N-Able (NABL) Q2 2026 earnings summary

Executive summary

• Annual recurring revenue (ARR) reached $544.5 million in Q2 2026, up 6% year-over-year, with total revenue of $138.2 million, a 5.9% increase, and adjusted EBITDA of $39.9–$40 million (28.9–29% margin).

• Organizational changes included a 6% workforce reduction and the appointment of Russell Rosa as Chief Revenue Officer to drive growth.

• Product innovation focused on AI-powered cybersecurity, DRaaS launches, and expanded EDR capabilities, with recognition from Gartner and Omdia.

• The company serves over 500,000 businesses and 11M+ IT assets, maintaining 100% recurring revenue.

• Net income for Q2 2026 was $1.8 million, marking a return to profitability.

Financial highlights

• Subscription revenue was $137.1 million, up 6.1% year-over-year, representing over 99% of total revenue.

• Non-GAAP gross margin was 80–80.2%; adjusted EBITDA margin was 28.9–29%.

• Unlevered free cash flow for Q2 was $22.9–$23 million; cash and cash equivalents were $115.8–$116 million.

• Total debt was $392.3–$398 million; net leverage was 1.8x.

• Non-GAAP EPS was $0.10 on 189 million weighted average diluted shares.

Outlook and guidance

• Q3 2026 revenue expected at $134.5–$135.5 million (3% year-over-year growth); adjusted EBITDA of $41–$42 million (30–31% margin).

• Full-year 2026 revenue guidance is $539–$542 million (6–7% growth); ARR outlook is $562–$565 million (4–5% growth).

• Full-year adjusted EBITDA expected at $158–$161 million (29–30% margin); unlevered free cash flow $116–$120 million.

• CapEx for 2026 expected at 6% of revenue; non-GAAP tax rate at 25–26%.

• A new software licensing agreement amendment commits to a $56 million minimum spend over three years starting August 2026.