N-able (NYSE:NABL) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• N-able beat quarterly estimates: EPS was $0.12 versus $0.10 expected, while revenue of $137.45 million topped forecasts and rose 4.4% year over year. EPS was down from $0.13 a year earlier.
• Data protection and security products showed momentum: Cove protects more than 200,000 businesses, DRaaS surpassed $1 million in ARR, and security operations exceeded $50 million in ARR.
• Growth outlook remains measured: Management expects 5% constant-currency ARR and revenue growth in 2026, but renewal rates have yet to improve and gross retention remains around the mid-80% range.

N-able (NYSE:NABL - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.12 EPS for the quarter, beating analysts' consensus estimates of $0.10 by $0.02, FiscalAI reports. N-able had a positive return on equity of 3.74% and a negative net margin of 1.94%. The business had revenue of $137.45 million during the quarter, compared to analyst estimates of $135.03 million. During the same period in the prior year, the firm posted $0.13 EPS. N-able's quarterly revenue was up 4.4% compared to the same quarter last year.

Here are the key takeaways from N-able's conference call:

• N-able reported third-quarter ARR of $553 million and revenue of $137 million, both up 5% year over year; adjusted EBITDA was $43.6 million, or a 32% margin. Gross margin declined to 78% from 81% a year earlier, while constant-currency net revenue retention was 103%.
• Management highlighted momentum in data protection and security operations: Cove now protects more than 200,000 businesses and 4 million Microsoft 365 mailboxes, DRaaS exceeded $1 million in ARR within months of launch, and security operations passed $50 million in ARR. Google Workspace Backup also entered preview, with thousands of users added on its first day.
• Renewal rates were steady versus Q2, with no improvement yet, and management said gross retention has remained around the mid-80% range. The company expects near-term go-to-market variability and is counting on newer products, cross-selling, and customer acquisition to support future growth, while emphasizing it will wait for results before reflecting acceleration in guidance.
• For 2026, N-able expects constant-currency ARR growth of 5%, revenue growth of 5%, and an adjusted EBITDA margin of about 29%; management described 2026 ARR growth as a framing for 2027 as it invests in product innovation, go-to-market, and AI. The company also repurchased about 10.2 million shares for $38.7 million in Q3, while drawing a further $75 million term loan after quarter-end.

N-able Stock Performance

NABL traded down $0.10 during trading on Friday, hitting $4.83. 1,975,965 shares of the company traded hands, compared to its average volume of 1,313,848. The firm has a market cap of $911.49 million, a P/E ratio of -96.50 and a beta of 0.39. The stock's fifty day moving average is $4.41 and its 200 day moving average is $4.47. The company has a quick ratio of 1.30, a current ratio of 1.11 and a debt-to-equity ratio of 0.50. N-able has a one year low of $2.92 and a one year high of $8.54.

N-able declared that its Board of Directors has authorized a share buyback program on Friday, August 28th that authorizes the company to buy back $50 million in shares. This repurchase authorization authorizes the company to purchase up to 6.7% of its stock through open market purchases. Share repurchase programs are generally a sign that the company's leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on NABL shares. BMO Capital Markets dropped their price target on shares of N-able from $6.00 to $3.75 and set a "market perform" rating on the stock in a research report on Tuesday, August 11th. Zacks Research upgraded shares of N-able from a "strong sell" rating to a "hold" rating in a research note on Friday, August 14th. Weiss Ratings reissued a "sell (d)" rating on shares of N-able in a research report on Thursday, October 15th. Needham & Company LLC lifted their target price on shares of N-able from $4.00 to $6.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, Scotiabank boosted their target price on N-able from $3.65 to $5.45 and gave the stock a "sector perform" rating in a research note on Friday. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $6.04.

Key Stories Impacting N-able

Here are the key news stories impacting N-able this week:

• Positive Sentiment: N-able reported Q3 earnings of $0.12 per share, above analyst estimates, and revenue of $137.45 million, also ahead of expectations. Revenue increased 4.4% year over year. N-able Announces Third Quarter 2026 Results
• Positive Sentiment: Needham raised its price target from $4 to $6 and reiterated a Buy rating, signaling improved expectations for the shares. N-able Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Scotiabank lifted its target from $3.65 to $5.45, while keeping a Sector Perform rating. Scotiabank Raises N-able Price Target
• Neutral Sentiment: RBC raised its target from $4 to $5 but maintained a Sector Perform rating, indicating a more measured view than Needham’s Buy call. RBC Price Target and Rating
• Negative Sentiment: Quarterly EPS was below the year-ago $0.13, despite beating estimates, which may temper the otherwise positive earnings reaction. N-able Q3 2026 Earnings Call Transcript

N-able Company Profile

N-able, Inc is a software company that provides technology solutions to managed service providers (MSPs). Its platform helps MSPs monitor, manage, secure and support the information technology environments of small and midsize businesses through cloud-based tools and services.

The company's offerings include remote monitoring and management software, endpoint security, backup and disaster recovery, email security, password management, and other cybersecurity and data protection solutions.

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