N-able Announces Fourth Quarter and Full-Year 2025 Results

BURLINGTON, Mass.--( BUSINESS WIRE)--N-able, Inc. (NYSE:NABL), a global cybersecurity company delivering business resilience, today reported results for its fourth quarter ended December 31, 2025.

“We enter 2026 with momentum following another year of profitable growth and with confidence that we can drive continued strong performance,” said N-able president and CEO John Pagliuca. “Cybersecurity is a matter of survival and our AI-powered cybersecurity platform delivers the business resilience customers need. We believe our strong financial profile, durable position in cybersecurity, and focused strategy set a sturdy, scalable foundation for what comes next. 2026 is a year of execution for N-able and we are excited to deliver.”

“Our financial profile and results reflect consistent execution and a balanced approach to driving both growth and profit,” added N-able CFO Tim O’Brien. “In 2026, we intend to make further investments in AI innovation and go-to-market expansion while driving over 30% adjusted EBITDA margins and meaningfully improving our unlevered free cash flow year-over-year.”

Fourth quarter 2025 financial highlights:

For a reconciliation of our GAAP to non-GAAP results, please see the tables below.

Additional recent business highlights:

*Gartner, Magic Quadrant for Endpoint Management Tools, 5 January 2026. GARTNER and MAGIC QUADRANT are trademarks of Gartner, Inc. and/or its affiliates. Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose. The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. (“Gartner”), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this earnings press release) and the opinions expressed in the Gartner Content are subject to change without notice.

Balance Sheet

As of December 31, 2025, total cash and cash equivalents were $111.8 million and total debt, net of debt issuance costs, was $393.9 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 annual report on Form 10-K 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 February 19, 2026, N-able is providing its financial outlook for the first 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 First Quarter of 2026

N-able management currently expects to achieve the following results for the first quarter of 2026:

Financial Outlook for Full-Year 2026

N-able management currently expects to achieve the following results for the full-year 2026:

Additional details on the company's outlook will be provided on the conference call.

Conference Call and Webcast

In conjunction with this announcement, N-able will host a conference call to discuss its financial results, business and business outlook at 8:30 a.m. ET on February 19, 2026. A live webcast of the call will be available on the N-able Investor Relations website at http://investors.n-able.com. A replay of the webcast will be available on a temporary basis shortly after the event on the N-able Investor Relations website.

Forward-Looking Statements

This press release contains “forward-looking” statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the first quarter and full-year 2026 and the impact of AI and macroeconomic conditions on our business. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and may be signified by terms such as “aim,” “anticipate,” “believe,” “continue,” “expect,” “feel,” “intend,” “estimate,” “seek,” “plan,” “may,” “can,” “could,” “should,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially and adversely different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the following: (a) the impact of adverse economic conditions; (b) our ability to sell subscriptions to new customers, to sell additional solutions to our existing customers and to increase the usage of our solutions by our existing customers, as well as our ability to generate and maintain customer loyalty; (c) our ability to sell our solutions through distributors and resellers; (d) any decline in our renewal or net retention rates; (e) our ability to successfully incorporate AI-powered features into our solutions, market and sell any AI-powered solutions we develop, garner increased market share projected for AI-powered solutions, and realize efficiencies from the internal use of AI tools; (f) any decline in our renewal or net retention rates; (g) the possibility that general economic, political, legal and regulatory conditions and uncertainty may cause information technology spending to be reduced or purchasing decisions to be delayed, including as a result of inflation, actions taken by central banks to counter inflation, interest rates, war and political unrest, military conflict (including between Russia and Ukraine and in the Middle East), terrorism, sanctions, trade or other issues in the U.S. and internationally, including increased tariffs or trade wars, or other geopolitical events globally, or that such factors may otherwise harm our business, financial condition or results of operations; (h) any inability to generate significant volumes of high-quality sales leads from our digital marketing initiatives and convert such leads into new business at acceptable conversion rates; (i) any inability to successfully identify, complete and integrate acquisitions and manage our growth effectively; (j) any inability to resell third-party software or integrate third-party software into our solutions, or find suitable replacements for such third-party software; (k) risks associated with our international operations; (l) foreign exchange gains and losses related to expenses and sales denominated in currencies other than the functional currency of an associated entity; (m) risks that cyberattacks and other security incidents may result in compromises or breaches of our, our customers’, or their SMB and mid-market customers’ systems, the insertion of malicious code, malware, ransomware or other vulnerabilities into our, our customers’, or their SMB and mid-market customers’ environments, the exploitation of vulnerabilities in our, our customers’, or their SMB and mid-market customers’ security, the theft or misappropriation of our, our customers’, or their SMB and mid-market customers’ proprietary and confidential information, and interference with our, our customers’, or their SMB and mid-market customers’ operations, exposure to legal and other liabilities, higher customer and employee attrition and the loss of key personnel, negative impacts to our sales, renewals and upgrades and reputational harm and other serious negative consequences, any or all of which could materially harm our business; (n) our status as a controlled company; (o) our ability to attract and retain qualified employees and key personnel; (p) the timing and success of new product introductions and product upgrades by us or our competitors; (q) our ability to maintain or grow our brands, including the Adlumin brand; (r) our ability to protect and defend our intellectual property and not infringe upon others’ intellectual property; (s) the possibility that our operating income could fluctuate and may decline as a percentage of revenue as we make further expenditures to expand our operations in order to support growth in our business; (t) our indebtedness, including increased borrowing costs resulting from rising interest rates, potential restrictions on our operations and the impact of events of default; (u) our ability to operate our business internationally and increase sales of our solutions to our customers located outside of the United States; and (v) such other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission, including the risk factors described in N-able’s Annual Report on Form 10-K for the year ended December 31, 2024, that N-able filed with the SEC on March 7, 2025, and those that will be described in N-able’s Annual Report on Form 10-K for the year ended December 31, 2025, that N-able anticipates filing on or about February 26, 2026. All information provided in this release is as of the date hereof and N-able undertakes no duty to update this information except as required by law.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with GAAP, we use certain non-GAAP financial measures to clarify and enhance our understanding, and aid in the period-to-period comparison, of our performance. We believe that these non-GAAP financial measures provide supplemental information that is meaningful when assessing our operating performance because they exclude the impact of certain amounts that our management and board of directors do not consider part of core operating results when assessing our operational performance, allocating resources, preparing annual budgets and determining compensation. Accordingly, these non-GAAP financial measures may provide insight to investors into the motivation and decision-making of management in operating the business.

N-able also believes that these non-GAAP financial measures are used by investors and securities analysts to (a) compare and evaluate its performance from period to period and (b) compare its performance to those of its competitors. These non-GAAP measures exclude certain items that can vary substantially from company to company depending upon their financing and accounting methods, the book value of their assets, their capital structures and the method by which their assets were acquired.

As a result, these non-GAAP financial measures have limitations and should not be considered in isolation from, or as a substitute for, their most comparable GAAP measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Certain items that are excluded from these non-GAAP financial measures can have a material impact on operating and net income.

N-able's management and board of directors compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measure. Set forth in the tables below are the corresponding GAAP financial measures for each non-GAAP financial measure presented. Investors are encouraged to review the reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures that are set forth in the tables below.

Definitions of Non-GAAP and Other Metrics

Annual Recurring Revenue (ARR). We calculate ARR by annualizing the recurring revenue and related usage revenue inclusive of discounts, excluding the impacts of credits and reserves, recognized during the last day of the reporting period from both long-term and month-to-month subscriptions. We believe ARR enhances the understanding of our business performance and the growth of our relationships with our customers.

Non-GAAP Gross Margin, Non-GAAP Operating Income and Non-GAAP Operating Margin. We provide non-GAAP total cost of revenue, non-GAAP gross profit, non-GAAP operating expense and non-GAAP operating income and related non-GAAP gross and operating margins excluding such items as stock-based compensation expense and related employer-paid payroll taxes, amortization of acquired intangible assets, transaction related costs, spin-off costs and restructuring costs and other. We define non-GAAP gross and operating margins as non-GAAP gross profit and operating income, respectively, divided by total revenue. Management believes these measures are useful for the following reasons:

Non-GAAP Net Income and Non-GAAP Net Income Per Diluted Share. We believe that the use of non-GAAP net income and non-GAAP net income per diluted share is helpful to our investors to clarify and enhance their understanding of past performance and future prospects. Non-GAAP net income is calculated as net income excluding the adjustments to non-GAAP gross profit and non-GAAP operating income, interest on deferred consideration, and the income tax effect of the non-GAAP exclusions. We define non-GAAP net income per diluted share as non-GAAP net income divided by the weighted average diluted outstanding common shares.

Adjusted EBITDA and Adjusted EBITDA Margin. We regularly monitor adjusted EBITDA and adjusted EBITDA margin, as they are measures we use to assess our operating performance. We define adjusted EBITDA as net income or loss, excluding 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 define adjusted EBITDA margin as adjusted EBITDA divided by total revenue. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations include: although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our related party debt; adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us; and other companies, including companies in our industry, may calculate adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

Non-GAAP Revenue on a Constant Currency Basis. We provide non-GAAP revenue on a constant currency basis to provide a framework for assessing our performance excluding the effect of foreign currency rate fluctuations. To present this information, current period results for revenue contracts denominated in currencies other than U.S. Dollars are converted into U.S. Dollars at the average exchange rates in effect during the corresponding prior period presented. We believe that providing non-GAAP revenue on a constant currency basis facilitates the comparison of non-GAAP revenue to prior periods.

Unlevered Free Cash Flow. Unlevered free cash flow is a measure of our liquidity used by management to evaluate cash flow from operations, after the deduction of capital expenditures and prior to the impact of our capital structure, transaction related costs, restructuring costs, spin-off costs, employer-paid payroll taxes on stock awards and certain one-time items, that can be used by us for strategic opportunities and strengthening our balance sheet. However, given our debt obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses. Effective July 1, 2025, we have removed from our computation of unlevered free cash flow non-cash items generally relating to cash paid for transaction related costs, restructuring costs, spin-off costs, employer-paid payroll taxes on stock awards and other one-time items. Unlevered free cash flow for all prior periods presented has been revised to the current period computation.

About N-able

N-able protects businesses from evolving cyberthreats. Our AI-powered cybersecurity platform delivers business resilience to more than 500,000 organizations worldwide, leveraging advanced end-to-end capabilities, simplified workflows, market-leading integrations, and flexible deployment options to improve efficiency and drive critical security outcomes. Our partner-first approach pairs our technology with experts, training, and peer-led events that empower customers to be secure, resilient, and successful. n-able.com

Source: N-able, Inc.

Category: Financial

N-able, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)

December 31,

2025

2024

Assets

Current assets:

Cash and cash equivalents

111,837

85,196

Accounts receivable, net of allowances of $4,059 and $886 as of December 31, 2025 and 2024, respectively

50,342

44,909

Income tax receivable

3,432

3,563

Recoverable taxes

9,807

24,157

Current contract assets

19,528

12,786

Prepaid and other current assets

21,494

13,312

Total current assets

216,440

183,923

Property and equipment, net

37,962

36,162

Operating lease right-of-use assets

28,666

27,998

Deferred taxes

4,412

2,026

Goodwill

1,024,300

977,013

Intangible assets, net

64,786

83,150

Other assets, net

33,340

28,575

Total assets

1,409,906

1,338,847

Liabilities and stockholders' equity

Current liabilities:

Accounts payable

8,999

6,290

Accrued liabilities and other

55,756

51,057

Current contingent consideration

10,840

5,500

Current deferred consideration

60,720

44,023

Current operating lease liabilities

7,203

6,018

Income taxes payable

9,803

9,733

Current portion of deferred revenue

24,494

23,977

Current debt obligation

4,000

3,500

Total current liabilities

181,815

150,098

Long-term liabilities:

Deferred revenue, net of current portion

1,747

2,996

Non-current deferred taxes

1,847

3,448

Non-current operating lease liabilities

29,284

30,069

Long-term debt, net of current portion

389,873

329,606

Non-current deferred consideration

—

54,089

Other long-term liabilities

685

9,253

Total liabilities

605,251

579,559

Commitments and contingencies

Stockholders’ equity:

Common stock, $0.001 par value: 550,000,000 shares authorized, 190,459,837 and 187,528,505 shares issued, and 186,683,682 and 187,528,505 shares outstanding as of December 31, 2025 and 2024, respectively

190

187

Preferred stock, $0.001 par value: 50,000,000 shares authorized and no shares issued and outstanding as of December 31, 2025 and 2024, respectively

—

Treasury stock, at cost: 3,776,155 and no shares as of December 31, 2025 and 2024, respectively

(30,000

)

—

Additional paid-in capital

746,599

708,992

Accumulated other comprehensive income (loss)

33,694

(21,095

)

Retained earnings

54,172

71,204

Total stockholders' equity

804,655

759,288

Total liabilities and stockholders' equity

1,409,906

1,338,847

N-able, Inc.

Consolidated Statements of Operations

(In thousands, except per share information)

(Unaudited)

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

Revenue:

Subscription and other revenue

130,274

116,509

511,430

466,147

Cost of revenue:

Cost of revenue

26,792

21,184

100,180

77,159

Amortization of acquired technologies

4,238

2,134

16,874

3,520

Total cost of revenue

31,030

23,318

117,054

80,679

Gross profit

99,244

93,191

394,376

385,468

Operating expenses:

Sales and marketing

39,909

34,632

163,163

135,592

Research and development

25,305

23,246

100,713

90,714

General and administrative

20,290

19,087

91,715

76,514

Amortization of acquired intangibles

497

234

1,996

278

Total operating expenses

86,001

77,199

357,587

303,098

Operating income

13,243

15,992

36,789

82,370

Other expense, net:

Interest expense, net

(12,205

)

(7,269

)

(35,997

)

(30,031

)

Other (expense) income, net

(3,725

)

(1,765

)

1,599

1,931

Total other expense, net

(15,930

)

(9,034

)

(34,398

)

(28,100

)

(Loss) income before income taxes

(2,687

)

6,958

2,391

54,270

Income tax expense

4,544

3,668

19,423

23,312

Net (loss) income

(7,231

)

3,290

(17,032

)

30,958

Net (loss) income per share:

Basic (loss) income per share

(0.04

)

0.02

(0.09

)

0.17

Diluted (loss) income per share

(0.04

)

0.02

(0.09

)

0.16

Weighted-average shares used to compute net (loss) income per share:

Shares used in computation of basic (loss) income per share:

186,655

186,571

187,819

185,277

Shares used in computation of diluted (loss) income per share:

186,655

188,349

187,819

188,426

N-able, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

Cash flows from operating activities

Net (loss) income

(7,231

)

3,290

(17,032

)

30,958

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

Depreciation and amortization

11,695

7,948

44,057

25,725

Provision for (benefit from) doubtful accounts

731

(213

)

3,173

(285

)

Stock-based compensation expense

10,159

10,488

46,593

45,351

Amortization of debt issuance costs

1,664

400

2,844

1,598

Deferred taxes

(3,917

)

(2,041

)

(3,821

)

(1,952

)

Loss on foreign currency exchange rates

4,184

2,009

1,565

2,702

(Gain) loss on contingent consideration

(1,350

)

(2,570

)

2,148

(6,281

)

Deferred consideration expense

2,902

1,843

14,316

1,843

Loss on lease modification

1,439

998

1,063

Other non-cash expenses (benefits)

(247

)

532

(263

)

Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in business combinations:

Accounts receivable

(6,126

)

(1,290

)

(8,507

)

(2,131

)

Income tax receivable

423

11,573

217

4,685

Recoverable taxes

(2,319

)

(3,227

)

14,596

(12,965

)

Current contract assets

3,308

3,466

(6,742

)

(11,430

)

Operating lease right-of-use assets, net

(165

)

386

(836

)

438

Prepaid expenses and other assets

(1,698

)

3,478

(8,232

)

(1,253

)

Accounts payable

1,270

(1,612

)

2,539

(461

)

Accrued liabilities and other

5,483

2,437

4,269

630

Income taxes payable

(374

)

(11,012

)

311

4,881

Deferred revenue

4,889

3,903

(732

)

2,261

Other long-term assets

510

(3,103

)

927

(5,721

)

Other long-term liabilities

(152

)

Net cash provided by operating activities

25,336

25,986

93,202

79,437

Cash flows from investing activities

Purchases of property and equipment

(4,483

)

(7,150

)

(18,139

)

(17,570

)

Purchases of intangible assets

(2,476

)

(991

)

(11,118

)

(6,157

)

Acquisitions, net of cash acquired

—

(98,694

)

—

(98,694

)

Return of deposits in escrow

—

299

—

Net cash used in investing activities

(6,959

)

(106,835

)

(28,958

)

(122,421

)

Cash flows from financing activities

Payments of tax withholding obligations related to restricted stock units

(1,660

)

(2,324

)

(13,171

)

(20,489

)

Repurchase of common stock

(10,038

)

—

(30,038

)

—

Exercise of stock options

—

Proceeds from issuance of common stock under employee stock purchase plan

—

2,358

2,382

Deferred acquisition payments

(51,715

)

—

(57,073

)

(1,000

)

Repayments of borrowings from credit agreement

(336,000

)

(875

)

(338,625

)

(3,500

)

Proceeds from credit agreement

400,000

—

400,000

—

Payments for debt issuance costs

(4,078

)

—

(4,078

)

—

Net cash used in financing activities

(3,491

)

(3,199

)

(40,625

)

(22,595

)

Effect of exchange rate changes on cash and cash equivalents

(4,484

)

(5,201

)

3,022

(2,273

)

Net increase (decrease) in cash and cash equivalents

10,402

(89,249

)

26,641

(67,852

)

Cash and cash equivalents

Beginning of period

101,435

174,445

85,196

153,048

End of period

111,837

85,196

111,837

85,196

Supplemental disclosure of cash flow information:

Cash paid for interest

6,007

6,930

24,973

28,690

Cash paid for income taxes

6,510

4,610

18,064

12,772

Supplemental disclosure of non-cash activities:

Change in purchases of property, equipment and leasehold improvements included in accounts payable and accrued expenses

(91

)

695

Right-of-use assets obtained in exchange for operating lease liabilities

1,170

—

6,750

2,628

Non-cash consideration exchanged in business combinations

—

14,678

—

14,678

N-able, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share information)

(Unaudited)

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

GAAP cost of revenue

31,030

23,318

117,054

80,679

Stock-based compensation expense and related employer-paid payroll taxes

(418

)

(411

)

(1,786

)

(1,715

)

Amortization of acquired technologies

(4,238

)

(2,134

)

(16,874

)

(3,520

)

Transaction related costs

(39

)

(28

)

(353

)

(28

)

Restructuring costs and other

(70

)

(76

)

(116

)

(76

)

Non-GAAP cost of revenue

26,265

20,669

97,925

75,340

GAAP gross profit

99,244

93,191

394,376

385,468

Stock-based compensation expense and related employer-paid payroll taxes

418

411

1,786

1,715

Amortization of acquired technologies

4,238

2,134

16,874

3,520

Transaction related costs

353

Restructuring costs and other

116

Non-GAAP gross profit

104,009

95,840

413,505

390,807

GAAP sales and marketing expense

39,909

34,632

163,163

135,592

Stock-based compensation expense and related employer-paid payroll taxes

(3,320

)

(3,689

)

(16,946

)

(15,836

)

Transaction related costs

(326

)

(154

)

(3,510

)

(213

)

Restructuring costs and other

(202

)

(165

)

(621

)

(583

)

Non-GAAP sales and marketing expense

36,061

30,624

142,086

118,960

GAAP research and development expense

25,305

23,246

100,713

90,714

Stock-based compensation expense and related employer-paid payroll taxes

(2,692

)

(2,634

)

(11,732

)

(10,886

)

Transaction related costs

(84

)

(285

)

(554

)

(330

)

Restructuring costs and other

(249

)

(348

)

(510

)

(442

)

Non-GAAP research and development expense

22,280

19,979

87,917

79,056

GAAP general and administrative expense

20,290

19,087

91,715

76,514

Stock-based compensation expense and related employer-paid payroll taxes

(3,935

)

(4,058

)

(17,891

)

(19,304

)

Transaction related costs

(402

)

(1,967

)

(13,790

)

(3,575

)

Restructuring costs and other

(1,453

)

(147

)

(1,421

)

(3,660

)

Spin-off costs

—

(51

)

Non-GAAP general and administrative expense

14,500

12,915

58,613

49,924

GAAP operating income

13,243

15,992

36,789

82,370

Amortization of acquired technologies

4,238

2,134

16,874

3,520

Amortization of acquired intangibles

497

234

1,996

278

Stock-based compensation expense and related employer-paid payroll taxes

10,365

10,791

48,355

47,741

Transaction related costs

851

2,434

18,207

4,146

Restructuring costs and other

1,974

736

2,668

4,761

Spin-off costs

—

Non-GAAP operating income

31,168

32,321

124,889

142,867

GAAP operating margin

10.2

13.7

7.2

17.7

Non-GAAP operating margin

23.9

27.7

24.4

30.6

GAAP net (loss) income

(7,231

)

3,290

(17,032

)

30,958

Amortization of acquired technologies

4,238

2,134

16,874

3,520

Amortization of acquired intangibles

497

234

1,996

278

Stock-based compensation expense and related employer-paid payroll taxes

10,365

10,791

48,355

47,741

Transaction related costs

851

2,434

18,207

4,146

Restructuring costs and other

1,974

736

2,668

4,761

Interest on deferred consideration

1,158

—

5,431

—

Spin-off costs

—

Tax benefits associated with above adjustments (1)

(1,047

)

(781

)

(2,872

)

(1,885

)

Non-GAAP net income

10,805

18,838

73,627

89,570

GAAP diluted (loss) income per share

(0.04

)

0.02

(0.09

)

0.16

Non-GAAP diluted income per share

0.06

0.10

0.39

0.48

Shares used in computation of GAAP diluted (loss) income per share:

186,655

188,349

187,819

188,426

Shares used in computation of non-GAAP diluted income per share:

187,767

188,349

188,836

188,426

_________________

(1) The tax benefits associated with non-GAAP adjustments for the three and twelve months ended December 31, 2025, and 2024, respectively, is calculated utilizing the Company's individual statutory tax rates for each impacted subsidiary.

N-able, Inc.

Reconciliation of GAAP Net Income to Adjusted EBITDA

(In thousands, except percentages)

(Unaudited)

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

Net (loss) income

(7,231

)

3,290

(17,032

)

30,958

Amortization

6,851

3,929

25,699

9,769

Depreciation

4,844

4,018

18,358

15,956

Income tax expense

4,544

3,668

19,423

23,312

Interest expense, net

12,205

7,269

35,997

30,031

Unrealized foreign currency losses

4,184

2,009

1,565

2,702

Transaction related costs

851

2,434

18,207

4,146

Spin-off costs

—

Stock-based compensation expense and related employer-paid payroll taxes

10,365

10,791

48,355

47,741

Restructuring costs and other

1,974

736

2,668

4,761

Adjusted EBITDA

38,587

38,144

153,240

169,427

Adjusted EBITDA margin

29.6

32.7

30.0

36.3

N-able, Inc.

Reconciliation of GAAP Revenue to Non-GAAP Revenue on a Constant Currency Basis

(In thousands, except percentages)

(Unaudited)

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

Growth Rate

2025

2024

Growth Rate

GAAP subscription revenue

129,009

115,033

12.1

506,249

458,961

10.3

Estimated foreign currency impact (1)

(3,283

)

—

(2.9

)

(5,469

)

—

(1.2

)

Non-GAAP subscription revenue on a constant currency basis

125,726

115,033

9.3

500,780

458,961

9.1

GAAP other revenue

1,265

1,476

(14.3

5,181

7,186

(27.9

Estimated foreign currency impact (1)

(11

)

—

(0.7

)

—

Non-GAAP other revenue on a constant currency basis

1,254

1,476

(15.0

5,183

7,186

(27.9

GAAP subscription and other revenue

130,274

116,509

11.8

511,430

466,147

9.7

Estimated foreign currency impact (1)

(3,294

)

—

(2.8

)

(5,467

)

—

(1.2

)

Non-GAAP subscription and other revenue on a constant currency basis

126,980

116,509

9.0

505,963

466,147

8.5

_________________

(1) The estimated foreign currency impact is calculated using the average foreign currency exchange rates in the comparable prior year monthly periods and applying those rates to foreign-denominated revenue in the corresponding monthly periods for the three and twelve months ended December 31, 2025.

N-able, Inc.

Reconciliation of Unlevered Free Cash Flow

(In thousands, except percentages)

(Unaudited)

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

Net cash provided by operating activities

25,336

25,986

93,202

79,437

Purchases of property and equipment

(4,483

)

(7,150

)

(18,139

)

(17,570

)

Purchases of intangible assets

(2,476

)

(991

)

(11,118

)

(6,157

)

Free cash flow

18,377

17,845

63,945

55,710

Cash paid for interest, net of cash interest received

7,925

6,930

26,891

28,690

Cash paid for transaction related costs, restructuring costs, spin-off costs, employer-paid payroll taxes on stock awards and other one-time items (1)

1,420

4,905

9,705

13,880

Unlevered free cash flow (1)

27,722

29,680

100,541

98,280

_________________

(1) Effective July 1, 2025, we have removed from our computation of unlevered free cash flow non-cash items generally relating to cash paid for transaction related costs, restructuring costs, spin-off costs, employer-paid payroll taxes on stock awards and other one-time items. Unlevered free cash flow for all prior periods presented has been revised to the current period computation.