Revenue growth has accelerated to 13.1% YoY in Q1 2026, but gross margin has compressed by 720 basis points from its peak to 76.8% in Q2 2026, significantly impacting operating profitability.
N-able, Inc. (NABL) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 533.88M | 511.43M | 466.15M | 421.88M | 371.77M | 346.46M | 302.87M | 263.52M | 228.29M |
| Revenue Growth % | 10.67% | 9.71% | 10.49% | 13.48% | 7.31% | 14.39% | 14.93% | 15.43% | - |
| Cost of Goods Sold | 121.16M | 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 | 412.72M | 392.85M | 385.47M | 353.67M | 313.16M | 294.02M | 239.7M | 206.2M | 170.95M |
| Gross Margin % | 77.31% | 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 | 355.43M | 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 | 242.5M | 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 | 107.17M | 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 | 741K | -20.41M | 278K | 597K | 5.85M | 13.48M | 23.85M | 23.19M | -1.74M |
| Operating Income | 57.29M | 57.66M | 82.37M | 70.32M | 47.4M | 33.33M | 33.77M | 36.61M | 18.77M |
| Operating Margin % | 10.73% | 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 | 86.61M | 101.72M | 108.09M | 90.39M | 70.67M | 66.36M | 90.22M | 90.75M | 74.8M |
| EBITDA Margin % | 16.22% | 19.89% | 23.19% | 21.43% | 19.01% | 19.15% | 29.79% | 34.44% | 32.76% |
| EBITDA Growth % | -0.6% | -5.9% | 19.58% | 27.91% | 6.49% | -26.44% | -0.59% | 21.33% | - |
| D&A (Non-Cash Add-back) | 29.73M | 44.06M | 25.73M | 20.07M | 23.27M | 33.03M | 56.45M | 54.14M | 56.02M |
| EBIT | 38.57M | 38.39M | 84.3M | 74.58M | 49.28M | 32.06M | 32.99M | 37M | 17.03M |
| Net Interest Income | -21.59M | -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 | 21.59M | 36M | 30.03M | 30.25M | 18.85M | 20.47M | 28.14M | 33.8M | 34.52M |
| Other Income/Expense | -40.31M | -55.27M | -28.1M | -25.99M | -16.97M | -21.74M | -28.91M | -33.42M | -36.27M |
| Pretax Income | 16.98M | 2.39M | 54.27M | 44.33M | 30.43M | 11.59M | 4.86M | 3.19M | -17.49M |
| Pretax Margin % | 3.18% | 0.47% | 11.64% | 10.51% | 8.18% | 3.35% | 1.6% | 1.21% | -7.66% |
| Income Tax | 21.68M | 19.42M | 23.31M | 20.91M | 13.72M | 11.48M | 12.01M | 5.71M | -3.8M |
| Effective Tax Rate % | 127.7% | 812.34% | 42.96% | 47.18% | 45.09% | 99.03% | 247.41% | 178.67% | 21.72% |
| Net Income | -4.7M | -17.03M | 30.96M | 23.41M | 16.71M | 113K | -7.16M | -2.51M | -13.69M |
| Net Margin % | -0.88% | -3.33% | 6.64% | 5.55% | 4.49% | 0.03% | -2.36% | -0.95% | -6% |
| Net Income Growth % | -264.27% | -155.02% | 32.23% | 40.13% | 14684.96% | 101.58% | -184.95% | 81.65% | - |
| Net Income (Continuing) | -4.7M | -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) | -0.02 | -0.09 | 0.16 | 0.13 | 0.09 | 0.00 | -0.02 | -0.01 | -0.04 |
| EPS Growth % | -284.33% | -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 | 189.12M | 187.82M | 188.43M | 185.98M | 181.3M | 179.05M | 315.4M | 315.4M | 315.4M |
| Basic Shares Outstanding | 188.63M | 187.82M | 185.28M | 182.37M | 180.14M | 179.05M | 315.4M | 315.4M | 315.4M |
| Dividend Payout Ratio | - | - | - | - | - | 191150.44% | - | - | - |
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.
Key Metrics
Top Statement Risk
Margin compression and high SBC
Metrics are mathematically derived from official filings.
Growth Accelerates but Lacks Consistency
N-able's revenue growth accelerated to 13.1% YoY in Q1 2026 and 5.3% in Q2 2026, a notable improvement from the 3.9% growth in Q1 2025, as reported in recent SEC filings.
The quarterly growth trajectory shows significant volatility, with growth ranging from 3.9% to 14.0% over the past ten quarters. This pattern suggests that while the top-line is expanding, the growth is not linear and may be subject to lumpy contract timings or integration effects from acquisitions. Investors should monitor whether the most recent acceleration represents a sustainable trend or a temporary rebound.
Gross Margin Compression Erodes Core Profitability
N-able's gross margin has declined from a peak of 84.0% in Q2 2024 to 76.8% in Q2 2026, a significant structural shift that appears to be driven by rising cost of goods sold, which more than doubled from $19.2M to $32.0M over the same period.
This 720 basis point erosion in gross margin is a critical negative development, indicating a fundamental change in the company's cost structure, possibly related to a shift in product mix, increased services delivery, or acquisition integration costs. The compression severely limits operating leverage, as the higher gross profit base required to support SG&A is not materializing. The resulting operating margin of 11.9% in the latest quarter is well below the 20.5% achieved in Q3 2024, highlighting a significant deterioration in core business economics.
SG&A Swells, Offsetting Revenue Gains
SG&A expenses rose to $62.6M in Q2 2026 from $55.9M in Q2 2024, a 12% increase that outpaced the 15.7% revenue growth over the same period, suggesting that sales and administrative overhead is not scaling efficiently with the top line.
The persistent elevation of SG&A, which has remained above $57M in most recent quarters, appears to be a primary constraint on profitability. While R&D spending has grown moderately, the SG&A line, representing nearly half of revenue, shows limited evidence of the cost discipline needed to expand operating margins. This pattern indicates that growth may be coming at the expense of profitability, a key concern for investors seeking operating leverage.
Negative Operating Leverage Limits Profit Expansion
Operating income as a percentage of gross profit has fallen from 25.7% in Q3 2024 to 15.5% in Q2 2026, demonstrating a clear lack of operating leverage as overhead costs consume a growing share of gross profit.
The company's operating leverage appears to be negative, a troubling sign for a software-like business model. Despite revenue growth, the ability to translate incremental gross profit into operating income has deteriorated markedly. This suggests that the cost base, particularly SG&A, is relatively fixed or growing faster than the revenue it supports, limiting the path to sustainable profitability.
Inflection to Negative Net Income Begins in 2025
The inflection point occurred in Q1 2025 when N-able reported its first quarterly net loss of -$7.2M, a stark reversal from the $7.5M net income in Q1 2024, marking a shift to a loss-making operational phase.
This inflection was driven by the dual pressures of margin compression and elevated SG&A. The subsequent quarters, with four out of five reporting net losses, confirm that the company's profitability profile has structurally deteriorated. The lasting impact is a balance sheet under greater pressure and a reduced capacity to self-fund growth or return capital to shareholders without accessing external financing.
Growth at the Expense of Sustainable Profitability
The primary short-seller thesis would focus on N-able's accelerating gross margin decline and high stock-based compensation, which reached $10.1M in Q2 2026, as evidence that reported growth is masking fundamental economic deterioration.
An analytical challenge would highlight that revenue growth is being achieved through a business mix that is far less profitable than the historical model, with gross margins compressing over 700 basis points in two years. Furthermore, significant stock-based compensation, representing roughly 7.4% of revenue, is obscuring true cash earnings and diluting shareholders. The combination suggests that the company is sacrificing unit economics for top-line scale, a strategy that may not be viable long-term without a clear path back to margin expansion.