N-Able (NYSE:NABL) Q4 2025 Earnings call February 19, 2026 08:30 AM ET Company ParticipantsAdam Holets - Equity Research AssociateGriffin Gyr - Senior Manager of Investor RelationsJohn Pagliuca - President and CEOMatt Hedberg - Head of Global TIMT Research and Director of Equity ResearchTim O'Brien - EVP and CFOConference Call ParticipantsJoe Vruwink - Research AnalystMike Cikos - Senior AnalystOperatorLadies and gentlemen, thank you for joining us, and welcome to the N-able fourth quarter 2025 earnings cal ...

N-Able (NYSE:NABL) Q4 2025 Earnings call February 19, 2026 08:30 AM ET Company ParticipantsAdam Holets - Equity Research AssociateGriffin Gyr - Senior Manager of Investor RelationsJohn Pagliuca - President and CEOMatt Hedberg - Head of Global TIMT Research and Director of Equity ResearchTim O'Brien - EVP and CFOConference Call ParticipantsJoe Vruwink - Research AnalystMike Cikos - Senior AnalystOperatorLadies and gentlemen, thank you for joining us, and welcome to the N-able fourth quarter 2025 earnings cal ...

Financial Data and Key Metrics Changes - In Q4 2025, total ARR was $540 million, growing at 12% year-over-year on a reported basis and 8% on a constant currency basis [23] - Total revenue for Q4 was $130 million, representing approximately 12% year-over-year growth on a reported basis and 9% on a constant currency basis [23] - Adjusted EBITDA in Q4 was $39 million, reflecting a 30% margin, with full year adjusted EBITDA also at $153 million and a 30% margin [4][26] Business Line Data and Key Metrics Changes - The company solidified its presence in the AI SOC market and crossed $200 million in ARR for data protection [5] - Subscription revenue for Q4 was $129 million, showing approximately 12% year-over-year growth on a reported basis [23] - Customers contributing $50,000 or more of ARR grew approximately 14% year-over-year, now representing about 61% of total ARR [24] Market Data and Key Metrics Changes - Approximately 45% of total revenue was generated outside of North America for both the quarter and the full year [25] - The company reported a Dollar-based Net Revenue Retention of approximately 103% on a reported basis [25] Company Strategy and Development Direction - The company aims to leverage AI as a core differentiator, with plans to develop an AI workflow assistant named Enzo to enhance IT and security operations [12][42] - The strategy includes expanding into the VAR channel and enhancing product offerings to address the growing demand for cybersecurity solutions [10][20] - The company is focused on solving evolving customer problems and delivering security and efficiency [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in steady demand trends and stable retention, with expectations for continued execution across platforms and sales channels [30] - The company anticipates a strong demand environment for its cybersecurity solutions, driven by increasing threats and the need for business resilience [9][19] - For 2026, the company expects total revenue in the range of $554 million to $559 million, representing approximately 8%-9% year-over-year growth [32] Other Important Information - The company has received recognition in the 2026 Gartner Magic Quadrant for Endpoint Management Tools, validating its three-pillar strategy [14] - The company plans to continue disciplined investments in AI and product innovation while improving unlevered free cash flow [30] Q&A Session Summary Question: What gives confidence for higher constant currency ARR growth in 2026? - Management highlighted steady assumptions, improved gross retention, and traction from new SKUs as key factors [38] Question: Can you elaborate on the AI product Enzo? - Enzo is currently in limited preview and aims to enhance operational efficiency for MSPs by allowing them to assess and take action in their environments quickly [42][44] Question: What is driving the success of the Adlumin acquisition? - The AI technology and its ability to assess and take action on threats quickly have resonated well with the MSP community, driving earlier-than-expected success [50][51] Question: What are the expectations for seasonality in 2026? - Management expects similar seasonality to 2025, with stronger performance anticipated in the second half of the year due to new product initiatives [56] Question: How does the company plan to balance growth and profitability in capital allocation? - The company plans to continue share buybacks and explore M&A opportunities while maintaining a balanced approach to capital allocation [68][70]