N-able's Q2 2025 Earnings Call: Unpacking Contradictions in Reseller Strategy, Revenue Impact, and ARR Growth

Reseller traction and go-to-market strategy, deal elongation and sales cycle duration, ASC 606 headwinds and revenue impact, Adlumin revenue contribution and ARR impact, contract transition and ARR growth are the key contradictions discussed in N-able's latest 2025Q2 earnings call.



Revenue and ARR Growth:
- N-able surpassed $500 million of Annual Recurring Revenue (ARR) in Q2 2025, growing 14% year-over-year.
- The growth was driven by strong performance across all three pillars of the unified cyber resilience platform: Unified Endpoint Management, Security Operations, and Data Protection.

Data Protection and Security Operations:
- The data protection solution, Cove, recorded its highest bookings quarter and net new ARR quarter ever, excluding pricing changes.
- The growth was supported by the addition of new features such as a smart notification service and expanded Linux restore capabilities, reinforcing Cove's market relevance.

Cybersecurity Operations and Channel Expansion:
- The XDR and MDR offering, Adlumin, showed healthy ARR growth, contributing to the company's success in the cybersecurity segment.
- The expansion into the broader channel, including partnerships with resellers and system integrators, is a key growth initiative that is unlocking new markets for N-able.

Profitability and Margins:
- N-able delivered a 32% adjusted EBITDA margin for Q2 2025, demonstrating strong profitability amidst growth.
- The profitability was driven by efficient operations, integration of Adlumin, and strategic capital allocation, including a share repurchase program.