Abstract

N-able, Inc. will report its quarterly results on February 19, 2026, Pre-Market, with consensus pointing to year-over-year revenue expansion, resilient subscription performance, and earnings supported by disciplined cost execution.

Market Forecast

Consensus models reflected in the latest projections point to N-able, Inc. delivering revenue of 127.03 million US dollars, adjusted EPS of 0.10, and EBIT of 27.38 million US dollars for the current quarter; these translate to year-over-year growth of 11.66% for revenue and 27.67% for EPS, alongside an 8.98% decline in EBIT year-over-year, while formal gross and net margin forecasts are not disclosed. Subscription remains the anchor of the model and the key determinant of near-term performance, with mix stability and price realization expected to support cash-generation dynamics across the quarter. The most promising segment is the Subscription business, which generated 130.52 million US dollars last quarter; at the company level, total revenue increased 13.11% year-over-year, underscoring demand from the installed base.

Last Quarter Review

N-able, Inc. posted revenue of 131.71 million US dollars last quarter, with an 80.71% gross profit margin, GAAP net profit attributable to the parent company of 1.38 million US dollars, a net profit margin of 1.05%, and adjusted EPS of 0.13, which was flat year-over-year, while total revenue grew 13.11% year-over-year and GAAP net profit rose 134.39% quarter-on-quarter. A notable financial highlight was EBIT of 34.46 million US dollars, which declined 8.20% year-over-year but exceeded estimates by 5.49 million US dollars, evidencing operational efficiency despite a higher investment run-rate relative to the prior year. Subscription revenue reached 130.52 million US dollars, accounting for 99.09% of the total, and company-level revenue grew 13.11% year-over-year, highlighting traction from the core recurring base and stable unit economics.

Current Quarter Outlook (with major analytical insights)

Subscription Revenue and Mix

The Subscription business is central to N-able, Inc.’s earnings profile and will largely determine whether the company meets or surpasses the current quarter’s targets. Forecast revenue of 127.03 million US dollars suggests an 11.66% year-over-year increase but a sequential decline versus last quarter’s 131.71 million US dollars, implying the company enters the period with balanced expectations rather than an aggressive growth posture. The prior quarter’s 80.71% gross margin reflects a capital-light, software-centric delivery model that tends to stabilize gross profitability, while a 1.05% GAAP net margin underscores the gap between gross performance and GAAP earnings after operating costs and below-the-line items. For the quarter at hand, adjusted EPS is projected at 0.10, up 27.67% year-over-year, indicating that earnings expansion over the prior year is expected even as EBIT is forecast to decline 8.98% year-over-year; this divergence typically points to cost controls, a favorable mix of revenue, or changes in non-operating items and share count aligning to deliver EPS accretion. The revenue mix remains heavily weighted to Subscription, and with last quarter’s Subscription contribution at 99.09% of revenue, near-term beat or miss risk is concentrated in seat expansion, retention consistency, and price realization with customers serviced through the existing platform.

Most Promising Business Line: Subscription Platform Expansion

The most promising line is the Subscription portfolio, both due to its outsized revenue contribution and its leverage to incremental product attach opportunities. Last quarter’s Subscription revenue of 130.52 million US dollars conveys how the installed base and recurring profile support visibility into cash flows, and the current quarter’s revenue projection is consistent with a narrative of continued demand across core offerings. Earnings strength year-over-year—evidenced by the 27.67% expected growth in adjusted EPS—suggests that disciplined operating practices and improved revenue quality could offset operating investment pressure reflected in the projected 8.98% year-over-year decline in EBIT. Over the quarter, the shape of results will likely be defined by execution on cross-sell within the Subscription portfolio and contraction avoidance, where consistency in retention metrics becomes the base case for maintaining the expected 11.66% year-over-year revenue growth. Importantly, last quarter’s 80.71% gross margin highlights the structural economics of the Subscription model; if margin holds near prior levels on higher revenue, EPS conversion can meet or slightly exceed estimates even if EBIT remains pressured by strategic investments that support future revenue expansion.

Stock Price Drivers This Quarter

The stock price reaction around February 19, 2026 will likely be most sensitive to top-line delivery relative to the 127.03 million US dollar consensus and to adjusted EPS relative to 0.10. Commentary on margins—especially gross margin versus last quarter’s 80.71% and any directional commentary on operating expense discipline—may be catalytic, because investors currently see a setup of higher year-over-year EPS with lower year-over-year EBIT, and clarity on the drivers of that dynamic will shape the narrative. Guidance and qualitative color on upcoming quarters, particularly around Subscription growth drivers, retention, and pricing efficacy, will be crucial in validating the sustainability of the expected year-over-year revenue and EPS trajectory; any indication of mix shifts within Subscription or normalization of operating costs could recalibrate valuation frameworks. Subscription remains the key performance vector and the source of both opportunity and risk; a beat on revenue paired with constructive commentary on recurring metrics can reinforce the 11.66% growth thesis, whereas a miss or softer commentary on retention could call into question the magnitude of the EPS uplift implied by the 27.67% year-over-year forecast. The sequential change in revenue relative to last quarter—down from 131.71 million US dollars to a 127.03 million US dollar projection—may also frame expectations; positive surprises would involve stronger-than-modeled demand from the installed base or better-than-anticipated pricing outcomes translating to improved profitability.

Operational Levers and Margin Trajectory

The trajectory of margins remains a focal point because the company exited the prior quarter with a gross margin of 80.71% and a GAAP net margin of 1.05%, reflecting substantial operating costs and below-the-line effects despite robust gross profitability. For the period under review, the interplay between revenue growth of 11.66% year-over-year and the 27.67% year-over-year increase in adjusted EPS indicates that management is expected to control costs sufficiently to deliver earnings expansion even as EBIT contracts year-over-year. The gap between EBIT and EPS projections suggests that factors such as depreciation, amortization, or non-operating items may benefit EPS, and any detailed commentary that reconciles these components will be sought by investors to validate the sustainability of the earnings path. Should gross margin remain close to its previous level while operating expenses are managed within plan, earnings could align with the 0.10 adjusted EPS projection, and the resulting confidence could influence valuation multiples given the durable Subscription profile. Conversely, if operating costs are above plan or if revenue mix shifts in a way that reduces gross efficiency, the conversion to EPS may be more muted than the 27.67% year-over-year projection implies, even if top-line meets expectations.

Cash Generation and Surprise Potential

Last quarter’s EBIT beat, with actual EBIT of 34.46 million US dollars exceeding estimates by 5.49 million US dollars, demonstrated resilience in cash generation and operational execution. This beat set a constructive tone heading into the current quarter, suggesting that disciplined delivery can mitigate pressure from investment cycles, especially when anchored by a stable subscription base. For the current quarter, the consensus EBIT forecast of 27.38 million US dollars embeds caution, with an 8.98% year-over-year decline anticipated; a stronger-than-expected performance would leverage the prior quarter’s operational signals. The degree to which cash generation matches or improves on expectations will be closely watched in the context of EPS forecasts; if EPS meets or exceeds the 0.10 projection while cash generation shows consistency, investors may treat the negative year-over-year EBIT print as an artifact of the timing of investments rather than a sign of structural weakness. Developments around capital allocation, renewals, and recurring revenue quality within Subscription will feed into assessments of free cash flow resilience, even though detailed cash flow projections are not disclosed in the current data.

Analyst Opinions

Bullish views outnumber bearish ones during the current window, with a 100% bullish ratio among the opinions collected between January 1, 2026 and February 12, 2026. On February 9, 2026, RBC Capital’s Matthew Hedberg reiterated an Outperform rating while reducing the price target to 8.00 US dollars, signaling a constructive stance on the shares balanced by a more conservative valuation framework that likely reflects the projected year-over-year decline in EBIT in the current quarter against an improving EPS outlook. Earlier in the period, on January 23, 2026, B. Riley initiated coverage with a Buy rating and a 10.00 US dollar price target, and recent aggregation of sell-side views indicated an average rating of overweight with a mean price target near 9.25 US dollars as of February 9, 2026. Together, these positions convey a majority confidence in the Subscription-driven model and in the company’s ability to translate revenue into earnings despite near-term EBIT compression, with the difference in price targets capturing varying assumptions about operating expense normalization and the cadence of growth from the installed base.

The underlying logic of the bullish majority appears to align with the quantitative setup for the quarter: consensus expects revenue of 127.03 million US dollars, up 11.66% year-over-year, and adjusted EPS of 0.10, up 27.67% year-over-year, suggesting operating conversion that supports earnings expansion. While EBIT is forecast to decline 8.98% year-over-year to 27.38 million US dollars, bulls seem to accept this as consistent with investment timing rather than an erosion of the subscription model’s economics; RBC’s Outperform stance despite a lower 8.00 US dollar target reflects that view. B. Riley’s 10.00 US dollar target implies stronger confidence in valuation support if the company delivers on revenue and EPS trajectories and provides clarity on margin path and cash-generation consistency. In practice, this means the sell-side will likely focus on the degree to which management’s commentary confirms stable gross margin relative to last quarter’s 80.71%, outlines operating cost discipline to backstop the EPS expansion, and points to healthy renewal and add-on dynamics within the Subscription portfolio. If those elements are confirmed alongside delivery in line with or ahead of the 127.03 million US dollar revenue and 0.10 adjusted EPS projections, bullish models anticipate that valuation can be sustained or modestly re-rated, while any deviation in the form of softer retention, lower attach rates, or unexpected expense pressure could challenge that majority view.

Ultimately, the majority of analysts expect N-able, Inc. to demonstrate the resilience of its recurring revenue base during the current quarter, a stance consistent with last quarter’s solid gross profitability and the revenue mix heavily concentrated in Subscription. The relationship between the projected year-over-year EPS growth and the year-over-year decline in EBIT is interpreted by bulls as a near-term effect of investment and mix rather than a deterioration in fundamentals, and the priority remains on visibility into the drivers of revenue and the sustainability of earnings conversion in subsequent quarters. With the reporting date set for February 19, 2026, Pre-Market, the stage is set for the company to validate the consensus case by pairing the expected 11.66% year-over-year revenue growth with commentary that strengthens confidence in recurring dynamics and margin stewardship, which underpins the bullish institutional perspective reflected across the period.