8-K: N-able Reports Strong Q1 2026 Results, Exceeds Guidance

N-able, Inc. announced its first quarter 2026 financial results, showcasing 13.1% year-over-year revenue growth and exceeding revenue and Adjusted EBITDA guidance.

Summary

• N-able reported first quarter 2026 results with total revenue of $133.7 million, an increase of 13.1% year-over-year (8.3% on a constant currency basis).
• Subscription revenue grew 13.4% year-over-year to $132.5 million (8.6% on a constant currency basis).
• Total Annual Recurring Revenue (ARR) reached $548.0 million, up 11.2% year-over-year (7.9% on a constant currency basis).
• The company reported a GAAP net loss of $0.6 million, or $0.00 per diluted share, and a non-GAAP net income of $16.6 million, or $0.09 per diluted share.
• Adjusted EBITDA was $36.7 million, resulting in an Adjusted EBITDA margin of 27.5%.
• N-able exceeded its first quarter revenue and Adjusted EBITDA guidance.
• The company maintained its full-year 2026 ARR outlook of $581 million to $586 million.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report, with strong revenue and ARR growth, exceeding guidance, and strategic product developments in AI, though a GAAP net loss is noted.

Positives

• Strong year-over-year revenue growth of 13.1% ($133.7 million).
• Subscription revenue growth of 13.4% year-over-year ($132.5 million).
• ARR growth of 11.2% year-over-year ($548.0 million).
• Exceeded first quarter revenue and Adjusted EBITDA guidance.
• Maintained full-year 2026 ARR outlook ($581M - $586M).
• Non-GAAP net income of $16.6 million, demonstrating profitability on a non-GAAP basis.
• Adjusted EBITDA margin of 27.5% indicates strong operational efficiency.
• Introduction of new AI-powered features like N-zo and MCP server, enhancing product offerings.

Negatives

• Reported a GAAP net loss of $0.6 million for the quarter.
• Cash and cash equivalents decreased slightly from $117.8 million to $111.8 million year-over-year.

Risks

• Adverse economic conditions could reduce IT spending or delay purchasing decisions.
• Potential decline in renewal or net retention rates.
• Risks associated with incorporating AI features, market adoption, and internal AI use.
• Cyberattacks and security incidents could harm the business, customers, and reputation.
• Foreign exchange rate fluctuations and geopolitical events may impact business.
• Inability to generate high-quality sales leads or convert them effectively.
• Challenges in completing and integrating acquisitions and managing growth.
• Dependence on third-party software and potential integration issues.

Future Outlook

For the second quarter of 2026, N-able expects total revenue between $137.5 million and $138.5 million, and Adjusted EBITDA between $39.5 million and $40.5 million. For the full-year 2026, the company anticipates total ARR between $581 million and $586 million, total revenue between $554 million and $559 million, and Adjusted EBITDA between $167 million and $171 million.

Management Comments

• "We delivered a strong first quarter, driven by improving retention and continued progress across the business," said N-able president and CEO John Pagliuca.
• "As AI accelerates both the threat landscape and IT complexity, we believe cybersecurity is reaching an inflection point. Our platform is purpose-built for this moment... allowing our partners to scale more efficiently while strengthening their security posture."
• "Our first quarter performance reflected disciplined execution, continued upmarket traction, and expanding platform adoption," added N-able CFO Tim O'Brien.
• "As we look ahead, we remain focused on strong execution while driving a balanced mix of growth and profit."

Industry Context

StockSavvy.ai notes that N-able's Q1 2026 results align with the growing demand for cybersecurity solutions driven by increasing AI-driven threats and IT complexity. The company's focus on AI-powered features and business resilience positions it to capitalize on these industry trends.

Comparison to Industry Standards

• N-able's reported revenue growth of 13.1% for Q1 2026 is strong compared to many mature software companies, but may be moderate for high-growth cybersecurity startups.
• The Adjusted EBITDA margin of 27.5% is a healthy indicator of profitability and efficiency, often considered a benchmark for established SaaS companies.
• The company's ARR growth of 11.2% is competitive within the cybersecurity sector, particularly for companies focused on SMB and mid-market clients.

Stakeholder Impact

• Shareholders: Positive impact from exceeding guidance and maintaining full-year outlook, indicating potential for continued growth.
• Customers: Benefit from enhanced security posture through N-able's AI-powered platform and new features like N-zo.
• Partners: Opportunity to scale efficiently and strengthen security offerings with N-able's solutions.

Next Steps

• Continue focus on strong execution and driving a balanced mix of growth and profit.
• Leverage AI-powered features to enhance cybersecurity offerings and customer value.
• Expand platform adoption and upmarket traction.
• Monitor macroeconomic conditions and foreign exchange rates for potential impacts.

Key Dates

Recommendation

The company delivered expected results, exceeding guidance and showing solid growth metrics. However, the continued GAAP net loss and the inherent risks in the cybersecurity sector warrant a 'hold' recommendation until further sustained profitability and market share gains are demonstrated.

Keywords

N-able, Cybersecurity, ARR, Q1 2026, Financial Results, Managed Security Service Provider, Business Resilience, AI