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.

While we acknowledge the potential of NABL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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