N-able Reports Q2 2025 Revenue of $131.2 Million, Net Loss of $4 Million

N-able, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $131.2 million, a 9.9% increase from $119.4 million in the same period last year. The company's subscription revenue, which constitutes the majority of its income, rose to $129.9 million, up 10.6% from $117.4 million in the prior year. However, N-able experienced a net loss of $4.0 million for the quarter, compared to a net income of $9.5 million in Q2 2024, primarily due to increased operating expenses, including a significant rise in sales and marketing costs.

In the first half of 2025, N-able's total revenue reached $249.4 million, marking a 7.0% increase from $233.2 million in the same period of 2024. The annual recurring revenue (ARR) as of June 30, 2025, was reported at $513.7 million, a 14.5% increase year-over-year, driven by strong demand for its solutions and the impact of the acquisition of Adlumin, Inc. in November 2024. The customer base also expanded, with 2,540 customers generating over $50,000 in ARR, up from 2,194 in the previous year.

Operationally, N-able's total headcount increased to 1,882 employees as of June 30, 2025, compared to 1,773 at the end of 2024. The company continues to invest in its sales and marketing efforts, which saw expenses rise by 29.0% to $42.4 million in Q2 2025. Research and development costs also increased by 17.6% to $26.3 million, reflecting N-able's commitment to enhancing its product offerings. The company reported a gross profit of $102.6 million for the quarter, although total operating expenses rose to $92.4 million, leading to a decline in operating income to $10.1 million.

N-able's balance sheet showed total assets of $1.39 billion as of June 30, 2025, with cash and cash equivalents amounting to $93.9 million, up from $85.2 million at the end of 2024. The company has also initiated a share repurchase program, authorizing the buyback of up to $75 million of its common stock, with $10 million repurchased during the quarter. Looking ahead, N-able anticipates continued growth driven by its strategic initiatives, including the integration of Adlumin and the expansion of its long-term contract offerings, despite facing challenges such as rising interest rates and fluctuating foreign exchange rates.