N-able (NABL) Reports $130M Q4 Revenue and Strong 30% Adjusted EBITDA Margins

N-able Inc. (NYSE:NABL) is one of the most promising penny stocks under $5 to buy. On February 19, N-able reported earnings for Q4 and the full year of 2025, reaching $130 million in quarterly revenue and a total ARR of $540 million. The company achieved a consistent 30% adjusted EBITDA margin throughout the year, supported by a healthy gross margin of 81%. The company also saw a 14% year-over-year increase in its higher-value customer segment, now totaling over 2,600 partners contributing $50,000 or more in ARR.

The focus for 2025 was heavily centered on AI and the integration of the Adlumin acquisition, which supported N-able’s presence in the AI Security Operations Center market. The CEO highlighted the success of N-zo, an embedded AI workflow assistant currently in limited preview that allows managed service providers/MSPs to manage environments using NL. Additionally, the opening of a new R&D center in India is expected to accelerate innovation across the company’s cybersecurity and data protection platforms, helping MSPs address an increasingly complex threat landscape.

For 2026, N-able Inc. (NYSE:NABL) projects total revenue between $554 and $559 million, representing ~8% to 9% growth. While management acknowledged competitive pressures and a slight dip in Q4 gross margins to 80%, the company anticipates stronger growth in H2 2026 as new AI-powered products, such as XDR and Disaster Recovery as a Service, reach general availability.

N-able Inc. (NYSE:NABL) provides cloud-based security, data protection, and unified endpoint management software solutions for managed service providers in the US, the UK, and internationally.