Financial Data and Key Metrics Changes - Total ARR reached $513.7 million, growing 14% year over year, with a 12% increase on a constant currency basis [28] - Total revenue was $131.2 million, exceeding guidance by $4.7 million, representing approximately 10% year over year growth on a reported basis and 8% on a constant currency basis [28] - Adjusted EBITDA was $41.6 million, which is $6.6 million above the high end of guidance, resulting in an adjusted EBITDA margin of approximately 31.7% [30] - Dollar-based net revenue retention was approximately 102% on a reported basis and 101% on a constant currency basis [29] Business Line Data and Key Metrics Changes - Net new ARR growth was led by data protection, followed by security operations and unified endpoint management (UEM) [10] - Cove, the data protection solution, recorded its highest bookings and net new ARR quarter ever, with 25% year over year ARR growth [12] - Security operations, particularly the XDR and MDR offerings, showed healthy ARR growth, with Canalys reporting a 16% growth projection for MDR in 2025 [14] Market Data and Key Metrics Changes - Approximately 45% of revenue was generated outside of North America [31] - The company is seeing a healthy demand environment, with IT spending remaining stable among mid-market companies [68] Company Strategy and Development Direction - The company aims to expand its channel strategy to unlock new markets, focusing on resellers, system integrators, and distributors [22] - The growth strategy is built on three pillars: driving security success, scaling go-to-market efforts, and boosting customer expansion [25] - The company is focused on integrating AdLumen into its cyber resilience platform and enhancing its channel motion to capture mid-market opportunities [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute and create long-term value amidst a complex threat landscape [35] - The outlook for the second half of 2025 suggests more growth in ARR compared to the first half, despite some foreign exchange dynamics [53] Other Important Information - The company began executing a share repurchase program as part of its capital allocation strategy, reflecting confidence in the business [27] - The company appointed Vikram Ramesh as Chief Marketing Officer to advance its mission and amplify its message globally [24] Q&A Session Summary Question: Can you provide more color on the go-to-market traction with resellers? - The go-to-market teams are finding a rhythm with three pillars to engage mid-market companies, leading to increased bookings and opportunities [38][39] Question: Where are we with the optimization and ASC 606 headwinds? - The company is seeing healthy renewal rates around 90%, indicating customer willingness to recommit [48] Question: Can you provide detail on the ARR guidance? - There are FX dynamics at play, but the second half implies more growth in ARR compared to the first half [53] Question: How are you educating MSP customers on the opportunity? - The company emphasizes augmenting MSP capabilities with its XDR technology, allowing them to focus on strategic initiatives [60] Question: What do you attribute the strength in the $50k customer adds to? - The focus on larger MSPs and the ability to cross-sell the portfolio are key drivers of strength in customer additions [62]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE AC OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40297 N-able, Inc. (Exact name of registrant as specified in its charter) Delaware 85-4069861 (State or other jurisdiction of inco ...

Financial Performance & Growth - N-able's Annual Recurring Revenue (ARR) reached $514 million [9] - The company achieved an ARR growth rate of 14% [9] - N-able's Net Retention Rate (TTM) is 102% [9] - The Non-GAAP Adjusted EBITDA Margin (TTM) is 32% [9] - The Non-GAAP Gross Margin (TTM) is 82% [9] Market Opportunity & Strategy - The Small and Mid-market Business (SMB & Mid-market) IT Total Addressable Market (TAM) is estimated at $2.1 trillion in 2025 [13] - N-able estimates a cross-sell opportunity of over $2.5 billion across its product lines [51] - N-able projects an Average Revenue Per Customer TTM of $194000 in Q2 2025 [61] Future Outlook - N-able anticipates Q3 2025 ARR to be between $525 million and $530 million, representing a year-over-year growth of 9-10% [63] - The company forecasts Q3 2025 revenue to be between $127 million and $128 million, a year-over-year increase of 9-10% [63] - N-able expects Q3 2025 Adjusted EBITDA margin to be 28%-29%, translating to $36 million - $37 million [63] - N-able projects FY'25 revenue to be between $500 million and $503 million, a year-over-year increase of 7-8% [63]

Exhibit 99.1 "Q2 was another strong quarter for N-able, as we surpassed the $500M ARR milestone, beat the high end of our top-and-bottom-line guidance, and began executing on our share repurchase program," added N-able CFO Tim O'Brien. "As we advance our strategy to deliver cyber resiliency at scale, we remain focused on growth-oriented investment and disciplined execution." Second quarter 2025 financial highlights: For a reconciliation of our GAAP to non-GAAP results, please see the tables below. N-able An ...

Financial Data and Key Metrics Changes - First quarter ARR grew 11% year over year in constant currency, with total ARR reaching $492.7 million, reflecting a 10% year-over-year growth on a reported basis [24][26] - First quarter revenue was $118.2 million, exceeding guidance by $2.2 million, representing approximately 4% year-over-year growth on a reported basis [25][26] - Adjusted EBITDA for the first quarter was $31.6 million, reflecting a 27% margin, which was above the high end of guidance [27][30] - Gross margin for the first quarter was 80.6%, down from 84.7% in the same period in 2024 [27] Business Line Data and Key Metrics Changes - Subscription revenue was $116.8 million, representing approximately 5% year-over-year growth on a reported basis [26] - The company ended the quarter with 2,398 customers contributing $50,000 or more of ARR, up approximately 10% year over year [26] - Dollar-based net revenue retention was approximately 101% on both a reported and constant currency basis [26] Market Data and Key Metrics Changes - Approximately 43% of revenue was generated outside of North America during the quarter [28] - The company is targeting to reach $750 million in ARR by 2028, driven by security success, scaling go-to-market efforts, and boosting customer expansion [8][24] Company Strategy and Development Direction - The company is focused on enhancing its cyber resiliency platform to address the growing demand for security solutions among small and mid-market businesses [7][8] - Key growth pillars include expanding the go-to-market strategy to capture a broader range of channel providers, including resellers and system integrators [18][19] - The company is committed to CMMC 2.0 readiness to enhance its appeal in regulated sectors [20] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is some elongation in deal cycles, overall demand for cyber resiliency solutions remains strong [42][68] - The company is raising its full-year revenue and ARR guidance based on strong first-quarter results and updated foreign exchange rates [29][31] - Management expressed confidence in the growth potential driven by new product launches and channel expansion efforts [30][31] Other Important Information - The company announced a $75 million share repurchase authorization program, indicating confidence in its business [24] - The adjusted EBITDA outlook for the full year is raised to $134 million to $139 million, representing a margin of 27% to 28% [31] Q&A Session Summary Question: Contribution of AdLumin acquisition to revenue growth - The AdLumin acquisition contributed approximately $21 million of ARR, which should help in calculating the organic growth rate [36] Question: Considerations for seasonality in ARR - Management expects ARR growth to be consistent throughout the year with slight improvements [37] Question: Market spending environment and customer feedback - Demand for cyber resiliency remains strong, although some deals are taking longer to close [42][68] Question: Dollar-based net retention dynamics - Management expects the current retention rate to be a trough, with improvements driven by cross-sell opportunities [46] Question: Reseller traction and growth potential - The company is in the early stages of expanding its reseller network, with expectations for more significant impacts in 2026 [55][57] Question: Impact of FX on revenue guidance - The increase in revenue guidance is primarily related to FX, with constant currency outlook held steady [66] Question: EBITDA margin expectations - The focus for 2025 is on growth acceleration, with expectations to return to low 30s EBITDA margins in 2026 [71]

Financial Data and Key Metrics Changes - First quarter ARR grew 11% year over year in constant currency, with total ARR reaching $492.7 million, reflecting a 10% year-over-year growth on a reported basis [24][25] - First quarter revenue was $118.2 million, exceeding guidance by $2.2 million, representing approximately 4% year-over-year growth on a reported basis [25][26] - Adjusted EBITDA for the first quarter was $31.6 million, reflecting a 27% margin, which was above the high end of guidance [26][27] - Gross margin for the first quarter was 80.6%, down from 84.7% in the same period in 2024 [26] Business Line Data and Key Metrics Changes - Subscription revenue was $116.8 million, representing approximately 5% year-over-year growth on a reported basis [25] - The company ended the quarter with 2,398 customers contributing $50,000 or more of ARR, up approximately 10% year over year [25] - Dollar-based net revenue retention was approximately 101% on both a reported and constant currency basis [25] Market Data and Key Metrics Changes - Approximately 43% of revenue was generated outside of North America during the quarter [28] - The company is targeting $750 million in ARR by 2028, driven by three growth pillars: driving security success, scaling go-to-market efforts, and boosting customer expansion [7][8] Company Strategy and Development Direction - The company is focused on expanding its go-to-market strategy by partnering with a broader range of channel providers, including resellers and system integrators [18][19] - The launch of new security capabilities and the growth of channel partners are seen as key components of the company's innovation and growth strategy [33] - The company is committed to CMMC 2.0 readiness to enhance its appeal in regulated sectors [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for cybersecurity solutions, noting that the need for cyber resiliency is a must for businesses [42] - Despite some anecdotal evidence of longer sales cycles, the overall demand remains strong, and the pipeline is robust [42][70] - The company raised its revenue and ARR guidance for the full year, reflecting strong first-quarter results and updated foreign exchange rates [29][30] Other Important Information - The company announced a $75 million share repurchase authorization program, indicating confidence in its business [24] - The adjusted EBITDA guidance for the full year was raised, with expectations of $134 million to $139 million, representing a margin of 27% to 28% [31] Q&A Session Summary Question: Contribution of AdLumin acquisition to revenue growth - The AdLumin acquisition contributed approximately $21 million of ARR at the time of acquisition, which should help in calculating organic growth rates [36][37] Question: Considerations for seasonality in ARR - Management expects ARR growth to be consistent throughout the year, with slight improvements as the year progresses [38] Question: Market spending environment and customer feedback - Demand for cybersecurity solutions remains strong, with no significant changes in metrics, although some deals are taking longer to close [42][70] Question: Dollar-based net revenue retention dynamics - Management expects the current retention rate to be a trough, with improvements driven by cross-selling opportunities [45][47] Question: Reseller traction and growth potential - The company is in the early stages of expanding its reseller network, with expectations for more significant impacts in 2026 [56][58] Question: Integration of offerings into a single platform - The company is focused on automating workflows and integrating its offerings to enhance efficiency and security for customers [96][100]

N-able (NABL) came out with quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 33.33%. A quarter ago, it was expected that this provider of cloud-based software services would post earnings of $0.08 per share when it actually produced earnings of $0.10, delivering a surprise of 25%.Over the last four ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited consolidated financial statements for N-able, Inc. as of March 31, 2025, and for the three months then ended, show total revenue of **$118.2 million** and a net loss of **$7.2 million**, a significant shift from a net income of **$7.5 million** in the same period of 2024, with total assets increasing slightly to **$1.35 billion** and cash flow from operations improving significantly to **$19.7 million** from **$4.2 million** year-over-year [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were **$1.352 billion**, a slight increase from **$1.339 billion** at December 31, 2024, primarily driven by a rise in goodwill and cash and cash equivalents, while total liabilities decreased slightly to **$577.0 million** and total stockholders' equity increased to **$775.1 million** Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $183,785 | $183,920 | | **Goodwill** | $991,352 | $977,010 | | **Total Assets** | **$1,352,077** | **$1,338,840** | | **Total Current Liabilities** | $153,670 | $150,090 | | **Long-term Debt, net** | $329,121 | $329,600 | | **Total Liabilities** | **$576,976** | **$579,550** | | **Total Stockholders' Equity** | **$775,101** | **$759,280** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, N-able reported a net loss of **$7.2 million**, compared to a net income of **$7.5 million** in the prior-year period, as revenue grew **3.9%** to **$118.2 million**, but a significant increase in total cost of revenue (up **51.3%**) and operating expenses (up **18.3%**) led to a sharp decline in operating income from **$20.5 million** to **$1.8 million** Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Subscription and other revenue | $118,197 | $113,740 | | Gross Profit | $90,519 | $95,450 | | Operating Income | $1,824 | $20,490 | | Net (Loss) Income | $(7,162) | $7,450 | | Diluted (Loss) Income Per Share | $(0.04) | $0.00 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2025, net cash provided by operating activities was **$19.7 million**, a substantial increase from **$4.2 million** in Q1 2024, while net cash used in investing activities was **$6.1 million** and net cash used in financing activities decreased to **$7.3 million** from **$11.9 million** year-over-year, resulting in an **$8.9 million** increase in cash and cash equivalents during the quarter Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $19,677 | $4,184 | | Net cash used in investing activities | $(6,076) | $(5,127) | | Net cash used in financing activities | $(7,289) | $(11,916) | | **Net increase (decrease) in cash** | **$8,894** | **$(13,821)** | | **Cash and cash equivalents, end of period** | **$94,090** | **$139,227** | [Notes to the Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the company's accounting policies and financial results, covering topics such as operations, revenue recognition, acquisitions, goodwill, parent company relationships, fair value measurements, debt structure, and geographic revenue breakdown - The company provides cloud-based security, data protection, and unified endpoint management software solutions for managed service providers (MSPs) that serve small and medium-sized businesses[30](index=30&type=chunk) - On November 20, 2024, the company acquired Adlumin, Inc. for aggregate consideration including **$98.7 million** in cash, up to **1.57 million** shares of common stock, and potential future payments of up to **$150 million** in deferred and contingent consideration[56](index=56&type=chunk) - The company operates as a single operating and reportable segment, with revenue from the United States accounting for **51.2%** of total revenue in Q1 2025, up from **47.9%** in Q1 2024[117](index=117&type=chunk)[119](index=119&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for Q1 2025, highlighting a **3.9%** revenue increase to **$118.2 million** and a **10.3%** rise in Annual Recurring Revenue (ARR) to **$492.7 million**, detailing the drivers behind increased costs that led to a net loss of **$7.2 million** compared to a net income of **$7.5 million** in the prior year, and covering the impact of the Adlumin acquisition, the Long-Term Contract Initiative, non-GAAP measures like Adjusted EBITDA (which decreased to **$31.6 million** from **$39.6 million**), and the company's liquidity position Q1 2025 Key Financial Highlights | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $118.2M | $113.7M | +3.9% | | Net (Loss) Income | $(7.2)M | $7.5M | -196% | | Adjusted EBITDA | $31.6M | $39.6M | -20.2% | | Cash Flow from Operations | $19.7M | $4.2M | +370% | - Annual Recurring Revenue (ARR) grew **10.3%** to **$492.7 million** as of March 31, 2025, up from **$446.6 million** a year prior, driven by steady demand and the Adlumin acquisition[126](index=126&type=chunk) - The annual dollar-based net revenue retention rate was approximately **101%** for the trailing twelve months ended March 31, 2025, down from **111%** a year ago, reflecting pressure from pricing changes and the Long-Term Contract Initiative[145](index=145&type=chunk) - The decrease in profitability was primarily due to increased cost of revenue and operating expenses related to the Adlumin acquisition, including higher amortization, personnel costs, and transaction-related expenses[129](index=129&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks, primarily from interest rate fluctuations on its variable-rate debt and foreign currency exchange rate movements, with **$332.6 million** in borrowings under its Credit Agreement as of March 31, 2025, where a hypothetical **100 basis point** increase in interest rates would result in an approximate **$3.4 million** annual increase in interest expense, and faces foreign currency transaction and translation risks from its global operations, particularly involving the Euro, British Pound Sterling, and Canadian Dollar against the U.S. Dollar - The company's debt under the Credit Agreement bears interest at a floating SOFR-based rate, where a hypothetical **100 basis point** increase in interest rates would increase annual interest expense by approximately **$3.4 million**[186](index=186&type=chunk)[187](index=187&type=chunk) - As a global company, N-able is exposed to foreign currency exchange risk from selling in multiple currencies and operating in various countries, with key currencies including the Euro, British Pound Sterling, and Canadian Dollar[191](index=191&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of March 31, 2025, and concluded they were **effective at a reasonable assurance level**, with no material changes in the company's internal control over financial reporting during the first quarter of 2025 - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were **effective at a reasonable assurance level**[197](index=197&type=chunk) - No changes occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[198](index=198&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, and management believes the resolution of any pending claims is **not expected to have a material adverse impact** on its financial statements - The company states that the resolution of any pending legal claims is **not expected to have a material adverse impact** on its consolidated financial statements, cash flows, or financial position[109](index=109&type=chunk)[200](index=200&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) There have been **no material changes** to the company's risk factors from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - **No material changes** in risk factors were reported from those disclosed in the 2024 Annual Report[201](index=201&type=chunk) [Item 2. Unregistered Sales of Equity and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20and%20Use%20of%20Proceeds) On March 11, 2025, the board of directors approved a share repurchase program authorizing the repurchase of up to **$75.0 million** of the company's common stock, which has no expiration date and does not obligate the company to acquire a specific amount of shares, and no shares were repurchased under this program in the three months ended March 31, 2025 - A share repurchase program for up to **$75.0 million** of common stock was approved on March 11, 2025[202](index=202&type=chunk) - The company **did not repurchase any shares** under the program during the first quarter of 2025[202](index=202&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) During the first quarter of 2025, **no directors or officers adopted or terminated any Rule 10b5-1 trading plans** or other non-Rule 10b5-1 trading arrangements - **No directors or officers adopted or terminated any Rule 10b5-1 trading plans** during the three months ended March 31, 2025[203](index=203&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section provides an index of the exhibits filed with the Form 10-Q, including agreements related to the spin-off from SolarWinds, corporate governance documents, and officer certifications - Lists exhibits filed with the report, including the Separation and Distribution Agreement, corporate charters, and Sarbanes-Oxley certifications[206](index=206&type=chunk)

Investor Presentation May 2025 © 2025 N-able Solutions ULC and N-able Technologies Ltd. All rights reserved. 1 Disclaimers General This presentation and the accompanying oral presentation do not constitute an offer or invitation for the sale or purchase of securities and has been prepared solely for informational purposes. The information contained in this presentation (the "Presentation") has been prepared to assist financial analysts in making their own evaluation of N-able, Inc. in connection with publis ...

[N-able First Quarter 2025 Results](index=1&type=section&id=N-able%20First%20Quarter%202025%20Results) [Q1 2025 Performance Highlights](index=1&type=section&id=First%20quarter%202025%20financial%20highlights) N-able reported strong Q1 2025 results, exceeding guidance with solid revenue and ARR growth, despite a GAAP net loss, while raising full-year outlook - Raised the midpoint of the full-year 2025 revenue outlook from **$489.5 million** to **$494.5 million**[1](index=1&type=chunk) Q1 2025 Financial Highlights vs. Q1 2024 | Metric | Q1 2025 ($M) | YoY Growth (Reported) | YoY Growth (Constant Currency) | | :--- | :--- | :--- | :--- | | Total Revenue | $118.2 | 3.9% | 5.7% | | Subscription Revenue | $116.8 | 4.8% | 6.6% | | Total ARR | $492.7 | 10.3% | 10.9% | | Adjusted EBITDA | $31.6 | -20.2% | N/A | | GAAP Net (Loss) Income | $(7.2) | N/A | N/A | | Non-GAAP Net Income | $15.6 | -21.2% | N/A | | GAAP Diluted EPS | $(0.04) | N/A | N/A | | Non-GAAP Diluted EPS | $0.08 | -27.3% | N/A | - As of March 31, 2025, the company held **$94.1 million** in cash and cash equivalents and had total debt of **$332.6 million**[5](index=5&type=chunk) [Recent Business Highlights](index=1&type=section&id=Additional%20recent%20business%20highlights) N-able advanced strategic initiatives by launching new security capabilities, enhancing product offerings, and approving a **$75 million** share repurchase program - Launched its first annual 2025 State of the SOC Report, providing insights on security operations trends[4](index=4&type=chunk) - Expanded Microsoft Cloud management and security capabilities with Adlumin Breach Prevention for Microsoft 365[4](index=4&type=chunk) - Announced the upcoming launch of a built-in Vulnerability Management feature for its N-central and N-sight UEM products[4](index=4&type=chunk) - The Board of Directors approved a share repurchase program authorizing up to **$75 million** of its common stock[4](index=4&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) N-able provided its non-GAAP financial outlook for Q2 and full-year 2025, raising full-year revenue guidance and projecting continued growth Q2 2025 Financial Outlook (Non-GAAP) | Metric | Range ($M) | YoY Growth (Reported & Constant Currency) | | :--- | :--- | :--- | | Total Revenue | $125.5 - $126.5 | ~5% to 6% | | Adjusted EBITDA | $34.0 - $35.0 | ~27% to 28% of revenue | Full-Year 2025 Financial Outlook (Non-GAAP) | Metric | Range ($M) | YoY Growth (Reported) | YoY Growth (Constant Currency) | | :--- | :--- | :--- | :--- | | Total ARR | $519 - $525 | 8% to 9% | ~7% to 9% | | Total Revenue | $492 - $497 | ~6% to 7% | ~6% to 8% | | Adjusted EBITDA | $134 - $139 | ~27% to 28% of revenue | N/A | [Financial Statements](index=8&type=section&id=Financial%20Statements) This section presents N-able's unaudited consolidated financial statements for Q1 2025, detailing its financial position and performance [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) N-able's total assets increased to **$1.35 billion** as of March 31, 2025, with a marginal decrease in liabilities and an increase in stockholders' equity Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$1,352,077** | **$1,338,847** | | Cash and cash equivalents | $94,090 | $85,196 | | Goodwill | $991,352 | $977,013 | | **Total Liabilities** | **$576,976** | **$579,559** | | Long-term debt, net | $329,121 | $329,606 | | **Total Stockholders' Equity** | **$775,101** | **$759,288** | [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) N-able reported **$118.2 million** in Q1 2025 total revenue, but higher operating expenses led to a significant decrease in operating income and a net loss of **$7.2 million** Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Subscription and other revenue | $118,197 | $113,749 | | Gross Profit | $90,519 | $95,452 | | Operating Income | $1,824 | $20,491 | | Net (Loss) Income | $(7,162) | $7,456 | | Diluted (Loss) Income Per Share | $(0.04) | $0.04 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to **$19.7 million** in Q1 2025, resulting in an **$8.9 million** net increase in cash for the quarter Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $19,677 | $4,184 | | Less: Capital Expenditures | $(6,076) | $(5,127) | | Free cash flow | $13,601 | $(943) | | Add: Cash paid for interest & other items | $14,534 | $8,222 | | **Unlevered free cash flow** | **$28,135** | **$7,279** | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section details the reconciliation of GAAP to non-GAAP financial measures, adjusting for items like stock-based compensation and amortization to present core operating performance [Reconciliation of GAAP to Non-GAAP Financial Measures (Summary)](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures%20(Summary)) N-able's Q1 2025 GAAP operating income of **$1.8 million** was adjusted to a non-GAAP operating income of **$25.3 million**, with a GAAP net loss of **$7.2 million** reconciled to a non-GAAP net income of **$15.6 million** GAAP to Non-GAAP Reconciliation Summary (Q1 2025, in thousands) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Gross Profit | $90,519 | $4,782 | $95,301 | | Operating Income | $1,824 | $23,466 | $25,290 | | Net (Loss) Income | $(7,162) | $22,783 | $15,621 | | Diluted EPS | $(0.04) | $0.12 | $0.08 | [Reconciliation of GAAP Net (Loss) Income to Adjusted EBITDA](index=13&type=section&id=Reconciliation%20of%20GAAP%20Net%20(Loss)%20Income%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q1 2025 was **$31.6 million**, or **26.8%** margin, derived from GAAP net loss by adding back non-operating and non-cash items Adjusted EBITDA Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net (loss) income | $(7,162) | $7,456 | | Adjustments (Amortization, Depreciation, Taxes, Interest, etc.) | $38,805 | $32,183 | | **Adjusted EBITDA** | **$31,643** | **$39,639** | | Adjusted EBITDA Margin | 26.8% | 34.8% | [Reconciliation of GAAP Revenue to Non-GAAP Revenue on a Constant Currency Basis](index=14&type=section&id=Reconciliation%20of%20GAAP%20Revenue%20to%20Non-GAAP%20Revenue%20on%20a%20Constant%20Currency%20Basis) Q1 2025 GAAP total revenue growth was **3.9%** year-over-year, with constant currency growth at **5.7%** after adjusting for a **$2.0 million** negative currency impact Constant Currency Revenue Reconciliation (Q1 2025 vs Q1 2024) | Revenue Type | GAAP Growth | Constant Currency Growth | | :--- | :--- | :--- | | Subscription Revenue | 4.8% | 6.6% | | Total Revenue | 3.9% | 5.7% | [Reconciliation of Unlevered Free Cash Flow](index=15&type=section&id=Reconciliation%20of%20Unlevered%20Free%20Cash%20Flow) Unlevered free cash flow significantly increased to **$28.1 million** in Q1 2025, calculated from operating cash flow adjusted for capital expenditures and interest Unlevered Free Cash Flow Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $19,677 | $4,184 | | Less: Capital Expenditures | $(6,076) | $(5,127) | | Free cash flow | $13,601 | $(943) | | Add: Cash paid for interest & other items | $14,534 | $8,222 | | **Unlevered free cash flow** | **$28,135** | **$7,279** | [Explanation of Non-GAAP Financial Measures and Other Metrics](index=4&type=section&id=Non-GAAP%20Financial%20Measures) N-able utilizes non-GAAP financial measures and key metrics like ARR, Adjusted EBITDA, and Unlevered Free Cash Flow to provide a clearer view of core operating performance - The company uses non-GAAP measures to exclude items that management does not consider part of core operating results, such as stock-based compensation, amortization of acquired assets, transaction costs, and spin-off costs[13](index=13&type=chunk)[19](index=19&type=chunk) - Annual Recurring Revenue (ARR) is calculated by annualizing recurring revenue from subscriptions recognized on the last day of the reporting period[18](index=18&type=chunk) - Adjusted EBITDA is defined as net income excluding amortization, depreciation, taxes, interest, foreign currency effects, transaction costs, stock-based compensation, and other specific costs[21](index=21&type=chunk) - Unlevered Free Cash Flow is a liquidity measure calculated as cash flow from operations, less capital expenditures, and before the impact of capital structure and certain one-time items[23](index=23&type=chunk)