N-ABLE INC (NYSE:NABL) Reports Mixed Q2 2025 Results with Revenue Beat and Strong ARR Growth

N-ABLE INC (NYSE:NABL) reported its second-quarter 2025 financial results, delivering a mixed performance relative to analyst expectations. The cybersecurity and IT management solutions provider posted revenue of $131.2 million, a 9.9% year-over-year increase, surpassing the consensus estimate of $128.4 million. On a constant currency basis, revenue grew 7.9%. Subscription revenue, which accounts for the majority of sales, climbed 10.6% to $129.9 million.

Key Financial Highlights

• Revenue: $131.2M (vs. $128.4M estimated)
• Non-GAAP EPS: $0.11 (vs. $0.09 estimated)
• Annual Recurring Revenue (ARR): $513.7M, up 14.5% YoY
• Adjusted EBITDA: $41.6M (31.7% margin)
• GAAP Net Loss: ($4.0M), or ($0.02) per share

The company’s non-GAAP earnings per share (EPS) of $0.11 exceeded expectations by $0.02, reflecting disciplined cost management and strong gross margins (81.8% non-GAAP). However, GAAP results were impacted by higher operating expenses, including increased sales and marketing investments.

Market Reaction

Following the earnings release, N-able’s stock saw a pre-market gain of ~6.7%, indicating investor optimism about the revenue and earnings beat. Over the past month, shares had declined by ~4.2%, likely due to broader market volatility and profit-taking ahead of earnings. The positive reaction suggests relief that growth remains intact despite macroeconomic uncertainties.

Business and Strategic Developments

CEO John Pagliuca highlighted progress in expanding the company’s cybersecurity platform, emphasizing AI-driven threat protection and channel growth. Key business updates included:

• Appointment of Vikram Ramesh as Chief Marketing Officer to accelerate security-focused growth.
• Launch of new product certifications through N-able U to enhance IT efficiency.
• Expansion of the Ecoverse ecosystem with key technology integrations.
• Hosting of the Empower 2025 customer event in Berlin, reinforcing partner collaboration.

Outlook vs. Analyst Estimates

N-able provided guidance for Q3 and full-year 2025:

• Q3 Revenue: $127M–$128M (vs. analyst estimate of $127.4M)
• Full-Year Revenue: $500M–$503M (vs. analyst estimate of $505.1M)
• Full-Year ARR Growth: 9%–10% (in line with expectations)

While Q3 revenue guidance aligns closely with estimates, the full-year revenue outlook is slightly below consensus, possibly tempering some enthusiasm. However, the company’s focus on profitability (28%–29% adjusted EBITDA margin) suggests a balanced approach to growth and efficiency.

Conclusion

N-able’s Q2 results demonstrate resilience in its subscription-based model, with revenue and earnings exceeding expectations. The market’s positive reaction reflects confidence in execution, though the conservative full-year revenue outlook may warrant monitoring.

For more detailed earnings estimates and historical performance, visit N-able’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.