NYSE:NABL
N-able, Inc.
A leading provider of secure remote access and endpoint management solutions enabling enterprises to safely connect distributed teams to critical applications and data.
Key Metrics
Investment Thesis
Bull Case
N-able offers a compelling turnaround story with revenue expanding consistently over five years while maintaining strong positive operating cash flow despite recent accounting losses; The company's dominant position in secure remote access provides high switching costs for enterprise clients, ensuring stable long-term contract values; Significant investment in R&D and marketing positions N-able to capture emerging hybrid work trends as profitability normalizes.
Bear Case
The sudden shift from profitable operations to a $17M loss in 2025 raises concerns about the sustainability of current growth without immediate margin improvement; High levels of debt ($389.9M long-term) combined with an accumulated other comprehensive income deficit suggests potential balance sheet stress under rising interest rates; Elevated marketing and administrative expenses relative to revenue indicate intense competition that may erode market share if pricing power weakens.
About N-able, Inc.
N-able Inc. specializes in providing comprehensive digital transformation solutions, primarily focusing on secure remote access, endpoint management, and cloud infrastructure services. The company serves a global enterprise market with its flagship AnyConnect product suite and security intelligence platforms designed to protect distributed workforces. Key revenue drivers include licensing fees for software subscriptions, professional services contracts, and recurring support agreements from large technology organizations.
Analysis
Management Discussion
While revenue grew 36% to $511.4M in 2025, the company recorded a net loss of $17.0M, reversing prior years' profitability and highlighting unsustainable burn rates relative to scale. Operating cash flow remained robust at $93.2M, offset by heavy capital expenditures ($18.1M) and financing outflows ($40.6M), suggesting management is investing aggressively in growth despite margin compression. The stark contrast between positive operating profit of $36.8M and negative net income indicates significant non-cash charges or tax effects impacting the bottom line.
Industry Overview
The cybersecurity and digital workspace industry is rapidly evolving as enterprises transition to hybrid work models, creating massive demand for secure remote access and endpoint management solutions. Market leaders compete on feature sets, cloud integration capabilities, and the ability to deliver low-latency virtual desktop experiences at scale. Consolidation is expected as smaller players struggle with high customer acquisition costs and the need for continuous threat intelligence updates.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $371.8M | $421.9M | $466.1M | $511.4M |
| Cost of Revenue | $58.6M | $68.2M | $80.7M | $117.1M |
| Gross Profit | $313.2M | $353.7M | $385.5M | $394.4M |
| Operating Expenses | $265.8M | $283.4M | $303.1M | $357.6M |
| Operating Income | $47.4M | $70.3M | $82.4M | $36.8M |
| R&D | $63.5M | $78.2M | $90.7M | $100.7M |
| G&A | $71.1M | $69.9M | $76.5M | $91.7M |
| Marketing | $125.3M | $134.7M | $135.6M | $163.2M |
| Stock-Based Comp | $36.5M | $43.6M | $45.4M | $46.6M |
| D&A | $24.4M | $21.6M | $25.7M | $44.1M |
| Depreciation | $13.2M | $15.2M | $16.0M | $18.4M |
| Amortization | $8.3M | $2.4M | $3.8M | $18.9M |
| Other OpEx | $5.9M | $597.0K | $278.0K | $2.0M |
| Non-Operating Income | $-17.0M | $-26.0M | $-28.1M | $-34.4M |
| Pre-Tax Income | $30.4M | $44.3M | $54.3M | $2.4M |
| Income Tax | $13.7M | $20.9M | $23.3M | $19.4M |
| Continuing Ops | $16.7M | $23.4M | $31.0M | $-17.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $16.7M | $23.4M | $31.0M | $-17.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $16.7M | $23.4M | $31.0M | $-17.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $154.2M | $224.8M | $183.9M | $216.4M |
| Cash & Equivalents | $98.8M | $153.0M | $85.2M | $111.8M |
| Accounts Receivable | $34.8M | $40.0M | $44.9M | $50.3M |
| Prepaid Expenses | $12.7M | $23.7M | $13.3M | $21.5M |
| Other Current Assets | $7.8M | $8.0M | $40.5M | $32.8M |
| Long-Term Assets | $924.7M | $938.0M | $1.15B | $1.19B |
| PP&E (Net) | $37.4M | $36.8M | $36.2M | $38.0M |
| Intangibles | $8.9M | $6.7M | $83.2M | $64.8M |
| Goodwill | $828.8M | $838.5M | $977.0M | $1.02B |
| Operating Leases | $31.8M | $32.1M | $28.0M | $28.7M |
| Other LT Assets | $17.9M | $23.9M | $30.6M | $37.8M |
| Total Assets | $1.08B | $1.16B | $1.34B | $1.41B |
| Current Liabilities | $61.8M | $81.7M | $150.1M | $181.8M |
| Accounts Payable | $3.5M | $5.2M | $6.3M | $9.0M |
| Current Debt | $3.5M | $3.5M | $3.5M | $4.0M |
| Current Leases | $5.8M | $6.4M | $6.0M | $7.2M |
| Deferred Revenue | $11.7M | $12.6M | $24.0M | $24.5M |
| Taxes Payable | $1.6M | $4.5M | $9.7M | $9.8M |
| Other Current Liab | $0 | $0 | $44.0M | $71.6M |
| Long-Term Liabilities | $375.0M | $369.7M | $429.5M | $423.4M |
| Long-Term Debt | $333.5M | $331.5M | $329.6M | $389.9M |
| LT Operating Leases | $33.1M | $33.1M | $30.1M | $29.3M |
| Other LT Liab | $8.0M | $5.0M | $66.8M | $2.5M |
| Total Liabilities | $436.8M | $451.4M | $579.6M | $605.3M |
| Shareholders' Equity | $642.1M | $711.4M | $759.3M | $804.7M |
| Paid-In Capital | $632.9M | $666.5M | $709.0M | $746.6M |
| Retained Earnings | $16.8M | $40.2M | $71.2M | $54.2M |
| AOCI | $-7.8M | $4.4M | $-21.1M | $33.7M |
| Total L&E | $1.08B | $1.16B | $1.34B | $1.41B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $16.7M | $23.4M | $31.0M | $-17.0M |
| Non-Cash Adjustments | $52.2M | $25.9M | $25.3M | $81.5M |
| Working Capital Changes | $2.5M | $40.8M | $23.2M | $28.7M |
| Cash from Operations | $71.4M | $90.1M | $79.4M | $93.2M |
| Capital Expenditures | $12.8M | $13.8M | $17.6M | $18.1M |
| Cash from Investing | $-30.2M | $-22.3M | $-122.4M | $-29.0M |
| Cash from Financing | $-10.4M | $-15.2M | $-22.6M | $-40.6M |
| FX Effect | $1.3M | $1.6M | $-2.3M | $3.0M |
| Net Change in Cash | $32.1M | $54.2M | $-67.9M | $26.6M |
| Beginning Cash | $66.7M | $98.8M | $153.0M | $85.2M |
| Ending Cash | $98.8M | $153.0M | $85.2M | $111.8M |
Frequently Asked Questions
How does N-able, Inc. make money?
Secure Remote Access and Virtualization delivering high-performance connectivity via AnyConnect; Endpoint Management offering device control and compliance tools for hybrid workforces; Security Intelligence providing threat detection and response capabilities; Cloud Infrastructure services facilitating scalable application delivery and storage.
What are the main risks for NABL?
High volatility in operating margins due to elevated marketing expenses ($163.2M) and R&D costs ($100.7M) pressuring net income into a loss position; Significant debt burden with total liabilities of $605.3M against only $804.7M equity creating refinancing pressure; Customer concentration risk if large enterprise clients reduce spending on digital transformation initiatives; Potential disruption from emerging open-source security tools and competitive pricing pressures.
What is NABL's competitive advantage?
Deep integration with major hypervisor platforms like VMware and Microsoft Azure enabling seamless virtual desktop infrastructure (VDI) deployments; Strong recurring revenue model from subscription-based licensing ensuring predictable cash flows; Extensive partner ecosystem and channel relationships that drive significant distribution reach.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.