Q2 2026 N-Able Inc Earnings Call Transcript
Key Points
- N-able Inc (NABL) delivered solid Q2 2026 results with ARR reaching $544 million, growing 6% year-over-year in constant currency, and adjusted EBITDA of $40 million, representing a strong 29% margin.
- The company's Data Protection segment, which exceeds $200 million in ARR, continues to outperform the total company and led net new ARR growth for the quarter, with the new Disaster Recovery as a Service (DRAS) product generating significant customer interest.
- N-able Inc (NABL) is making strategic investments in AI, with AI-generated code accounting for 47% of all committed code in Q2 and some features shipping 10-12 times faster, positioning the company for enhanced productivity and innovation.
- The company is expanding its product portfolio with new offerings like Google Workspace Backup, Incident Response, and FedRAMP-certified EDR, which are expected to be tailwinds and drive growth in the second half of 2026 and into 2027.
- N-able Inc (NABL) maintains a strong balance sheet with $116 million in cash, net leverage of 1.8 times, and a $45 million share repurchase authorization, demonstrating financial flexibility and confidence in the business.
- N-able Inc (NABL) lowered its full-year 2026 top-line guidance due to lower-than-expected renewal rates in its UEM and EDR segments, particularly within its largest Q2 renewal cohort, which came in below expectations.
- The company is experiencing pricing pressure in its EDR business, which is impacting renewal rates as customers either negotiate lower prices or defect to competitors offering more favorable terms.
- N-able Inc (NABL) is undergoing a significant go-to-market leadership transition with a new Chief Revenue Officer, which is expected to create near-term variability and headwinds in sales execution.
- The company announced a 6% reduction in its total workforce, incurring $4-6 million in restructuring charges, reflecting the need to realign resources amid shifting market dynamics and a challenging demand environment.
- N-able Inc (NABL) is seeing a pause in UEM purchasing decisions as MSPs evaluate AI strategies and reimagine their operational workflows, leading to slower growth in this core segment and contributing to the overall guidance reduction.
Hello, everyone. ( Operators Instructions ) I will now hand the conference over to Griffin Geer, Director of Investor Relations. Please go ahead.
Thanks operator, and welcome everyone to Enable's second quarter 2026 earnings call.
With me today are John Pagliuca, Enable'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.enable.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
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