N-able (NABL) Q3 2026 Earnings Call Transcript

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DATE

Thursday, Nov. 5, 2026

CALL PARTICIPANTS

• President and Chief Executive Officer – John Pagliuca
• Executive Vice President and Chief Financial Officer – Tim O’Brien
• Director of Investor Relations – Griffin Gyr

TAKEAWAYS

• Revenue — $137.5 million, representing 4.9% growth year over year driven by increased subscription demand.
• Annual Recurring Revenue — $553.1 million, representing 4.7% growth year over year on a constant currency basis.
• Subscription Revenue — $136.3 million, representing 5% growth year over year.
• Non-GAAP Gross Margin — 78.4%, compared to 81% in the third quarter of 2025.
• Adjusted EBITDA — $43.6 million, representing a 31.7% margin.
• Constant Currency Net Revenue Retention — 103% on a trailing 12-month basis, reflecting stable retention and expansion dynamics.
• Large Customers — 2,716 partners contributing $50,000 or more in ARR, up 4% year over year.
• High-Value ARR Concentration — 63% of total ARR is derived from customers with $50,000 or more in ARR, up from 61% a year ago.
• Share Repurchases — $38.7 million spent to buy back approximately 10.2 million shares, representing 5% of shares outstanding.
• Unlevered Free Cash Flow — $30.3 million for the quarter, providing liquidity for strategic investments and debt obligations.
• Total Debt — $392.7 million net of unamortized discounts, with a net leverage ratio of 1.9 times.
• Security Operations ARR — $50 million, with management identifying nine figures as the next strategic milestone for this segment.
• Cove Data Protection Footprint — 4 million Microsoft 365 mailboxes protected across over 200,000 businesses globally.
• Disaster Recovery as a Service ARR — $1 million, surpassed within months of the initial product release.
• Full-Year 2026 Revenue Guidance — $541 million to $542 million, representing approximately 6% to 7% growth on a reported basis.
• Full-Year 2026 ARR Guidance — $558 million to $560 million, representing 5% growth on a constant currency basis.
• Full-Year 2026 Adjusted EBITDA Guidance — $158.5 million to $159.5 million, representing an approximate 29% margin.
• Full-Year 2026 Unlevered Free Cash Flow Guidance — $116 million to $118 million.
• Fourth Quarter 2026 Revenue Guidance — $133 million to $134 million, representing 3% to 4% year-over-year growth.
• Foreign Exchange Headwinds — $3 million to full-year 2026 ARR and $750,000 to full-year revenue due to updated currency rates.
• Adlumin Acquisition Payment — $67 million, representing the final installment due in the fourth quarter.

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RISKS

• Tim O’Brien stated, “We saw steady renewal rates in Q3 compared to Q2… we haven’t seen an improvement there on the renewal rates to date,” indicating that retention levels have not yet rebounded to historical peaks.
• John Pagliuca noted that the Unified Endpoint Management segment is under pressure as technicians work out how AI changes the way they run IT operations, including tool selection and organizational structure.

SUMMARY

N-able, Inc. (NABL -1.58%) reported third quarter results that reflected steady performance in security and data protection despite evolving market dynamics. Management reported that the company is prioritizing efficiency through intelligent automation and the delivery of enterprise-grade capabilities to small and medium-sized enterprises. The company is currently integrating a new go-to-market strategy under its new Chief Revenue Officer, aiming to deepen upmarket motions and expand its international channel presence. Financial results included significant share repurchases and continued growth in high-value customer cohorts, while guidance for the remainder of the year incorporates foreign exchange headwinds and sustained investment in product innovation.

• CEO Pagliuca reported that over 90% of security investigations are now automated by AI, allowing security analysts to prioritize the most critical threats.
• The company launched AI-accelerated Vulnerability and Patch Management, which is designed to reduce the patching window from days to minutes across hundreds of third-party applications.
• Management indicated that its new Chief Revenue Officer, Russell Rosa, is focusing on up-leveling technical selling depth to better win larger accounts.
• The company announced a distribution partnership with Leader in Australia, providing nationwide access to the security portfolio for MSPs and system integrators.
• N-able is expanding into the identity layer by adding Entra ID capabilities to its data protection offerings to increase its total addressable market.
• The Google Workspace Backup solution, recently in preview, added thousands of users within its first day of availability.

INDUSTRY GLOSSARY

• Cove: A cloud-first data protection and backup platform specifically designed for managed service providers.
• MSP: Managed Service Provider, a company that remotely manages a customer’s IT infrastructure and end-user systems.
• SME: Small and Medium-sized Enterprise.
• UEM: Unified Endpoint Management, software that provides a single console to manage and secure all of an organization’s devices.
• EDR: Endpoint Detection and Response, a security solution that monitors end-user devices to detect and respond to cyber threats.
• SOC: Security Operations Center, a centralized unit that deals with security issues on an organizational and technical level.
• DRaaS: Disaster Recovery as a Service, a cloud-based model for protecting applications and data from disruption or disaster.
• Adlumin: A cybersecurity technology firm acquired by N-able that specializes in managed detection and response.
• Entra ID: Microsoft’s cloud-based identity and access management service, formerly known as Azure AD.
• ARR: Annual Recurring Revenue, a metric used to measure the total value of active subscription contracts on an annualized basis.

Full Conference Call Transcript

Operator: Hello, everyone. Thank you for joining us, and welcome to the N-able third quarter 2026 earnings call. After today’s prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Griffin Gyr, Director of Investor Relations. Please go ahead.

Griffin Gyr: Thanks, operator, and welcome everyone to N-able’s third quarter 2026 earnings call. With me today are John Pagliuca, N-able’s President and CEO, and Tim O’Brien, EVP and CFO. Following our prepared remarks, we will open the line for a question-and-answer session. This call is being simultaneously webcast on our investor relations website at investors.n-able.com. There, you can al

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