Revenue growth remains resilient at 13.1% YoY, though gross margins have contracted from 84.0% in 2024Q2 to 75.8% in 2026Q1, suggesting increased costs in maintaining cloud infrastructure.
| Sales/Revenue | 526.91M | 511.43M | 466.15M | 421.88M | 371.77M | 346.46M | 302.87M | 263.52M | 228.29M |
| Revenue Growth % | 11.97% | 9.71% | 10.49% | 13.48% | 7.31% | 14.39% | 14.93% | 15.43% | - |
| Cost of Goods Sold | 117.83M | 118.58M | 80.68M | 68.21M | 58.61M | 52.43M | 63.17M | 57.32M | 57.35M |
| COGS % of Revenue | - | 23.19% | 17.31% | 16.17% | 15.77% | 15.13% | 20.86% | 21.75% | 25.12% |
| Gross Profit | 409.07M | 392.85M | 385.47M | 353.67M | 313.16M | 294.02M | 239.7M | 206.2M | 170.95M |
| Gross Margin % | 77.64% | 76.81% | 82.69% | 83.83% | 84.23% | 84.87% | 79.14% | 78.25% | 74.88% |
| Gross Profit Growth % | - | 1.91% | 8.99% | 12.94% | 6.51% | 22.66% | 16.25% | 20.62% | - |
| Operating Expenses | 358.13M | 335.19M | 303.1M | 283.35M | 265.76M | 260.69M | 205.93M | 169.59M | 152.17M |
| OpEx % of Revenue | - | 65.54% | 65.02% | 67.16% | 71.49% | 75.25% | 67.99% | 64.35% | 66.66% |
| Selling, General & Admin | 245.49M | 254.88M | 212.11M | 204.58M | 196.43M | 193.25M | 139.37M | 109.22M | 95.56M |
| SG&A % of Revenue | - | 49.84% | 45.5% | 48.49% | 52.84% | 55.78% | 46.01% | 41.45% | 41.86% |
| Research & Development | 106.87M | 100.71M | 90.71M | 78.18M | 63.48M | 53.96M | 42.72M | 37.17M | 32.89M |
| R&D % of Revenue | - | 19.69% | 19.46% | 18.53% | 17.08% | 15.57% | 14.1% | 14.11% | 14.41% |
| Other Operating Expenses | 747K | -20.41M | 278K | 597K | 5.85M | 13.48M | 23.85M | 23.19M | -1.74M |
| Operating Income | 50.94M | 57.66M | 82.37M | 70.32M | 47.4M | 33.33M | 33.77M | 36.61M | 18.77M |
| Operating Margin % | 9.67% | 11.28% | 17.67% | 16.67% | 12.75% | 9.62% | 11.15% | 13.89% | 8.22% |
| Operating Income Growth % | - | -29.99% | 17.14% | 48.36% | 42.2% | -1.29% | -7.77% | 95.01% | - |
| EBITDA | 91.53M | 101.72M | 108.09M | 90.39M | 70.67M | 66.36M | 90.22M | 90.75M | 74.8M |
| EBITDA Margin % | 17.37% | 19.89% | 23.19% | 21.43% | 19.01% | 19.15% | 29.79% | 34.44% | 32.76% |
| EBITDA Growth % | -2.65% | -5.9% | 19.58% | 27.91% | 6.49% | -26.44% | -0.59% | 21.33% | - |
| D&A (Non-Cash Add-back) | 40.59M | 44.06M | 25.73M | 20.07M | 23.27M | 33.03M | 56.45M | 54.14M | 56.02M |
| EBIT | 54.88M | 38.39M | 84.3M | 74.58M | 49.28M | 32.06M | 32.99M | 37M | 17.03M |
| Net Interest Income | -21.34M | -36M | -30.03M | -30.25M | -18.85M | -20.47M | -28.14M | -33.8M | -34.52M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 21.34M | 36M | 30.03M | 30.25M | 18.85M | 20.47M | 28.14M | 33.8M | 34.52M |
| Other Income/Expense | -40.5M | -55.27M | -28.1M | -25.99M | -16.97M | -21.74M | -28.91M | -33.42M | -36.27M |
| Pretax Income | 10.44M | 2.39M | 54.27M | 44.33M | 30.43M | 11.59M | 4.86M | 3.19M | -17.49M |
| Pretax Margin % | 1.98% | 0.47% | 11.64% | 10.51% | 8.18% | 3.35% | 1.6% | 1.21% | -7.66% |
| Income Tax | 20.92M | 19.42M | 23.31M | 20.91M | 13.72M | 11.48M | 12.01M | 5.71M | -3.8M |
| Effective Tax Rate % | 200.45% | 812.34% | 42.96% | 47.18% | 45.09% | 99.03% | 247.41% | 178.67% | 21.72% |
| Net Income | -10.48M | -17.03M | 30.96M | 23.41M | 16.71M | 113K | -7.16M | -2.51M | -13.69M |
| Net Margin % | -1.99% | -3.33% | 6.64% | 5.55% | 4.49% | 0.03% | -2.36% | -0.95% | -6% |
| Net Income Growth % | -164.17% | -155.02% | 32.23% | 40.13% | 14684.96% | 101.58% | -184.95% | 81.65% | - |
| Net Income (Continuing) | -10.48M | -17.03M | 30.96M | 23.41M | 16.71M | 113K | -7.16M | -2.51M | -13.69M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.06 | -0.09 | 0.16 | 0.13 | 0.09 | 0.00 | -0.02 | -0.01 | -0.04 |
| EPS Growth % | -165.73% | -156.69% | 23.08% | 41% | - | 103.08% | - | 81.57% | - |
| EPS (Basic) | - | -0.09 | 0.17 | 0.13 | 0.09 | 0.00 | -0.02 | -0.01 | -0.04 |
| Diluted Shares Outstanding | 187.55M | 187.82M | 188.43M | 185.98M | 181.3M | 179.05M | 315.4M | 315.4M | 315.4M |
| Basic Shares Outstanding | 187.55M | 187.82M | 185.28M | 182.37M | 180.14M | 179.05M | 315.4M | 315.4M | 315.4M |
| Dividend Payout Ratio | - | - | - | - | - | 191150.44% | - | - | - |
Competitive pressure from cloud-native
As reported in recent financial statements, N-able has maintained a steady revenue growth trajectory, with the most recent quarter showing a 13.1% year-over-year increase to $133.7 million, suggesting that the company's subscription-based model remains resilient despite the emergence of more agile, cloud-native competitors in the MSP space.
The consistent double-digit growth indicates that the company's core RMM platform continues to serve as a critical utility for its MSP base. However, investors should monitor whether this growth is increasingly reliant on price adjustments rather than net new endpoint additions, as market saturation in the SMB segment may limit future expansion.
Based on the provided income statement data, N-able's gross margin has experienced a noticeable contraction from a peak of 84.0% in 2024Q2 to 75.8% in 2026Q1, indicating potential shifts in product mix or increased costs associated with maintaining its multi-tenant cloud infrastructure for MSP clients.
While a 75.8% gross margin remains robust for a software entity, the downward trend suggests that the company may be facing higher service delivery costs or a shift toward lower-margin security modules. This compression warrants further investigation into whether the company possesses sufficient pricing power to offset rising infrastructure expenses.
According to the company's quarterly filings, operating income has fluctuated significantly, dropping from a high of $23.9 million in 2024Q3 to $13.2 million in 2026Q1, which suggests that the company is struggling to achieve meaningful operating leverage as SG&A expenses continue to scale alongside revenue growth.
The inability to consistently expand operating margins despite revenue growth implies that the company is heavily reinvesting in sales and marketing to defend its installed base. This strategy appears to be a necessary response to competitive threats, but it limits the company's ability to demonstrate bottom-line profitability.
Analysis of the income statement reveals that N-able's net income is frequently impacted by non-operating items, with stock-based compensation consistently exceeding $10 million per quarter, which suggests that reported GAAP earnings may not fully reflect the underlying cash-generative potential of the business's subscription-based revenue model.
The persistent gap between operating income and net income, often exacerbated by high SBC and amortization, makes it difficult to assess the company's true earnings power. Investors should focus on adjusted metrics to determine if the business can eventually achieve sustainable GAAP profitability without excessive dilution.
As noted in industry analysis, the rapid growth of cloud-native competitors like NinjaOne poses a structural threat to N-able, as the company's legacy feature depth may be increasingly viewed as a liability compared to the modern, user-friendly interfaces offered by newer market entrants in the MSP sector.
The risk exists that N-able's high switching costs may be eroded if MSPs prioritize ease-of-use and integration speed over the complex scripting capabilities that currently define the company's moat. If the company fails to modernize its platform, it may face significant churn among smaller, more agile MSPs.
Quick answers to the most common questions about buying NABL stock.
For fiscal year 2025, N-able, Inc. (NABL) reported total revenue of $511.4M. This represents a 124.0% increase compared to $228.3M in 2018.
N-able, Inc. (NABL) reported a net loss of $17.0M for the fiscal year ending 2025.
N-able, Inc. (NABL) reported an operating income of $57.7M, resulting in an operating profit margin of 11.3%. This margin reflects the operational efficiency of the business before interest and taxes.
N-able, Inc. (NABL) generated $392.8M in gross profit for the year, representing a gross profit margin of 76.8%. This demonstrates the company's core pricing power and production efficiency.