N-Able (NABL) Q2 2025 earnings summary

Executive summary

• Annualized recurring revenue (ARR) reached $514M as of June 30, 2025, up 14.5% year-over-year, surpassing the $500M milestone, with a 100% recurring revenue model.

• Q2 2025 revenue was $131.2M, up 9.9% year-over-year, driven by growth in data protection, security operations, and endpoint management, including contributions from the Adlumin acquisition.

• Adjusted EBITDA margin was 31.7% for Q2 2025, with adjusted EBITDA of $41.6M, reflecting profitable growth at scale.

• Customer base expanded, with 2,540 customers contributing over $50K ARR, now 60% of total ARR, and average revenue per customer rising to $19.4K.

• Launched new product certifications, expanded technology integrations, and appointed a new CMO to accelerate security transformation.

Financial highlights

• Q2 total ARR reached $513.7M, up 14.5% year-over-year; total revenue was $131.2M, up 9.9% year-over-year.

• Subscription revenue grew 10.6% year-over-year to $129.9M, representing 99% of total revenue.

• Adjusted EBITDA was $41.6M (31.7% margin), exceeding guidance.

• Non-GAAP EPS was $0.11 on 189.3M diluted shares; GAAP net loss was $4.0M.

• Cash and equivalents were $93.9M as of June 30, 2025; net debt was $332.1M.

Outlook and guidance

• Q3 2025 revenue expected at $127M–$128M (9–10% year-over-year growth); adjusted EBITDA $36M–$37M (28–29% margin).

• Full-year 2025 ARR guidance raised to $525M–$530M (9–10% year-over-year growth).

• Full-year 2025 revenue expected at $500M–$503M (7–8% year-over-year growth); adjusted EBITDA $141M–$144M (28–29% margin).

• CapEx expected at ~6% of revenue; adjusted EBITDA to free cash flow conversion at ~68%.

• Non-GAAP tax rate expected at 19–20% for Q3 and 20–21% for the year.