Second quarter 2026
Filed Aug 10, 2026N-able reported 5.9% year-over-year total revenue growth, 6.0% ARR growth, and $39.9 million of adjusted EBITDA, while updating full-year 2026 ARR outlook to $562 to $565 million.
The company delivered reported revenue, subscription revenue, and ARR growth with substantial adjusted EBITDA and positive GAAP net income, but third-quarter revenue guidance calls for approximately 3% year-over-year growth on a reported basis versus 5.9% reported growth in the second quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $138.2 million | – | 5.9% year-over-year growth |
| Total revenue growth on a constant currency basisother | 4.7% year-over-year growth on a constant currency basis | – | 4.7% year-over-year growth on a constant currency basis |
| Subscription revenueGAAP | $137.1 million | – | 6.1% year-over-year growth |
| Subscription revenue growth on a constant currency basisother | 5.0% year-over-year growth on a constant currency basis | – | 5.0% year-over-year growth on a constant currency basis |
| Total ARRother | $544.5 million | – | 6.0% year-over-year growth |
| Total ARR growth on a constant currency basisother | 5.7% year-over-year growth on a constant currency basis | – | 5.7% year-over-year growth on a constant currency basis |
| Gross marginGAAP | 76.8% | – | – |
| Gross marginnon-GAAP | 80.2% | – | – |
| Net incomeGAAP | $1.8 million | – | – |
| Diluted earnings per shareGAAP | $0.01 per diluted share | – | – |
| Net incomenon-GAAP | $18.7 million | – | – |
| Diluted earnings per sharenon-GAAP | $0.10 per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $39.9 million | – | – |
| Adjusted EBITDA marginnon-GAAP | 28.9% | – | – |
Third quarter of 2026 and full-year 2026 outlook
- NoteThird quarter of 2026 total revenue in the range of $134.5 to $135.5 million, representing approximately 3% year-over-year growth on a reported basis and 3% to 4% on a constant currency basis.
- NoteThird quarter of 2026 adjusted EBITDA in the range of $41.0 to $42.0 million, representing approximately 30% to 31% of total revenue.
- NoteFull-year 2026 total ARR in the range of $562 to $565 million, representing approximately 4% to 5% year-over-year growth on a reported basis and 5% on a constant currency basis.
- NoteFull-year 2026 total revenue in the range of $539 to $542 million, representing approximately 6% to 7% year-over-year growth on a reported basis and 5% on a constant currency basis.
- NoteFull-year 2026 adjusted EBITDA in the range of $158 to $161 million, representing approximately 29% to 30% of total revenue.
Capital returns
- Management stated that it intends to be active with its share repurchase program.
What drove it
- Subscription revenue represented the reported recurring revenue base and grew 6.1% year-over-year, or 5.0% year-over-year on a constant currency basis.
- N-able appointed Russell Rosa as Chief Revenue Officer to support partner-led growth, further upmarket expansion, global partner and channel execution, and its next phase of growth.
- The company launched Shadow AI Visibility to help organizations understand, govern, and secure AI usage across their environments.
- N-able opened a Global Capability Centre in Bengaluru, India to expand engineering, product management, and security operations capabilities and accelerate AI-driven innovation.
- The company cited changing foreign exchange rates and current macroeconomic dynamics as factors reflected in its outlook.
Concerns
- Third-quarter total revenue guidance represents approximately 3% year-over-year growth on a reported basis and 3% to 4% on a constant currency basis.
- Total debt, net of debt issuance costs, was $392.3 million as of June 30, 2026.
- The reported financial results are preliminary and pending final review by the company and its external auditors.
- The company identified risks related to reduced information technology spending or delayed purchasing decisions, renewals and net retention, channel execution, international operations, foreign exchange, and AI-related execution.
What to watch
- Third-quarter execution against total revenue guidance of $134.5 to $135.5 million and adjusted EBITDA guidance of $41.0 to $42.0 million.
- ARR progression toward the full-year 2026 outlook range of $562 to $565 million.
- The effect of the new Chief Revenue Officer, organizational changes, and partner-led and upmarket initiatives on growth.
- Adoption and commercialization of Shadow AI Visibility and other AI-powered cybersecurity capabilities.
- Share repurchase activity under management's stated intention to be active with the program.
Balance sheet and cash flow
- As of June 30, 2026, total cash and cash equivalents were $115.8 million.
- As of June 30, 2026, total debt, net of debt issuance costs, was $392.3 million.
Analysis
N-able reported $138.2 million of total revenue, up 5.9% year-over-year on a reported basis and 4.7% year-over-year on a constant currency basis. Subscription revenue was $137.1 million, with 6.1% reported year-over-year growth and 5.0% constant-currency growth. Total ARR was $544.5 million, up 6.0% year-over-year on a reported basis and 5.7% year-over-year on a constant currency basis. The results show that subscription revenue and ARR remained the core sources of growth.
Profitability was positive on both reported measures presented. GAAP gross margin was 76.8%, while non-GAAP gross margin was 80.2%. GAAP net income was $1.8 million, or $0.01 per diluted share, and non-GAAP net income was $18.7 million, or $0.10 per diluted share. Adjusted EBITDA was $39.9 million and adjusted EBITDA margin was 28.9%, demonstrating the company’s stated focus on disciplined profitability.
Management is pairing its operating execution with go-to-market and product actions. Russell Rosa joined as Chief Revenue Officer, with responsibilities tied to accelerating partner-led growth, expanding further upmarket, and strengthening global partner and channel execution. The launch of Shadow AI Visibility and the opening of the Global Capability Centre in Bengaluru are positioned as investments in AI-powered cybersecurity capabilities, engineering, product management, and security operations.
The third-quarter outlook calls for total revenue of $134.5 to $135.5 million, representing approximately 3% year-over-year growth on a reported basis and 3% to 4% on a constant currency basis. It also calls for adjusted EBITDA of $41.0 to $42.0 million, or approximately 30% to 31% of total revenue. The full-year outlook calls for total ARR of $562 to $565 million, total revenue of $539 to $542 million, and adjusted EBITDA of $158 to $161 million.
Capital structure remains an important consideration. Cash and cash equivalents were $115.8 million as of June 30, 2026, while total debt, net of debt issuance costs, was $392.3 million. Management stated that it intends to be active with its share repurchase program. Investors should monitor revenue and ARR execution against the updated outlook, the profitability range implied by adjusted EBITDA guidance, and whether the new commercial leadership and AI initiatives translate into the growth objectives described by management.
Management, verbatim
AI is reshaping the security landscape, making our mission to democratize cyber-defense more critical than ever.
John Pagliuca, president and CEO
We are taking decisive action across the business to better capture this demand.
John Pagliuca, president and CEO
The business continues to deliver growth and cash flow as we execute against a compelling cybersecurity and AI opportunity.
Tim O’Brien, CFO
Not in the filing
stated, not guessed- GAAP operating income
- non-GAAP operating income
- GAAP operating expenses
- non-GAAP operating expenses
- GAAP tax rate
- non-GAAP tax rate
- Operating cash flow
- Free cash flow
- Repurchase amount during the quarter
- Dividend amount or dividend declaration
- Segment revenue
- Prior-year absolute values for total revenue, subscription revenue, total ARR, gross margin, net income, diluted earnings per share, and adjusted EBITDA
- Prior-quarter values and quarter-over-quarter changes for reported metrics
- Previous-quarter outlook needed to assess performance versus prior guidance
- Separate third-quarter and full-year guidance objects are not supported by the single guidance object format; all disclosed guidance is included in guidance.other
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.