N-Able (NABL) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong results with ARR of $548M, up 11.2% year-over-year, and revenue of $133.7M, up 13.1%, driven by upmarket momentum and AI-driven cybersecurity innovation.

• Adjusted EBITDA margin improved to 27.5%, with non-GAAP gross margin at 81% and recurring revenue at 100%.

• AI innovation, including the launch of N-zo and MCP server, is automating IT tasks and expanding the addressable market.

• Security operations and data protection outpaced overall growth, with customers over $50K ARR growing 13% and now representing 62% of total ARR.

• Recognized by leading analysts and announced partnership with Manchester City as Official Cybersecurity Partner.

Financial highlights

• Q1 2026 revenue was $133.7M, up 13.1% year-over-year, with subscription revenue at $132.5M (99.1% of total), and adjusted EBITDA of $36.7M (27.5% margin).

• Non-GAAP EPS was $0.09; cash and equivalents at $117.8M; total debt at $393.1M; net leverage at 1.8x.

• Unlevered free cash flow was $21.9M for the quarter.

• Gross margin was 80% (down from 81% in Q1 2025); non-GAAP adjusted EBITDA margin at 30% TTM as of Q1'26.

• Weighted-average shares outstanding were 187.5M.

Outlook and guidance

• Q2 2026 revenue expected at $137.5M–$138.5M (5–6% year-over-year growth); adjusted EBITDA guidance: $39.5M–$40.5M (29% margin).

• Full-year 2026 revenue outlook: $554M–$559M (8–9% growth); ARR: $581M–$586M (8–9% growth); adjusted EBITDA: $167M–$171M (30–31% margin).

• Unlevered free cash flow for 2026 raised to $116M–$120M; CapEx expected at 5% of revenue.

• Stock-based compensation expense expected to decrease for the remainder of 2026.

• Existing cash and cash flows are considered sufficient to fund operations and capital needs for at least the next twelve months.