N‑able reported third‑quarter 2025 results that surpassed analyst expectations, with revenue reaching $131.7 million—$4.2 million above the consensus estimate of $127.5 million—and a non‑GAAP earnings per share of $0.13, beating the $0.09 forecast by $0.04, or 44%. The company’s annual recurring revenue climbed to $528.1 million, a 14.2% year‑over‑year increase that lifted the full‑year ARR outlook to $530 million‑$531 million, up from the prior guidance of $520 million‑$521 million.
The revenue lift was driven by robust demand across N‑able’s core cyber‑resilience platform, particularly within its managed service provider (MSP) channel and new reseller partnerships. The company’s AI‑powered threat detection capabilities, highlighted by CEO John Pagliuca, attracted new customers and helped maintain pricing power in a competitive market. While the quarter’s gross margin contracted to 81.1% from 83.7% in the same period a year earlier, the decline is largely attributable to integration costs from the recent acquisition of Adlumin and investments in expanding the MSP ecosystem.
Despite margin compression, operating income remained strong, and the company’s cash position—$101.4 million in cash and cash equivalents against $331.7 million of net debt—provides a solid balance‑sheet foundation for continued growth. CFO Tim O’Brien emphasized disciplined execution, noting that “we are executing with precision and investing with purpose to lead in a fast‑changing cybersecurity environment.”
The raised ARR outlook signals management’s confidence that demand for AI‑driven security solutions will continue to accelerate. The guidance reflects a belief that the company can sustain its growth trajectory while managing the cost impact of recent acquisitions and channel expansion. Analysts noted the earnings beat and the upward revision as evidence of strong operational execution, with particular praise for the company’s ability to maintain profitability amid a competitive landscape.
Overall, N‑able’s Q3 results demonstrate that its strategy of combining AI‑enhanced threat detection with a broad MSP distribution network is resonating with customers. The company’s ability to grow ARR by 14% year‑over‑year, beat earnings expectations, and raise its full‑year outlook positions it well for continued success in the cybersecurity market.
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