N-able, Inc. 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- N-able reported second quarter 2026 recurring revenue (RR) of $544 million, growing 6% year over year in constant currency.
- Adjusted EBITDA was $40 million, representing a 29% margin.
- Total revenue was $138 million, approximately 6% year over year growth on a reported basis and 5% on a constant currency basis.
- Subscription revenue was $137 million, growing about 6% year over year on a reported basis and 5% on a constant currency basis.
- The company ended the quarter with 2,706 customers contributing $50,000 or more of RR, up roughly 7% year over year, representing about 63% of total RR.
- Dollar-based net revenue retention was approximately 106% reported and 103% constant currency.
- Gross margin was 80%, down from 82% the prior year period.
- Unlevered free cash flow was $23 million, and capital expenditures were $13 million or 9% of revenue.
- Cash balance was approximately $116 million with net leverage of about 1.8 times.
- Non-GAAP earnings per share were $0.10 based on 189 million weighted average diluted shares.
- The largest renewal cohort in Q2, primarily in UEM and EDR, had renewal rates in the mid-80% range, below expectations, impacting net new recurring revenue and guidance.
- N-able added a delayed draw term loan facility of up to $75 million for capital flexibility.
- The company plans to reduce total headcount by about 6% in the second half of 2026, expecting $4 to $6 million in restructuring charges.
- Data protection solutions, including the recently launched Disaster Recovery as a Service (DRAAS), continue to grow faster than the total company and led net new IRR growth in the quarter.
- UEM cross-sell to data protection and security customers increased 27% in the quarter, with a 60% increase in migrations against the top competitor.
- Security operations platform showed strong traction, with one of the largest new deals ever signed this quarter.
- Approximately 46% of revenue was generated outside North America.
- The company is actively incorporating AI across engineering, sales, marketing, and customer support, with AI-generated code accounting for 47% of committed code in Q2 and some features shipping 10 to 12 times faster than prior estimates.
STOCKNOW INSIGHTS
Continue with outlook and guidance.
Log in to unlock executive comments and Q&A highlights.
Log in for the full summaryStockNow uses AI to translate and summarize earnings calls. Accuracy and completeness are not guaranteed.
Transcript
Preview the first five paragraphs, organized by speaker.
Hello, everyone. Thank you for joining us, and welcome to the N-Able second quarter 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Griffin Gere, Director of Investor Relations.
Please go ahead. Thanks, operator, and welcome everyone to N-Able's second quarter 2026 earnings call.
With me today are John Pagliuca, N-Able's President and CEO, and Tim O'Brien, EVP and CFO. Following our prepared remarks, we will open the line for a question and answer session. This call is being simultaneously webcast on our investor relations website at investors.n-able.com. There, you can also find our earnings press release, which is intended to supplement our prepared remarks during today's call. Certain statements made during this call are forward-looking statements, including those concerning our financial outlook, our market opportunities, and the impact of the global economic environment on our business. These statements are based on currently available information and assumptions, and we undertake no duty to update this information except as required by law.
These statements are also subject to a number of risks and uncertainties, including those highlighted in today's earnings release and our filings with the SEC. Additional information concerning these statements and the risks and uncertainties associated with them is highlighted in today's earnings release and in our filings with the SEC. Copies are available from the SEC or on our investor relations website. Furthermore, we will discuss various non-GAAP financial measures on today's call. Unless otherwise specified, when we refer to financial measures, we will be referring to non-GAAP financial measures. A reconciliation of certain GAAP to non-GAAP financial measures discussed on today's call is available on our earnings press release on our investor relations website. I will now turn the call over to John.
Thank you, Griffin, and thank you all for joining us today. At N-Able, we believe every business deserves enterprise-grade cybersecurity, and we are working to democratize cyber defense at a moment when the stakes have never been higher. That mission has continued to translate into disciplined growth and profitability. Second quarter ARR was $544 million, growing 6% year-over-year in constant currency, and adjusted EBITDA was $40 million, representing a margin of 29%. Our results this quarter and the promising road ahead are grounded in what we believe is a compelling cybersecurity and AI opportunity. Recent advances in frontier AI models are accelerating both the volume and velocity of cyber risk. Vulnerabilities are being discovered faster, exploit timelines are compressing, and customers need to move from threat detection to remediation with far greater urgency. The data underscores this shift.
FULL TRANSCRIPT
Continue the full translated transcript in StockNow.
Log in to unlock every statement, the English original, and speaker-by-speaker history.
Log in for the full transcriptCall participants
10 people spoke on this call — only 2 are shown here.
PARTICIPANT LIST
View participant details in StockNow.
Log in to see executives and analysts, their roles, and complete speaking history.
Log in to view all participantsKeep exploring