Summary
N-able reported total revenue of $133.7 million for the quarter ended March 31, 2026, up 13.1% from $118.2 million in the prior-year quarter. Subscription revenue reached $132.5 million, up 13.4%, but constant currency growth was 8.6%, so foreign exchange flattered the reported number. Total ARR was $548.0 million, up 11.2% year over year, or 7.9% in constant currency. Gross profit rose 12.6% to $101.9 million, while gross margin slipped 0.3 percentage points to 76.2% from 76.6%. Non-GAAP gross margin was 79.7%.
Profitability improved sharply. Operating income was $12.5 million against $1.8 million a year earlier, up 582.9%, and operating margin climbed 7.8 percentage points to 9.3% from 1.5%. Net loss narrowed to $0.6 million from $7.2 million, and diluted EPS was $0.00 versus a loss of $0.04. Management credited higher revenue and a decrease in general and administrative expense, which fell 15.3% on lower acquisition-related costs of $4.8 million. Non-GAAP net income was $16.6 million, or $0.09 per diluted share, and adjusted EBITDA was $36.7 million, a 27.5% margin. Interest expense, net rose to $7.6 million from $7.1 million, and income tax expense was $4.8 million against $3.3 million, an effective tax rate of 114.7%.
Cash generation was softer. Operating cash flow was $17.5 million, down 11.2% from $19.7 million, and capital expenditures fell 48.7% to $1.7 million from $3.3 million. Free cash flow was $13.2 million, and unlevered free cash flow was $21.9 million against $25.1 million. The quarter ended with $117.8 million of cash and cash equivalents and $393.1 million of total debt, net of debt issuance costs. Deferred revenue declined 16.6% to $22.0 million, but remaining performance obligations rose 19.0% to $240.1 million, a better indicator of future billings.
Upmarket traction continued. Customers with ARR above $50,000 totaled 2,710, up 13.0% from 2,398, and they generated roughly 62% of total ARR versus about 58% a year earlier. Annual dollar-based net revenue retention for subscription products was approximately 106%, up from 101%. Headcount reached 1,863 from 1,800. Revenue from the United States was about 48.5% of the total, down from 51.2%, while the United Kingdom rose to 10.4% from 10.0%.
Guidance for the second quarter of 2026 points to approximately 5% to 6% growth on a reported basis and 4% in constant currency, with adjusted EBITDA of $39.5 million to $40.5 million, about 29% of revenue. For the full fiscal year 2026, management guides to ARR of $581 million to $586 million, approximately 8% to 9% growth on a reported basis and 7% to 8% in constant currency, and adjusted EBITDA of $167 million to $171 million, roughly 30% to 31% of revenue.
Product news included a custom Model Context Protocol server, the N-zo in-product AI assistant, Disaster Recovery as a Service, enhanced Anomaly Detection, and a partnership with Manchester City as Official Cybersecurity Partner. Risks remain. A significant decline in the stock price during the quarter could require an interim goodwill impairment analysis, and any charge could be material. The company also cites adverse economic conditions, tariffs and trade measures, foreign exchange swings, reliance on distributors and resellers, renewal and retention rates, execution on AI features, and its debt load. The gap between reported and constant currency growth shows currency is already a drag on results.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2026 | Q4 FY2025 | QoQ | Q1 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $133.7M | $130.3M | +2.6% | $118.2M | +13.1% |
| Gross profit | $101.9M | $99.2M | +2.7% | $90.5M | +12.6% |
| Gross margin | 76.3% | 76.2% | +0.1 pp | 76.6% | -0.3 pp |
| Research & development | $26.1M | $25.3M | +3.3% | $23.9M | +9.4% |
| Sales & marketing | $42.6M | $39.9M | +6.7% | $40.4M | +5.4% |
| General & administrative | $20.2M | $20.3M | -0.2% | $23.9M | -15.3% |
| Total operating expenses | $89.5M | $86.0M | +4.0% | $88.7M | +0.9% |
| Operating income (loss) | $12.5M | $13.2M | -5.9% | $1.8M | +582.9% |
| Operating margin | 9.3% | 10.2% | -0.8 pp | 1.5% | +7.8 pp |
| Net income (loss) | -$615.0K | -$7.2M | +91.5% | -$7.2M | +91.4% |
| Net margin | -0.5% | -5.5% | +5.1 pp | -6.1% | +5.6 pp |
| Diluted EPS | $0.00 | -$0.04 | +$0.04 | -$0.04 | +$0.04 |
| Customers | 2,710 | — | — | 2,398 | +13.0% |
Risks
MD&A discloses that during the three months ended March 31, 2026 N-able experienced a significant decline in its stock price. A continued and sustained decline could indicate a reduction in fair value below the carrying value of its reporting unit and require an interim goodwill impairment analysis, which could have a material adverse impact on results of operations.
Other (expense) income, net decreased by $2.1 million, or 149.3%, for the three months ended March 31, 2026 compared to the prior-year period, primarily due to increased losses of $2.2 million from the impact of exchange rates on foreign currency denominated accounts. MD&A notes the company faces exposure to adverse movements in foreign currency exchange rates.
Outstanding borrowings under the Credit Agreement bear interest at variable rates, and total borrowings were $393.1 million as of March 31, 2026. MD&A states that changes in interest rates will have an impact on financial results and cash flows.
Income tax expense increased by $1.5 million for the three months ended March 31, 2026 compared to the prior-year period, and the effective tax rate increased to 114.7%. MD&A notes the effective tax rate can be affected by changes in tax laws, regulations or rates.
Cash provided by operating activities decreased to $17.5 million for the three months ended March 31, 2026 from $19.7 million in the prior-year period, primarily due to an increase in net cash outflows from operating assets and liabilities of $7.9 million. Deferred revenue was down 16.6% to $22.0 million versus the prior-year quarter.
SaaS KPIs
All quarters →Adjusted EBITDA Margin
Non-GAAP Operating Margin
Adjusted EBITDA
Non-GAAP Gross Margin
Unlevered Free Cash Flow
Free Cash Flow
Customers with ARR over $50,000
Total ARR
Summary, forecast, risks and KPIs are extracted from N-able, Inc.'s SEC filings for Q1 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.