N-ABLE(US:NABL)2025-11-06 12:09Financial 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]