N-ABLE INC (NYSE:NABL) reported financial results for the fourth quarter and full year of 2025, delivering revenue that met expectations but earnings per share that fell short of analyst forecasts. The cybersecurity and IT management software provider also issued its initial financial outlook for 2026, which appears to be setting a more conservative growth trajectory compared to existing Wall Street expectations.
Earnings and Revenue Versus Estimates
The company’s fourth-quarter performance presented a mixed picture relative to analyst consensus. Revenue growth remained solid, but profitability on a per-share basis did not meet the mark.
- Q4 2025 Revenue: Reported at $130.3 million, representing year-over-year growth of 11.8%. This figure slightly exceeded the analyst estimate of approximately $129.6 million.
- Q4 2025 Non-GAAP EPS: Came in at $0.06 per diluted share. This fell short of the analyst consensus estimate of $0.102 per share.
- Full-Year 2025 Revenue: Totaled $511.4 million.
The shortfall in earnings per share against a backdrop of meeting revenue targets suggests pressures from costs, investments, or other income statement items during the quarter. On a GAAP basis, the company reported a net loss of $7.2 million, or $0.04 per share, for the quarter.
Market Reaction and Price Action
The initial market reaction to the earnings report and forward guidance has been negative. In pre-market trading following the announcement, the stock was indicated down approximately 2.1%. This movement extends a period of weakness for N-able shares, which have declined about 15% over the past month.
The negative price action likely reflects investor disappointment with the earnings miss and a cautious interpretation of the company's guidance for the upcoming year, which may imply a deceleration in growth.
Key Highlights from the Quarterly Report
Beyond the headline financials, management emphasized several strategic and operational milestones achieved during the period:
- Strong Subscription Model: Subscription revenue of $129.0 million grew 12.1% year-over-year, and Annual Recurring Revenue (ARR) reached $539.7 million, up 11.9%.
- Profitability Metrics: The company maintained healthy margins, with a non-GAAP gross margin of 79.8% and an adjusted EBITDA margin of 29.6% for the quarter.
- AI and Product Development: N-able highlighted the rollout of enhanced, agentic AI capabilities across its platform, leveraging data from over 11 million endpoints. It also introduced a new $100,000 cyber warranty program for its Adlumin MDR service.
- Industry Recognition: The company noted its inclusion in the 2026 Gartner Magic Quadrant for Endpoint Management Tools.
- Balance Sheet: As of December 31, 2025, the company held $111.8 million in cash and cash equivalents, with total debt of $393.9 million.
2026 Outlook Versus Analyst Expectations
Management provided its financial outlook for the first quarter and full year of 2026, which forms a critical part of the market's assessment.
N-able's 2026 Guidance:
- Full-Year Revenue: Projected in the range of $554 to $559 million, implying growth of 8% to 9%.
- Full-Year Adjusted EBITDA: Forecast between $167 and $171 million.
- Q1 2026 Revenue: Expected to be $131 to $132 million.
- Q1 2026 Adjusted EBITDA: Anticipated between $35.5 and $36.5 million.
Comparison to Analyst Estimates:
- The company's full-year 2026 revenue guidance midpoint of ~$556.5 million is below the current analyst consensus sales estimate of approximately $564.1 million.
- Similarly, the Q1 revenue guidance midpoint of ~$131.5 million is above the analyst estimate of about $131.1 million, but the full-year discrepancy appears to be the more significant factor for investors.
This guidance suggests management is taking a prudent stance, possibly factoring in macroeconomic uncertainties or planned investments in AI and go-to-market initiatives, as mentioned by CFO Tim O’Brien.
Conclusion
N-able's fourth-quarter results underscore the challenges of balancing growth investments with bottom-line expectations. While the company continues to grow its subscription base and invest in strategic areas like AI-powered cybersecurity, the earnings miss and a 2026 revenue outlook that trails analyst estimates have dampened investor sentiment in the near term. The market reaction indicates a focus on the potential for a growth deceleration and the timeline for the company's investments to translate into accelerated, profitable expansion.
For a detailed breakdown of future quarterly estimates and past earnings performance, you can review more information on N-able's earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investing involves risk, including the potential loss of principal.
