N-Able (NABL) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 revenue of $118.2 million and adjusted EBITDA of $31.6 million, both above guidance, with ARR growing 11% year-over-year in constant currency.

• Annualized recurring revenue (ARR) reached $492.7 million as of March 31, 2025, with strong demand for cyber resiliency solutions and new product launches.

• Customer base growth, industry recognition, and largest new bookings deal to date reinforce market leadership.

• The business model is 100% recurring revenue, focused on SMB and mid-market IT security and management.

• Operating income declined and net loss was $7.2 million due to higher costs and acquisition-related expenses.

Financial highlights

• Q1 2025 total revenue was $118.2 million, up 3.9% year-over-year (5.7% constant currency); subscription revenue was $116.8 million, up 4.8% (6.6% constant currency).

• Total ARR reached $492.7 million, up 10.3% year-over-year (10.9% constant currency).

• Adjusted EBITDA was $31.6 million (26.8% margin); unlevered free cash flow was $28.1 million.

• GAAP net loss was $7.2 million (–$0.04 per share); non-GAAP net income was $15.6 million ($0.08 per share).

• Cash and cash equivalents were $94.1 million; total debt (net) was $332.6 million as of March 31, 2025.

Outlook and guidance

• Q2 2025 revenue expected at $125.5–$126.5 million (5–6% year-over-year growth); adjusted EBITDA $34–$35 million (27–28% margin).

• Full-year 2025 revenue guidance raised to $492–$497 million (6–7% year-over-year growth); ARR $519–$525 million (8–9% growth).

• Full-year adjusted EBITDA expected at $134–$139 million (27–28% margin), with CapEx at ~6% of revenue.

• Adjusted EBITDA to unlevered free cash flow conversion increased to ~68%.

• Stock-based compensation and amortization expenses expected to rise in 2025 due to new equity awards and acquisitions.