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N-able’s Hidden Catalyst — DRaaS Opens A New Cyber-Recovery Growth Vector!

N-able reported second quarter 2026 revenue of $138 million, representing approximately 6% year-over-year growth, while annual recurring revenue reached $544 million, up 6% in constant currency. Subscription revenue also grew 6%. The company ended the quarter with 2,706 customers generating at least $50,000 in ARR, up 7% and representing 63% of total ARR. Dollar-based net revenue retention was 106% on a reported basis. Adjusted EBITDA totaled $40 million, representing a 29% margin. Gross margin declined to 80% from 82% a year earlier. Unlevered free cash flow was $23 million, while capital expenditures totaled $13 million, or 9% of revenue. N-able held $116 million in cash, with net leverage of approximately 1.8x and $398 million of outstanding loans. It also established a delayed draw term loan facility of up to $75 million. N-able highlighted increasing cybersecurity complexity as AI accelerates vulnerability discovery and exploitation.