N-able 2025 Q2 Earnings Misses Targets as Net Income Dips 140%

N-able (NABL) reported its fiscal 2025 Q2 earnings on Aug 07th, 2025. The company surpassed $500 million in ARR and raised full-year revenue and adjusted EBITDA guidance. However, it swung to a loss of $0.02 per share in Q2 2025 from a profit of $0.05 per share in Q2 2024. The stock price fell 6.92% during the latest trading day.

Revenue

N-able’s total revenue rose by 9.9% to $131.25 million in Q2 2025 from $119.45 million in Q2 2024. This increase reflects sustained demand for its cyber-resiliency solutions and continued subscription growth. The company’s subscription revenue also reached $129.9 million, up 10.6% year-over-year.

Earnings/Net Income

N-able recorded a net loss of $-4.02 million in Q2 2025, a 142.5% decline from a net income of $9.46 million in Q2 2024. The earnings per share swung to a loss of $0.02, a 140% negative change from a profit of $0.05 per share a year earlier. Despite this downturn, non-GAAP net income was $20.4 million, or $0.11 per diluted share, showing resilience in core operations.

Price Action

In the latest trading day, N-able’s stock dropped 6.92%. Despite a 1.49% rise during the previous full trading week, the stock edged down 0.24% month-to-date. The mixed short-term performance reflects investor uncertainty following the earnings report.

Post-Earnings Price Action Review

Purchasing N-able shares after its revenue growth quarter and holding for 30 days resulted in a -16.06% return, significantly underperforming the market's 48.67% return. This strategy yielded an excess return of -64.73% and a CAGR of -5.84%, highlighting the stock's poor post-earnings performance. Despite a maximum drawdown of 0.00%, the strategy's Sharpe ratio of -0.16 indicates low risk-adjusted returns.

CEO Commentary

John Pagliuca, CEO of N-able, emphasized the company’s cyber resilience platform as a key growth driver. He noted the platform’s contribution to achieving $513.7 million in ARR, a 14% YoY increase, and a 32% adjusted EBITDA margin. Pagliuca stressed the platform’s role in reducing vendor sprawl and closing coverage gaps, while expressing optimism about the mid-market opportunity and scalable, profitable growth toward a $750 million ARR target by 2028.

Guidance

N-able raised its full-year 2025 revenue guidance to $500–503 million and ARR guidance to $525–530 million. Third-quarter revenue is expected to be $127–128 million with adjusted EBITDA of $36–37 million. For the full year, adjusted EBITDA is projected at $141–144 million, representing 28–29% margins. The company expects unlevered free cash flow conversion at ~68% and a non-GAAP tax rate of 19–20% for Q3 and 20–21% annually.

Additional News

Recent business highlights include the appointment of cybersecurity leader Vikram Ramesh as Chief Marketing Officer, the launch of product certifications for UEM to boost operational efficiency, and key Technology Alliance Program integrations to enhance cyber resilience and operational efficiency. N-able also hosted its customer event Empower 2025 in Berlin, emphasizing future cybersecurity and IT service delivery. The company initiated a share repurchase program, signaling confidence in its long-term value.