N-able (NABL) AI Stock Analysis

• Market Cap: $991.27M
• Dividend Yield: N/A
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: 8.65%
• EPS Growth: -117.14%
• Country: US
• Employees: 1,800
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.06
• Shares Outstanding: 186,329,600
• 10 Day Avg. Volume: 1,921,078
• 30 Day Avg. Volume: 1,498,475
• PEG Ratio: 0.54
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 2.75
• P/FCF Ratio: 18.72
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 2.97
• Enterprise Value/Ebitda: 11.64
• 1Y Price Target: $7.81
• Price Target Upside: 74.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $5.00 ▲(11.86% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score reflects a tug-of-war between (1) mixed financial performance with strong cash generation and a solid balance sheet but a concerning TTM revenue/profitability deterioration, and (2) a positive earnings outlook with profitable-growth guidance and AI/security momentum. These are offset by (3) weak technicals (clear downtrend) and (4) limited valuation support due to negative P/E and no dividend.

Positive Factors

Recurring subscription model serving MSPs

N-able’s MSP-focused subscription model creates durable, recurring revenue tied to endpoints, users and feature modules. This drives predictable cash flows, high retention potential and scalable billings as MSPs add endpoints or modules, supporting long-term margin and cross-sell opportunities.

Strong operating cash flow and free cash flow

Robust TTM operating and free cash flow despite a reported net loss indicates resilient cash conversion. Durable cash generation supports reinvestment in product, M&A, share repurchases and debt service, giving management flexibility to fund strategic initiatives without dilutive financing.

Adlumin integration and AI-driven security automation

Successful Adlumin integration and AI SOC automation materially strengthen N-able’s security offering, raising differentiation and switching costs for MSPs. This accelerates upsell of higher-margin security modules, supports TAM expansion (DRaaS, workloads) and underpins sustainable product-led growth.

Negative Factors

Sharp TTM revenue decline and net loss

A large TTM revenue decline and move to a net loss signal lost scale or demand disruption, weakening operating leverage. Until revenue stabilizes, margin recovery and return metrics will be challenged, making achievement of mid-cycle profitable-growth targets and stakeholder returns less certain.

Gross margin compression

Year-over-year gross margin erosion reduces the cushion for operating expenses and reinvestment. Persistent compression—driven by mix, pricing or cost increases—would constrain sustainable EBITDA margins and limit the company’s ability to fund R&D, go-to-market expansion and AI product investments.

Higher leverage and cash interest after refinancing

Larger term debt and meaningful cash interest reduce unlevered free cash flow available for growth or M&A. Elevated leverage increases financial rigidity and downside risk if growth or cash conversion lags, making execution on ambitious ARR and cross-sell targets more sensitive to macro and execution variability.

N-able Business Overview & Revenue Model

Company Description

N-able, Inc. provides cloud-based software solutions for managed service providers (MSPs) in the United States, the United Kingdom, and internationally. The company's solutions enable MSPs to support digital transformation and growth within small and medium-sized enterprises. Its software platform is designed to be an enterprise-grade solution that serves as an operating system for its MSP partners and scales as their businesses grow. The company's platform consists of solution categories including remote monitoring and management; security and data protection solutions through its data protection, patch management, endpoint security, web protection, e-mail security and archiving, and vulnerability assessment solutions; and business management, such as professional services automation, automation and scripting management, password management policies and reporting and analytics. The company was founded in 2000 and is headquartered in Burlington, Massachusetts.

How the Company Makes Money

N-able generates revenue primarily through a subscription-based model, where MSPs pay recurring fees for access to its software and services. Key revenue streams include monthly or annual subscriptions for its RMM platform, backup solutions, and security products. Additionally, N-able may earn income from professional services, training, and support. Strategic partnerships with other technology providers and integrations with third-party software can also enhance its offerings and contribute to its revenue. The growth in the managed services market and the increasing need for cybersecurity solutions further support its revenue generation.

N-able Financial Statement Overview

Summary

Mixed fundamentals. Strengths include solid operating cash flow and free cash flow despite a reported net loss, plus a conservatively positioned balance sheet with modest reported debt. The key concern is the sharp TTM reset (large revenue decline and swing to losses) and weaker returns, which tempers the otherwise strong margin/cash profile.

Income Statement

Profitability weakened meaningfully in TTM (Trailing-Twelve-Months): revenue fell sharply (down ~63%) and the company swung to a net loss (about -1% net margin) versus a solid profit in 2024 (~6.6% net margin). While gross margins remain high (~79% TTM), operating profitability compressed (EBIT margin down to ~8.7% from ~18.1% in 2024), indicating higher cost pressure and/or lower scale benefits. Longer-term (2021–2024) showed steady revenue growth and improving earnings, but the recent TTM reset is a clear near-term concern.

Balance Sheet

The balance sheet looks conservatively positioned with sizable equity (~$805M TTM) against modest reported debt (~$40M TTM), resulting in low leverage and good financial flexibility. However, returns deteriorated with the move to losses (negative return on equity in TTM), and the sharp drop in reported debt versus prior years introduces some comparability noise. Overall, capitalization appears strong, but profitability needs to stabilize to improve shareholder returns.

Cash Flow

Cash generation is a relative strength: TTM operating cash flow (~$93M) and free cash flow (~$72M) are solid, with strong TTM free-cash-flow growth. Cash flow also remains positive despite the reported net loss in TTM, suggesting earnings quality is supported by cash conversion. The main watch-out is that cash flow has not consistently covered accounting earnings in every period (coverage below 1.0 in 2024 and TTM), but absolute cash generation remains healthy.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	511.43M	466.15M	421.88M	371.77M	346.46M
Gross Profit	394.38M	385.47M	353.67M	313.16M	294.02M
EBITDA	101.72M	110.03M	94.65M	72.55M	65.09M
Net Income	-17.03M	30.96M	23.41M	16.71M	113.00K
Balance Sheet
Total Assets	1.41B	1.34B	1.16B	1.08B	1.06B
Cash, Cash Equivalents and Short-Term Investments	111.84M	85.20M	153.05M	98.85M	66.74M
Total Debt	459.64M	369.19M	374.52M	375.87M	381.53M
Total Liabilities	605.25M	579.56M	451.43M	436.79M	437.34M
Stockholders Equity	804.65M	759.29M	711.36M	642.07M	618.36M
Cash Flow
Free Cash Flow	75.06M	55.71M	67.75M	50.40M	10.51M
Operating Cash Flow	93.20M	79.44M	90.09M	71.41M	45.34M
Investing Cash Flow	-28.96M	-122.42M	-22.34M	-30.21M	-34.83M
Financing Cash Flow	-40.63M	-22.59M	-15.17M	-10.40M	-42.32M

N-able Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NABL, the sentiment is Negative. The current price of 4.47 is below the 20-day moving average (MA) of 5.62, below the 50-day MA of 6.59, and below the 200-day MA of 7.56, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 23.35 is Positive, neither overbought nor oversold. The STOCH value of 13.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NABL.

N-able Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLYW	69 Neutral	$1.36B	-401.07	-0.29%	―	22.71%	-111.24%
TASK	62 Neutral	$941.25M	11.86	15.40%	―	19.88%	51.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NABL	61 Neutral	$991.27M	-137.39	-2.18%	―	8.65%	-117.14%
VYX	55 Neutral	$1.35B	-29.15	-3.73%	―	-22.36%	94.85%
AI	47 Neutral	$1.49B	-3.78	-46.77%	―	1.84%	-27.74%
BBAI	46 Neutral	$1.79B	-2.95	-111.83%	―	-6.95%	-53.69%

N-able Corporate Events

N-able Amends Credit Agreement to Boost Term Loan

On November 26, 2025, N-able International Holdings II, LLC, a subsidiary of N-able, Inc., amended its Credit Agreement to increase its term loan facility from $336 million to $400 million and extend its maturity to 2032. This amendment also extended the maturity of its revolving credit facility to 2030 and reduced the interest rate on borrowings, positioning the company to use these funds for corporate purposes, including acquisitions and share repurchases.

The most recent analyst rating on (NABL) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on N-able stock, see the NABL Stock Forecast page.