N-ABLE(NABL) - 2025 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2025 was $130.3 million, representing an 11.8% year-over-year growth, or 9.0% growth on a constant currency basis[5] - Subscription revenue for Q4 2025 was $129.0 million, reflecting a 12.1% year-over-year growth, or 9.3% growth on a constant currency basis[5] - Total Annual Recurring Revenue (ARR) reached $539.7 million, indicating an 11.9% year-over-year growth, or 7.7% growth on a constant currency basis[5] - Gross profit for Q4 2025 was $99,244,000, compared to $93,191,000 in Q4 2024, indicating an increase of 6.1%[32] - Operating income for Q4 2025 decreased to $13,243,000 from $15,992,000 in Q4 2024, reflecting a decline of 17.3%[32] - Net loss for Q4 2025 was $7,231,000, compared to a net income of $3,290,000 in Q4 2024, marking a significant shift in performance[32] - Non-GAAP net income for Q4 2025 was $10.805 million, down from $18.838 million in Q4 2024[40] - GAAP subscription revenue for Q4 2025 increased by 12.1% to $129.009 million from $115.033 million in Q4 2024[44] Future Projections - The company expects full-year 2026 total revenue in the range of $554 to $559 million, representing approximately 8% to 9% year-over-year growth on a reported basis[13] - Full-year 2026 adjusted EBITDA is projected to be in the range of $167 to $171 million, representing approximately 30% to 31% of total revenue[13] - N-able plans to invest further in AI innovation and go-to-market expansion while maintaining over 30% adjusted EBITDA margins in 2026[2] Cash and Debt Position - As of December 31, 2025, total cash and cash equivalents were $111.8 million, while total debt was $393.9 million[7] - Total assets as of December 31, 2025, were $1,409,906,000, an increase from $1,338,847,000 in 2024, representing a growth of 5.3%[30] - Total liabilities increased to $605,251,000 in 2025 from $579,559,000 in 2024, indicating a rise of 4.4%[30] - The company generated net cash provided by operating activities of $25,336 thousand for the three months ended December 31, 2025, a decrease from $25,986 thousand in the prior year[34] - The net cash used in investing activities for the twelve months ended December 31, 2025, was $28,958 thousand, a significant decrease from $122,421 thousand in 2024[34] Operating Expenses and Margins - The company reported a total operating expense of $86,001,000 for Q4 2025, up from $77,199,000 in Q4 2024, which is an increase of 11.4%[32] - Adjusted EBITDA for Q4 2025 was $38.6 million, with an adjusted EBITDA margin of 29.6%[5] - GAAP operating margin of 10.2% for the three months ended December 31, 2025, down from 13.7% in the previous year[38] - Stock-based compensation expense for Q4 2025 was $10.365 million, compared to $10.791 million in Q4 2024[43] Recognition and Programs - The company introduced a new Cyber Warranty Program, offering a $100,000 warranty for eligible breach costs[5] - N-able has been recognized in the 2026 Gartner® Magic Quadrant™ for Endpoint Management Tools, highlighting its capabilities in secure endpoint management[5]