N-able Q3 Revenue Rises as Adjusted EBITDA Margin Reaches 32%

N-able, Inc. (NYSE: NABL) reported higher third-quarter revenue and adjusted EBITDA, with profitability expanding on a non-GAAP basis even as the cybersecurity software provider swung to a GAAP net loss.

Revenue for the quarter ended Sept. 30, 2026, was approximately $137.5 million, up about 5% from $131.1 million a year earlier. Adjusted EBITDA increased 7% to $43.6 million, while the adjusted EBITDA margin rose to 32% from 31%.

The company recorded a GAAP net loss of $4.4 million, compared with net income of $0.9 million in the third quarter of 2025. The reconciliation to adjusted EBITDA included $11.9 million of income-tax expense, $8.1 million of net interest expense, $8.9 million of stock-based compensation and related payroll taxes, and $4.8 million of restructuring and other costs.

Cash generation strengthened during the quarter. Free cash flow increased to $19.7 million from $14.6 million, while unlevered free cash flow rose to $30.3 million from $22.6 million. For the first nine months of 2026, unlevered free cash flow totaled $75.0 million, compared with $72.8 million in the prior-year period.

Recurring revenue and customer metrics

Annual recurring revenue reached $553 million at the end of the quarter, representing 5% growth. Trailing-12-month dollar-based net revenue retention was 105%, up from 103% for 2025, while gross retention was 87%, compared with 86%.

N-able also reported continued expansion among larger customers. The number of customers generating more than $50,000 in ARR increased to 2,716 from 2,671 at the end of 2025. Trailing-12-month average revenue per customer rose to $21,900 from $20,200.

The company delivers endpoint management, security operations and data-protection products through managed service providers, value-added resellers and distributors. Its platform serves more than 500,000 businesses and manages over 12 million IT assets.

N-able highlighted cross-selling across its portfolio as a central growth priority. Its principal products include the N-central endpoint-management platform, Adlumin XDR and managed detection and response services, and the Cove backup and disaster-recovery platform. Management also identified new customer acquisition, broader channel distribution, pricing and packaging, and higher usage by existing customers as components of its growth strategy.

The presentation emphasized AI-supported capabilities across the portfolio, including endpoint remediation, automated security investigations and recovery validation. However, the company cautioned that its ability to develop, market and gain adoption for AI-powered products remains a source of execution risk.

Fourth-quarter and full-year outlook

For the fourth quarter of 2026, N-able expects revenue of $133 million to $134 million, representing year-over-year growth of 3% to 4%, or 4% to 5% at constant currency. Adjusted EBITDA is projected at $39.6 million to $40.6 million, implying an adjusted EBITDA margin of approximately 30%.

For the full year, the company expects revenue of $541 million to $542 million, up 6% to 7% as reported and 5% at constant currency. Adjusted EBITDA is forecast at $158.5 million to $159.5 million, with a margin of approximately 29%, while unlevered free cash flow is expected to range from $116 million to $118 million.

Year-end ARR is projected at $558 million to $560 million, representing reported growth of 3% to 4% and constant-currency growth of 5%. The outlook, issued as of Nov. 5, assumes exchange rates of 1.11 for the euro and 1.33 for the British pound.

N-able identified weaker economic conditions, delayed technology spending, lower renewal or retention rates, channel execution, foreign-exchange volatility and cybersecurity incidents among its principal uncertainties. Other risks include integrating acquisitions, relying on third-party software, servicing debt and remediating the material weakness identified in the second quarter of 2026.