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N-able (NABL)
NYSE:NABL
US Market

N-able (NABL) AI Stock Analysis

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N-able

(NYSE:NABL)

Rating:74Outperform
Price Target:
$9.00
▲(9.09%Upside)
N-able's overall stock score is driven by strong financial performance, positive earnings call insights, and a bullish technical analysis. However, the high P/E ratio suggests potential overvaluation, which tempers the overall attractiveness. The company's strategic initiatives and growth potential in the information technology services industry are promising, but investors should remain cautious about valuation concerns.
Positive Factors
Financial Performance
N-able reported headline first-quarter results ahead of consensus across all major metrics, with a boost from FX.
Product Expansion
N-able has expanded its product portfolio to include cybersecurity solutions, which are expected to enhance its cyber-resilience platform and attract new customers.
Revenue Growth
Management provided guidance of $750 million in FY28 ARR compared to $480 million in FY24 ARR.
Negative Factors
Execution Challenges
Achieving FY28 targets will require solid and consistent execution given ongoing macro headwinds.
Profitability Concerns
The EPS estimates have been lowered due to adjusted interest expense assumptions, which may impact perceived profitability.

N-able (NABL) vs. SPDR S&P 500 ETF (SPY)

N-able Business Overview & Revenue Model

Company DescriptionN-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 MoneyN-able generates revenue through a subscription-based model, where MSPs and IT professionals pay recurring fees to utilize its software solutions. The company's key revenue streams include subscriptions to its various software products, such as remote monitoring and management tools, security solutions, and data protection services. N-able's revenue is also bolstered by its partnerships with IT service providers and its focus on scalability, allowing it to serve businesses of different sizes. Additionally, the company's extensive customer support and training services contribute to customer retention and long-term revenue growth.

N-able Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 15.55%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, product innovation, and expansion in partnerships and channels. Despite some challenges with gross margin decline and market uncertainties, the company's achievements and strategic initiatives indicate a forward-looking growth trajectory.
Q1-2025 Updates
Positive Updates
First Quarter Financial Performance
First quarter ARR grew 11% year-over-year in constant currency. First quarter revenue was $118.2 million, and adjusted EBITDA was $31.6 million, reflecting a 27% margin. The company exceeded top- and bottom-line guidance.
Product Innovation and Launches
Launched breach prevention from Microsoft 365 and Vulnerability Management as a new feature in Unified Endpoint Management (UEM). These innovations address customer pain points and enhance N-able's security offerings.
Recognition and Awards
Cove data protection was named a Champion in Managed BDR by Canalys for the second consecutive year. Adlumin Security Operations solution was named market leader for MDR in the 2025 Cyber Defense Magazine Global InfoSec Awards.
Channel Expansion and Partnerships
Expanded go-to-market strategy by adding resellers globally and revamping the partner portal. Received a 5-Star rating in the CRN Partner Program Guide for the fourth consecutive year.
Share Repurchase Program
Announced a $75 million share repurchase authorization program, underscoring confidence in the business.
Negative Updates
Gross Margin Decline
First quarter gross margin decreased to 80.6% compared to 84.7% in the same period in 2024.
Market Uncertainties
Mentioned that evolving trade policies and macroeconomic uncertainty could impact business operations and customer decision-making.
Dollar-Based Net Revenue Retention
Dollar-based net revenue retention was approximately 101%, indicating modest retention with room for improvement.
Company Guidance
During the N-able First Quarter 2025 Earnings Call, the company provided substantial financial guidance and updates on its strategic initiatives. N-able reported a first quarter annual recurring revenue (ARR) growth of 11% year-over-year in constant currency, reaching $492.7 million, and a revenue of $118.2 million, which was $2.2 million above the high-end of their guidance. The adjusted EBITDA was reported at $31.6 million, reflecting a 27% margin. Looking ahead, N-able raised its full-year 2025 revenue guidance to a range of $492 million to $497 million, representing 6% to 7% year-over-year growth, or 6% to 8% on a constant currency basis. The company expects full-year ARR to be between $519 million and $525 million, indicating 8% to 9% growth. Additionally, the company announced a $75 million share repurchase program, highlighting its confidence in its business model. N-able also raised its expected adjusted EBITDA to unlevered free cash flow conversion percentage from 65% to approximately 68% for the full year, driven partly by a revised non-GAAP tax rate of 20% to 21%.

N-able Financial Statement Overview

Summary
N-able's financial health is characterized by robust revenue growth and strong cash flow generation. While the company demonstrates effective cost management through high gross margins, the decreasing net profit and return on equity highlight areas for improvement in profitability and operational efficiency. The balance sheet remains stable with moderate leverage, positioning N-able favorably for future growth in the information technology services industry.
Income Statement
78
Positive
N-able has demonstrated strong revenue growth with a significant increase from $302.87M in 2020 to $470.60M TTM, reflecting a steady upward trend. The gross profit margin remains robust at 80.86% TTM, indicating effective cost management. However, the net profit margin has decreased from 6.64% in 2024 to 3.47% TTM, which may raise some concerns about operational efficiency. While EBIT and EBITDA margins indicate profitability, the decline in EBIT margin from 17.67% in 2024 to 12.44% TTM suggests a need for operational improvements.
Balance Sheet
72
Positive
The company maintains a reasonable debt-to-equity ratio of 0.48 TTM, suggesting moderate leverage and financial stability. With an equity ratio of 57.34% TTM, N-able shows a strong reliance on equity financing, offering a stable financial structure. The return on equity has decreased from 4.08% in 2024 to 2.11% TTM, reflecting challenges in generating returns on shareholders' investments. Overall, the balance sheet reflects a stable financial position with potential areas for enhancement in profitability.
Cash Flow
84
Very Positive
N-able exhibits strong cash flow management with a positive trend in free cash flow, growing by 28.05% from 2024 to TTM. The operating cash flow to net income ratio of 5.81 TTM suggests efficient cash generation relative to net income. The free cash flow to net income ratio stands at 4.85 TTM, indicating a solid capability to convert income into cash flow. These metrics highlight the company's ability to maintain liquidity and invest in growth opportunities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue470.60M466.15M421.88M371.77M346.46M302.87M
Gross Profit380.52M385.47M353.67M313.16M294.02M239.70M
EBITDA97.44M110.46M94.65M72.55M65.09M89.44M
Net Income16.34M30.96M23.41M16.71M113.00K-7.16M
Balance Sheet
Total Assets1.09B1.34B1.16B1.08B1.06B1.08B
Cash, Cash Equivalents and Short-Term Investments98.08M85.20M153.05M98.85M66.74M99.79M
Total Debt373.95M369.19M374.52M375.87M381.53M390.15M
Total Liabilities436.38M579.56M451.43M436.79M437.34M448.54M
Stockholders Equity656.20M759.29M711.36M642.07M618.36M631.20M
Cash Flow
Free Cash Flow79.20M61.87M67.75M50.40M10.51M69.53M
Operating Cash Flow94.93M79.44M90.09M71.41M45.34M85.67M
Investing Cash Flow-123.37M-122.42M-22.34M-30.21M-34.83M-16.14M
Financing Cash Flow-17.97M-22.59M-15.17M-10.40M-50.62M-10.56M

N-able Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.25
Price Trends
50DMA
7.74
Positive
100DMA
7.84
Positive
200DMA
9.40
Negative
Market Momentum
MACD
0.09
Negative
RSI
60.33
Neutral
STOCH
83.69
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NABL, the sentiment is Positive. The current price of 8.25 is above the 20-day moving average (MA) of 7.98, above the 50-day MA of 7.74, and below the 200-day MA of 9.40, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 60.33 is Neutral, neither overbought nor oversold. The STOCH value of 83.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NABL.

N-able Risk Analysis

N-able disclosed 1 risk factors in its most recent earnings report. N-able reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

N-able Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$1.50B28.1711.35%14.05%17.90%
74
Outperform
$1.56B94.722.20%7.98%-40.59%
71
Outperform
$2.04B25.2512.47%1.39%3.51%18.34%
67
Neutral
$1.05B94.722.42%18.72%347.70%
63
Neutral
$34.04B6.14-11.52%1.82%5.53%-18.79%
VYVYX
54
Neutral
$1.83B-19.49%-50.48%-15.75%
53
Neutral
$798.03M39.11-0.04%3.50%95.90%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NABL
N-able
8.25
-6.47
-43.95%
FORTY
Formula Systems
134.96
59.80
79.56%
VYX
NCR Voyix
13.28
-0.73
-5.21%
GDYN
Grid Dynamics Holdings
12.39
1.78
16.78%
PSFE
Paysafe
13.45
-4.38
-24.57%
TASK
TaskUs
16.78
2.72
19.35%

N-able Corporate Events

Executive/Board ChangesShareholder Meetings
N-able Holds Annual Stockholders Meeting, Key Decisions Made
Neutral
May 27, 2025

On May 22, 2025, N-able, Inc. held its annual meeting of stockholders, where several key decisions were made. Stockholders elected Class I directors for a three-year term, ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, and approved the compensation of named executive officers. These decisions reflect the company’s ongoing commitment to strong governance and financial oversight.

The most recent analyst rating on (NABL) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on N-able stock, see the NABL Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025