Delivers ARR Growth of 14% Year-Over-Year
Exceeds Third Quarter Revenue and Adjusted EBITDA Guidance
Raises Full-Year 2025 ARR Outlook to $530M to $531M
BURLINGTON, Mass.--(BUSINESS WIRE)--November 06, 2025--
N-able, Inc. (NYSE:NABL), a global software company delivering an end-to-end cyber resilience platform, today reported results for its third quarter ended September 30, 2025.
"Our strong results reflect robust demand for cybersecurity and the rising strategic relevance of N-able," said N-able president and CEO John Pagliuca. "AI-driven threats are elevating the need for cybersecurity and we are arming organizations with the cutting-edge solutions they need to help defend themselves in today's cyber battleground. We're leaning into this moment with conviction--delivering growth and profitability, while helping our customers stay resilient and ready for what's next."
"We are focused on delivering cyber-resilience at scale, and this quarter's performance reflects that focus: strong top-line growth, quality margins, healthy free cash flow, and considerable operational progress," added N-able CFO Tim O'Brien. "We are executing with precision and investing with purpose to lead in a fast-changing cybersecurity environment."
Third quarter 2025 financial highlights:
-- Total revenue of $131.7 million, representing 13.1% year-over-year growth,
or 11.6% year-over-year growth on a constant currency basis.
-- Subscription revenue of $130.5 million, representing 13.5% year-over-year
growth, or 11.9% year-over-year growth on a constant currency basis.
-- Total ARR of $528.1 million, representing 14.2% year-over-year growth, or
12.9% year-over-year growth on a constant currency basis.
-- GAAP gross margin of 77.5% and non-GAAP gross margin of 81.1%.
-- GAAP net income of $1.4 million, or $0.01 per diluted share, and non-GAAP
net income of $25.4 million, or $0.13 per diluted share.
-- Adjusted EBITDA of $41.4 million, representing an adjusted EBITDA margin
of 31.4%.
For a reconciliation of our GAAP to non-GAAP results, please see the tables below.
Additional recent business highlights:
-- N-able releases 2025 Annual Threat Report. The inaugural threat report
explores the state of cyberattacks on small-to-mid-market businesses and
uncovers an increasingly dangerous landscape. Using data from the N-able
ecosystem, the N-able threat research team revealed that cybercriminals
are increasingly targeting small businesses, AI is supercharging social
engineering, and ransomware remains a significant threat.
-- N-able hosts first annual Cyber Resilience Summit. The event brought
together hundreds of industry experts, practitioners, and leaders to
discuss the future of cyber resilience, its critical role in driving
protection and security for small and mid-market organizations, and how
N-able's end-to-end platform is built for today's security needs.
-- N-able launched Cat-MIP, setting the standard for AI accuracy in
cybersecurity and IT management. This vendor-agnostic collaboration
provides interoperability and consistent AI communication across IT
ecosystems.
-- N-able released Anomaly Detection as a Service as part of its Data
Protection solution, to help further defend against modern cyberthreats.
This new capability is designed to detect unauthorized access within
backup environments and flag indicators of compromise, marking a
strategic shift from reactive defense to proactive resilience.
-- N-able technology saved a CPA firm from a business-crippling ransomware
attack. Experiencing a targeted attack just days before a filing deadline,
the organization faced a potential extinction event, but N-able software
helped contain, remediate, and resolve the incident, allowing the
business to be operational by the end of the day.
Balance Sheet
As of September 30, 2025, total cash and cash equivalents were $101.4 million and total debt, net of debt issuance costs, was $331.7 million.
The financial results included in this press release are preliminary and pending final review by the company and its external auditors. Financial results will not be final until N-able files its quarterly report on Form 10-Q for the period. Information about N-able's use of non-GAAP financial measures is provided below under "Non-GAAP Financial Measures."
Financial Outlook
As of November 6, 2025, N-able is providing its financial outlook for the fourth quarter of 2025 and full-year 2025. The financial information below includes forward-looking non-GAAP financial information, including adjusted EBITDA. These non-GAAP financial measures exclude, among other items mentioned below, amortization of acquired intangible assets and developed technology, depreciation expense, income tax expense, interest expense, net, unrealized foreign currency (gains) losses, transaction related costs, spin-off costs, stock-based compensation expense and related employer-paid payroll taxes and restructuring and other costs. We have not reconciled our estimates of these non-GAAP financial measures to their most directly comparable GAAP measure as a result of uncertainty regarding, and the potential variability of, these excluded items in future periods. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these excluded items could be material to our results computed in accordance with GAAP in future periods. Our reported results provide reconciliations of non-GAAP financial measures to their nearest GAAP equivalents.
The financial outlook provided below reflects N-able's expectations, as of the date of this release, regarding the impact on its business of changing foreign exchange rates and current macroeconomic dynamics.
Financial Outlook for the Fourth Quarter of 2025
N-able management currently expects to achieve the following results for the fourth quarter of 2025:
-- Total revenue in the range of $126.5 to $127.5 million, representing
approximately 9% year-over-year growth on a reported basis and 7% to 8%
on a constant currency basis.
-- Adjusted EBITDA in the range of $33.6 to $34.6 million, representing
approximately 27% of total revenue.
Financial Outlook for Full-Year 2025
N-able management currently expects to achieve the following results for the full-year 2025:
-- Total ARR in the range of $530 to $531 million, representing 10%
year-over-year growth on a reported basis and approximately 8% on a
constant currency basis.
-- Total revenue in the range of $507.7 to $508.7 million, representing
approximately 9% year-over-year growth on a reported basis and 8% on a
constant currency basis.
-- Adjusted EBITDA in the range of $148.2 to $149.2 million, representing
approximately 29% of total revenue.
Additional details on the company's outlook will be provided on the conference call.
Conference Call and Webcast
In conjunction with this announcement, N-able will host a conference call to discuss its financial results, business and business outlook at 8:30 a.m. ET on November 6, 2025. A live webcast of the call will be available on the N-able Investor Relations website at http://investors.n-able.com. A replay of the webcast will be available on a temporary basis shortly after the event on the N-able Investor Relations website.
Forward-Looking Statements
This press release contains "forward-looking" statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the fourth quarter and full-year 2025 and the impact of macroeconomic conditions on our business. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and may be signified by terms such as "aim," "anticipate," "believe," "continue," "expect," "feel," "intend," "estimate," "seek," "plan," "may," "can," "could," "should," "will," "would" or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially and adversely different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the following: (a) the impact of adverse economic conditions; (b) our ability to sell subscriptions to new customers, to sell additional solutions to our existing customers and to increase the usage of our solutions by our existing customers, as well as our ability to generate and maintain customer loyalty; (c) our ability to sell our solutions through distributors and resellers; (d) any decline in our renewal or net retention rates; (e) our ability to successfully incorporate AI-powered features into our solutions, market and sell any AI-powered solutions we develop, garner increased market share projected for AI-powered solutions, and realize efficiencies from the internal use of AI tools; (f) the possibility that general economic, political, legal and regulatory conditions and uncertainty may cause information technology spending to be reduced or purchasing decisions to be delayed, including as a result of inflation, actions taken by central banks to counter inflation, rising interest rates, war and political unrest, military conflict (including between Russia and Ukraine and in the Middle East), terrorism, sanctions, trade or other issues in the U.S. and internationally, or that such factors may otherwise harm our business, financial condition or results
of operations; (g) recent significant changes to U.S. trade policies and reciprocal trade measures enacted or threatened, which have led and may continue to lead to volatility and uncertainty, including increased market volatility and currency exchange rate fluctuations, which may also cause information technology spending to be reduced or purchasing decisions to be delayed; (h) any inability to generate significant volumes of high-quality sales leads from our digital marketing initiatives and convert such leads into new business at acceptable conversion rates; (i) any inability to successfully identify, complete and integrate acquisitions and manage our growth effectively; (j) any inability to resell third-party software or integrate third-party software into our solutions, or find suitable replacements for such third-party software; (k) risks associated with our international operations; (l) foreign exchange gains and losses related to expenses and sales denominated in currencies other than the functional currency of an associated entity; (m) risks that cyberattacks and other security incidents may result in compromises or breaches of our, our customers', or their SMB and mid-market customers' systems, the insertion of malicious code, malware, ransomware or other vulnerabilities into our, our customers', or their SMB and mid-market customers' environments, the exploitation of vulnerabilities in our, our customers', or their SMB and mid-market customers' security, the theft or misappropriation of our, our customers', or their SMB and mid-market customers' proprietary and confidential information, and interference with our, our customers', or their SMB and mid-market customers' operations, exposure to legal and other liabilities, higher customer and employee attrition and the loss of key personnel, negative impacts to our sales, renewals and upgrades and reputational harm and other serious negative consequences, any or all of which could materially harm our business; (n) our status as a controlled company; (o) our ability to attract and retain qualified employees and key personnel; (p) the timing and success of new product introductions and product upgrades by us or our competitors; (q) our ability to maintain or grow our brands, including the Adlumin brand; (r) our ability to protect and defend our intellectual property and not infringe upon others' intellectual property; (s) the possibility that our operating income could fluctuate and may decline as a percentage of revenue as we make further expenditures to expand our operations in order to support growth in our business; (t) our indebtedness, including increased borrowing costs resulting from rising interest rates, potential restrictions on our operations and the impact of events of default; (u) our ability to operate our business internationally and increase sales of our solutions to our customers located outside of the United States; (v) risks related to our spin-off from SolarWinds into a newly created and separately-traded public company, including that the distribution, together with certain related transactions, may not qualify as a transaction that is generally tax-free for U.S. federal income tax purposes, which could result in N-able incurring significant tax liabilities, and, in certain circumstances, requiring us to indemnify SolarWinds for material taxes and other related amounts pursuant to indemnification obligations under the tax matters agreement; and that the spin-off may not achieve some or all of any anticipated benefits with respect to our business; and (w) such other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission, including the risk factors described in N-able's Annual Report on Form 10-K for the year ended December 31, 2024, that N-able filed with the SEC on March 7, 2025. All information provided in this release is as of the date hereof and N-able undertakes no duty to update this information except as required by law.
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with GAAP, we use certain non-GAAP financial measures to clarify and enhance our understanding, and aid in the period-to-period comparison, of our performance. We believe that these non-GAAP financial measures provide supplemental information that is meaningful when assessing our operating performance because they exclude the impact of certain amounts that our management and board of directors do not consider part of core operating results when assessing our operational performance, allocating resources, preparing annual budgets and determining compensation. Accordingly, these non-GAAP financial measures may provide insight to investors into the motivation and decision-making of management in operating the business.
N-able also believes that these non-GAAP financial measures are used by investors and securities analysts to (a) compare and evaluate its performance from period to period and (b) compare its performance to those of its competitors. These non-GAAP measures exclude certain items that can vary substantially from company to company depending upon their financing and accounting methods, the book value of their assets, their capital structures and the method by which their assets were acquired.
As a result, these non-GAAP financial measures have limitations and should not be considered in isolation from, or as a substitute for, their most comparable GAAP measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Certain items that are excluded from these non-GAAP financial measures can have a material impact on operating and net income.
N-able's management and board of directors compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measure. Set forth in the tables below are the corresponding GAAP financial measures for each non-GAAP financial measure presented. Investors are encouraged to review the reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures that are set forth in the tables below.
Definitions of Non-GAAP and Other Metrics
Annual Recurring Revenue $(ARR)$. We calculate ARR by annualizing the recurring revenue and related usage revenue inclusive of discounts, excluding the impacts of credits and reserves, recognized during the last day of the reporting period from both long-term and month-to-month subscriptions. We believe ARR enhances the understanding of our business performance and the growth of our relationships with our customers.
Non-GAAP Gross Margin, Non-GAAP Operating Income and Non-GAAP Operating Margin. We provide non-GAAP total cost of revenue, non-GAAP gross profit, non-GAAP operating expense and non-GAAP operating income and related non-GAAP gross and operating margins excluding such items as stock-based compensation expense and related employer-paid payroll taxes, amortization of acquired intangible assets, transaction related costs, spin-off costs and restructuring costs and other. We define non-GAAP gross and operating margins as non-GAAP gross profit and operating income, respectively, divided by total revenue. Management believes these measures are useful for the following reasons:
-- Stock-Based Compensation Expense and Related Employer-Paid Payroll Taxes.
We provide non-GAAP information that excludes expenses related to
stock-based compensation and related employer-paid payroll taxes
associated with our employees' participation in N-able's stock-based
incentive compensation plans. We believe that the exclusion of
stock-based compensation expense provides for a better comparison of our
operating results to prior periods and to our peer companies as the
calculations of stock-based compensation vary from period to period and
company to company due to different valuation methodologies, subjective
assumptions and the variety of award types. Employer-paid payroll taxes
on stock-based compensation is dependent on our stock price and the
timing of the taxable events related to the equity awards, over which our
management has little control, and does not necessarily correlate to the
core operation of our business. Because of these unique characteristics
of stock-based compensation and related employer-paid payroll taxes,
management excludes these expenses when analyzing the organization's
business performance.
-- Amortization of Acquired Technologies and Intangible Assets. We provide
non-GAAP information that excludes expenses related to purchased
technologies and intangible assets associated with our acquisitions. We
believe that eliminating this expense from our non-GAAP measures is
useful to investors because the amortization of acquired technologies and
intangible assets can be inconsistent in amount and frequency and is
significantly impacted by the timing and magnitude of our acquisition
transactions, which also vary in frequency from period to period.
Accordingly, we analyze the performance of our operations in each period
without regard to such expenses.
-- Transaction Related Costs. We exclude certain expense items resulting
from proposed and completed acquisitions, dispositions and similar
transactions, such as legal, accounting and advisory fees, changes in
fair value of contingent consideration, costs related to integrating the
acquired businesses, deferred compensation, severance and retention
expense. We consider these adjustments, to some extent, to be
unpredictable and dependent on a significant number of factors that are
outside of our control. Furthermore, such proposed and completed
transactions result in operating expenses that would not otherwise have
been incurred by us in the normal course of our organic business
operations. We believe that providing non-GAAP measures that exclude
transaction related costs allows investors to better review and
understand the historical and current results of our continuing
operations and also facilitates comparisons to our historical results and
results of peer companies with different transaction related activities,
both with and without such adjustments.
-- Spin-off Costs. We exclude certain expense items resulting from the
spin-off into a newly created and separately traded public company. These
costs include legal, accounting and advisory fees, system implementation
costs and other incremental costs incurred by us related to the
separation from SolarWinds. The spin-off transaction results in operating
expenses that would not otherwise have been incurred by us in the normal
course of our organic business operations. We believe that providing
non-GAAP measures that exclude these costs facilitates a more meaningful
evaluation of our operating performance and comparisons to our past
operating performance.
-- Restructuring Costs and Other. We provide non-GAAP information that
excludes restructuring costs such as severance, certain employee
relocation costs, and the estimated costs of exiting and terminating
facility lease commitments, as they relate to our corporate restructuring
and exit activities. These costs are inconsistent in amount and are
significantly impacted by the timing and nature of these events.
Therefore, although we may incur these types of expenses in the future,
we believe that eliminating these costs for purposes of calculating the
non-GAAP financial measures facilitates a more meaningful evaluation of
our operating performance and comparisons to our past operating
performance.
Non-GAAP Net Income and Non-GAAP Net Income Per Diluted Share. We believe that the use of non-GAAP net income and non-GAAP net income per diluted share is helpful to our investors to clarify and enhance their understanding of past performance and future prospects. Non-GAAP net income is calculated as net income excluding the adjustments to non-GAAP gross profit and non-GAAP operating income, interest on deferred consideration, and the income tax effect of the non-GAAP exclusions. We define non-GAAP net income per diluted share as non-GAAP net income divided by the weighted average diluted outstanding common shares.
Adjusted EBITDA and Adjusted EBITDA Margin. We regularly monitor adjusted EBITDA and adjusted EBITDA margin, as they are measures we use to assess our operating performance. We define adjusted EBITDA as net income or loss, excluding amortization of acquired intangible assets and developed technology, depreciation expense, income tax expense, interest expense, net, unrealized foreign currency (gains) losses, transaction related costs, spin-off costs, stock-based compensation expense and related employer-paid payroll taxes and restructuring and other costs. We define adjusted EBITDA margin as adjusted EBITDA divided by total revenue. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations include: although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our related party debt; adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us; and other companies, including companies in our industry, may calculate adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Non-GAAP Revenue on a Constant Currency Basis. We provide non-GAAP revenue on a constant currency basis to provide a framework for assessing our performance excluding the effect of foreign currency rate fluctuations. To present this information, current period results for revenue contracts denominated in currencies other than U.S. Dollars are converted into U.S. Dollars at the average exchange rates in effect during the corresponding prior period presented. We believe that providing non-GAAP revenue on a constant currency basis facilitates the comparison of non-GAAP revenue to prior periods.
Unlevered Free Cash Flow. Unlevered free cash flow is a measure of our liquidity used by management to evaluate cash flow from operations, after the deduction of capital expenditures and prior to the impact of our capital structure, transaction related costs, restructuring costs, spin-off costs, employer-paid payroll taxes on stock awards and certain one-time items, that can be used by us for strategic opportunities and strengthening our balance sheet. However, given our debt obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses. Effective July 1, 2025, we have removed from our computation of unlevered free cash flow non-cash items generally relating to cash paid for transaction related costs, restructuring costs, spin-off costs, employer-paid payroll taxes on stock awards and other one-time items. Unlevered free cash flow for all prior periods presented has been revised to the current period computation.
About N-able
At N-able, our mission is to protect businesses against evolving cyberthreats with an end-to-end cyber resilience platform to manage, secure, and recover. Our scalable technology infrastructure includes AI-powered capabilities, market-leading third-party integrations, and the flexibility to employ technologies of choice--to transform workflows and deliver critical security outcomes. Our partner-first approach combines our products with experts, training, and peer-led events that empower our customers to be secure, resilient, and successful. n-able.com
(c) 2025 N-able, Inc. All rights reserved.
Category: Financial
N-able, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
September 30, December 31,
--------------- ----------------
2025 2024
--------------- ----------------
Assets
Current assets:
Cash and cash equivalents $ 101,435 $ 85,196
Accounts receivable, net of
allowances of $3,328 and $886 as
of September 30, 2025 and
December 31, 2024, respectively 44,947 44,909
Income tax receivable 3,858 3,563
Recoverable taxes 7,472 24,157
Current contract assets 22,836 12,786
Prepaid and other current assets 19,798 13,312
---------- ---------
Total current assets 200,346 183,923
Property and equipment, net 38,989 36,162
Operating lease right-of-use assets 29,900 27,998
Deferred taxes 2,223 2,026
Goodwill 1,024,311 977,013
Intangible assets, net 69,527 83,150
Other assets, net 32,756 28,575
---------- ---------
Total assets $ 1,398,052 $ 1,338,847
========== =========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 7,969 $ 6,290
Accrued liabilities and other 49,997 51,057
Current contingent consideration 12,190 5,500
Current deferred consideration 50,493 44,023
Current operating lease
liabilities 6,995 6,018
Income taxes payable 10,118 9,733
Current portion of deferred
revenue 17,100 23,977
Current debt obligation 3,500 3,500
---------- ---------
Total current liabilities 158,362 150,098
Long-term liabilities:
Deferred revenue, net of current
portion 4,252 2,996
Non-current deferred taxes 3,608 3,448
Non-current operating lease
liabilities 30,372 30,069
Long-term debt, net of current
portion 328,161 329,606
Non-current deferred
consideration 59,033 54,089
Other long-term liabilities 878 9,253
---------- ---------
Total liabilities 584,666 579,559
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value:
550,000,000 shares authorized,
190,105,758 and 187,528,505
shares issued, and 187,618,579
and 187,528,505 shares
outstanding as of September 30,
2025 and December 31, 2024,
respectively 190 187
Preferred stock, $0.001 par
value: 50,000,000 shares
authorized and no shares issued
and outstanding as of September
30, 2025 and December 31, 2024,
respectively -- --
Treasury stock, at cost:
2,487,179 and no shares as of
September 30, 2025 and December
31, 2024, respectively (20,000) --
Additional paid-in capital 737,957 708,992
Accumulated other comprehensive
income (loss) 33,836 (21,095)
Retained earnings 61,403 71,204
---------- ---------
Total stockholders' equity 813,386 759,288
---------- ---------
Total liabilities and
stockholders' equity $ 1,398,052 $ 1,338,847
========== =========
N-able, Inc.
Consolidated Statements of Operations
(In thousands, except per share information)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- ----------------------
2025 2024 2025 2024
--------- --------- --------- -----------
Revenue:
Subscription and
other revenue $131,710 $116,442 $381,156 $349,638
Cost of revenue:
Cost of revenue 25,409 19,433 73,388 55,975
Amortization of
acquired
technologies 4,240 467 12,636 1,386
------- ------- ------- -------
Total cost
of revenue 29,649 19,900 86,024 57,361
------- ------- ------- -------
Gross profit 102,061 96,542 295,132 292,277
Operating expenses:
Sales and
marketing 40,488 32,294 123,254 100,960
Research and
development 25,188 22,995 75,408 67,468
General and
administrative 24,288 17,330 71,425 57,427
Amortization of
acquired
intangibles 497 15 1,499 44
------- ------- ------- -------
Total
operating
expenses 90,461 72,634 271,586 225,899
------- ------- ------- -------
Operating income 11,600 23,908 23,546 66,378
Other expense, net:
Interest
expense, net (8,631) (7,535) (23,792) (22,762)
Other income,
net 4,793 2,269 5,324 3,696
------- ------- ------- -------
Total other
expense,
net (3,838) (5,266) (18,468) (19,066)
------- ------- ------- -------
Income before income
taxes 7,762 18,642 5,078 47,312
Income tax
expense 6,379 7,885 14,879 19,644
------- ------- ------- -------
Net income (loss) $ 1,383 $ 10,757 $ (9,801) $ 27,668
======= ======= ======= =======
Net income (loss)
per share:
Basic income
(loss) per
share $ 0.01 $ 0.06 $ (0.05) $ 0.15
======= ======= ======= =======
Diluted income
(loss) per
share $ 0.01 $ 0.06 $ (0.05) $ 0.15
======= ======= ======= =======
Weighted-average
shares used to
compute net income
(loss) per share:
Shares used in
computation of
basic income
(loss) per
share: 187,599 185,506 188,213 184,840
======= ======= ======= =======
Shares used in
computation of
diluted income
(loss) per
share: 188,420 188,074 188,213 188,039
======= ======= ======= =======
N-able, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- ----------------------
2025 2024 2025 2024
--------- --------- --------- -----------
Cash flows from
operating
activities
Net income (loss) $ 1,383 $ 10,757 $ (9,801) $ 27,668
Adjustments to
reconcile net
income (loss) to
net cash provided
by operating
activities:
Depreciation and
amortization 11,081 6,054 32,362 17,777
Provision for
(benefit from)
doubtful
accounts 2,205 (166) 2,442 (72)
Stock-based
compensation
expense 11,881 11,508 36,434 34,863
Deferred taxes 17 89 96 89
Amortization of
debt issuance
costs 396 401 1,180 1,198
(Gain) loss on
foreign
currency
exchange rates (4,213) (548) (2,619) 693
Loss (gain) on
contingent
consideration 1,880 (2,364) 3,498 (3,711)
Deferred
consideration
expense 3,884 -- 11,414 --
Loss (gain) on
lease
modification -- 1,059 (441) 1,059
Other non-cash
expenses -- (100) 521 (16)
Changes in
operating assets
and liabilities,
net of assets
acquired and
liabilities assumed
in business
combinations:
Accounts
receivable 457 (2,733) (2,381) (841)
Income tax
receivable 25 (2,505) (206) (6,888)
Recoverable
taxes 202 (3,060) 16,915 (9,738)
Current contract
assets (6,857) (3,439) (10,050) (14,896)
Operating lease
right-of-use
assets, net (508) (53) (671) 52
Prepaid expenses
and other
assets (2,088) (1,555) (6,534) (4,731)
Accounts payable 616 332 1,269 1,151
Accrued
liabilities and
other 4,465 1,686 (1,214) (1,807)
Income taxes
payable 1,126 6,728 685 15,893
Deferred revenue (1,980) 440 (5,621) (1,642)
Other long-term
assets (7) (987) 417 (2,618)
Other long-term
liabilities 37 445 171 (32)
------- ------- ------- -------
Net cash
provided by
operating
activities 24,002 21,989 67,866 53,451
Cash flows from
investing
activities
Purchases of
property and
equipment (6,580) (3,740) (13,656) (10,420)
Purchases of
intangible
assets (2,845) (1,574) (8,642) (5,166)
Return of
deposits in
escrow -- -- 299 --
------- ------- ------- -------
Net cash
used in
investing
activities (9,425) (5,314) (21,999) (15,586)
Cash flows from
financing
activities
Payments of tax
withholding
obligations
related to
restricted
stock units (1,741) (2,826) (11,511) (18,165)
Exercise of
stock options -- 4 2 12
Proceeds from
issuance of
common stock
under employee
stock purchase
plan 1,062 1,182 2,358 2,382
Repurchase of
common stock (10,000) -- (20,000) --
Deferred
acquisition
payments -- -- (5,358) (1,000)
Repayments of
borrowings from
Credit
Agreement (875) (875) (2,625) (2,625)
------- ------- ------- -------
Net cash
used in
financing
activities (11,554) (2,515) (37,134) (19,396)
Effect of exchange
rate changes on
cash and cash
equivalents 4,538 2,776 7,506 2,928
------- ------- ------- -------
Net increase in
cash and cash
equivalents 7,561 16,936 16,239 21,397
Cash and cash
equivalents
Beginning of
period 93,874 157,509 85,196 153,048
------- ------- ------- -------
End of period $101,435 $174,445 $101,435 $174,445
======= ======= ======= =======
Supplemental
disclosure of cash
flow information:
Cash paid for
interest $ 6,260 $ 7,198 $ 18,966 $ 21,760
======= ======= ======= =======
Cash paid for
income taxes $ 5,657 $ 2,147 $ 11,554 $ 8,162
======= ======= ======= =======
Supplemental
disclosure of
non-cash
activities:
Change in
purchases of
property,
equipment and
leasehold
improvements
included in
accounts
payable and
accrued
expenses $ 295 $ (152) $ 786 $ 2
======= ======= ======= =======
Right-of-use
assets obtained
in exchange for
operating lease
liabilities $ -- $ 2,628 $ 5,580 $ 2,628
======= ======= ======= =======
N-able, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share information)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
2025 2024 2025 2024
------------ ------------ ------------ ------------
GAAP cost of
revenue $ 29,649 $ 19,900 $ 86,024 $ 57,361
Stock-based
compensation
expense and
related
employer-paid
payroll taxes (427) (416) (1,368) (1,304)
Amortization of
acquired
technologies (4,240) (467) (12,636) (1,386)
Transaction
related costs (60) -- (314) --
Restructuring
costs and
other (46) -- (46) --
------- ------- ------- -------
Non-GAAP cost of
revenue $ 24,876 $ 19,017 $ 71,660 $ 54,671
======= ======= ======= =======
GAAP gross profit $102,061 $ 96,542 $295,132 $292,277
Stock-based
compensation
expense and
related
employer-paid
payroll taxes 427 416 1,368 1,304
Amortization of
acquired
technologies 4,240 467 12,636 1,386
Transaction
related costs 60 -- 314 --
Restructuring
costs and
other 46 -- 46 --
------- ------- ------- -------
Non-GAAP gross
profit $106,834 $ 97,425 $309,496 $294,967
======= ======= ======= =======
GAAP sales and
marketing expense $ 40,488 $ 32,294 $123,254 $100,960
Stock-based
compensation
expense and
related
employer-paid
payroll taxes (4,446) (3,918) (13,626) (12,147)
Transaction
related costs (864) (55) (3,184) (59)
Restructuring
costs and
other (190) -- (419) (418)
------- ------- ------- -------
Non-GAAP sales and
marketing expense $ 34,988 $ 28,321 $106,025 $ 88,336
======= ======= ======= =======
GAAP research and
development
expense $ 25,188 $ 22,995 $ 75,408 $ 67,468
Stock-based
compensation
expense and
related
employer-paid
payroll taxes (2,981) (2,719) (9,040) (8,252)
Transaction
related costs (184) (20) (470) (45)
Restructuring
costs and
other (139) (37) (261) (94)
------- ------- ------- -------
Non-GAAP research
and development
expense $ 21,884 $ 20,219 $ 65,637 $ 59,077
======= ======= ======= =======
GAAP general and
administrative
expense $ 24,288 $ 17,330 $ 71,425 $ 57,427
Stock-based
compensation
expense and
related
employer-paid
payroll taxes (4,302) (4,766) (13,956) (15,246)
Transaction
related costs (4,417) 1,886 (13,388) (1,608)
Restructuring
costs and
other (66) (3,103) 32 (3,513)
Spin-off costs -- -- -- (51)
------- ------- ------- -------
Non-GAAP general
and administrative
expense $ 15,503 $ 11,347 $ 44,113 $ 37,009
======= ======= ======= =======
GAAP operating
income $ 11,600 $ 23,908 $ 23,546 $ 66,378
Amortization of
acquired
technologies 4,240 467 12,636 1,386
Amortization of
acquired
intangibles 497 15 1,499 44
Stock-based
compensation
expense and
related
employer-paid
payroll taxes 12,156 11,819 37,990 36,950
Transaction
related costs 5,525 (1,811) 17,356 1,712
Restructuring
costs and
other 441 3,140 694 4,025
Spin-off costs -- -- -- 51
------- ------- ------- -------
Non-GAAP operating
income $ 34,459 $ 37,538 $ 93,721 $110,546
======= ======= ======= =======
GAAP operating
margin 8.8% 20.5% 6.2% 19.0%
======= ======= ======= =======
Non-GAAP operating
margin 26.2% 32.2% 24.6% 31.6%
======= ======= ======= =======
GAAP net income
(loss) $ 1,383 $ 10,757 $ (9,801) $ 27,668
Amortization of
acquired
technologies 4,240 467 12,636 1,386
Amortization of
acquired
intangibles 497 15 1,499 44
Stock-based
compensation
expense and
related
employer-paid
payroll taxes 12,156 11,819 37,990 36,950
Transaction
related costs 5,525 (1,811) 17,356 1,712
Restructuring
costs and
other 441 3,140 694 4,025
Interest on
deferred
consideration 1,440 -- 4,273 --
Spin-off costs -- -- -- 51
Tax benefits
associated
with above
adjustments
(1) (285) (136) (1,825) (1,104)
------- ------- ------- -------
Non-GAAP net income $ 25,397 $ 24,251 $ 62,822 $ 70,732
======= ======= ======= =======
GAAP diluted income
(loss) per share $ 0.01 $ 0.06 $ (0.05) $ 0.15
======= ======= ======= =======
Non-GAAP diluted
income per share $ 0.13 $ 0.13 $ 0.33 $ 0.38
======= ======= ======= =======
Shares used in
computation of
GAAP diluted
income (loss)
per share: 188,420 188,074 188,213 188,039
======= ======= ======= =======
Shares used in
computation of
non-GAAP
diluted income
per share: 188,420 188,074 189,047 188,039
======= ======= ======= =======
____________________
(1) The tax benefits associated with non-GAAP adjustments for the three and
nine months ended September 30, 2025, and 2024, respectively, is
calculated utilizing the Company's individual statutory tax rates for
each impacted subsidiary.
N-able, Inc.
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA
(In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ --------------------------
2025 2024 2025 2024
----------- ----------- ------------ ------------
Net income (loss) $ 1,383 $10,757 $ (9,801) $ 27,668
Amortization 6,408 2,099 18,848 5,840
Depreciation 4,673 3,956 13,514 11,938
Income tax
expense 6,379 7,885 14,879 19,644
Interest
expense, net 8,631 7,535 23,792 22,762
Unrealized
foreign
currency
(gains)
losses (4,213) (548) (2,619) 693
Transaction
related costs 5,525 (1,811) 17,356 1,712
Spin-off costs -- -- -- 51
Stock-based
compensation
expense and
related
employer-paid
payroll taxes 12,156 11,819 37,990 36,950
Restructuring
costs and
other 441 3,140 694 4,025
------ ------ ------- -------
Adjusted EBITDA $41,383 $44,832 $114,653 $131,283
====== ====== ======= =======
Adjusted EBITDA
margin 31.4% 38.5% 30.1% 37.5%
====== ====== ======= =======
N-able, Inc.
Reconciliation of GAAP Revenue to Non-GAAP Revenue on a Constant Currency Basis
(In thousands, except percentages)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------- -------------------------------
Growth Growth
2025 2024 Rate 2025 2024 Rate
--------- -------- ---------- --------- -------- ----------
GAAP
subscription
revenue $130,517 $114,998 13.5% $377,240 $343,928 9.7%
Estimated
foreign
currency
impact
(1) (1,816) -- (1.6) (2,186) -- (0.6)
------- ------- ----- ------- ------- -----
Non-GAAP
subscription
revenue on a
constant
currency
basis $128,701 $114,998 11.9% $375,054 $343,928 9.1%
======= ======= ===== ======= ======= =====
GAAP other
revenue $ 1,193 $ 1,444 (17.4)% $ 3,916 $ 5,710 (31.4)%
Estimated
foreign
currency
impact
(1) (1) -- (0.1) 13 -- 0.2
------- ------- ----- ------- ------- ----- ---
Non-GAAP other
revenue on a
constant
currency
basis $ 1,192 $ 1,444 (17.5)% $ 3,929 $ 5,710 (31.2)%
======= ======= ===== ======= ======= =====
GAAP
subscription
and other
revenue $131,710 $116,442 13.1% $381,156 $349,638 9.0%
Estimated
foreign
currency
impact
(1) (1,817) -- (1.6) (2,172) -- (0.6)
------- ------- ----- ------- ------- -----
Non-GAAP
subscription
and other
revenue on a
constant
currency
basis $129,893 $116,442 11.6% $378,984 $349,638 8.4%
======= ======= ===== ======= ======= =====
____________________
(1) The estimated foreign currency impact is calculated using the average
foreign currency exchange rates in the comparable prior year monthly
periods and applying those rates to foreign-denominated revenue in the
corresponding monthly periods for the three and nine months ended
September 30, 2025.
N-able, Inc.
Reconciliation of Unlevered Free Cash Flow
(In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ----------------------
2025 2024 2025 2024
-------- -------- --------- -----------
Net cash provided
by operating
activities $24,002 $21,989 $ 67,866 $ 53,451
Purchases of
property and
equipment (6,580) (3,740) (13,656) (10,420)
Purchases of
intangible
assets (2,845) (1,574) (8,642) (5,166)
------ ------ ------- -------
Free cash flow 14,577 16,675 45,568 37,865
Cash paid for
interest, net
of cash
interest
received 6,260 7,198 18,966 21,760
Cash paid for
transaction
related costs,
restructuring
costs,
spin-off
costs,
employer-paid
payroll taxes
on stock
awards and
other one-time
items (1) 1,721 3,987 8,285 8,975
------ ------ ------- -------
Unlevered free cash
flow (1) $22,558 $27,860 $ 72,819 $ 68,600
====== ====== ======= =======
____________________
(1) Effective July 1, 2025, we have removed from our computation of
unlevered free cash flow non-cash items generally relating to cash paid
for transaction related costs, restructuring costs, spin-off costs,
employer-paid payroll taxes on stock awards and other one-time items.
Unlevered free cash flow for all prior periods presented has been
revised to the current period computation.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251105695106/en/
CONTACT: Investors:
Griffin Gyr
ir@n-able.com
Media:
Kim Cecchini
Phone: 202.391.5205
pr@n-able.com
(END) Dow Jones Newswires
November 06, 2025 07:00 ET (12:00 GMT)