Q4 2025 N-able Inc Earnings Call

February 19, 2026

Speaker #1: Ladies and gentlemen, thank you for joining us, and welcome to the N-Able Fourth Quarter 2025 earnings call. After today's prepared remarks, we will host a question-and-answer session.

Operator: Ladies and gentlemen, thank you for joining us, and welcome to the N-able Q4 2025 earnings call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Griffin Gyr, Investor Relations. Please go ahead.

Speaker #1: If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Griffin Gyr, Investor Relations.

Speaker #1: Please go ahead.

Speaker #2: Thank you, Operator, and welcome, everyone, to N-able's fourth quarter 2025 earnings call. With me today are John Pagliuca, N-able's president and CEO; and Tim O'Brien, EVP and CFO.

Griffin Gyr: Thank you, operator, and welcome everyone to N-able's Q4 2025 earnings call. With me today are John Pagliuca, N-able's President and CEO, and Tim O'Brien, EVP and CFO. Following our prepared remarks, we will open the line for a question-and-answer session. This call is being simultaneously webcast on our investor relations website at investors.n-able.com. There, you can also find our earnings press release, which is intended to supplement our prepared remarks during today's call. Certain statements made during this call are forward-looking statements, including those concerning our financial outlook, our market opportunities, and the impact of the global economic environment on our business. These statements are based on currently available information and assumptions, and we undertake no duty to update this information except as required by law.

Speaker #2: Following our prepared remarks, we will open the line for a question-and-answer session. This call is being simultaneously webcast on our investor relations website at investors.nable.com.

Speaker #2: There you can also find our earnings press release. Which is intended to supplement our prepared remarks during today's call. Certain statements made during this call are forward-looking statements.

Speaker #2: Including those concerning our financial outlook, our market opportunities, and the impact of the global economic environment on our business. These statements are based on currently available information and assumptions, and we undertake no duty to update this information except as required by law.

Speaker #2: These statements are also subject to a number of risk and uncertainties. Including those highlighted in today's earnings release and our filings with the SEC.

Griffin Gyr: These statements are also subject to a number of risks and uncertainties, including those highlighted in today's earnings release and our filings with the SEC. Additional information concerning these statements and the risks and uncertainties associated with them is highlighted in today's earnings release and in our filings with the SEC. Copies are available from the SEC or on our investor relations website. Furthermore, we will discuss various non-GAAP financial measures on today's call. Unless otherwise specified, when we refer to financial measures, we will be referring to non-GAAP financial measures. A reconciliation of certain GAAP to non-GAAP financial measures discussed on today's call is available in our earnings press release on our investor relations website. Now I will turn the call over to John.

Speaker #2: Additional information concerning these statements and the risk and uncertainties associated with them is highlighted in today's earnings release and in our filings with the SEC.

Speaker #2: Copies are available from the SEC or on our investor relations website. Furthermore, we will discuss various non-GAAP financial measures on today's call. Unless otherwise specified, when we refer to financial measures, we will be referring to non-GAAP financial measures.

Speaker #2: A reconciliation of certain GAAP and non-GAAP financial measures discussed on today's call is available in our earnings press release and our investor relations website.

Speaker #2: And now I will turn the call over to John.

Speaker #3: Thanks, Griffin. We enter 2026 with momentum, following another year of profitable growth and with confidence that we can drive continued strong performance. Cybersecurity is a matter of survival.

John Pagliuca: Thanks, Griffin. We entered 2026 with momentum following another year of profitable growth and with confidence that we can drive continued strong performance. Cybersecurity is a matter of survival... and our AI-powered cybersecurity platform delivers the business resilience customers need. Our fourth quarter and full year results reflect this strength, with strong results across our key operating metrics. Both fourth quarter and full year 2025 revenue grew 9% year-over-year in constant currency. We exited 2025 with ARR of $540 million, growing 8% at constant currency. Our adjusted EBITDA in the fourth quarter was $39 million, reflecting a 30% margin, and $153 million for the full year, also reflecting a 30% margin. Beyond the financial results, we made exceptional progress across the business in 2025.

Speaker #3: And our AI-powered cybersecurity platform delivers the business resilience customers need. Our fourth quarter and full-year results reflect the strength. With strong results across our key operating metrics.

Speaker #3: Both fourth quarter and full-year 2025 revenue grew 9% year-over-year in constant currency. We exited 2025 with ARR of $540 million growing 8% at constant currency.

Speaker #3: Our adjusted EBITDA in the fourth quarter was $39 million. Reflecting a 30% margin. And $153 million for the full year. Also reflecting a 30% margin.

Speaker #3: Beyond the financial results, we made exceptional progress across the business in 2025. We solidified our presence in the AI stock market with the successful integration of our AdLumen acquisition.

John Pagliuca: We solidified our presence in the AI SOC market with the successful integration of our Adlumin acquisition, crossed $200 million of ARR in data protection, and expanded into the VAR channel to broaden our sales reach. We also opened up a new R&D center in India to deepen our engineering capacity, elevated our cybersecurity brand, and accelerated innovation across the platform with AI-driven capabilities. Our teams executed exceptionally well, and the business is meaningfully stronger as a result. Building on this progress, let's now discuss our strategy and approach moving forward. In particular, there's a lot of debate about the impact of AI on software, and I want to share how N-able is approaching AI and the tailwinds we see. First and foremost, we continue to think long-term.

Speaker #3: Cross $200 million of ARR in data protection. And expanded into the VAR channel to broaden our sales reach. We also opened up a new R&D center in India to deepen our engineering capacity.

Speaker #3: Elevated our cybersecurity brand. And accelerated innovation across the platform with AI-driven capabilities. Our team's executed exceptionally well. And the business is meaningfully stronger as a result.

Speaker #3: Building on this progress, let's now discuss our strategy and approach moving forward. In particular, there's a lot of debate about the impact of AI on software.

Speaker #3: And I want to share how N‑Able is approaching AI and the tailwinds we see. First and foremost, we continue to think long-term. N‑Able was founded over 25 years ago on the belief that small and mid-sized organizations would keep digitally evolving and would rely on technology experts to help guide that journey.

John Pagliuca: N-able was founded over 25 years ago on the belief that small and mid-sized organizations would keep digitally evolving and would rely on technology experts to help guide that journey. This enduring belief anchors our business. AI accelerates digital evolution, which we believe is a fundamental driver of our business and fuels even greater opportunity. Durable truths guide this evolution. Businesses need to be secure, and they want to achieve this efficiently. N-able helps them accomplish both. AI enhances our ability to deliver these outcomes by automating routine tasks, strengthening threat detection, and helping customers scale. For N-able, we believe AI is a fundamental tailwind, and we are not only embracing, but actively capitalizing on it. Second, our foundation is rock solid.

Speaker #3: This enduring belief anchors our business. AI accelerates digital evolution, which we believe is the fundamental driver of our business and fuels even greater opportunity.

Speaker #3: Durable truths guide this evolution. Businesses need to be secure, and they want to achieve this efficiently. N-Able helps them accomplish both. AI enhances our ability to deliver these outcomes by automating routine tasks, strengthening threat detection, and helping customers scale.

Speaker #3: For N-Able, we believe AI is a fundamental tailwind, and we are not only embracing but actively capitalizing on it. Second, our foundation is rock solid.

Speaker #3: With telemetry from 11 million IT assets across more than 500,000 businesses, and decades of trust in cybersecurity expertise, we have the structural attributes to succeed.

John Pagliuca: With telemetry from 11 million IT assets across more than 500,000 businesses, and decades of trust and cybersecurity expertise, we have the structural attributes to succeed in the AI era. We want to be clear about our stance on the AI-related debates unfolding in the industry. One narrative is that businesses will look to replace existing software tools with low-code and vibe-coded solutions. We see our position in cybersecurity as fundamentally different. Building cybersecurity solutions isn't a part-time or easy job. The difficulty and stakes are too high. One mistake and your business can become extinct. Our cybersecurity software solutions are a foundational part of complex business infrastructure. Sitting at the cybersecurity table requires deep domain expertise, meeting stringent compliance standards, mastering a long tail of edge cases, and an innovation engine capable of quickly responding to new and emerging threats.

Speaker #3: In the AI era. We want to be clear about our stance on the AI-related debates unfolding in the industry. One narrative is that businesses will look to replace existing software tools with low-code and vibe-coded solutions.

Speaker #3: We see our position in cybersecurity as fundamentally different. Building cybersecurity solutions isn't a part-time or easy job. The difficulty and stakes are too high.

Speaker #3: One mistake and your business can become extinct. Our cybersecurity software solutions are foundational part of complex business infrastructure. Sitting at the cybersecurity table requires deep domain expertise, meeting stringent compliance standards, mastering a long tail of edge cases, and an innovation engine capable of quickly responding to new and emerging threats.

John Pagliuca: Our cybersecurity software solutions are a foundational part of complex business infrastructure. Sitting at the cybersecurity table requires deep domain expertise, meeting stringent compliance standards, mastering a long tail of edge cases, and an innovation engine capable of quickly responding to new and emerging threats.

Speaker #3: Businesses aren't looking for component parts to assemble. They want complete products and dependable cybersecurity outcomes. Coding is a component, and N-Able delivers the full product and the outcomes that actually matter.

John Pagliuca: Businesses aren't looking for component parts to assemble. They want complete products and dependable cybersecurity outcomes. Coding is a component. N-able delivers the full product and the outcomes that actually matter. In fact, the democratization of coding is contributing to an increase in the scale, speed, and sophistication of attacks. This has created a more dangerous AI-empowered adversary and makes our innovation, domain expertise, and ability to deliver trusted outcomes more critical than ever. Another discussion is that new AI solutions will replace existing software workflows. We believe this view overlooks a key insight. Probabilistic AI doesn't replace deterministic workflows. It complements them. We are combining our SaaS system of record and context with an AI system of action. This unlocks step function value that we believe will take us to $1 billion of ARR and beyond. Let me be clear.

Speaker #3: In fact, the democratization of coding is contributing to an increase in the scale, speed, and sophistication of attacks. This has created a more dangerous AI-powered adversary, and makes our innovation domain expertise and ability to deliver trusted outcomes more critical than ever.

Speaker #3: Another discussion is that new AI solutions will replace existing software workflows. We believe this view overlooks a key insight: probabilistic AI doesn't replace deterministic workflows.

John Pagliuca: We believe this view overlooks a key insight. Probabilistic AI doesn't replace deterministic workflows. It complements them. We are combining our SaaS system of record and context with an AI system of action. This unlocks step function value that we believe will take us to $1 billion of ARR and beyond. Let me be clear.

Speaker #3: It complements them. We are combining our SaaS system of record and context with an AI system of action. This unlocks step function value that we believe will take us to a billion dollars of ARR and beyond.

Speaker #3: Let me be clear. The way we see it, AI doesn't erode our moat. It widens it. Third, and perhaps most importantly, we're delivering value with AI now.

John Pagliuca: The way we see it, AI doesn't erode our moat, it widens it. Third, and perhaps most importantly, we're delivering value with AI now. AI is embedded across our cybersecurity platform, reducing risk and improving customer efficiency. Each solution has exciting progress and use cases. I'll detail some product specifics in a moment. Underpinning our opportunity is a threat landscape that is constantly growing more difficult for businesses to manage. Attack surfaces are widening, data volumes are growing, and IT complexity is increasing. These challenges are further compounded as bad actors are utilizing AI to execute more advanced and widespread attacks. Businesses' need for cybersecurity has never been more critical and will only continue to grow. We believe N-able is well-positioned to capture this growing demand. From a go-to-market perspective, our channel-led approach unlocks efficient global scale.

Speaker #3: AI is embedded across our cybersecurity platform, reducing risk and improving customer efficiency. Each solution has exciting progress and use cases. I'll detail some product specifics in a moment.

Speaker #3: Underpinning our opportunity is a threat landscape that is constantly growing more difficult for businesses to manage. Attack surfaces are widening, data volumes are growing, and IT complexity is increasing.

Speaker #3: These challenges are further compounded as bad actors are utilizing AI to execute more advanced and widespread attacks. Businesses need for cybersecurity has never been more critical and will only continue to grow.

Speaker #3: We believe N-able is well positioned to capture this growing demand. From a go-to-market perspective, our channel-led approach unlocks efficient global scale. And from a solution standpoint, our purpose-built platform, which spans security operations, data protection, and unified endpoint management, drives compelling value.

John Pagliuca: From a solution standpoint, our purpose-built platform, which spans security operations, data protection, and unified endpoint management, drives compelling value. We enable customers to identify and stop threats, protect and recover data, and efficiently manage complex IT environments to realize true business resilience. This balanced platform breadth is our strategic advantage. By maintaining focused product development, we can continue to deliver technical excellence in each category where we compete. By offering a wide breadth of solutions, we can also deliver platform-level value, including economic and technical benefits. Our approach improves technician visibility and enables solution consolidation for our customers, helping them reduce risk and improve profitability. A near $300,000 ARR Q4 customer win demonstrates this value proposition in action. The customer consolidated a unified endpoint management, security operations, and data protection onto N-able, displacing five separate competitors.

Speaker #3: We enable customers to identify and stop threats, protect and recover data, and efficiently manage complex IT environments to realize true business resilience. This balanced platform breadth is our strategic advantage.

Speaker #3: By maintaining focused product development, we can continue to deliver technical excellence in each category where we compete. And by offering a wide breadth of solutions, we can also deliver platform-level value, including economic and technical benefits.

Speaker #3: Our approach improves technician visibility and enables solution consolidation for our customers, helping them reduce risk and improve profitability. A near $300,000 ARR fourth-quarter customer win demonstrates this value proposition in action.

John Pagliuca: The customer consolidated a unified endpoint management, security operations, and data protection onto N-able, displacing five separate competitors.

Speaker #3: The customer consolidated the unified endpoint management, security operations, and data protection onto N-Able. Displacing five separate competitors. We addressed three critical pain points that included automation gaps, alert fatigue, and high data protection overhead costs.

John Pagliuca: We addressed three critical pain points that included automation gaps, alert fatigue, and high data protection overhead costs. A deal of this magnitude from a customer with only approximately 50 employees speaks directly to the power of our strategy to deliver enterprise-grade security to every business. The combination of our best-of-breed capabilities and efficiency of our platform approach drove compelling value. Bringing it all together, our positioning is sound and our opportunity is significant. AI is a positive demand driver and a technology we are integrating across our platform. More broadly, as we seek to be a business that compounds value over the long term, our fundamental objective remains the same: focus on solving ever-evolving customer problems, deliver security and efficiency, and unrivaled business resilience. With that said, let's now turn to key tenets of our 2026 plan.

Speaker #3: A deal of this magnitude from a customer with only approximately 50 employees speaks directly to the power of our strategy to deliver enterprise-grade security to every business.

Speaker #3: The combination of our best-of-breed capabilities and efficiency of our platform approach drove compelling value. Bringing it all together, our positioning is sound and our opportunity is significant.

Speaker #3: AI is a positive demand driver and a technology we are integrating across our platform. More broadly, as we seek to be a business that compounds value over the long term, our fundamental objective remains the same.

Speaker #3: Focus on solving ever-evolving customer problems, deliver security and efficiency in unrivaled business resilience. With that said, let's now turn to key tenets of our 2026 plan.

Speaker #3: Our priorities span product innovation, strengthening our trusted brand, and continued improvements in go-to-market operations. On the product side, we plan to continue to develop AI as a core differentiator.

John Pagliuca: Our priorities span product innovation, strengthening our trusted brand, and continued improvements in go-to-market operations. On the product side, we plan to continue to develop AI as a core differentiator. For our UEM solution, we are excited to debut n-Zo, our powerful AI workflow assistant, that users will be able to command to complete tasks and better run their IT and security operations. We believe this is a game changer. With a single query, customers will be able to derive insights and complete actions in seconds that previously took hours. As it evolves, our AI workflow assistant is intended to diagnose issues, recommend next steps, write and execute scripts, summarize device health, and turn raw data from millions of endpoints into safe, reliable, and efficient actions. Adding this orchestration layer is a force multiplier on top of our already powerful autonomous management capabilities.

Speaker #3: For our UEM solution, we are excited to debut Enzo. Our powerful AI workflow assistant that users will be able to command to complete tasks and better run their IT and security operations.

Speaker #3: We believe this is a game changer. With a single query, customers will be able to derive insights and complete actions in seconds that previously took hours.

Speaker #3: As it evolves, our AI workflow assistant is intended to diagnose issues, recommend next steps, write and execute scripts, summarize device health, and turn raw data from millions of endpoints into safe, reliable, and efficient actions.

John Pagliuca: As it evolves, our AI workflow assistant is intended to diagnose issues, recommend next steps, write and execute scripts, summarize device health, and turn raw data from millions of endpoints into safe, reliable, and efficient actions. Adding this orchestration layer is a force multiplier on top of our already powerful autonomous management capabilities.

Speaker #3: Adding this orchestration layer is a force multiplier on top of our already powerful autonomous management capabilities. The industry faces a well-documented IT and security skills gap.

John Pagliuca: The industry faces a well-documented IT and security skills gap. Our customers operate labor-intensive businesses in a market with tight employment. AI can change that equation. We're empowering customers to automate more tickets, streamline workflows, and amplify the capabilities of every technician. Closing the skills gap with technology rather than a headcount unlocks a new frontier of scalable, profitable growth. Additionally, we have received industry recognition, positioned in the 2026 Gartner Magic Quadrant for endpoint management tools. Our roadmap also includes furthering our investment in AI within our security operations solution. AI unlocks security scalability that manual approaches simply cannot match. Within our security operations solution, AI now handles 90% of identified threats automatically, up from 70% a year ago, freeing customers to focus on higher-value strategic tasks.

Speaker #3: Our customers operate labor-intensive businesses in a market with tight employment. AI can change that equation. We're empowering customers to automate more tickets, streamline workflows, and amplify the capabilities of every technician.

Speaker #3: Closing the skills gap with technology rather than headcount unlocks a new frontier of scalable, profitable growth. Additionally, we have received industry recognition, positioned in the 2026 Gartner Magic Quadrant for endpoint management tools.

Speaker #3: Our roadmap also includes furthering our investment in AI within our security operations solution. AI unlocks security scalability that manual approaches simply cannot match. Within our security operations solution, AI now handles 90% of identified threats automatically.

Speaker #3: Up from 70% a year ago. Freeing customers to focus on higher-value strategic tasks. In addition to our AI advantage, we bring multiple proven differentiators, including interoperability across the spectrum of EDR providers, and shared visibility into our data system.

John Pagliuca: In addition to our AI advantage, we bring multiple proven differentiators, including interoperability across the spectrum of EDR providers and shared visibility into our data system. On the back of our product strength, we were excited to recently introduce a new cyber warranty program. We believe this warranty will help de-risk adoption and bolster customer confidence. Our solution is scaling quickly, driving strong net new ARR dollar growth. A recent customer incident illustrates the real-world difference we make when it matters most. At 5:00AM Christmas morning, attackers identified a transportation company as an easy target for a holiday heist. Fortunately, our security operations solution was standing guard and spotted the targeted server attack and moved quickly to lock down the compromised asset. Leveraging our AI-powered SOC, time to containment was mere minutes.

Speaker #3: On the back of our product strength, we were excited to recently introduce a new cyber warranty program. We believe this warranty will help to risk adoption and bolster customer confidence.

Speaker #3: Our solution is scaling quickly, driving strong net new ARR dollar growth. A recent customer incident illustrates the real-world difference we make when it matters most.

Speaker #3: At 5:00 AM Christmas morning, attackers identified a transportation company as an easy target for a holiday heist. Fortunately, our security operations solution was standing guard and spotted the targeted server attack and moved quickly to lock down the compromised asset.

Speaker #3: Leveraging our AI-powered SOC, time-to-containment was mere minutes. No data was taken, no downtime occurred, and what could have been a major business disruption was completely avoided.

John Pagliuca: No data was taken, no downtime occurred, and what could have been a major business disruption was completely avoided. Threat actors don't take the holidays off, and neither do our AI agents. Each of our three solution pillars is AI-infused, and in data protection, our AI-enabled recovery testing saves customers hours of time and eliminates the guesswork involved in ensuring their backups are safe and secure. We aim to extend our advantage in data protection this year by adding disaster recovery as a service, or DRaaS, and Google Workspace workload coverage. These are two highly requested billable capabilities across our 14,000 data protection customers, and both represent meaningful TAM expansion. DRaaS solves multiple pain points. Customers are challenged to manage backup infrastructure themselves. They face large upfront hardware costs, expensive and time-consuming setup, ongoing maintenance, and potential liability associated with storing data.

Speaker #3: Threat actors don't take the holidays off, and neither do our AI agents. Each of our three solution pillars is AI-infused, and in data protection, our AI-enabled recovery testing saves customers hours of time and eliminates the guesswork involved in ensuring their backups are safe and secure.

Speaker #3: We aim to extend our advantage in data protection this year by adding disaster recovery as a service or DRAS and Google Workspace workload coverage.

Speaker #3: These are two highly requested billable capabilities across our 14,000 data protection customers and both represent meaningful TAM expansion. DRAS solves multiple pain points. Customers are challenged to manage backup infrastructure themselves, they face large upfront hardware costs, expensive and time-consuming setup, ongoing maintenance, and potential liability associated with storing data.

John Pagliuca: These are two highly requested billable capabilities across our 14,000 data protection customers, and both represent meaningful TAM expansion. DRaaS solves multiple pain points. Customers are challenged to manage backup infrastructure themselves. They face large upfront hardware costs, expensive and time-consuming setup, ongoing maintenance, and potential liability associated with storing data.

Speaker #3: At the same time, expectations are rising in businesses are seeking shorter return-to-operation timelines, these dynamics are particularly acute among upmarket customers. Our disaster recovery as a service will allow customers to quickly launch virtual servers in our secure cloud environment.

John Pagliuca: At the same time, expectations are rising and businesses are seeking shorter return-to-operation timelines. These dynamics are particularly acute among upmarket customers. Our disaster recovery as a service will allow customers to quickly launch virtual servers in our secure cloud environment. This delivers real-time restore capabilities, seamless business continuity, and eliminates the need for them to have to manage backup ecosystems themselves, significantly reducing costs, time, risk, and headache. Google Workspace coverage addresses another important customer need. Google Workspace has a large and growing footprint, particularly in the education sector and among cloud-first organizations, and customers want to ensure this data is protected and recoverable. Adding coverage will expand our strike zone significantly and unlock opportunity for N-able with both existing and new customers.... Our high confidence and expectations from both DRaaS and Google Workspace are supported by a robust demand environment and our market trajectory.

Speaker #3: This delivers real-time restore capabilities, seamless business continuity, and eliminates the need for them to have to manage backup ecosystems themselves. Significantly reducing costs, time, risk, and headache.

Speaker #3: Google Workspace coverage addresses another important customer need. Google Workspace has a large and growing footprint. Particularly in the education sector and among cloud-first organizations.

John Pagliuca: Google Workspace has a large and growing footprint, particularly in the education sector and among cloud-first organizations, and customers want to ensure this data is protected and recoverable. Adding coverage will expand our strike zone significantly and unlock opportunity for N-able with both existing and new customers.... Our high confidence and expectations from both DRaaS and Google Workspace are supported by a robust demand environment and our market trajectory.

Speaker #3: And customers want to ensure this data is protected and recoverable. Adding coverage will expand our strike zone significantly and unlock opportunity for enable with both existing and new customers.

Speaker #3: Our high confidence and expectations from both DRAS and Google Workspace are supported by a robust demand environment and our market trajectory. As customers manage rapidly growing data estates, and ransomware attacks escalate, our data protection solution delivers the simplicity and robust performance customers value, and continues to grow meaningfully faster than our total ARR.

John Pagliuca: As customers manage rapidly growing data estates and ransomware attacks escalate, our data protection solution delivers the simplicity and robust performance customers value, and continues to grow meaningfully faster than our total ARR. From a marketing perspective, 2026 is about capitalization on our brand strength. We protect over 500,000 businesses and bring 25 years of service excellence. The N-able name carries weight, underscored by Omdia recently naming N-able as a cybersecurity titan. That recognition validates the three-pillar strategy we've been executing across: unified endpoint management, security operations, and data protection. The positioning is resonating. Partners and end customers alike are responding to the N-able brand, and we're seeing that translate into both deeper retention and new logo growth. From a sales and customer success perspective, our priority is accelerating portfolio adoption and deepening engagement across our full channel for both MSPs to VARs.

Speaker #3: From a marketing perspective, 2026 is about capitalization on our brand strength. We protect over 500,000 businesses and bring 25 years of service excellence. The enable name carries weight.

Speaker #3: Underscored by Omdia recently naming enable as a cybersecurity titan. That recognition validates the three-pillar strategy we've been executing across unified endpoint management, security operations, and data protection.

Speaker #3: The positioning is resonating. Partners and end customers alike are responding to the enable brand and we're seeing that translate into both deeper retention and new logo growth.

John Pagliuca: Partners and end customers alike are responding to the N-able brand, and we're seeing that translate into both deeper retention and new logo growth. From a sales and customer success perspective, our priority is accelerating portfolio adoption and deepening engagement across our full channel for both MSPs to VARs.

Speaker #3: From a sales and customer success perspective, our priority is accelerating portfolio adoption and deepening engagement across our full channel for both MSPs to VARs.

Speaker #3: Security operations is a standout growth lever and key to both objectives. Penetration of our AI-powered security operations solution remains in the early stages and more broadly, a large portion of MSPs still operate without a security operations solution.

John Pagliuca: Security operations is a standout growth lever and key to both objectives. Penetration of our AI-powered security operations solution remains in the early stages, and more broadly, a large portion of MSPs still operate without a security operations solution. In fact, over 75% of our new lands are entering the category for the first time. We believe we are tapping into a sizable greenfield market with considerable upside. Pertaining to full channel development, we continue to expand our VAR outbound motion. This includes investments in field reps and channel account managers, which establishes critical in-market boots on the ground. From a product perspective, we're also seeing particularly strong traction with UEM in the VAR channel. Our all-in-one, highly autonomous IT management and security value prop is resonating with enterprises struggling with vendor sprawl and tool complexity.

Speaker #3: In fact, over 75% of our new lands are entering the category for the first time. We believe we are tapping into a sizable greenfield market with considerable upside.

Speaker #3: Pertaining to full-channel development, we continue to expand our VAR outbound motion. This includes investments in failed reps and channel account managers, which establishes critical in-market boots on the ground.

Speaker #3: From a product perspective, we're also seeing particularly strong traction with UEM in the VAR channel. Our all-in-one highly autonomous IT management and security value prop is resonating with enterprises struggling with vendor sprawl, and tool complexity.

Speaker #3: With our UEM platform, we're replacing multiple point solutions with a single converged offering that spans patching, vulnerability management, remote access, endpoint management, and endpoint security.

John Pagliuca: With our UEM platform, we're replacing multiple point solutions with a single converged offering that spans patching, vulnerability management, remote access, endpoint management, and endpoint security. This not only delivers cost savings and operational efficiency for our customers, but positions N-able to capture a larger share of endpoint spend as organizations consolidate their security and IT management stacks. We plan to double down on this momentum with increased field events, up-level account teams, and continued investment in prospect pipeline generation. The success of our strategy and execution is reflected in our financials. We are sustaining a strong top-line trajectory. N-able is not slowing down. Constant currency ARR growth in fiscal year 2025 was 8%, and the midpoint of our fiscal year 2026 guide calls for the same. We are excited but not content. Our go-to-market and product strategy are aligned with customer demand.

Speaker #3: This not only delivers cost savings and operational efficiency for our customers, but positions enable to capture a larger share of endpoint spend as organizations consolidate their security and IT management stacks.

Speaker #3: We plan to double down on this momentum with increased field events, up-leveled account teams, and continued investment in prospect pipeline generation. The success of our strategy and execution is reflected in our financials.

John Pagliuca: The success of our strategy and execution is reflected in our financials. We are sustaining a strong top-line trajectory. N-able is not slowing down. Constant currency ARR growth in fiscal year 2025 was 8%, and the midpoint of our fiscal year 2026 guide calls for the same. We are excited but not content. Our go-to-market and product strategy are aligned with customer demand.

Speaker #3: We are sustaining a strong top-line trajectory. Enable is not slowing down. Constant currency ARR growth in fiscal year '25 was 8%, and the midpoint of our fiscal year '26 guide calls for the same.

Speaker #3: We are excited but not content. Our go-to-market and product strategy are aligned with customer demand, the foundation in place is to reach greater heights over time. Key to achieving this acceleration is the success of our channel expansion, new product introductions, and monetization opportunities created by AI.

John Pagliuca: The foundation in place is to reach greater heights over time. Key to achieving this acceleration is the success of our channel expansion, new product introductions, and monetization opportunities created by AI. We're executing today while building for tomorrow. We've never been more energized and appreciate your being part of the N-able journey. With that, I'll turn it over to Tim and then circle back for closing remarks. Tim?

Speaker #3: We're executing today while building for tomorrow. We've never been more energized and appreciate your being part of the enabled journey. With that, I'll turn it over to Tim and then circle back for closing remarks.

Speaker #3: Tim?

Speaker #2: Thank you, John. And thank you all for joining us today. Enable continues to execute with focus and purpose. We exited 2025 with 540 million dollars in ARR, growing 12% year over year.

Tim O'Brien: Thank you, John, and thank you all for joining us today. N-able continues to execute with focus and purpose. We exited 2025 with $540 million in ARR, growing 12% year over year, while delivering 30% adjusted EBITDA margin. Operationally, we deepened our presence in data protection and security operations, expanded our channel reach, and accelerated AI innovation, all while maintaining a healthy balance of growth and profit. The acquisition of Adlumin was successful, with cross-sell to our existing MSP customers performing well and ahead of our acquisition plan. I'll now walk through our Q4 and full year results, provide additional detail on the drivers of our performance, and discuss our 2026 outlook. First, let's discuss our results for the fourth quarter and full year.

Speaker #2: While delivering a 30% adjusted EBITDA margin, operationally we deepened our presence in data protection and security operations, expanded our channel reach, and accelerated AI innovation.

Speaker #2: All while maintaining a healthy balance of growth and profit. The acquisition of AdLumen was successful, with cross-sell to our existing MSP customers performing well and ahead of our acquisition plan.

Speaker #2: I'll now walk through our fourth quarter and full-year results. Provide additional detail on the drivers of our performance, and discuss our 2026 outlook. First, let's discuss our results for the fourth quarter and full year.

Speaker #2: For our fourth quarter results, total ARR was 540 million dollars, growing at 12% year over year on a reported basis and 8% on a constant currency basis.

Tim O'Brien: For our Q4 results, total ARR was $540 million, growing at 12% year-over-year on a reported basis, and 8% on a constant currency basis. Total revenue was $130 million, $3 million above the high end of our guidance, representing approximately 12% year-over-year growth on a reported basis and 9% on a constant currency basis. Subscription revenue was $129 million, representing approximately 12% year-over-year growth on a reported basis and 9% on a constant currency basis. As a reminder, we purchased Adlumin on 20 November 2024. As such, we only recognized approximately half a quarter of revenue in that period, while the Q4 of 2025 reflects a full quarter of Adlumin revenue contribution.

Speaker #2: Total revenue was 130 million dollars, 3 million dollars above the high end of our guidance. Representing approximately 12% year over year growth on a reported basis and 9% on a constant currency basis.

Speaker #2: Subscription revenue was 129 million dollars, representing approximately 12% year over year growth on a reported basis and 9% on a constant currency basis. As a reminder, we purchased AdLumen on November 20th of 2024.

Speaker #2: As such, we only recognized approximately half a quarter of revenue in that period. While the fourth quarter of 2025 reflects a full quarter of AdLumen revenue contribution.

Speaker #2: This dynamic bolsters our fourth quarter 2025 revenue growth rate relative to our guidance for Q1 2026 revenue growth. We ended the quarter with 2,671 customers that contributed 50,000 dollars or more of ARR.

Tim O'Brien: This dynamic bolsters our Q4 2025 revenue growth rate relative to our guidance for Q1 2026 revenue growth. We ended the quarter with 2,671 customers that contributed $50,000 or more of ARR, which is up approximately 14% year-over-year. Customers with over $50,000 of ARR now represent approximately 61% of our total ARR, up from approximately 57% a year ago. Our momentum upmarket has been consistent and pronounced. This customer cohort has grown from 46% of total ARR at the time of our 2021 spin-off, and has historically retained at rates roughly 2% to 3% above the total company average, supporting our continued upmarket and cross-sell focus.

Speaker #2: Which is up approximately 14% year over year. Customers with over $50,000 of ARR now represent approximately 61% of our total ARR, up from approximately 57% a year ago.

Speaker #2: Our momentum up market has been consistent and pronounced. This customer cohort has grown from 46% of total ARR at the time of our 2021 spin-off and has historically retained at rates roughly 2 to 3 percent above the total company average.

Speaker #2: Supporting our continued up market and cross-sell focus. Dollar-based net revenue retention, which is calculated on a trailing 12-month basis was approximately 103% on a reported basis and 102% on a constant currency basis.

Tim O'Brien: Dollar-Based Net Revenue Retention, which is calculated on a trailing twelve-month basis, was approximately 103% on a reported basis and 102% on a constant currency basis. For the full year, we finished 2025 ahead of our outlook, with total revenue of $511 million, representing year-over-year growth of 10% on a reported basis and 9% on a constant currency basis. Subscription revenue was $506 million, growing approximately 10% year-over-year on a reported basis and 9% on a constant currency basis. Approximately 45% of our revenue was outside of North America in the quarter and the full year.

Speaker #2: For the full year, we finished 2025 ahead of our outlook. With total revenue of 511 million dollars, representing year over year growth of 10% on a reported basis and 9% on a constant currency basis.

Speaker #2: Subscription revenue was $506 million, growing approximately 10% year over year on a reported basis and 9% on a constant currency basis. Approximately 45% of our revenue was outside of North America in the quarter and the full year.

Speaker #2: Turning to profit and margins, note that unless otherwise stated, all references to profit measures and expenses are calculated on a non-GAAP basis and exclude the items outlined in the GAAP to non-GAAP reconciliations provided in today's press release.

Tim O'Brien: Turning to profit and margins, note that unless otherwise stated, all references to profit measures and expenses are calculated on a non-GAAP basis and exclude the items outlined in the GAAP to non-GAAP reconciliations provided in today's press release. Fourth quarter gross margin was 80%, compared to 82% in the same period in 2024. Full year 2025 gross margin was 81%, compared to 84% in 2024. Fourth quarter adjusted EBITDA was $39 million, $4 million above the high end of our guidance, representing approximately 30% adjusted EBITDA margin. Full year 2025 adjusted EBITDA was $153 million, representing an adjusted EBITDA margin of 30%. Unlevered free cash flow was $28 million in the fourth quarter and $101 million for the full year.

Speaker #2: Fourth quarter gross margin was 80% compared to 82% in the same period in 2024. Full year 2025 gross margin was 81% compared to 84% in 2024.

Speaker #2: Fourth quarter adjusted EBITDA was 39 million dollars, 4 million dollars above the high end of our guidance. Representing approximately 30% adjusted EBITDA margin. Full year 2025 adjusted EBITDA was 153 million dollars, representing an adjusted EBITDA margin of 30%.

Speaker #2: I'll now have a free cash flow was 28 million dollars in the fourth quarter and 101 million dollars for the full year. CAPEX, inclusive of 2 million dollars of capitalized software development costs, was 7 million dollars, or 5% of revenue in the fourth quarter.

Tim O'Brien: CapEx, inclusive of $2 million of capitalized software development costs, was $7 million, or 5% of revenue in the fourth quarter. CapEx was $29 million, inclusive of $11 million of capitalized software development costs, or 6% of revenue for the full year. We ended the year with approximately $112 million of cash and an outstanding loan principal balance of approximately $400 million, representing net leverage of approximately 1.9 times. We refinanced our credit facility in the fourth quarter, increasing our commitment from approximately $336 million to $400 million. This new facility enhances our flexibility and supports our broader capital allocation strategy, including evaluating potential share buybacks and M&A.

Speaker #2: CAPEX was $29 million, inclusive of $11 million of capitalized software development costs, or 6% of revenue for the full year. We ended the year with approximately $112 million of cash and an outstanding loan principal balance of approximately $400 million, representing net leverage of approximately 1.9 times.

Speaker #2: We refinanced our credit facility in the fourth quarter. Increasing our commitment from approximately 336 million dollars to 400 million dollars. This new facility enhances our flexibility and supports our broader capital allocation strategy including evaluating potential share buybacks and M&A.

Speaker #2: Non-GAAP earnings per share was 6 cents in the fourth quarter based on 188 million weighted average diluted shares. And 39 cents for the full year, based on 189 million weighted average diluted shares.

Tim O'Brien: Non-GAAP earnings per share was $0.06 in Q4, based on 188 million weighted average diluted shares, and $0.39 for the full year, based on 189 million weighted average diluted shares. Note that both Q4 and full year non-GAAP earnings per share experienced approximately a $0.02 negative impact from one-time fees related to the new debt facility. We executed $30 million of share repurchases in the year, reflecting our belief in the business and our commitment to disciplined share count management. Turning to our financial outlook, our guidance incorporates the following elements. First, our guidance assumes FX rates of 1.17 for the euro and 1.34 for the pound. More broadly, our outlook reflects our expectations for steady demand trends, stable retention, and continued execution across our platform and sales channels.

Speaker #2: Note that both the fourth quarter and full year non-GAAP earnings per share experienced approximately a 2 cent negative impact from one-time fees related to the new debt facility.

Speaker #2: We executed 30 million dollars of share repurchases in the year, reflecting our belief in the business and our commitment to disciplined share count management.

Speaker #2: Turning to our financial outlook, our guidance incorporates the following elements. First, our guidance assumes FX rates of 1.17 for the euro and 1.34 for the pound.

Speaker #2: More broadly, our outlook reflects our expectations for steady demand trends stable retention and continued execution across our platform and sales channels. Key initiatives spanning our growth algorithm give us confidence in this view.

Tim O'Brien: Key initiatives spanning our growth algorithm give us confidence in this view. In gross retention, we see our contract initiative and ongoing shift upmarket driving sustained strong performance. In net retention, we see cross-sell traction in security operations and data protection, powering continued success. And on the new business side, our channel expansion, enhanced marketing engine, and broader portfolio position us well to deliver consistent new logo growth. From an investment standpoint, in 2026, we intend to continue to make disciplined investments in AI and product innovation, as well as go-to-market expansion. We are excited to make these growth-oriented investments while materially improving our unlevered free cash flow on a year-over-year basis, as we realize synergies from our Adlumin integration and begin to see benefits from our India development site investment.

Speaker #2: In gross retention, we see our contract initiative and ongoing shift up-market driving sustained strong performance. In net retention, we see

Speaker #1: Cross-sell traction in security operations and data protection , powering continued success . And on the new business side , our channel expansion , enhanced marketing engine and broader portfolio position us well to deliver consistent new logo growth from an investment standpoint in 2026 , we intend to continue to make disciplined investments in AI and product innovation , as well as go to market expansion .

Speaker #1: We are excited to make these growth oriented investments while materially improving our unlevered free cash flow on a year over year basis . As we realize synergies from our ad lumen integration and begin to see benefits from our India development site investment .

Speaker #1: With that in mind , for the first quarter of 2026 , we expect total revenue in the range of 131 to $132 million , representing approximately 11 to 12% year over year growth on a reported basis .

Tim O'Brien: With that in mind, for Q1 2026, we expect total revenue in the range of $131 to 132 million, representing approximately 11% to 12% year-over-year growth on a reported basis and 6% to 7% on a constant currency basis. We expect first quarter adjusted EBITDA in the range of $35.5 to 36.5 million, representing an adjusted EBITDA margin of 27% to 28%. For the full year 2026, our total revenue outlook is approximately $554 to 559 million, representing approximately 8% to 9% year-over-year growth on a reported basis and 7% to 8% on a constant currency basis.

Speaker #1: And 6 to 7% on a constant currency basis . We expect first quarter adjusted EBITDA in the range of 35.5 to $36.5 million , representing an adjusted EBITDA margin of 27 to 28% .

Speaker #1: For the full year 2026 . Our total revenue outlook is approximately 554 to $559 million , representing approximately 8 to 9% year over year growth on a reported basis and 7 to 8% on a constant currency basis Our full year RR outlook is 581 to $586 million , representing 8 to 9% year over year growth on a reported and constant currency basis .

Tim O'Brien: Our full year ARR outlook is $581 to 586 million, representing 8 to 9% year-over-year growth on a reported and constant currency basis. To be clear, the high end of our full year 2026 ARR guidance calls for approximately 20% more net new ARR dollars on a constant currency basis than in 2025. We expect full year adjusted EBITDA of $167 to 171 million, representing an adjusted EBITDA margin of 30 to 31%. We expect CapEx, which includes capitalized software development costs, to be approximately 5% of total revenue for 2026. We also expect our unlevered free cash flow to be approximately $114 to 118 million.

Speaker #1: To be clear , the high end of our full year 2020 . Six RR guidance calls for approximately 20% more net new RR dollars on a constant currency basis than in 2025 .

Speaker #1: We expect full year adjusted EBITDA of 167 to $171 million , representing an adjusted EBITDA margin of 30 to 31% . We expect CapEx , which includes capitalized software development costs , to be approximately 5% of total revenue for 2026 .

Speaker #1: We also expect our unlevered free cash flow to be approximately $114 to $118 million. We expect cash interest payments of approximately $27 million, assuming interest rates remain in line with current levels. This cash flow outlook equates to a 17% increase in unlevered free cash flow dollars at the high end.

Tim O'Brien: We expect cash interest payments of approximately $27 million, assuming interest rates remain in line with current levels. This cash flow outlook equates to a 17% increase in unlevered free cash flow dollars at the high end. Our model is built for profitable growth, and our outlook reflects this strength. We expect total weighted average diluted shares outstanding of approximately 188 million to 189 million for Q1 and 188 million to 191 million for the full year. Finally, we expect our non-GAAP tax rate to be approximately 24% to 27% for both Q1 and the full year. We are delivering strong financial results while positioning the company for long-term success.

Speaker #1: Our model is built for profitable growth , and our outlook reflects this strength We expect total weighted average diluted shares outstanding of approximately 188 million to 189 million for the first quarter , and 188 million to 109 , 191 million for the full year .

Speaker #1: Finally , we expect our non-GAAP tax rate to be approximately 24 to 27% for both the first quarter and the full year . We are delivering strong financial results while positioning the company for long term success .

Speaker #1: Our 2026 guide calls for meaningful growth in constant currency . Net new IRR dollars and Unlevered free cash flow dollars . Our growth algorithm remains healthy across gross retention net retention , and new customer acquisition .

Tim O'Brien: Our 2026 guide calls for meaningful growth in constant currency, net new ARR dollars, and unlevered free cash flow dollars. Our growth algorithm remains healthy across gross retention, net retention, and new customer acquisition. We are executing well, and our AI-powered cybersecurity platform is resonating. Importantly, we are achieving these results while continuing to invest for the long term, with an exciting AI roadmap and clear path to further build our global go-to-market engine. Now, I will turn it over to John for closing remarks.

Speaker #1: We are executing well and our AI powered cybersecurity platform is resonating . Importantly , we are achieving the these results while continuing to invest for the long term with an exciting AI roadmap and clear path to further build our global go to market engine .

Speaker #1: Now I will turn it over to John for closing remarks . Thanks , Tim . We move forward with a strong financial profile , a durable position in cybersecurity , and a strategy .

John Pagliuca: Thanks, Tim. We move forward with a strong financial profile, a durable position in cybersecurity, and a focused strategy. AI is amplifying what we do, and we are delivering AI capabilities today. 2026 is a year of execution for N-able, and on behalf of the nearly 2,000 N-ablites across the globe, I'm excited for what we will deliver. With that, operator, we'll open the line for questions.

Speaker #1: AI is amplifying what we do , and we are delivering AI capabilities today . 2026 is a year of execution for enable . And on behalf of nearly 2000 enable across the globe .

Speaker #1: I'm excited for what we will deliver . And with that , operator , we'll open the line for questions

Speaker #2: We will now begin the question and answer session . If you would like to ask a question , please press star one to raise your hand .

Operator: We will now begin the question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. Please stand by while we compile the Q&A roster. Your first question comes from the line of Joe Vafi with Scotiabank. Your line is open. Please go ahead.

Speaker #2: To withdraw your question, press star one again. Please stand by while we compile the Q&A roster. Your first question comes from the line of Joe Vanderick with Scotiabank.

Speaker #2: Your line is open . Please go ahead

Speaker #3: Thank you , John and Tim . So AR grew about 8% on a constant currency basis in four Q can you talk a little bit more about what you're seeing today that gives you confidence to guide to that slightly higher constant currency AR growth in 2026 ?

Joe Vandrick: Thank you. John and Tim, so ARR grew about 8% on a constant currency basis in Q4. Can you talk a little bit more about what you're seeing today that gives you confidence to guide to that slightly higher constant currency ARR growth in 2026?

Speaker #1: Sure . Yeah . Hey , Joe . Thanks . This is John . So , you know , I think the really it's the guidance is underwritten .

John Pagliuca: Sure. Yeah, hey, Joe. Thanks. This is John. So, you know, I think really it's the guidance is underwritten, I would say, with a lot of confidence in that it's steady. There's a lot of steady assumptions in there. You know, we're expecting steady to slightly improved growth retention. We're seeing that in the business. We have a list of new SKUs that some are in the market already, that are gaining nice traction, like our AI-powered XDR, but also in data protection, disaster recovery as a service, Google Workspace, that we mentioned in the prepared remarks. So it comes with a couple of combinations from the growth algorithm. One, the GRR improving.

Speaker #1: I would say with a lot of confidence in that it's it's steady . There's a lot of steady assumptions in there . You know we're expecting steady to slightly improve gross retention .

Speaker #1: We're seeing that in the business. We have a list of new SKUs, and some are in the market already that are gaining traction, like our AI-powered XDR.

Speaker #1: But also in data protection and disaster recovery as a service . Google workspace , that we mentioned in the prepared remarks . So it comes with a couple of combinations from the growth algorithm .

Speaker #1: One, the GRR improving; two, better expand on some of these new SKUs; and three, continued acceleration in our reach with the VAR.

John Pagliuca: Two, is better expand on some of these new SKUs, and three, continued acceleration in our reach with the VAR community as well. So we have a multipronged approach, and I would say the guidance is baking in a moderate level of those performance, of those things performing.

Speaker #1: With the VAR community as well . So we have a multi-pronged approach , and I would say the the guidance is , is is baking in a moderate level of performance of those things , performing

Speaker #3: Makes sense . And then if I could just sneak in one more on the product side . You talked a lot about AI innovations that you have in the pipeline and one that you called out , I think it was called Enzo , which which seemed really interesting .

Joe Vandrick: Makes sense. And then, if I could just sneak in one more on, on the product side.

John Pagliuca: Sure.

Joe Vandrick: You talked a lot about AI innovations that you have in the pipeline, and one that you called out, I think it was called n-Zo, which seemed really interesting. Just wanted to clarify, is this a product that you expect to be released in the coming year? And can you just talk a little bit more about what value this is gonna create for customers?

Speaker #3: Just wanted to clarify , is this a product that's that you expect to be released in the coming year ? And can you just talk a little bit more about the what value this is going to create for customers ?

Speaker #1: Sure . So it's Enzo and it's n Zeo . Make sure we get the spelling right in the script . And so yeah , it's a , it's a , it's in actually customer's hands right now in limited preview .

John Pagliuca: Sure. So it's n-Zo, and it's N dash Z-O. Make sure we get the spelling right in the script. And so, yeah, it's a-- It's actually in customers' hands right now in limited preview. We're learning from it and getting the behavior. So far, the reviews have been fantastic. It is an in-product AI agent. It's an in-product AI workflow assistant. So embedded today in our UEM, but the plan is to really embed these AI assistants or these AI agents in all of our, all or most of our offerings. So it would allow MSPs to do today, right out of the gate, it allows them to really get a better assessment as to what their environments might look like with simple natural language.

Speaker #1: Where , where we're learning from it and getting the behavior . So far the reviews have been fantastic . It is an in AI agent .

Speaker #1: It's an AI workflow assistant . So embedded today in our UEM . But the plan is to really embed these AI assistants or these AI agents in all of our all or most of our offerings .

Speaker #1: So it’ll allow MSPs to do today right out of the gate. It allows them to really get a better assessment as to what their environments may look like with simple, natural language.

Speaker #1: If an MSP wants to know if they have any devices that might be vulnerable , if there's a if there's a process that needs to get done and that's today and then the go forward .

John Pagliuca: If an MSP wants to know if they have any devices that might be vulnerable, if there's a process that needs to get done, and that's today. And then go forward, it will actually be a source of action. So they'll be able to put in a request to understand what's going on in their customer environments, but then actually take a proactive action and remedy what might be a vulnerability or some type of operation. So what might have taken hours to do, like a script or some type of level of automation, now what we're seeing with the customer, is to be able to go through their environments, assess their environments, and take action in, honestly, minutes using natural language. So that's the play.

Speaker #1: It will actually be a source of action . So they'll be able to put in a request to understand what's going on in their customer environments , but then actually take a proactive action and remedy what might be a vulnerability or some type of some type of operation .

Speaker #1: So it might have taken hours to do like a script or some type of level of automation . Now , what we're seeing with the customers , they're able to go through their environments , assess their environments and take action .

Speaker #1: And honestly , minutes using natural language . So that's the play . And if I think about AI in general , I would say there's three pronged strategy to how we're approaching this .

John Pagliuca: And if I think about AI in general, I would say there's a three-pronged strategy to how we're approaching this. Number one, we have AI infused in our products today, right? And so both machine learning and agentic AI, as an example, our AI SOC, our XDR, has AI in it today. What is that doing? That's making our customers and their customers more secure. That's providing a better experience. That's also giving us a competitive advantage over other solutions out there, 'cause I believe we are ahead as it relates to AI and our XDR. So today, not just in XDR, but across our offerings, we have in our products today, that should make our GRR better, that should make our expansion better, because the solutions are better, there's a better experience.

Speaker #1: Number one , we have AI infused in our products today . Right . And so both machine learning and AI , as an example , our AI SoC , our XDR , has AI in it today .

Speaker #1: What does that doing that's making our customers and their customers more secure ? That's providing a better experience . That's also giving us a competitive advantage over other solutions out there .

Speaker #1: Because I believe we are ahead as it relates to AI and our XDR . So today , not just the next year , but across our offerings , we have in our products today , that should make our Grr better .

Speaker #1: That should make our expansion better because the solutions are better. There's better experience. And then we talked about the second prong, and that prong is more of the in-product AI agents.

John Pagliuca: We talked about the second prong, and that prong is more of the in-product AI agents. Again, that should have a better experience, improve our GRR, but also give us an opportunity to even charge for a premium type of experience. And then the third prong are AI-specific SKUs and AI-specific agents that we can go charge for that have their own line item. So it's a three-prong strategy. I'd say we've already executed the first prong with the end product, and we'll continue. And n-Zo is the first example of that end product AI agent helping the MSPs and their internal IT departments with their workflows.

Speaker #1: Again, that should have a better experience, improve our GRR, but also give us an opportunity to even charge for a premium type of experience.

Speaker #1: And then the third prong are AI specific SKUs in AI specific agents that we can go charge for that have their own line item .

Speaker #1: So it's a three pronged strategy . I'd say we've we've we've we've already executed the first prong with the in product . And we'll continue .

Speaker #1: And Enzo is the first example of that in product AI agent helping the MSPs and the internal IT departments with their workflows

Speaker #3: That exciting . Thank you

Michael Cikos: Sounds exciting. Thank you.

Joe Vandrick: Sounds exciting. Thank you.

Speaker #2: Thank you . Your next question comes from the line of Michael Cikos with Needham . Your line is open . Please go ahead .

Operator: Thank you. Your next question comes from the line of Mike Cikos with Needham. Your line is open. Please go ahead.

Speaker #4: Hey team , thanks for taking the questions here . And congrats on the finish here . The strong finish to calendar 25 . I wanted to cycle back .

Michael Cikos: Hey, team. Thanks for taking the questions here, and congrats on the finish here, the strong finish to calendar 2025. I wanted to cycle back first question to the prepared remarks, and I believe it was Tim's commentary regarding Adlumin. It sounds like the cross-sell to the existing customer base is coming in ahead of what you guys had originally mapped out at the time of the acquisition. Could you just help us think through what is driving that earlier than expected success? It's great to hear, but just any other guardrails you could put around that? And then I have a follow-up. Thank you.

Mike Cikos: Hey, team. Thanks for taking the questions here, and congrats on the finish here, the strong finish to calendar 2025. I wanted to cycle back first question to the prepared remarks, and I believe it was Tim's commentary regarding Adlumin. It sounds like the cross-sell to the existing customer base is coming in ahead of what you guys had originally mapped out at the time of the acquisition. Could you just help us think through what is driving that earlier than expected success? It's great to hear, but just any other guardrails you could put around that? And then I have a follow-up. Thank you.

Speaker #4: First question to the prepared remarks, and I believe it was Tim's commentary regarding Ad Lumen. It sounds like the cross-sell to the existing customer base is coming in ahead of what you guys had originally mapped out at the time of the acquisition.

Speaker #4: Could you just help us think through what is driving that earlier than expected success? It's great to hear, but are there any other guardrails you could put around that?

Speaker #4: And then I have a follow up . Thank you .

Speaker #1: Sure . Look , we knew we had a winner with the AI solution with AD lumen . And just as a reminder , this was the a top 1 or 2 need that we saw in the MSP community .

John Pagliuca: Sure. Look, we knew we had a winner with, with the AI solution, with Adlumin. And, and just as a reminder, this was a top one or two need that we saw in the MSP community. They needed help with the threats, and not just assessing the threats, but taking action on threats. And, and if you recall, Mike, this started off as an OEM arrangement. So we, we did our own extensive research, looked at all the solutions that are out there, bigger shops, other types of shops. We chose Adlumin because of the technology stack, the level of AI that was in it, number one. Number two, the fact that it was agnostic. And so what does that mean?

Speaker #1: They needed help with the threats and not just assessing the threats , but taking action on threats . And and if you recall , Mike , this started off as an OEM arrangement .

Speaker #1: So we did our own extensive research , looked at all the solutions that are out there , bigger shops , other types of shops .

Speaker #1: We chose albumin because of the technology stack . The level of AI that was in it . Number one . Number two , the fact that it was agnostic .

Speaker #1: And so what does that mean ? That means regardless of an MSP or their end customers environments , if they're using different firewalls , if they're using different EDR or different endpoint security , different different manners to get their logs .

John Pagliuca: That means regardless of an MSP or their end customer's environments, if they're using different firewalls, if they're using different EDR, different endpoint security, different, different, manners to get their logs, we can ingest all of that. And I, and I believe it's a combination of the, the AI-infused technology, the fact that we can actually assess but take action in minutes, where, where competitive solutions might take hours or days, it's, it's resonating, number one. Number two, we separate the software and the service so that we can, we can allow the, the technician's eyes on glass as well. So what does that mean? A lot of offerings, they, it's more like a black box service. MSPs can see the same things that our AI SOC analysts are looking at, and that's resonating.

Speaker #1: We can ingest all of that . And I believe it's the combination of the the AI infused technology , the fact that we can actually assess .

Speaker #1: But take action in minutes . We're competitive . Solutions might take hours or days . It's resonating number one . Number two , we separate the we separate the software and the service .

Speaker #1: So that we can we can allow the the technicians eyes on glass as well . So what does that mean ? A lot of offerings .

Speaker #1: It's more like a black box service MSP can see the same things that our AI SoC analysts are looking at . And that's resonating .

Speaker #1: You know , there's a big push out there right now . Compliance is driving a lot of this need . And I think our original estimates we we I don't think we fully grokked the breadth of the demand .

John Pagliuca: You know, there's a big push out there right now. Compliance is driving a lot of this need, and I think our original estimates, I don't think we fully grokked the breadth of the demand. We knew that for our bigger MSPs, this was top of mind. The nice thing here is we're seeing our large MSPs picking this up, but even our very small shops. And compliance is driving a lot of that, the ongoing cyber threats. AI, as a new adversary, is driving that. MSPs are now baking this in to effectively their standard stack. And so I believe a solution like this will be a table stakes part of every MSP's service going forward.

Speaker #1: We knew that for our bigger MSPs , this was this was top of mind . The nice thing here is we're seeing our large MSPs picking this up , but even our very small shops and compliance is driving a lot of that .

Speaker #1: The ongoing cyber threats AI as a new adversary is driving that . MSPs are now baking this in to their to effectively their standard stack .

Speaker #1: And so I believe a solution like this will be a table-stakes part of every MSP’s service going forward. And I think the fact that it’s a broader swath of the MSP base is what’s driving some of that upside.

John Pagliuca: And I think the fact that it's a broader swath of the MSP base is what's driving some of that upside.

Speaker #1: I would

Tim O'Brien: Mike, I'll probably just add, and John hit on in his prepared remarks, is the mix of greenfield opportunities versus incumbents as well. We're seeing about, you know, 70-75% of the opportunities coming in from a greenfield perspective. So I think that's also been a catalyst in the equation, as we've executed through, you know, 2025.

Speaker #2: Just add , and John hit on his prepared remarks , is , is the mix of Greenfield opportunities versus incumbents as well ? We're seeing about 70 , 75% of the of the opportunities coming in from a greenfield perspective .

Speaker #2: So I think that's also been a catalyst in the equation as we've executed through 2025 .

Speaker #4: That's great . That's that's very encouraging . And then a quick follow up , I again , just to drill into the guidance assumptions .

Michael Cikos: That's great. That's very encouraging. And then a quick follow-up. I again, just to drill into the guidance assumptions. If I look at what's the kinds of currency growth we're looking for in Q1 versus the full year, it implies some stronger growth, maybe as we get into Q2 and then the second half of the year. And I'm just trying to get a better sense, is there anything we should be thinking about from a seasonality standpoint? Or maybe those data points you have on the slightly improvement or the stable GRR translates to an improved NRR in the back half of the year, or the new products incubating? Again, can you just give us some more to underwrite this guide from where we stand today?

Mike Cikos: That's great. That's very encouraging. And then a quick follow-up. I again, just to drill into the guidance assumptions. If I look at what's the kinds of currency growth we're looking for in Q1 versus the full year, it implies some stronger growth, maybe as we get into Q2 and then the second half of the year. And I'm just trying to get a better sense, is there anything we should be thinking about from a seasonality standpoint? Or maybe those data points you have on the slightly improvement or the stable GRR translates to an improved NRR in the back half of the year, or the new products incubating? Again, can you just give us some more to underwrite this guide from where we stand today?

Speaker #4: If I look at what's the constant currency growth we're looking for in Q1 versus the full year , it implies some some stronger growth .

Speaker #4: Maybe as we get into to Q and then the second half of the year and I'm just trying to get a better sense .

Speaker #4: Is there anything we should be thinking about from a seasonality standpoint or maybe those data points you have on the site ? The improvement or the stable growth translates to an improved R in the back half of the year .

Speaker #4: As the new products incubating again , can you just give us some more to to underwrite this , this guide from where we stand today ?

Speaker #2: Yeah . Hey , Mike , looking back at 2025 , we we saw some some seasonality Q1 . We actually kind of built RR up from a growth standpoint , more so in the second half than the first half from a 2025 perspective , I think as we look at 2026 , I'd expect some similar seasonality , probably more akin to what you touched on was the impact of some of the the newer product initiatives .

Tim O'Brien: ... Yeah. Hey, Mike. Looking back at 2025, we saw some seasonality Q1. We actually kind of built ARR up from a growth standpoint, more so in the second half than the first half, from a 2025 perspective. I think as we look at 2026, I expect some similar seasonality, probably more akin to what you touched on was the impact of some of the newer product initiatives will have heavier weight in the second half of calendar 2026 versus the first half. We've got a few things in customer preview that we plan to flip GA in the first half, which I'd expect to have more impact on the net new ARR in the second half of the year.

Speaker #2: We'll have heavier weight in the second half of calendar 2026 versus the first half . We've got a few things in customer preview that that we plan to flip GA in the first half , which I'd expect to have more impact on the net .

Speaker #2: New IRR in the second half of the year . So I would expect a similar kind of flow on a constant currency basis .

Tim O'Brien: So I would expect a similar kind of flow on a constant currency basis. 2025 blended, a bunch of choppiness from an FX perspective, but, kind of from a sequential standpoint, I would expect a little bit more seasonality in Q1 versus, versus the rest of the year, with better performance in the second half.

Speaker #2: 2025 lended us a bunch of choppiness from an FX perspective , but kind of from a sequential standpoint , I would expect a little bit more seasonality in Q1 versus versus the rest of the year , with better performance in the second half

Speaker #4: That's great to hear . Thank you guys .

John Pagliuca: That's great to hear. Thank you, guys.

Speaker #2: Thanks , Mike Thank .

Tim O'Brien: Thanks, Mike.

Speaker #5: You . As a reminder , if you would like to ask a question , please press Star one to raise your hand to withdraw your question , press star one again Your next question comes from the line of Matt Hedberg with RBC .

Operator: Thank you. As a reminder, if you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. Your next question comes from the line of Matt Hedberg with RBC. Your line is open. Please go ahead.

Speaker #5: Your line is open . Please go ahead .

Speaker #6: Great . Thanks for taking my questions , guys . John , I appreciate your comments at the at the start of the call around all of the market confusion around AI And certainly feel like especially within your core customer base , you guys could serve as a bit of a catalyst for even customer AI adoption .

Matt Hedberg: Great. Thanks for taking my questions, guys. John, you know, I appreciate your comments at the start of the call around all of the market confusion around AI. And certainly feel like, especially within your core customer base, you guys could serve as a bit of a catalyst for even customer AI adoption. When you look at your three pillars of N-able today, do you think there's... You know, do you think that they all could benefit from, you know, customers' increased focus on agentic AI, or do you think... I'm just sort of curious, you know, how you think, especially when we think of, like, disaster recovery as a service.

Speaker #6: When you when you look at your three pillars of enable today , do you think there's , you know , do you think they all could benefit from customers increased focus on Agentic AI ?

Speaker #6: Or do you think I'm just sort of curious how you think , especially when we think of like , disaster recovery as a service , but but just any any sort of thoughts on like what elements of your business might actually see maybe even stronger uplift with customer AI adoption ?

Matt Hedberg: But just any sort of thoughts on, like, what elements of your business might actually see a maybe even stronger uplift with customer AI adoption?

Speaker #1: Sure . Look , look , the key tenets of our business and this is part of the durable truths . Matt . It's really about security and efficiency .

John Pagliuca: Sure. Look, the key tenets of our business, and this is part of the durable truth, Matt, it's really about security and efficiency, and that plays into all three, right? So, we have our data protection suite, which we mentioned is over $200 million, growing nicely. You mentioned disaster recovery as a service that's coming in the middle of the year. The way that we're going to make sure that we're driving that experience for our MSPs and their clients, and even some of the mid-market folks, is by leveraging a good, good amount of AI. There's definitely an ability to make sure that the backups themselves are active, ready to go, and continuing to collapse that RTO and RPO kind of metrics of XDR, of course, right?

Speaker #1: And and that plays into all three . Right ? So we have our we have our data protection suite , which , which which we mentioned is over $200 million is growing nicely .

Speaker #1: You mentioned disaster recovery as a service that's coming in the middle of the year. The way that we're going to make sure that we're driving that experience for our MSPs and their clients, and even some of the mid-market folks, is by leveraging a good, good amount of AI.

Speaker #1: There's definitely an ability to make sure that the backups themselves are active , ready to go , and continuing to to collapse that , that , that RTO and RPO kind of metrics of XDR , of course .

Speaker #1: Right . So XDR minutes matter in this world , right . You want to be able to contain a compromised asset . The example that we put in the script is a good example of that .

John Pagliuca: So XDR, minutes matter in this world, right? You want to be able to contain a compromised asset. The example that we put in the script is a good example of that. So being able to drive a more efficient, but also just taking action, leveraging AI is a big thing. And with our UEM, look, that's where we're driving a lot more of the efficiency, but also adding SKUs and AI SKUs in the future to help MSPs with compliance matters, right? To help MSPs with posture management. The best way to do that efficiently is by leveraging AI, right? So helping MSPs with their posture management across the cloud, across their complex environments.

Speaker #1: So being able to drive a more efficient but also just taking action , leveraging AI as a big thing . And with our UEM look , that's that's where we're driving a lot more of the the efficiency , but also adding SKUs in AI , SKUs in the future to help MSPs with compliance matters .

Speaker #1: Right , to help MSPs with posture management , the best way to do that efficiently is by leveraging AI , right ? So helping MSPs with their posture management across the cloud , across across their complex environments , going forward , you know , Matt , one of the things I always say is the verbs in our business have been the same for 25 years , and they'll continue to be the same for the next 25 years .

John Pagliuca: Going forward, you know, Matt, one of the things I always say is the verbs in our business have been the same for 25 years, and they'll continue to be the same for the next 25 years. We monitor, we manage, we secure, we protect, we recover, right? And the nouns continue to stack. In our future, the new nouns that will be coming is LOMs and agents, and how does an MSP help make sure that that data is protected, that data is secure, that data can be recovered? So these new nouns will stack on the old nouns, and it'll provide a tailwind for the MSPs, and it'll provide a tailwind for cybersecurity vendors and those that are servicing the MSPs. And then the last point I'll make, Matt, is it's also a big unlock, right? The...

Speaker #1: We monitor , we manage , we we secure , we protect , we , we recover right ? And the nouns continue to stack in our future .

Speaker #1: The new nouns that will be coming is LMS and agents . And how does an MSP help make sure that that data is protected ?

Speaker #1: That data is secure , that data can be recovered . So these new nouns will stack on the old nouns and will provide a tailwind for the MSPs .

Speaker #1: And it'll provide a tailwind for cybersecurity vendors and those that are servicing the MSPs . And then the last point I'll make , Matt , is it's also a big unlock , right ?

Speaker #1: When I speak to MSPs and I speak to hundreds , if not thousands of MSPs annually , a top three issue for them is labor .

John Pagliuca: When I speak to MSPs, and I speak to hundreds, if not thousands, of MSPs annually, a top three issue for them is labor. And the fact that we can unlock the labor, it'll allow these MSPs to go out and grow and service more SMEs in a scalable, more profitable way. And so our tools allow them to do that securely, our tools allow them to do that efficiently, and really, our tools with AI will really provide an unlock for the labor bottleneck for the MSP community. And that's why we... I agree with you. I believe our job is to be a catalyst for this MSP market so that they can scale and service more and more, not just of the SMB, but also of the Fortune 1,000.

Speaker #1: And the fact that we can unlock the labor , it allows , it will allow these MSPs to go out and grow and service more SMEs in a scalable , more profitable way .

Speaker #1: And so our tools allow them to do that securely . Our tools allow them to do that efficiently and really our tools with AI will really provide an unlock for the labor bottleneck for the MSP community .

Speaker #1: And that's why we I agree with you . I believe we our job is to be a catalyst for these for this MSP market so that they can scale and service more and more , not just of the SMB , but also of the fortune 1000 .

Speaker #1: More and more MSPs , some of our studies suggest more than three quarters of our MSPs are also going into a co-managed approach , where they're walking into a CIO or a CISO office and saying , let me help with part of your security .

John Pagliuca: More and more MSPs, some of our studies suggest more than 3/4 of our MSPs are also going into a co-managed approach, where they're walking into a CIO or a CISO's office and saying: "Let me help with part of your security. Let me help with your disaster recovery." And we're there to help make sure those MSPs can get into those bigger accounts, driving, you know, bigger TAM and a bigger SAM for the MSP market itself.

Speaker #1: Let me help with your disaster recovery . And we're there to help make sure those MSPs can get into those bigger accounts . Driving , bigger Tam and a bigger Sam for their for MSP market itself .

Speaker #6: That's that's super helpful . And then , you know , I think one of the things you guys do really well is you balance stable top line growth with with obviously EBITDA margin expansion .

Matt Hedberg: That's, that's super helpful. And then, you know, I think, you know, one of the things you guys do really well is you balance stable top-line growth with, with obviously EBITDA margin expansion. When we think to 2026, and obviously, we're anniversarying at Lumen, and you're rolling out new organic products that you talked about in your script, yeah, how do we think about capital allocation.

Speaker #6: When we think to 2026 and obviously we're anniversary at lumen and you're rolling out new organic products that you talked about in your script .

Speaker #6: How do we think about capital allocation ? When we look to 2026 ? I mean , you know , is should we expect a little bit of M&A , should , you know , obviously more organic investments , you mentioned Vars , but yeah , just a little bit more on capital allocation , sort of balancing that growth and profitability .

John Pagliuca: Yep.

Matt Hedberg: When we look to 2026? I mean, you know, should we expect a little bit of M&A? You know... obviously, more organic investments, you've mentioned VARs. But, yeah, just a little bit more on capital allocation, sort of balancing that growth and profitability.

John Pagliuca: Yep.

Speaker #1: Sure . Look , Tim and the team did a great job with with with with the with the structure of the new debt that we have .

John Pagliuca: ... Sure. Look, Tim and the team did a great job with the structure of the new debt that we have. That gives us some flexibility. We take a look, and we look at all different aspects, and I think, you know, you said it best, Matt, it's a balanced approach, right? We have the ability to buy back some shares, as we did last year, so that's one option. But yeah, I do expect us to continue to look at solutions that both MSPs and VARs and the mid-market look at, that complement these three best-in-class offerings.

Speaker #1: That gives us some flexibility . We take a look and we look at all different aspects . And I think , you know , you said it best , Matt .

Speaker #1: It's a balanced approach . Right ? We have the ability to buy back some shares as we did last year , so that that's one option .

Speaker #1: But yeah , I do expect us to continue to look at solutions that both MSPs and Vars and the mid-market look at to complement these three best in class offerings , and we'll continue to see if we want to build which would which would potentially involve some R&D or OEM like we did successfully with lumen .

John Pagliuca: And we'll continue to see if we want to build, which would potentially involve some R&D or OEM, like what we did successfully with that Lumen, and we've done successfully in other places or acquire. And it's really driven off of that North Star, and that North Star is what do the small medium enterprise need to make sure that they are secure, that they are compliant, that they're staying one step ahead of the adversary? And so we have the flexibility to meet that need using a couple of different tactics, and we'll continue to look at and evaluate all the different avenues.

Speaker #1: And we've done successfully in other places or acquire . And it's really driven off of that North Star and that North Star is what do what are the small medium enterprises need to make sure that they are secure , that they are compliant , that they're staying one step ahead of the adversary .

Speaker #1: And so we have the flexibility to meet that need, using a couple of different tactics. And we'll continue to look at and evaluate all different avenues.

Speaker #1: And I think our strong balance sheet and a strong financial health gives us a leg up on a bunch of other folks . And , that that pliability or optionality should allow us to meet the need of our customers

John Pagliuca: I think our strong balance sheet and our strong financial health gives us a leg up on a bunch of other folks, and therefore, that pliability or optionality should allow us to meet the need of our customers.

Speaker #6: Thanks , guys

Joe Vandrick: Thanks, guys.

Speaker #5: Thank you . As a final reminder , if you would like to ask a question , please press Star one to raise your hand .

Operator: Thank you. As a final reminder, if you would like to ask a question, please press star one to raise your hand. Your next question comes from the line of Keith Bachman with BMO. Your line is open. Please go ahead.

Speaker #5: Your next question comes from the line of Keith Backman with BMO . Your line is open . Please go ahead .

Speaker #7: Hi, guys. This is Adam on for Keith. Thank you for the question, but I wanted to follow up on the last AI question.

Keith Bachman: Hi, guys. This is Adam on for Keith. Thank you for the question, but I wanted to follow up on the last AI question. So it's good to see the different prongs and growth levers there, but I was wondering if you can quantify the monetization opportunity there. And I know it's early, but in the past, you guys talked about the $30 per device per month opportunity, and I was wondering if AI adds meaningfully to that opportunity. And then second, on the other side, I know device headwinds has come up in the past, primarily from the macro. I was just wondering, is it possible in the future that AI use among MSPs and SMBs can create a headwind there? And if so, how did you- how do you defend against that? Thank you.

Speaker #7: So it's good to see the different prongs and growth levers there . But I was wondering if you can quantify the monetization opportunity there .

Speaker #7: And I know it's early, but in the past you guys talked about the $3 per device per month opportunity, and I was wondering if AI adds meaningfully to that opportunity.

Speaker #7: And then second , on the other side , I know device headwinds has come up in the past , primarily from the macro .

Speaker #7: I was just wondering , is it possible in the future that AI use among MSPs and SMBs can create a headwind there ? And if so , how did you how do you defend against that ?

Speaker #7: Thank you .

Speaker #1: Thanks , Adam . So , so look , a couple of things we what we monitor , what we manage , what we protect , what we recover is more than just the endpoint , right ?

John Pagliuca: Thanks, Adam. So look, a couple things. What we monitor, what we manage, what we protect, what we recover, is more than just the endpoint, right? It's servers, it's virtual machines, it's SaaS applications, it's data and data growth. So that's number one. A good chunk of our revenue is really on those kind of metrics, so those kind of volume metrics. Number two, look, the SME, you guys have our power numbers, and you can do the math, right? We talk about 25,000 customers and over 500,000 or so small and medium organizations. I always say averages are for dummies, but the average there is 20.

Speaker #1: It's servers . It's virtual machines . It's SaaS applications . It's data . And data growth . So , so that's that's number one .

Speaker #1: A good chunk of our revenue is really is on those kind of metrics . So those kind of volume metrics . Number two look the SME you guys have our power numbers .

Speaker #1: And you can do the math right . We talk about 25,000 customers and over 500,000 or so small and medium organizations . I always say averages are for dummies .

Speaker #1: But the average there is 20 . And I believe at the SM is a little bit better insulated on on potentially some of this like headline that people think about in the fortune 1000 .

John Pagliuca: I believe the SME is a little bit better insulated on essentially some of the like headlines that people think about in the Fortune 1000. In other words, if you think about the end markets that the MSPs are servicing, it's healthcare, right? It's your doctor's office, your dentist's office, it's the financial advisor, it's education. And so I feel that that's really well insulated. And then on the third part, we do continue to look to increase the ASP per MSP and per user by offering more SKUs, and a lot of those SKUs will be AI infused or AI powered. So I believe it's gonna increase our economic stack. It'll expand our TAM. It'll expand the TAM and the reach of our MSPs.

Speaker #1: In other words , if you think about the end markets that the MSPs are servicing , it's healthcare , right ? It's your doctor's office , your dentist's office .

Speaker #1: It's the it's the it's the the financial advisor . It's education . And so I feel that that's really well insulated . And then on your then on the third part , we do continue to look to increase the ASP per MSP and per user by offering more , more SKUs .

Speaker #1: And a lot of those SKUs will be AI infused or AI powered . So I believe it's going to increase our economic stack .

Speaker #1: It'll expand our Tam , it'll expand the Tam and the reach of our MSPs . And and as we look to bring on AI specific SKUs in the future , that will just add to that $30 economic stack as we go forward .

John Pagliuca: And as we look to bring on AI-specific SKUs in the future, that will just add to that $30 economic stack as we go forward. So, we're optimistic. And it's all about making sure that we're delivering that need for the customer. But overall, our multi-pronged approach leaves us optimistic that we can expand and get more revenue per the MSP, 'cause they should be able to get more from their customer, and they should have a better reach as they go forward.

Speaker #1: So we're we're optimistic . We're and it's all about making sure that we're delivering that need for the customer . But but overall , our multi-pronged approach leaves us optimistic that we can expand and get more revenue per the MSP , because they should be able to get more from their customer and they should have a better reach as they go forward

Speaker #7: Got it . Thank you

Keith Bachman: Got it. Thank you.

Speaker #5: There are no further questions at this time . I will now turn the call back to CEO John Pagliuca for closing remarks .

Operator: There are no further questions at this time. I will now turn the call back to CEO, John Pagliuca, for closing remarks.

Speaker #1: Thank you . Operator . And thank you , everyone for joining us today in your ongoing interest in enable . See you next time .

John Pagliuca: Thank you, operator, and thank you everyone for joining us today, and your ongoing interest in N-able. See you next time.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

Q4 2025 N-able Inc Earnings Call

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