8-K: N-able Exceeds 2025 Guidance, Projects Strong 2026 Growth

N-able, Inc. announced its fourth quarter and full-year 2025 financial results, exceeding guidance and providing an optimistic outlook for 2026 with projected 8% to 9% constant currency ARR growth and 30% to 31% Adjusted EBITDA.

Summary

• Full-Year 2025 results were all above guidance.
• Fourth quarter 2025 Total Revenue reached $130.3 million, representing 11.8% year-over-year growth, or 9.0% on a constant currency basis.
• Fourth quarter 2025 Subscription Revenue was $129.0 million, representing 12.1% year-over-year growth, or 9.3% on a constant currency basis.
• Total Annual Recurring Revenue (ARR) for Q4 2025 was $539.7 million, representing 11.9% year-over-year growth, or 7.7% on a constant currency basis.
• GAAP net loss for Q4 2025 was $7.2 million, or $0.04 per diluted share, while non-GAAP net income was $10.8 million, or $0.06 per diluted share.
• Adjusted EBITDA for Q4 2025 was $38.6 million, representing an adjusted EBITDA margin of 29.6%.
• Full-Year 2025 GAAP net loss was $17.032 million, compared to a net income of $30.958 million in FY 2024.
• Full-Year 2026 Constant Currency ARR Outlook is projected at 8% to 9% year-over-year growth, targeting $581 million to $586 million.
• Full-Year 2026 Adjusted EBITDA Outlook is set at 30% to 31% margin, targeting $167 million to $171 million.
• Full-Year 2026 Total Revenue Outlook is in the range of $554 million to $559 million, representing 8% to 9% year-over-year growth on a reported basis and 7% to 8% on a constant currency basis.
• N-able introduced enhanced, agentic AI capabilities across endpoint management, security operations, and data protection.
• Patrick Pulvermueller, former Acronis CEO, was appointed to the Board of Directors.
• A new Cyber Warranty Program was introduced for Adlumin MDR, offering $100,000 reimbursement for eligible breach costs.
• N-able was recognized in the 2026 Gartner Magic Quadrant for Endpoint Management Tools.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive report, driven by exceeding 2025 guidance and a confident 2026 outlook, despite a GAAP net loss. The strategic focus on AI and new offerings are strong points.

Positives

• Full-Year 2025 results exceeded all guidance metrics.
• Strong Q4 2025 total revenue growth of 11.8% year-over-year to $130.3 million.
• Robust subscription revenue growth of 12.1% year-over-year to $129.0 million in Q4 2025.
• Healthy ARR growth: Total ARR reached $539.7 million, an 11.9% year-over-year increase.
• Solid Adjusted EBITDA margin of 29.6% in Q4 2025.
• Positive full-year 2026 outlook with projected 8% to 9% constant currency ARR growth and 30% to 31% Adjusted EBITDA margin.
• Strategic investments in AI innovation and go-to-market expansion are planned for 2026.
• Introduction of enhanced, AI-powered cybersecurity platform capabilities, leveraging telemetry from over 11 million endpoints.
• Appointment of Patrick Pulvermueller, a seasoned cybersecurity leader, to the Board of Directors.
• Launch of a $100,000 Cyber Warranty Program for Adlumin MDR, enhancing customer confidence and addressing cyber insurance gaps.
• Recognition in the 2026 Gartner Magic Quadrant for Endpoint Management Tools, validating its secure, autonomous endpoint management capabilities.
• Meaningful improvement in unlevered free cash flow year-over-year is expected in 2026.

Negatives

• GAAP net loss of $7.2 million in Q4 2025, compared to a net income of $3.29 million in Q4 2024.
• Full-year 2025 GAAP net loss of $17.032 million, a significant decline from $30.958 million net income in FY 2024.
• Adjusted EBITDA margin decreased from 32.7% in Q4 2024 to 29.6% in Q4 2025.
• Adjusted EBITDA margin for full-year 2025 decreased from 36.3% in FY 2024 to 30.0%.
• GAAP operating income decreased from $15.992 million in Q4 2024 to $13.243 million in Q4 2025.
• GAAP operating income for full-year 2025 decreased significantly from $82.370 million in FY 2024 to $36.789 million.
• Interest expense, net, increased from $7.269 million in Q4 2024 to $12.205 million in Q4 2025, and from $30.031 million in FY 2024 to $35.997 million in FY 2025.
• Total debt, net of debt issuance costs, increased from $329.6 million in 2024 to $393.9 million in 2025.

Risks

• Impact of adverse economic conditions.
• Ability to sell subscriptions to new customers, sell additional solutions to existing customers, and increase usage by existing customers, as well as maintain customer loyalty.
• Ability to sell solutions through distributors and resellers.
• Any decline in renewal or net retention rates.
• Ability to successfully incorporate AI-powered features, market and sell AI-powered solutions, garner increased market share for AI-powered solutions, and realize efficiencies from internal AI tool use.
• Possibility that general economic, political, legal, and regulatory conditions and uncertainty (e.g., inflation, central bank actions, interest rates, war, political unrest, military conflict, terrorism, sanctions, trade issues, geopolitical events) may reduce information technology spending or delay purchasing decisions.
• Inability to generate significant volumes of high-quality sales leads from digital marketing initiatives and convert such leads into new business at acceptable conversion rates.
• Inability to successfully identify, complete, and integrate acquisitions and manage growth effectively.
• Inability to resell third-party software or integrate third-party software into solutions, or find suitable replacements for such third-party software.
• Risks associated with international operations and foreign exchange gains and losses.
• Risks that cyberattacks and other security incidents may result in compromises or breaches of systems, insertion of malicious code, exploitation of vulnerabilities, theft of information, interference with operations, exposure to legal liabilities, higher customer and employee attrition, loss of key personnel, negative impacts to sales, renewals and upgrades, and reputational harm.
• Status as a controlled company.
• Ability to attract and retain qualified employees and key personnel.
• Timing and success of new product introductions and product upgrades by N-able or its competitors.
• Ability to maintain or grow brands, including the Adlumin brand.
• Ability to protect and defend intellectual property and not infringe upon others' intellectual property.
• Possibility that operating income could fluctuate and may decline as a percentage of revenue as further expenditures are made to expand operations to support business growth.
• Indebtedness, including increased borrowing costs resulting from rising interest rates, potential restrictions on operations, and the impact of events of default.
• Ability to operate business internationally and increase sales of solutions to customers located outside of the United States.

Future Outlook

For the first quarter of 2026, N-able expects total revenue in the range of $131 million to $132 million, representing 11% to 12% year-over-year growth (6% to 7% constant currency), and Adjusted EBITDA between $35.5 million and $36.5 million (27% to 28% of total revenue). For the full-year 2026, the company anticipates total ARR in the range of $581 million to $586 million (8% to 9% year-over-year growth), total revenue between $554 million and $559 million (8% to 9% year-over-year growth reported, 7% to 8% constant currency), and Adjusted EBITDA in the range of $167 million to $171 million (30% to 31% of total revenue).

Management Comments

• "We enter 2026 with momentum following another year of profitable growth and with confidence that we can drive continued strong performance." John Pagliuca, President and CEO.
• "Cybersecurity is a matter of survival and our AI-powered cybersecurity platform delivers the business resilience customers need." John Pagliuca, President and CEO.
• "We believe our strong financial profile, durable position in cybersecurity, and focused strategy set a sturdy, scalable foundation for what comes next. 2026 is a year of execution for N-able and we are excited to deliver." John Pagliuca, President and CEO.
• "Our financial profile and results reflect consistent execution and a balanced approach to driving both growth and profit." Tim O'Brien, CFO.
• "In 2026, we intend to make further investments in AI innovation and go-to-market expansion while driving over 30% adjusted EBITDA margins and meaningfully improving our unlevered free cash flow year-over-year." Tim O'Brien, CFO.

Industry Context

StockSavvy.ai notes that N-able's focus on AI-powered cybersecurity and business resilience aligns with the increasing demand for advanced threat protection and operational continuity in a complex digital landscape. The appointment of a former Acronis CEO to the board and the introduction of a cyber warranty program reflect a competitive drive to differentiate and capture market share in the rapidly evolving cybersecurity sector, where AI integration is becoming a critical differentiator.

Comparison to Industry Standards

• N-able's recognition in the 2026 Gartner Magic Quadrant for Endpoint Management Tools indicates its competitive standing against other industry players in this specific segment.
• The introduction of a $100,000 cyber warranty for Adlumin MDR is a strategic move to enhance customer confidence and address gaps left by traditional cyber insurance, potentially setting a new benchmark for service level guarantees in the MSP cybersecurity space.

Management Changes

Stakeholder Impact

• Shareholders: Positive impact from exceeding guidance and optimistic 2026 outlook, potential for increased share value due to strategic growth and profitability focus. However, the GAAP net loss might be a concern.
• Customers: Enhanced cybersecurity offerings with AI capabilities and a new cyber warranty program for Adlumin MDR are expected to improve business resilience and confidence.
• Employees: Continued investment in innovation and go-to-market expansion suggests stability and potential growth opportunities.
• Creditors: Increased total debt from $329.6 million in 2024 to $393.9 million in 2025, alongside rising interest expenses, indicates higher leverage, which could be a concern if not managed effectively.

Next Steps

• Hold a conference call at 8:30 a.m. ET on February 19, 2026, to discuss financial results, business, and outlook.
• File its Annual Report on Form 10-K for the year ended December 31, 2025, on or about February 26, 2026.
• Make further investments in AI innovation and go-to-market expansion in 2026.
• Drive over 30% adjusted EBITDA margins and meaningfully improve unlevered free cash flow year-over-year in 2026.

Key Dates

Recommendation

While N-able exceeded its 2025 guidance and provided a positive outlook for 2026, the shift from GAAP net income to a significant GAAP net loss in 2025, coupled with increasing debt and interest expenses, warrants caution. The strategic investments in AI and board appointment are positive, but the underlying GAAP profitability trend needs closer monitoring before a stronger buy recommendation can be made. The stock is likely to maintain its current trajectory given the mixed signals.

Keywords

Cybersecurity, Endpoint Management, Business Resilience, AI, Managed Services Providers, Software, Cloud, IT Management, Security Operations, Data Protection, Adlumin, Gartner, Financial Results, N-able, NABL