Performance was driven by the successful integration of Adlumin, which solidified N-able’s presence in the AI Security Operations Center (SOC) market and exceeded cross-sell expectations.
Management attributes growth to the ‘durable truth’ that digital evolution requires expert technology guidance, with AI acting as a fundamental tailwind rather than a threat to their software moat.
The company is successfully moving upmarket, with customers contributing over $50,000 in ARR now representing 61% of total ARR, up from 57% a year ago.
Strategic positioning focuses on a three-pillar platform—Unified Endpoint Management (UEM), Security Operations, and Data Protection—to drive solution consolidation and reduce vendor sprawl for customers.
Operational efficiency was bolstered by opening a new R&D center in India to deepen engineering capacity while maintaining a 30% adjusted EBITDA margin.
The VAR (Value-Added Reseller) channel expansion is providing a new outbound motion, particularly for UEM solutions in enterprise environments struggling with tool complexity.
The 2026 plan assumes steady demand and stable retention, with the high end of guidance calling for 20% more net new ARR dollars on a constant currency basis than in 2025.
Management expects a second-half weighted performance in 2026 as new product initiatives, currently in customer preview, reach general availability.
Strategic focus will shift toward ‘N-zo,’ an AI workflow assistant designed to close the IT skills gap by automating complex scripting and diagnostic tasks.
TAM expansion initiatives include the mid-2026 launch of Disaster Recovery as a Service (DRaaS) and Google Workspace coverage to address rising business continuity expectations.
Guidance methodology assumes FX rates of 1.17 for the euro and 1.34 for the pound, with a focus on improving unlevered free cash flow through India-based development synergies.
The democratization of coding via AI is identified as a risk factor that increases the speed and sophistication of cyberattacks, necessitating deeper domain expertise from providers.
Non-GAAP earnings per share in Q4 2025 experienced a $0.02 negative impact due to one-time fees related to a new $400 million debt facility.
Gross margins decreased from 84% in 2024 to 81% in 2025.
Management highlighted that 75% of new security operations lands are greenfield, indicating a significant portion of the market still operates without professional security operations tools.
