Summary
N-able closed fiscal 2025 with top-line growth but a swing to a GAAP net loss. Revenue for the fourth quarter was $129.17 million, up 11.2% from the prior-year quarter. Full-year revenue reached $511.43 million, up 9.7%. Gross profit was $98.05 million for the quarter, up 5.6%, and $394.38 million for the full year, up 2.3%. Gross margin fell to 75.9% in the quarter, down 4.0 percentage points, and to 77.1% for the full year, down 5.6 percentage points. Operating income declined to $12.05 million in the quarter, down 24.6%, and to $36.79 million for the full year, down 55.3%. Operating margin was 9.3% in the quarter, down 4.4 percentage points, and 7.2% for the full year, down 10.5 percentage points. The company reported a net loss of $7.88 million for the quarter, compared with net income of $3.36 million in the prior-year quarter. Full-year net loss was $17.03 million, compared with net income of $30.96 million in the prior year. Diluted EPS was -$0.04 for the quarter. Full-year diluted EPS was -$0.09, down from $0.16.
Cash generation was mixed. Operating cash flow was $25.34 million for the quarter, down 2.5%, but $93.20 million for the full year, up 17.3%. Capital expenditures were $4.48 million in the quarter, down 37.3%, and $18.14 million for the full year, up 3.2%. Deferred revenue was $26.24 million at quarter end, down 2.7% from the prior-year quarter. Remaining performance obligations were $237.83 million, up 20.1%. On a non-GAAP basis, adjusted EBITDA was $38.6 million for the quarter, a 29.6% margin, and $153.24 million for the full year, a 30.0% margin. Non-GAAP net income was $10.8 million, or $0.06 per diluted share, for the quarter. Non-GAAP operating income was $124.89 million for the full year, a 24.4% margin. Free cash flow was $18.4 million for the quarter and $63.9 million for the full year. Unlevered free cash flow was $27.7 million for the quarter and $100.5 million for the full year.
Operational metrics pointed to steady demand. Total ARR was $539.7 million at December 31, 2025, up 11.9% year over year, or 7.7% on a constant currency basis. Customers with ARR over $50,000 grew to 2,671 from 2,349, an increase of about 14%. Those customers represented about 61% of total ARR, up from about 57%. The annual dollar-based net revenue retention rate was approximately 103% for 2025 and 2024. N-able introduced agentic AI capabilities across endpoint management, security operations, and data protection, powered by telemetry from more than 11 million endpoints. It also launched a $100,000 cyber warranty for Adlumin MDR and was recognized in the 2026 Gartner Magic Quadrant for Endpoint Management Tools. The company appointed Patrick Pulvermueller, former Acronis CEO, to its board.
Guidance for 2026 points to continued growth. For the first quarter of 2026, management expects reported growth of approximately 11% to 12% year over year and 6% to 7% on a constant currency basis, with adjusted EBITDA of $35.5 to $36.5 million, or approximately 27% to 28% of total revenue. For full-year 2026, management expects total ARR of $581 to $586 million, approximately 8% to 9% year-over-year growth on a reported and constant currency basis. Full-year growth is expected at approximately 8% to 9% on a reported basis and 7% to 8% on a constant currency basis. Adjusted EBITDA is expected to be $167 to $171 million, approximately 30% to 31% of total revenue. The CFO said the company intends to make further investments in AI innovation and go-to-market expansion while driving over 30% adjusted EBITDA margins and meaningfully improving unlevered free cash flow year over year.
Risks remain. The company faces adverse economic conditions, potential reductions in information technology spending, and delays in purchasing decisions. It depends on selling subscriptions to new and existing customers, maintaining renewal and net retention rates, and selling through distributors and resellers. It must successfully incorporate AI-powered features, manage acquisitions and integration, and protect against cyberattacks and security incidents. Other risks include foreign exchange fluctuations, tariffs, trade wars, geopolitical events, indebtedness, and its status as a controlled company. The company also noted that its financial results are preliminary and pending final review by auditors and that it anticipates filing its annual report on Form 10-K on or about February 26, 2026.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $130.3M | $131.7M | -1.1% | $116.5M | +11.8% |
| Gross profit | $99.2M | $102.1M | -2.8% | $93.2M | +6.5% |
| Gross margin | 76.2% | 77.5% | -1.3 pp | 80.0% | -3.8 pp |
| Research & development | $25.3M | $25.2M | +0.5% | $23.2M | +8.9% |
| Sales & marketing | $39.9M | $40.5M | -1.4% | $34.6M | +15.2% |
| General & administrative | $20.3M | $24.3M | -16.5% | $19.1M | +6.3% |
| Total operating expenses | $86.0M | $90.5M | -4.9% | $77.2M | +11.4% |
| Operating income (loss) | $13.2M | $11.6M | +14.2% | $16.0M | -17.2% |
| Operating margin | 10.2% | 8.8% | +1.4 pp | 13.7% | -3.6 pp |
| Net income (loss) | -$7.2M | $1.4M | -622.8% | $3.3M | -319.8% |
| Net margin | -5.5% | 1.1% | -6.6 pp | 2.8% | -8.4 pp |
| Diluted EPS | -$0.04 | $0.01 | -$0.05 | $0.02 | -$0.06 |
Risks
Annual dollar-based net revenue retention rate was approximately 103% for FY2025 and FY2024, down from 110% for FY2023. The decline reflects pricing and packaging changes and rationalization under the Long-Term Contract Initiative, and customers have no obligation to renew after expiration.
The MSP market is highly competitive, with vendors such as Kaseya, ConnectWise, NinjaOne, Acronis, Veeam, Sophos, TeamViewer, and LogMeIn. Pricing pressure, bundling, and zero or negative margin selling could reduce gross margins, which were down 4.0 pp in FY2025 Q4 vs. the prior-year quarter.
FY2025 year-to-date operating margin was down 10.5 pp and operating income was down 55.3%, while operating expenses grew across sales and marketing, research and development, and general and administrative. The company may not achieve expected benefits from these investments.
The company uses AI in its cybersecurity platform and acknowledges that AI use could adversely affect business, reputation, or financial results. AI is also making it easier for hackers to formulate and carry out attacks, increasing the risk that its solutions fail to detect or prevent threats.
As a cybersecurity provider, N-able faces risk that defects, misconfigurations, or failures could leave customer environments unprotected, and cyberattacks or breaches could result in legal liability, reputational harm, and customer attrition. The filing notes attacks emerge that solutions may be unable to detect or prevent.
A portion of revenue is consumption-based and recognized as services are delivered, giving less visibility into timing than subscription revenue. Actual results may fall below internal or external expectations if customers consume less slowly than expected.
Growth depends on hiring, training, and retaining sufficient sales personnel under a low-touch, high-velocity model. Recent and planned hires may not become productive as quickly as expected, which could limit new customer adds and expansion.
Total borrowings were $393.9 million as of December 31, 2025, and interest expense, net increased 19.9% for FY2025. The Credit Agreement exposes the company to variable interest rates and committed cash interest payments of approximately $178.4 million over its term.
Goodwill is tested for impairment at least annually, and the October 2025 quantitative assessment showed fair value exceeded carrying value. A sustained decline in stock price, slower growth, or negative industry trends could require a non-cash impairment charge.
Revenue from customers outside the United States was 50.4% of FY2025 total revenue, and approximately 79% of employees were located outside the United States as of December 31, 2025. Research and development facilities in Belarus and contractors in Ukraine expose operations to sanctions, instability, and potential disruption.
The Sponsors collectively owned approximately 111,564,512 shares, representing about 59.8% of voting power as of December 31, 2025. This concentration allows them to control matters requiring stockholder approval and may create conflicts of interest.
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
Non-GAAP Operating Income
Summary, forecast, risks and KPIs are extracted from N-able, Inc.'s SEC filings for Q4 FY2025 (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 2, 2026.