BURLINGTON, Mass.--(BUSINESS WIRE)--N-able (NYSE: NABL), a global software company delivering an end-to-end cyber resilience platform, today announced the appointment of Patrick Pulvermueller as a member of the board of directors. Pulvermueller joins N-able as the company continues to strengthen its leadership team and accelerate its mission to empower organizations to stay secure and resilient in business. Pulvermueller brings decades of experience in technology leadership and cybersecurity and is the foun ...

Shares of N-able (NABL) have gained 1.5% over the past four weeks to close the last trading session at $7.62, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $9.56 indicates a potential upside of 25.5%.The average comprises four short-term price targets ranging from a low of $8.75 to a high of $10.00, with a standard deviation of $0.59. While the lowest estimate indicates an inc ...

Core Insights - N-able has launched a public preview of its N-central unified endpoint management (UEM) solution that supports CMMC 2.0 controls, aimed at enhancing compliance and cyber resilience for customers in the Defense Industrial Base [1][2] - The new capabilities of N-central allow managed services providers (MSPs) and internal IT teams to maintain eligibility for Department of Defense (DoD) contracts by aligning with CMMC 2.0, level 2 standards [2][3] - N-able positions itself as a trusted partner in the compliance landscape, helping customers navigate regulatory shifts and maintain a competitive edge in the federal government and DoD sectors [7] Product Features - N-central provides real-time monitoring and visibility across endpoints, customizable monitoring, asset tracking, and alerting to ensure continuous oversight of IT environments [4] - The solution automates patching, configuration, access controls, and repetitive IT tasks, reducing manual effort and minimizing attack surfaces [4] - Existing customers can continue using N-central while meeting CMMC 2.0 requirements, and new customers can adopt the solution without compromising compliance or capability [4] Strategic Positioning - N-able's approach is to empower customers to lead with confidence in a security-first future, reinforcing its role as a vendor offering purpose-built products for CMMC 2.0 [2] - The company continues to invest in long-term security and compliance innovation across its cyber resilience platform [4] - The public preview of the CMMC-ready N-central version is available now, with general availability planned for early in the first quarter of 2026 [7]

Revenue Growth - Total revenue for the three months ended September 30, 2025, was $131.7 million, an increase of $15.3 million or 13.1% compared to $116.4 million for the same period in 2024[128][146]. - Annual recurring revenue (ARR) as of September 30, 2025, was $528.1 million, representing a 14.2% increase from $462.4 million as of September 30, 2024[130]. - Subscription revenue for the three months ended September 30, 2025, was $130.5 million, a 13.5% increase from $115.0 million in the same period in 2024[146][147]. - Total revenue increased by $31.5 million, or 9.0%, for the nine months ended September 30, 2025, compared to the same period in 2024[162]. - Subscription revenue increased by $33.3 million, or 9.7%, for the nine months ended September 30, 2025, representing 99.0% of total revenue[163]. Customer Metrics - The number of customers with ARR over $50,000 increased by 14.8% to 2,611 as of September 30, 2025, up from 2,275 as of September 30, 2024[131]. - The annual dollar-based net revenue retention rate for subscription products was approximately 102% for the trailing twelve-month period ended September 30, 2025, down from 105% for the same period in 2024[148][164]. Operating Income and Expenses - Operating income for the three months ended September 30, 2025, was $11.6 million, down from $23.9 million for the same period in 2024[133]. - Operating expenses rose by $17.8 million, or 24.5%, for the three months ended September 30, 2025, compared to the same period in 2024, driven by increases in sales and marketing, research and development, and general and administrative expenses[152]. - Total operating expenses for the nine months ended September 30, 2025, increased by $45.7 million, or 20.2%, to $271.6 million, representing 71.3% of revenue compared to 64.6% in 2024[167]. Net Income and Tax - Net income for the three months ended September 30, 2025, was $1.4 million, a decrease from $10.8 million for the same period in 2024, primarily due to increased expenses[133]. - The effective tax rate increased to 82.2% for the three months ended September 30, 2025, primarily due to an increase in unbenefited losses in the United States[159]. - Income tax expense decreased by $4.8 million, with an effective tax rate of 293.0% for the nine months ended September 30, 2025, primarily due to an increase in unbenefited losses in the U.S.[174]. Cash Flow and Investments - Cash flows from operations for the three months ended September 30, 2025, were $24.0 million, compared to $22.0 million for the same period in 2024[134]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $67.9 million, an increase from $53.5 million in 2024[195]. - Net cash used in investing activities increased to $22.0 million for the nine months ended September 30, 2025, compared to $15.6 million in 2024, primarily due to increased capitalized research and development costs[199]. - The company repurchased $10.0 million of common stock during the three months ended September 30, 2025, and $20.0 million during the nine months ended September 30, 2025, under its share repurchase program[192]. Acquisitions and Future Plans - The company completed the acquisition of Adlumin on November 20, 2024, contributing to revenue growth and customer expansion[130]. - The company expects to continue growing its sales and marketing organization to drive new customer additions and retain existing customers[139]. - Research and development expenses are anticipated to increase as the company brings new product offerings to market and enhances security features[140]. - The company has not entered into any material definitive agreements regarding potential investments or acquisitions but may consider such arrangements in the future[193].

Financial Data and Key Metrics Changes - Total ARR for the third quarter was $528.1 million, reflecting a 14% year-over-year growth on a reported basis and 13% on a constant currency basis [29] - Total revenue reached $131.7 million, exceeding guidance by $3.7 million, representing approximately 13% year-over-year growth on a reported basis and 12% on a constant currency basis [29] - Adjusted EBITDA margin was approximately 31.4%, with adjusted EBITDA of $41.4 million, which was $4.4 million above the high end of guidance [30] - Dollar-based net revenue retention was approximately 102% on a reported basis, indicating improvement year-over-year and quarter-over-quarter [30][25] Business Line Data and Key Metrics Changes - The data protection solution led net new ARR growth in the quarter, showcasing strong demand for security operations and unified endpoint management (UEM) [20][25] - The company launched anomaly detection as a service, enhancing its data protection capabilities and shifting focus from reactive defense to proactive resilience [19] Market Data and Key Metrics Changes - Approximately 45% of revenue was generated outside of North America, indicating a diversified market presence [31] - The company reported a significant increase in detected threats against small and mid-market businesses, highlighting the growing need for cybersecurity solutions [8] Company Strategy and Development Direction - The company is focused on driving security success, scaling its go-to-market strategy, and boosting customer expansion, with a channel-first model proving effective [19][21] - N-able is embedding AI capabilities across its platform to enhance cybersecurity solutions, positioning itself as a leader in the evolving cybersecurity landscape [10][17] - The company aims to democratize security by providing advanced AI SOC capabilities at a fraction of the cost, targeting small and mid-market businesses [15] Management's Comments on Operating Environment and Future Outlook - Management emphasized the critical role of AI in driving demand for cybersecurity solutions and the importance of embedding AI into their platform [10][26] - The outlook for the fourth quarter includes expected total revenue in the range of $126.5-$127.5 million, representing approximately 9% year-over-year growth [33] - The company raised its full-year ARR outlook to $530-$531 million, reflecting a commitment to balancing profitability with growth [34] Other Important Information - The company executed a share repurchase program, demonstrating confidence in its long-term value [26] - N-able's recent initiatives, such as sponsoring CATNIP, aim to standardize AI language across organizations, enhancing automation and efficiency [11] Q&A Session Summary Question: What are the keys behind the building momentum in ARR revenue? - Management attributed the acceleration to successful execution around the Adlumen acquisition and broadening channel presence [39][46] Question: How confident is management that net revenue retention has bottomed? - Management expressed high confidence that net revenue retention bottomed in the first quarter and has been improving due to successful cross-selling and gross retention efforts [49][50] Question: How is the Adlumen acquisition performing relative to initial expectations? - Management indicated that the acquisition thesis is holding true, with strong demand and successful scaling within the MSP community [70][71] Question: What is the company's approach to investing in AI? - Management confirmed ongoing investments in AI, viewing it as a significant opportunity for both short-term and mid-term growth, while maintaining a focus on achieving 30% EBITDA margins [76][80]

Core Insights - N-able (NABL) reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, with an earnings surprise of +44.44% [1] - The company achieved revenues of $131.71 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.30% and showing a year-over-year increase from $116.44 million [2] - N-able has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Financial Performance - The earnings report indicates that N-able's earnings have remained stable year-over-year, with the same earnings per share of $0.13 compared to the previous year [1] - The company has shown a positive trend in revenue growth, with a notable increase in revenues compared to the same quarter last year [2] Market Position - N-able shares have underperformed the market, losing approximately 16.7% since the beginning of the year, while the S&P 500 has gained 15.6% [3] - The current Zacks Rank for N-able is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $124.6 million, and for the current fiscal year, it is $0.35 on revenues of $501.5 million [7] - The outlook for the Technology Services industry, where N-able operates, is favorable, ranking in the top 38% of Zacks industries, indicating potential for outperformance [8]

Financial Performance & Growth - N-able's Annual Recurring Revenue (ARR) reached $528 million as of September 30, 2025[8] - The company achieved a Net Retention Rate of 102% (TTM)[8] - N-able experienced 14% ARR growth[8] - The Non-GAAP Adjusted EBITDA Margin (TTM) was 31%[8] - The Non-GAAP Gross Margin (TTM) was 81%[8] - The company projects full-year 2025 revenue between $507.7 million and $508.7 million, representing a 9% year-over-year growth (8% at constant currency)[62] - The company projects full-year 2025 Adjusted EBITDA between $148.2 million and $149.2 million, with a 29% margin[62] Market Opportunity & Strategy - The Small and Mid-market IT Total Addressable Market (TAM) is estimated at $2.1 trillion in 2025[13] - N-able estimates its total TAM across Unified Endpoint Management (UEM), Data Protection, and Security Operations at $44 billion[22] - N-able sees a cross-sell opportunity of over $2.5 billion across its product lines[52]

Financial Performance - Total revenue for Q3 2025 was $131.7 million, reflecting a 13.1% year-over-year growth, or 11.6% growth on a constant currency basis[4] - Subscription revenue reached $130.5 million, marking a 13.5% year-over-year increase, or 11.9% on a constant currency basis[4] - Total Annual Recurring Revenue (ARR) was $528.1 million, representing a 14.2% year-over-year growth, or 12.9% on a constant currency basis[4] - Adjusted EBITDA for Q3 2025 was $41.4 million, with an adjusted EBITDA margin of 31.4%[4] - GAAP net income was $1.4 million, or $0.01 per diluted share, while non-GAAP net income was $25.4 million, or $0.13 per diluted share[4] - The financial outlook for Q4 2025 includes expected total revenue in the range of $126.5 to $127.5 million, representing approximately 9% year-over-year growth[11] - GAAP subscription revenue for Q3 2025 was $130.5 million, representing a 13.5% increase from $115.0 million in Q3 2024[39] - Non-GAAP subscription revenue on a constant currency basis for Q3 2025 was $128.7 million, reflecting an 11.9% growth compared to $115.0 million in Q3 2024[39] Cash Flow and Assets - As of September 30, 2025, total cash and cash equivalents were $101.4 million, with total debt at $331.7 million[5] - Cash provided by operating activities for the nine months ended September 30, 2025, was $67.87 million, compared to $53.45 million in the same period of 2024, reflecting a 26.9% increase[31] - Cash and cash equivalents at the end of Q3 2025 were $101.44 million, down from $174.45 million at the end of Q3 2024[31] - Unlevered free cash flow is used to evaluate cash flow from operations after capital expenditures, excluding transaction-related costs and restructuring costs, but does not represent cash available for discretionary expenses[22] Expenses and Liabilities - Total operating expenses increased to $90.46 million in Q3 2025, up from $72.63 million in Q3 2024, marking a rise of 24.5%[29] - Research and development expenses for the nine months ended September 30, 2025, were $75.41 million, compared to $67.47 million in 2024, an increase of 11.5%[29] - Interest expense for the nine months ended September 30, 2025, was $23.79 million, compared to $22.76 million in the same period of 2024, reflecting a year-over-year increase of 4.5%[29] - Total liabilities stood at $584,666,000 as of September 30, 2025, slightly up from $579,559,000 as of December 31, 2024, showing a marginal increase of approximately 0.2%[27] Equity and Goodwill - Total stockholders' equity rose to $813,386,000 as of September 30, 2025, compared to $759,288,000 as of December 31, 2024, marking an increase of about 7.1%[27] - Goodwill increased to $1,024,311,000 as of September 30, 2025, from $977,013,000 as of December 31, 2024, indicating a rise of about 4.8%[27] Operational Highlights - N-able launched Cat-MIP, enhancing AI accuracy in cybersecurity and IT management, and released Anomaly Detection as a Service to bolster data protection[4] - N-able hosted its first annual Cyber Resilience Summit, focusing on the future of cyber resilience for small and mid-market organizations[4] - The company emphasizes a partner-first approach, integrating AI-powered capabilities and third-party solutions to enhance customer security and resilience[23] Profitability Metrics - Operating income decreased to $11.60 million in Q3 2025 from $23.91 million in Q3 2024, representing a decline of 51.5%[29] - Net income for Q3 2025 was $1.38 million, a significant drop from $10.76 million in Q3 2024, indicating a year-over-year decrease of 87.2%[29] - GAAP operating income for Q3 2025 was $11.6 million, a significant decline from $23.9 million in Q3 2024[37] - Non-GAAP operating income for Q3 2025 was $34.5 million, down from $37.5 million in Q3 2024[37] - Adjusted EBITDA for Q3 2025 was $41.4 million, with an adjusted EBITDA margin of 31.4%, down from 38.5% in Q3 2024[36]

Core Insights - N-able, Inc. successfully helped CRS Technology Consultants prevent a significant ransomware attack on a regional CPA firm, achieving resolution in under 24 hours without any ransom payment or data loss [1][2][3] Company Overview - N-able, Inc. is a global software company focused on delivering an end-to-end cyber resiliency platform, which includes capabilities for endpoint management, security operations, and data protection [1][6] - The company emphasizes a partner-first approach, combining its products with expert training and peer-led events to empower customers [6] Incident Details - The CPA firm faced a ransomware attack exploiting a known SonicWall vulnerability just days before critical federal tax deadlines [2] - CRS Technology Consultants utilized N-able's cyber resiliency platform to contain and remediate the attack swiftly, allowing the firm to resume operations by lunchtime on the same day [3][4] Response and Recovery - The N-able UEM solution provided real-time alerts as servers began to fail, enabling immediate action to contain the threat [5] - Behavioral AI in N-able's Endpoint Detection and Response solution detected suspicious activity, isolating compromised endpoints to prevent further spread of the attack [5] - Offsite backups via N-able's Cove Data Protection ensured that even destroyed local backups could be restored, maintaining business continuity [5] Strategic Implications - The incident showcased the importance of business resilience, demonstrating that with the right tools and preparation, organizations can recover from ransomware attacks effectively [4] - CRS Technology Consultants has since made N-able's Adlumin MDR a standard service for its clients, enhancing their overall security posture [3]

Core Insights - N-able, Inc. has received five new awards from various prestigious organizations, highlighting its commitment to fostering a thriving employee culture [1][2] - The company emphasizes professional growth, belonging, and well-being alongside innovation and performance, showcasing a holistic approach to employee experience [1] - Earlier in the year, N-able earned six additional awards, including recognitions for best company outlook, diversity, and career growth [2] Awards and Recognition - Recent accolades include Comparably awards for Happiest Employees, Best Company Perks & Benefits, and Best Company Work-Life Balance [6] - N-able also received the 2025 Tech Cares Award from TrustRadius and the Human Resources Executive of the Year award for Kathleen Pai from the Stevie® Awards [6] Company Mission and Culture - N-able's mission focuses on protecting businesses from evolving cyber threats through an end-to-end cyber resiliency platform [4] - The company promotes a partner-first approach, combining products with expert training and events to empower customers [4]