N-able: Fiscal 1Q26 Financial Results

Summary:

• Delivers ARR growth of 11% YoY
• Exceeds first quarter revenue and adjusted EBITDA guidance
• Maintains full-year ARR outlook of $581 million to $586 million

N‑able, Inc., a cybersecurity company delivering business resilience, reported results for its first quarter ended March 31, 2026.“We delivered a strong first quarter, driven by improving retention and continued progress across the business,” said John Pagliuca, president and CEO, N-able. “As AI accelerates both the threat landscape and IT complexity, we believe cybersecurity is reaching an inflection point. Our platform is purpose‑built for this moment – embedded where customers already operate and increasingly automating work historically delivered through services – allowing our partners to scale more efficiently while strengthening their security posture.”

“Our first quarter performance reflected disciplined execution, continued upmarket traction, and expanding platform adoption,” added Tim O’Brien, CFO, N-able. “As we look ahead, we remain focused on strong execution while driving a balanced mix of growth and profit.”

First quarter 2026 financial highlights:

• Total revenue of $133.7 million, representing 1% YoY growth, or 8.3% YoY growth on a constant currency basis
• Subscription revenue of $132.5 million, representing 4% YoY growth, or 8.6% YoY growth on a constant currency basis
• Total ARR of $548.0 million, representing 2% YoY growth, or 7.9% YoY growth on a constant currency basis
• GAAP gross margin of 2% and non-GAAP gross margin of 79.7%
• GAAP net loss of $0.6 million, or $0.00 per diluted share, and non-GAAP net income of $16.6 million, or $0.09 per diluted share
• Adjusted EBITDA of $36.7 million, representing an adjusted EBITDA margin of 5%

Additional recent business highlights:

• N‑able announced a partnership with Manchester City as Official Cybersecurity Partner, protecting critical systems, data, and daily operations across the Club’s digital environment
• N‑able published its 2026 State of the SOC report, informed by telemetry and frontline response data from the N‑able SOC, highlighting the pace and evolution of today’s attack environment. The report demonstrates that escalating alert volumes, faster attack execution, and increasingly sophisticated adversaries are exposing the limits of legacy SOC approaches, accelerating the need for AI-driven operations that can keep pace
• N‑able introduced its custom Model Context Protocol (MCP) server, securely connecting AI tools directly to live data inside N‑able’s Unified Endpoint Management solutions. This allows teams to use AI platforms they already rely on, such as Claude, ChatGPT, or Copilot, to query data and take controlled action across systems in real-time
• N‑able launched N-zo, an in-product AI assistant that delivers embedded guidance to help teams resolve issues faster. N-zo helps streamline daily operations, reduce tool hopping, and accelerate time to resolution, delivering up to 70% faster IT operations across certain tasks
• N‑able expanded Data Protection innovation with the introduction of Disaster Recovery as a Service (DRaaS) to accelerate time to recovery and reduce customer burden associated with managing backup infrastructure. N‑able also announced enhanced Anomaly Detection capabilities, to help thwart identity-based attacks and flag indicators of compromise to backup environments

Balance Sheet
As of March 31, 2026, total cash and cash equivalents were $117.8 million and total debt, net of debt issuance costs, was $393.1 million.

The financial results included in this press release are preliminary and pending final review by the company and its external auditors. Financial results will not be final until N‑able files its quarterly report on Form 10-Q for the period. Information about N‑able’s use of non-GAAP financial measures is provided below under “Non-GAAP Financial Measures.”

Financial Outlook
As of May 7, 2026, N‑able is providing its financial outlook for the second quarter of 2026 and full-year 2026. The financial information below includes forward-looking non-GAAP financial information, including adjusted EBITDA. These non-GAAP financial measures exclude, among other items mentioned below, amortization of acquired intangible assets and developed technology, depreciation expense, income tax expense, interest expense, net, unrealized foreign currency (gains) losses, transaction related costs, spin-off costs, stock-based compensation expense and related employer-paid payroll taxes and restructuring and other costs. We have not reconciled our estimates of these non-GAAP financial measures to their most directly comparable GAAP measure as a result of uncertainty regarding, and the potential variability of, these excluded items in future periods. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these excluded items could be material to our results computed in accordance with GAAP in future periods. Our reported results provide reconciliations of non-GAAP financial measures to their nearest GAAP equivalents.

The financial outlook provided below reflects N‑able’s expectations, as of the date of this release, regarding the impact on its business of changing foreign exchange rates and current macroeconomic dynamics.

Financial Outlook for the Second Quarter of 2026
N‑able management currently expects to achieve the following results for the second quarter of 2026:

• Total revenue in the range of $137.5 to $138.5 million, representing approximately 5% to 6% YoY growth on a reported basis and 4% on a constant currency basis
• Adjusted EBITDA in the range of $39.5 to $40.5 million, representing approximately 29% of total revenue

Financial Outlook for Full-Year 2026
N‑able management currently expects to achieve the following results for the full-year 2026:

• Total ARR in the range of $581 to $586 million, representing approximately 8% to 9% YoY growth on a reported and constant currency basis
• Total revenue in the range of $554 to $559 million, representing approximately 8% to 9% YoY growth on a reported basis and 7% to 8% on a constant currency basis
• Adjusted EBITDA in the range of $167 to $171 million, representing approximately 30% to 31% of total revenue