes New Investment in N-able, Inc. $NABL
Jan -19
N-able Recognized by Four Organizations with Workplace Awards Celebrating Culture, Leadership, and Inclusion
Jan -13
N-able Appoints Patrick Pulvermueller to Board of Directors
Jan -08
New Strong Buy Stocks for January 2nd
Jan -02
N-able's subscription growth is driven by increasing demand for remote monitoring and management (RMM) and managed service provider (MSP) solutions, fueled by the rise of cloud computing, IoT, and cybersecurity threats. Additionally, the company's strategic acquisitions, expanded product offerings, and strong channel partnerships contribute to its growth momentum.
N-able's 12% growth is driven by increasing adoption of cloud-based IT management solutions, expansion into new markets, and strategic partnerships. The rising demand for remote monitoring and management (RMM) tools, coupled with the growing need for MSPs to streamline their operations, also contributes to this growth.
A comprehensive IT management platform that enables MSPs to monitor, manage, and troubleshoot IT systems remotely.
A powerful IT management platform that provides automation, monitoring, and management capabilities for MSPs.
A comprehensive backup and recovery solution that enables MSPs to protect their clients' data and ensure business continuity.
A security solution that provides real-time threat detection, incident response, and remediation capabilities.
A cloud-based RMM platform that provides real-time monitoring, automation, and management capabilities for MSPs.
N-able, Inc. faces moderate threat from substitutes due to the availability of alternative solutions for IT management and monitoring.
N-able, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.
N-able, Inc. relies on a few key suppliers for its technology and infrastructure, giving them some bargaining power, but the company's size and reputation mitigate this risk.
The IT management and monitoring industry is highly competitive, and new entrants can easily disrupt the market with innovative solutions, posing a significant threat to N-able, Inc.'s market share.
The IT management and monitoring industry is highly competitive, with many established players and new entrants vying for market share, leading to intense rivalry among companies like N-able, Inc.
| Value | |
|---|---|
| Debt Weight | 32.43% |
| Debt Cost | 5.95% |
| Equity Weight | 67.57% |
| Equity Cost | 5.95% |
| WACC | 5.95% |
| Leverage | 48.00% |
Value: 2.5
Growth: 7.9
Quality: 6.9
Yield: 0.0
Momentum: 4.0
Volatility: 8.3
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Volatility: 2.7
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