N-Able (NABL) Q1 2025 earnings summary

Executive summary

• Q1 2025 ARR grew 11% year-over-year in constant currency to $492.7 million, with revenue of $118.2 million and adjusted EBITDA of $31.6 million (26.8–27% margin), both exceeding guidance.

• The business model is 100% recurring revenue, with a strategic focus on security innovation, go-to-market expansion, and customer growth, including new product launches and strong channel partner momentum.

• Industry recognition for Cove Data Protection, Lumen Security Operations, and multiple 2024–2025 software and security awards highlight technical leadership and market momentum.

• Largest new bookings deal to date secured, with continued expansion in Microsoft Cloud management and unified cyber resiliency platform.

• Operating income declined to $1.8 million and net loss was $7.2 million, reflecting higher costs and acquisition-related expenses.

Financial highlights

• Total ARR reached $492.7 million, up 10.3% year-over-year reported and 11% in constant currency; total revenue was $118.2 million, up 3.9–4% reported and 5.7–6% in constant currency.

• Subscription revenue was $116.8 million, up 4.8–5% reported and 6.6–7% constant currency; other revenue fell 39.6% to $1.3 million.

• Gross margin was 80.6% (non-GAAP), down from 84.7% last year; GAAP gross margin was 76.6%.

• Adjusted EBITDA was $31.6 million (26.8–27% margin), down from $39.6 million (34.8% margin) in Q1 2024.

• Cash and cash equivalents at quarter end were $94.1 million; net debt was $332.6 million.

Outlook and guidance

• Q2 2025 revenue expected at $125.5–$126.5 million (5–6% year-over-year growth); adjusted EBITDA of $34–$35 million (27–28% margin).

• Full-year 2025 revenue guidance raised to $492–$497 million (6–7% growth); ARR guidance raised to $519–$525 million (8–9% growth).

• Full-year adjusted EBITDA outlook raised to $134–$139 million (27–28% margin); CapEx expected at ~6% of revenue.

• Adjusted EBITDA to unlevered free cash flow conversion raised to ~68%.

• Non-GAAP tax rate expected at 20–21% for Q2 and full year.