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N-able (NABL)
NYSE:NABL
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N-able (NABL) AI Stock Analysis

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NABL

N-able

(NYSE:NABL)

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Neutral 63 (OpenAI - 4o)
Rating:63Neutral
Price Target:
$8.50
▲(7.32% Upside)
N-able's overall stock score reflects a mix of strong earnings performance and strategic growth initiatives, tempered by high valuation concerns and profitability challenges. The financial stability and positive earnings call sentiment are significant strengths, while the high P/E ratio and cash flow issues present notable risks.
Positive Factors
ARR Growth
The 14% YoY growth in ARR indicates strong demand for N-able's offerings, reflecting robust customer retention and expansion, which is crucial for sustained long-term revenue growth.
Customer Base Expansion
A 16% increase in high-value customers signifies enhanced market penetration and customer trust, which strengthens N-able's competitive position and revenue predictability.
Security Operations Expansion
The expansion in security operations, particularly in AI-driven threat detection, positions N-able as a leader in cybersecurity, addressing a critical and growing market need.
Negative Factors
Gross Margin Decline
The decline in gross margin suggests rising costs or pricing pressures, which could impact profitability if not managed, potentially affecting long-term financial health.
Cash Flow Challenges
Decreasing free cash flow growth limits N-able's ability to invest in growth initiatives and may strain financial flexibility, impacting strategic opportunities.
Profitability Challenges
A low net profit margin indicates difficulties in converting revenue into profit, which could hinder reinvestment capacity and shareholder returns if not improved.

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 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 Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted notable achievements in ARR growth, data protection, and security operations. However, challenges include a decline in gross margin and stagnation in physical device management. The company's strategic initiatives and strong performance in key areas convey a positive outlook.
Q2-2025 Updates
Positive Updates
ARR Growth and Profitability
Surpassed $500 million in Annual Recurring Revenue (ARR), growing 14% year-over-year, with a 32% adjusted EBITDA margin, indicating profitable growth at scale.
Cove Data Protection Success
Cove now protects over 3 million Microsoft 365 users and recorded its highest bookings and net new ARR quarter ever, excluding pricing and packaging changes, with 25% year-over-year ARR growth in AI-powered enhanced restore capabilities.
Security Operations Expansion
Adlumin's XDR and MDR offerings showed healthy ARR growth, with threat hunting activity increasing over 100-fold, showcasing the strength of the AI-powered approach.
Revenue and Customer Growth
Total revenue was $131.2 million, $4.7 million above guidance, representing a 10% year-over-year growth. The number of customers contributing $50,000 or more of ARR rose to 2,540, a 16% year-over-year increase.
Negative Updates
Gross Margin Decline
Second quarter gross margin decreased to 81.8% from 84.7% in the same period in 2024.
Flat Device Management Growth
Physical device management remains relatively flat, with growth mainly in digital assets like M365 users and virtual machines.
Company Guidance
During N-able's Second Quarter 2025 Earnings Call, several key metrics were highlighted, underscoring the company's strong performance and strategic direction. N-able surpassed $500 million of Annual Recurring Revenue (ARR), marking a 14% year-over-year growth, and achieved a 32% adjusted EBITDA margin. The company reported a total revenue of $131.2 million for the quarter, which was $4.7 million above their guidance, representing approximately 10% year-over-year growth. Subscription revenue reached $129.9 million, growing about 11% year-over-year. N-able's customer base expanded, with 2,540 customers contributing $50,000 or more in ARR, up approximately 16% year-over-year. The company's dollar-based net revenue retention was around 102%. The guidance for the third quarter anticipates total revenue between $127 million and $128 million, with a full-year ARR outlook of $525 million to $530 million. N-able is focused on growth-oriented investments, aiming for a 7% to 8% year-over-year growth in total revenue for 2025.

N-able Financial Statement Overview

Summary
N-able shows stable revenue growth and strong gross margins, but faces challenges in profitability and cash flow generation. The balance sheet remains solid with manageable leverage, providing financial stability. Improvement in net profit margins and cash flow efficiency is needed.
Income Statement
65
Positive
N-able's income statement shows moderate performance with a stable revenue growth rate of 2.51% TTM. The gross profit margin remains strong at 79.27% TTM, indicating efficient cost management. However, the net profit margin is low at 0.59% TTM, suggesting challenges in translating revenue into net income. The EBIT and EBITDA margins have declined compared to the previous year, reflecting potential operational inefficiencies.
Balance Sheet
70
Positive
The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.46 TTM, showing manageable leverage. The equity ratio is healthy, and the return on equity is positive, albeit low at 0.37% TTM. The company maintains a solid equity base, which provides a buffer against potential financial risks.
Cash Flow
60
Neutral
Cash flow analysis reveals a decline in free cash flow growth by -2.19% TTM, which could impact future investments. The operating cash flow to net income ratio is robust at 0.61 TTM, indicating good cash generation relative to net income. However, the free cash flow to net income ratio suggests limited cash available after capital expenditures.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue482.40M466.15M421.88M371.77M346.46M302.87M
Gross Profit382.41M385.47M353.67M313.16M294.02M239.70M
EBITDA88.55M110.46M94.65M72.55M65.09M89.44M
Net Income2.86M30.96M23.41M16.71M113.00K-7.16M
Balance Sheet
Total Assets1.39B1.34B1.16B1.08B1.06B1.08B
Cash, Cash Equivalents and Short-Term Investments93.87M85.20M153.05M98.85M66.74M99.79M
Total Debt371.36M369.19M374.52M375.87M381.53M390.15M
Total Liabilities576.59M579.56M451.43M436.79M437.34M448.54M
Stockholders Equity809.42M759.29M711.36M642.07M618.36M631.20M
Cash Flow
Free Cash Flow77.47M61.87M67.75M50.40M10.51M69.53M
Operating Cash Flow91.84M79.44M90.09M71.41M45.34M85.67M
Investing Cash Flow-124.72M-122.42M-22.34M-30.21M-34.83M-16.14M
Financing Cash Flow-31.29M-22.59M-15.17M-10.40M-50.62M-10.56M

N-able Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.92
Price Trends
50DMA
7.99
Negative
100DMA
7.99
Negative
200DMA
8.20
Negative
Market Momentum
MACD
-0.03
Positive
RSI
45.08
Neutral
STOCH
25.38
Neutral
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 7.92 is below the 20-day moving average (MA) of 8.15, below the 50-day MA of 7.99, and below the 200-day MA of 8.20, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 45.08 is Neutral, neither overbought nor oversold. The STOCH value of 25.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NABL.

N-able Risk Analysis

N-able disclosed 18 risk factors in its most recent earnings report. N-able reported the most risks in the "Finance & Corporate" 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$1.66B329.680.86%22.20%
65
Neutral
$1.57B25.5711.52%19.04%24.49%
63
Neutral
$1.46B517.650.37%7.40%-90.72%
50
Neutral
$1.74B-3.7785.48%-43.28%15.29%
43
Neutral
$2.51B-7.39-34.44%14.34%-13.27%
43
Neutral
$2.70B-5.00-154.12%3.46%-74.21%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NABL
N-able
7.89
-4.74
-37.53%
VYX
NCR Voyix
12.77
-0.93
-6.79%
AI
C3ai
19.16
-4.92
-20.43%
BBAI
BigBearai Holdings
7.27
5.76
381.46%
FLYW
Flywire
13.55
-2.86
-17.43%
TASK
TaskUs
17.25
5.00
40.82%

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.

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: Sep 27, 2025