N-ABLE(US:NABL)2026-02-26 21:39Financial Performance - Revenue for the years ended December 31, 2025, 2024, and 2023 was $511.4 million, $466.1 million, and $421.9 million, respectively, representing increases of 10.5% and 9.7% year-over-year[26]. - Net income (loss) for the years ended December 31, 2025, 2024, and 2023 was $(17.0) million, $31.0 million, and $23.4 million, respectively[26]. - Adjusted EBITDA for the years ended December 31, 2025, 2024, and 2023 was $153.2 million, $169.4 million, and $143.4 million, respectively[26]. - Total revenue increased by $45.3 million, or 9.7%, for the year ended December 31, 2025, compared to 2024, reaching $511.4 million[322]. - Subscription revenue rose by $47.3 million, or 10.3%, for the year ended December 31, 2025, driven by growth in data protection, security, and UEM solutions[323]. - The annual dollar-based net revenue retention rate for subscription products was approximately 103% for both 2025 and 2024, reflecting the impact of pricing and packaging changes[324]. - GAAP operating income for 2025 was $36.8 million, a decrease from $82.4 million in 2024 and $70.3 million in 2023[354]. - Non-GAAP operating income for 2025 was $124.9 million, compared to $142.9 million in 2024 and $119.6 million in 2023, with a non-GAAP operating margin of 24.4%[354]. - Adjusted EBITDA for 2025 was $153.2 million, down from $169.4 million in 2024, with an adjusted EBITDA margin of 30.0%[358]. - The company reported a net loss of $17.0 million for 2025, compared to net income of $31.0 million in 2024[358]. Market Opportunity and Growth - The global market opportunity for the company's solutions is estimated to be $50 billion in 2026, growing at approximately 14% to about $65 billion by 2028[37]. - IT spending by businesses with up to 2,500 employees is expected to reach $2.2 trillion in 2026 and increase to $2.6 trillion by 2028[28]. - The company has over 500,000 businesses worldwide using its cloud-based software solutions[37]. - The company achieved a dollar-based net revenue retention rate of 110% for the trailing twelve-month period ended December 31, 2023, indicating strong customer growth and retention[52]. - 50.4%, 51.8%, and 51.2% of total revenue was generated from international markets for the years ended December 31, 2025, 2024, and 2023, respectively, highlighting a strong global presence[52]. - As of December 31, 2025, the company had 2,671 customers with an Annual Recurring Revenue (ARR) over $50,000, an increase of 13.7% from 2,349 customers as of December 31, 2024[74]. - Customers with ARR over $50,000 represented approximately 61% of the company's total ARR as of December 31, 2025, up from 57% the previous year[74]. Product and Service Offerings - The platform includes three core solution categories: unified endpoint management, data protection as-a-service, and security operations, designed to meet diverse customer needs[49]. - The unified endpoint management (UEM) solutions support thousands of device types across major categories, enhancing visibility and performance management for customers[51]. - The company’s data protection capabilities are fully cloud-based, offering backup and disaster recovery solutions for various IT environments[53]. - The extended detection and response (XDR) platform leverages machine learning to automate threat identification and remediation, enhancing cybersecurity for customers[58]. - The company’s professional services automation and ticketing system improves operational efficiency by managing customer interactions and technical support[60]. - The platform features over 100 out-of-the-box automation policies, allowing customers to focus on higher-value activities by automating common tasks[64]. - The platform offers over 100 out-of-the-box automated tasks to enhance service efficacy and capacity[42]. Sales and Marketing Strategy - The company employs a low-touch, high-velocity sales model complemented by a flexible, analytics-driven marketing strategy[45]. - The subscription pricing model allows customers to purchase solutions based on committed volumes or a "pay-as-you-go" model[46]. - The marketing strategy employs a data-driven approach, utilizing digital marketing techniques to generate qualified opportunities for the sales organization[77]. - The sales organization is structured by channel segment, key solution categories, and geographic region to optimize customer acquisition efforts[82]. Operational Efficiency and Support - The platform is designed for quick configuration and deployment, enabling efficient service delivery to customers[46]. - The company provides 24x7x365 technical support for its platform and solutions, complemented by self-service resources and educational programs[89]. - The company operates a global, multi-cloud architecture, utilizing a mix of private data centers, AWS, and Azure to enhance service delivery and customer experience[68]. - Strategic technology partnerships enable third-party vendors to integrate with the platform, streamlining workflows and enhancing service offerings for customers[70]. Financial Management and Investments - Total cost of revenue increased by $36.4 million, or 45.1%, in 2025, primarily due to increased public cloud infrastructure and hosting fees of $14.4 million[326]. - Sales and marketing expenses grew by $27.6 million, or 20.3%, primarily due to increased personnel costs and transaction-related costs[328]. - Research and development expenses increased by $10.0 million, or 11.0%, driven by higher personnel costs and contract services costs[329]. - General and administrative expenses rose by $15.2 million, or 19.9%, mainly due to increased transaction-related costs and bad debt expense[330]. - Interest expense, net was $(35.997) million, representing (7.0)% of revenue for the year ended December 31, 2025, compared to $(30.031) million, or (6.4)% in 2024[332]. - The cost of revenue as a percentage of total revenue increased to 22.9% in 2025 from 17.4% in 2024[326]. - Other revenue decreased by $2.0 million, or 27.9%, primarily due to a decline in maintenance revenue[325]. - Interest expense, net increased by $6.0 million, or 19.9%, in 2025 compared to 2024, primarily due to a $5.4 million increase related to the Adlumin deferred consideration liability[333]. - Other income, net decreased by $0.3 million, or 17.2%, in 2025 compared to 2024, mainly due to a $3.3 million decrease in dividend income from money market fund financial assets[334]. - Income tax expense decreased by $3.9 million in 2025 compared to 2024, with an effective tax rate increase to 812.3% due to unbenefited losses in the United States[335]. - The company has committed purchase obligations of $243.2 million through 2029 and operating lease liabilities of $36.5 million through 2032[362]. - The company is evaluating potential investments or acquisitions, which could impact cash reserves and may require additional financing[363]. Employee Engagement and Corporate Responsibility - The company employs 1,852 employees as of December 31, 2025, with 398 in the United States and 1,454 outside the U.S.[94]. - In 2025, employees donated over 3,000 hours to non-profit organizations during the company's annual Season of Giving[102]. - The company has received multiple awards in 2025, including Great Place to Work Certification and recognition for diversity and employee satisfaction[106].