N-able第二季收入1.38億美元按年增5.9% 扭虧錄淨利176萬美元

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549

FORM 10-Q 

(Mark One)

☑
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026 
or

☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                    to                    
Commission File Number: 001-40297 

N-able, Inc. 
(Exact name of registrant as specified in its charter)

Delaware85-4069861
(State or other jurisdiction of
incorporation or organization)(I.R.S. Employer
Identification No.)

30 Corporate Drive 
Suite 400 
Burlington, Massachusetts 01803 
(781) 328-6490 
(Address and telephone number of principal executive offices) 

Securities registered pursuant to Section 12(b) of the Act:

Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, $0.001 par valueNABLNew York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     þ Yes   ¨  No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  þ  Yes    ¨  No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer☑Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ☐  Yes   þ  No
On August 5, 2026, 188,906,050 shares of common stock, par value $0.001 per share, were outstanding. 

N-able, Inc.

Table of Contents

PART I - FINANCIAL INFORMATION
Page
Item 1. Financial Statements (Unaudited)
5

Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025
5

Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2026 and 2025
7

Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2026 and 2025
8

Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 30, 2026 and 2025
9

Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025
11

Notes to the Consolidated Financial Statements
13

1. Organization and Nature of Operations

2. Summary of Significant Accounting Policies

3. Acquisitions

4. Goodwill

5. Relationship with Parent and Related Entities

6. Fair Value Measurements

7. Accrued Liabilities and Other

8. Debt

9. Earnings Per Share

10. Income Taxes

11. Commitment and Contingencies

12. Operating Segments and Geographic Information

13. Subsequent Events

Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
30

Item 3.Quantitative and Qualitative Disclosures of Market Risk
43

Item 4.Controls and Procedures
44

PART II - OTHER INFORMATION
Item 1.Legal Proceedings
46

Item 1A.Risk Factors
46

Item 2.Unregistered Sales of Equity and Use of Proceeds
46

Item 5.Other Information
47

Item 6. Exhibits
48

Signature
50

2

Safe Harbor Cautionary Statement
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995. Such statements may be signified by terms such as “aim,” “anticipate,” “believe,” “continue,” “expect,” “feel,” “intend,” “estimate,” “seek,” “plan,” “may,” “can,” “could,” “should,” “will,” “would” or similar expressions and the negatives of those terms. In this report, forward-looking statements include statements regarding our financial projections, future financial performance and plans and objectives for future operations including, without limitation, the following:
•expectations regarding our financial condition and results of operations, including revenue, revenue growth, revenue mix, cost of revenue, operating expenses, operating income, non-GAAP operating income, non-GAAP operating margin, adjusted EBITDA and adjusted EBITDA margin, ARR, cash flows and effective income tax rate;
•expectations regarding the impact of AI on our business;
•expectations regarding the impact of foreign exchange rates and macroeconomic conditions on our business;
•expectations regarding investment in product development and our expectations about the results of those efforts;
•expectations concerning acquisitions and opportunities resulting from our acquisitions, including our acquisition of Adlumin, Inc. (“Adlumin”) in November 2024;
•expectations regarding hiring additional personnel globally in the areas of sales and marketing and research and development;
•intentions regarding our international earnings;
•expectations regarding our capital expenditures; and 
•our beliefs regarding the sufficiency of our cash and cash equivalents, cash flows from operating activities and borrowing capacity.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially and adversely different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the following: 
•the impact of adverse economic conditions;
•our ability to sell subscriptions to new customers, to sell additional solutions to our existing customers and to increase the usage of our solutions by our existing customers, as well as our ability to generate and maintain customer loyalty;
•our ability to sell our solutions through distributors and resellers;
•any decline in our renewal or net retention rates; 
•our ability to successfully incorporate AI-powered features into our solutions, market and sell any AI-powered solutions we develop, garner increased market share projected for AI-powered solutions, and realize efficiencies from the internal use of AI tools, as well as other risks related to our use of AI; 
•the possibility that general economic, political, legal and regulatory conditions and uncertainty may cause information technology spending to be reduced or purchasing decisions to be delayed, including as a result of inflation, actions taken by central banks to counter inflation, rising interest rates, war and political unrest, military conflict (including between Russia and Ukraine and in the Middle East), terrorism, sanctions, trade or other issues in the U.S. and internationally, including increased tariffs or trade wars, or other geopolitical events globally, or that such factors may otherwise harm our business, financial condition or results of operations;
•recent significant changes to U.S. trade policies and reciprocal trade measures enacted or threatened, which have led and may continue to lead to volatility and uncertainty, including increased market volatility and currency exchange rate fluctuations, which may also cause information technology spending to be reduced or purchasing decisions to be delayed; 
•any inability to generate significant volumes of high-quality sales leads from our digital marketing initiatives and convert such leads into new business at acceptable conversion rates; 
•any inability to successfully identify, complete and integrate acquisitions and manage our growth effectively;
•any inability to resell third-party software or integrate third-party software into our solutions, or find suitable replacements for such third-party software; 
3

•risks associated with our international operations;
•foreign exchange gains and losses related to expenses and sales denominated in currencies other than the functional currency of an associated entity;
•risks that cyberattacks and other security incidents may result in compromises or breaches of our, our customers’, or their SMB and mid-market customers’ systems, the insertion of malicious code, malware, ransomware or other vulnerabilities into our, our customers’, or their SMB and mid-market customers’ environments, the exploitation of vulnerabilities in our, our customers’, or their SMB and mid-market customers’ security, the theft or misappropriation of our, our customers’, or their SMB and mid-market customers’ proprietary and confidential information, and interference with our, our customers’, or their SMB and mid-market customers’ operations, exposure to legal and other liabilities, higher customer and employee attrition and the loss of key personnel, negative impacts to our sales, renewals and upgrades and reputational harm and other serious negative consequences, any or all of which could materially harm our business;
•our status as a controlled company; 
•our ability to attract and retain qualified employees and key personnel;
•the timing and success of new product introductions and product upgrades by us or our competitors; 
•our ability to maintain or grow our brands, including the Adlumin brand;
•our ability to protect and defend our intellectual property and not infringe upon others’ intellectual property;
•the possibility that our operating income could fluctuate and may decline as a percentage of revenue as we make further expenditures to expand our operations in order to support growth in our business;
•our indebtedness, including increased borrowing costs resulting from rising interest rates, potential restrictions on our operations and the impact of events of default;
•our ability to operate our business internationally and increase sales of our solutions to our customers located outside of the United States; 
•the risk that any unremediated material weakness could result in a material misstatement in our financial statements, and the increased costs associated with implementing remediation efforts relating to any material weakness, including the material weakness identified in the second quarter 2026; and
•such other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission, including the risk factors described in “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this Quarterly Report on Form 10-Q. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially and adversely from those anticipated in these forward-looking statements, even if new information becomes available in the future.
In this report “N-able,” “Company,” “we,” “us” and “our” refer to N-able, Inc. and its consolidated subsidiaries, and references to “SolarWinds” and “Parent” refer to SolarWinds Corporation. 
4

PART I: FINANCIAL INFORMATION

Item 1. Financial Statements

N-able, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)

June 30,December 31,
20262025
Assets
Current assets:
Cash and cash equivalents$115,812 $111,837 
Accounts receivable, net of allowances of $3,989 and $4,059 as of June 30, 2026 and December 31, 2025, respectively
46,340 49,972 
Income tax receivable3,181 3,432 
Recoverable taxes7,319 9,807 
Current contract assets15,420 19,528 
Prepaid and other current assets23,773 21,494 
Total current assets211,845 216,070 
Property and equipment, net43,370 38,392 
Operating lease right-of-use assets36,723 28,666 
Deferred taxes4,011 4,164 
Goodwill1,012,144 1,024,300 
Intangible assets, net55,249 64,786 
Other assets, net32,187 33,340 
Total assets$1,395,529 $1,409,718 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable$17,663 $8,999 
Accrued liabilities and other42,742 55,283 
Current contingent consideration— 10,840 
Current deferred consideration64,024 60,720 
Current operating lease liabilities7,328 7,203 
Income taxes payable5,668 9,986 
Current portion of deferred revenue20,937 27,207 
Current debt obligation4,000 4,000 
Total current liabilities162,362 184,238 
Long-term liabilities:
Deferred revenue, net of current portion878 1,747 
Non-current deferred taxes1,722 1,847 
Non-current operating lease liabilities36,861 29,284 
Long-term debt, net of current portion388,327 389,873 

Other long-term liabilities751 685 
Total liabilities590,901 607,674 
Commitments and contingencies (Note 11)

Stockholders’ equity:
Common stock, $0.001 par value: 550,000,000 shares authorized, 192,681,679 and 190,459,837 shares issued, and 188,905,524 and 186,683,682 shares outstanding as of June 30, 2026 and December 31, 2025, respectively
193 190 
Preferred stock, $0.001 par value: 50,000,000 shares authorized and no shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
— — 
Treasury stock, at cost: 3,776,155 shares as of June 30, 2026 and December 31, 2025
(30,000)(30,000)
Additional paid-in capital763,948 746,599 
Accumulated other comprehensive income17,669 32,514 
Retained earnings52,818 52,741 
Total stockholders' equity804,628 802,044 
Total liabilities and stockholders' equity$1,395,529 $1,409,718 

5

The accompanying notes are an integral part of these Consolidated Financial Statements.
6

N-able, Inc.
Consolidated Statements of Operations
(In thousands, except per share information)
(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Revenue:
Subscription and other revenue$138,223 $130,521 $270,592 $248,609 
Cost of revenue:
Cost of revenue27,784 24,542 55,386 48,108 
Amortization of acquired technologies4,237 4,229 8,478 8,396 
Total cost of revenue32,021 28,771 63,864 56,504 
Gross profit106,202 101,750 206,728 192,105 
Operating expenses:
Sales and marketing42,686 42,362 85,272 82,766 
Research and development26,627 26,336 52,765 50,220 
General and administrative 19,916 23,229 40,163 47,137 
Amortization of acquired intangibles497 503 993 1,002 
Total operating expenses89,726 92,430 179,193 181,125 
Operating income16,476 9,320 27,535 10,980 
Other expense, net:
Interest expense, net(8,343)(8,090)(15,932)(15,161)
Other (expense) income, net(413)(815)(1,096)693 
Total other expense, net(8,756)(8,905)(17,028)(14,468)
Income (loss) before income taxes7,720 415 10,507 (3,488)
Income tax expense5,960 5,046 10,430 8,364 
Net income (loss)$1,760 $(4,631)$77 $(11,852)
Net income (loss) per share:
Basic income (loss) per share$0.01 $(0.02)$0.00 $(0.06)
Diluted income (loss) per share$0.01 $(0.02)$0.00 $(0.06)
Weighted-average shares used to compute net income (loss) per share:
Shares used in computation of basic income (loss) per share:188,632 188,823 188,091 188,527 
Shares used in computation of diluted income (loss) per share:189,115 188,823 189,225 188,527 

The accompanying notes are an integral part of these Consolidated Financial Statements.
7

N-able, Inc.
Consolidated Statements of Comprehensive Income
(In thousands)
(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Net income (loss)$1,760 $(4,631)$77 $(11,852)
Other comprehensive (loss) income:
Foreign currency translation adjustment(2,992)36,560 (14,845)52,652 
Other comprehensive (loss) income(2,992)36,560 (14,845)52,652 
Comprehensive (loss) income$(1,232)$31,929 $(14,768)$40,800 

The accompanying notes are an integral part of these Consolidated Financial Statements.

8

N-able, Inc.
Consolidated Statements of Stockholders' Equity
(In thousands)
(Unaudited) 

Three Months Ended June 30, 2026
Common StockTreasury Stock
SharesAmountSharesAmountAdditional Paid-in CapitalAccumulated Other Comprehensive IncomeRetained EarningsTotal
Balance as of March 31, 2026192,155$191 (3,776)$(30,000)$754,422 $20,661 $51,058 $796,332 
Net income— — — — — — 1,760 1,760 
Foreign currency translation adjustment— — — — — (2,992)— (2,992)
Exercise of stock options19— —— 4 — — 4 
Restricted stock units issued, net of shares withheld for taxes5082 —— (771)— — (769)
Issuance of stock—— —— — — — — 
Issuance of stock under employee stock purchase plan—— —— — — — — 
Repurchase of common stock— — — — — — — — 
Stock-based compensation— — — — 10,293 — — 10,293 
Balance as of June 30, 2026192,682$193 (3,776)$(30,000)$763,948 $17,669 $52,818 $804,628 

Six Months Ended June 30, 2026
Common StockTreasury Stock
SharesAmountSharesAmountAdditional Paid-in CapitalAccumulated Other Comprehensive IncomeRetained EarningsTotal
Balance at December 31, 2025190,460$190 (3,776)$(30,000)$746,599 $32,514 $52,741 $802,044 
Net income— — — — — — 77 77 
Foreign currency translation adjustment— — — — — (14,845)— (14,845)
Exercise of stock options21— —— 7 — — 7 
Restricted stock units issued, net of shares withheld for taxes1,9443 —— (5,375)— — (5,372)
Issuance of stock—— —— — — — — 
Issuance of stock under employee stock purchase plan257— —— 1,177 — — 1,177 
Repurchase of common stock— — — — — — — — 
Stock-based compensation— — — — 21,540 — — 21,540 
Balance at June 30, 2026192,682$193 (3,776)$(30,000)$763,948 $17,669 $52,818 $804,628 

9

Three Months Ended June 30, 2025
Common StockTreasury Stock
SharesAmountSharesAmountAdditional Paid-in CapitalAccumulated Other Comprehensive (Loss) IncomeRetained EarningsTotal
Balance at March 31, 2025189,061$189 —$— $715,540 $(5,087)$64,335 $774,977 
Net loss— — — — — — (4,631)(4,631)
Foreign currency translation adjustment— — — — — 36,560 — 36,560 
Exercise of stock options—— —— — — — — 
Restricted stock units issued, net of shares withheld for taxes498 1 — — (2,058)— — (2,057)
Issuance of stock—— —— — — — — 
Issuance of stock under employee stock purchase plan—— —— — — — — 
Repurchase of common stock— — (1,250)(10,000)— — — (10,000)
Stock-based compensation— — — — 13,088 — — 13,088 
Balance as of June 30, 2025189,559$190 (1,250)$(10,000)$726,570 $31,473 $59,704 $807,937 

Six Months Ended June 30, 2025
Common StockTreasury Stock
SharesAmountSharesAmountAdditional Paid-in CapitalAccumulated Other Comprehensive (Loss) IncomeRetained EarningsTotal
Balance at December 31, 2024187,529$187 —$— $708,992 $(21,179)$71,556 $759,556 
Net loss— — — — — — (11,852)(11,852)
Foreign currency translation adjustment— — — — — 52,652 — 52,652 
Exercise of stock options7— —— 2 — — 2 
Restricted stock units issued, net of shares withheld for taxes1,7693 — — (9,770)— — (9,767)
Issuance of stock102— —— 1,107 — — 1,107 
Issuance of stock under employee stock purchase plan152— —— 1,296 — — 1,296 
Repurchase of common stock— — (1,250)(10,000)— — — (10,000)
Stock-based compensation— — — — 24,943 — — 24,943 
Balance at June 30, 2025189,559$190 (1,250)$(10,000)$726,570 $31,473 $59,704 $807,937 

The accompanying notes are an integral part of these Consolidated Financial Statements.
10

N-able, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June 30,
20262025
Cash flows from operating activities
Net income (loss)$77 $(11,852)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization22,013 21,410 
(Benefit from) provision for doubtful accounts(70)237 
Stock-based compensation expense21,196 24,553 
Gain on asset disposal— (162)
Deferred taxes(19)79 
Amortization of debt issuance costs and discounts454 784 
Loss on foreign currency exchange rates2,400 1,594 
(Gain) loss on contingent consideration(303)1,618 
Deferred consideration expense3,304 7,530 
Loss (gain) on lease modification11 (441)
Other non-cash expenses2 521 
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in business combinations:
Accounts receivable3,701 (2,838)
Income taxes receivable234 (231)
Recoverable taxes2,377 16,713 
Current contract assets4,108 (3,099)
Operating lease right-of-use assets, net(1,455)(163)
Prepaid expenses and other current assets(47)(4,446)
Accounts payable5,669 653 
Accrued liabilities and other(10,473)(5,679)
Income taxes payable(4,150)(577)
Deferred revenue(7,140)(2,898)
Other long-term assets2,030 424 
Other long-term liabilities66 134 
Net cash provided by operating activities43,985 43,864 
Cash flows from investing activities
Purchases of property and equipment(11,495)(7,076)
Purchases of intangible assets and other(5,247)(5,797)
Return of deposits in escrow— 299 
Net cash used in investing activities(16,742)(12,574)
Cash flows from financing activities
Payments of tax withholding obligations related to restricted stock units(5,375)(9,770)
Exercise of stock options— 2 
Proceeds from issuance of common stock under employee stock purchase plan1,177 1,296 
Repurchase of common stock— (10,000)
Deferred acquisition payments(10,537)(5,358)
Repayments of borrowings under Credit Agreement(2,000)(1,750)
Payments of debt issuance costs(2,298)— 
Net cash used in financing activities(19,033)(25,580)
Effect of exchange rate changes on cash and cash equivalents(4,235)2,968 
Net increase in cash and cash equivalents3,975 8,678 
Cash and cash equivalents
Beginning of period111,837 85,196 
End of period$115,812 $93,874 
Supplemental disclosure of cash flow information
Cash paid for interest$13,402 $12,706 
Cash paid for income taxes$13,604 $5,897 
Supplemental disclosure of non-cash activities:
Change in purchases of property, equipment and leasehold improvements included in accounts payable and accrued expenses$2,403 $491 
Right-of-use assets obtained in exchange for operating lease liabilities$10,877 $5,580 
Assets acquired in exchange for vendor credits$— $162 

11

The accompanying notes are an integral part of these Consolidated Financial Statements.
12

N-able, Inc.
Notes to Consolidated Financial Statements (Unaudited)

1. Organization and Nature of Operations
Description of Business
N-able, Inc., a Delaware corporation, together with its subsidiaries, protects businesses from evolving cyberthreats. Our AI-powered cybersecurity platform delivers business resilience to approximately 500,000 organizations worldwide, leveraging advanced end-to-end capabilities, simplified workflows, market-leading integrations, and flexible deployment options to improve efficiency and drive critical security outcomes. Our partner-first approach pairs our technology with experts, training, and peer-led events that empower customers to be secure, resilient, and successful.

2. Summary of Significant Accounting Policies 
The Company’s significant accounting policies are disclosed in the audited consolidated financial statements for the year ended December 31, 2025, and notes thereto, which are included in the Company’s Annual Report on Form 10-K that was filed with the Securities and Exchange Commission on February 26, 2026. Since the date of those financial statements, there have been no material changes to the Company’s significant accounting policies, except as described below.
Basis of Presentation
Our interim Consolidated Financial Statements do not include all of the information and footnotes required by United States of America generally accepted accounting principles (“GAAP”) for complete financial statements. The interim financial information is unaudited, but reflects all normal recurring adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the audited Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2025, referred to as our “2025 Annual Report.”
Revision of Previously Issued Financial Statements
During the three months ended June 30, 2026, we identified errors related to (i) the net overstatement of revenue associated with certain subscription arrangements and (ii) the accounting for vendor credits on server infrastructure trade-ins, resulting in errors in other income and depreciation expense. Also, we have other immaterial errors from prior periods, including certain balance sheet accounts originating from our 2021 separation from SolarWinds, primarily related to the calculation of foreign exchange. We assessed these errors individually and in the aggregate and concluded they were not material to any previously issued annual or interim consolidated financial statements. However, in accordance with Staff Accounting Bulletin No. 108 of the Securities and Exchange Commission (“SEC”), the Company concluded that correcting the cumulative errors in the current period would be material to its statement of operations for the three and six months ended June 30, 2026. As a result, we revised our previously issued financial statements.
Additionally, in conjunction with the revision, the Company is correcting certain other immaterial items that were previously corrected out of period and that were previously identified and concluded as immaterial, individually and in the aggregate, to its financial statements.
The revised amounts as of and for the three and six months ended June 30, 2025 are reflected in the accompanying Consolidated Financial Statements and related footnotes. In addition, the amounts presented for the six months ended June 30, 2026 in the accompanying Consolidated Financial Statements reflect the correction of the errors attributable to the three months ended March 31, 2026.
For the three and six months ended June 30, 2025 and the six months ended June 30, 2026, revisions to the Consolidated Statements of Stockholders’ Equity are limited to changes in net loss and foreign currency translation adjustments, and the resulting impact to accumulated other comprehensive (loss) income, retained earnings, and total stockholders’ equity. These revisions align to the revised Consolidated Balance Sheets and Consolidated Statements of Operations and Comprehensive Income presented below. Amounts presented herein for prior periods, including in the applicable notes to the Consolidated Financial Statements, reflect the revision.

13

N-able, Inc.
Notes to Consolidated Financial Statements (Unaudited)

Consolidated Balance Sheet
(In thousands)

March 31, 2026
As Previously ReportedAdjustmentsAs Revised
Assets
Current assets:
Cash and cash equivalents$117,812 $— $117,812 
Accounts receivable, net of allowance of $4,232 as of March 31, 2026
46,062 (370)45,692 

Total current assets210,976 (370)210,606 
Property and equipment, net37,786 338 38,124 

Deferred taxes4,262 (248)4,014 

Total assets$1,395,316 $(280)$1,395,036 
Liabilities and stockholders' equity
Current liabilities:

Accrued liabilities and other40,298 (473)39,825 

Income taxes payable9,717 (1,327)8,390 
Current portion of deferred revenue20,677 4,019 24,696 

Total current liabilities167,396 2,219 169,615 
Long-term liabilities:

Total liabilities596,485 2,219 598,704 

Stockholders’ equity:

Retained earnings53,557 (2,499)51,058 
Total stockholders' equity798,831 (2,499)796,332 
Total liabilities and stockholders' equity$1,395,316 $(280)$1,395,036 

Consolidated Statements of Operations and Comprehensive Income
(In thousands, except per share information)

Three Months Ended June 30, 2025Six Months Ended June 30, 2025
As Previously ReportedAdjustmentsAs RevisedAs Previously ReportedAdjustmentsAs Revised
Revenue:
Subscription and other revenue$131,249 $(728)$130,521 $249,446 $(837)$248,609 
Cost of revenue:
Cost of revenue24,468 74 24,542 47,979 129 48,108 

Total cost of revenue28,697 74 28,771 56,375 129 56,504 
Gross profit102,552 (802)101,750 193,071 (966)192,105 

Operating income10,122 (802)9,320 11,946 (966)10,980 
Other expense, net:

Other (expense) income, net(854)39 (815)531 162 693 
Total other expense, net(8,944)39 (8,905)(14,630)162 (14,468)
Profit (loss) before income taxes1,178 (763)415 (2,684)(804)(3,488)
Income tax expense5,200 (154)5,046 8,500 (136)8,364 
Net loss$(4,022)$(609)$(4,631)$(11,184)$(668)$(11,852)
Other comprehensive income:
Foreign currency translation adjustment37,307 (747)36,560 53,732 (1,080)52,652 
Other comprehensive income37,307 (747)36,560 53,732 (1,080)52,652 
Comprehensive income$33,285 $(1,356)$31,929 $42,548 $(1,748)$40,800 

14

N-able, Inc.
Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026
As Previously ReportedAdjustmentsAs Revised
Revenue:
Subscription and other revenue$133,675 $(1,306)$132,369 
Cost of revenue:
Cost of revenue27,510 92 27,602 

Total cost of revenue31,751 92 31,843 
Gross profit101,924 (1,398)100,526 

Total operating expenses89,467 — 89,467 
Operating income12,457 (1,398)11,059 
Other expense, net:

Total other expense, net(8,272)— (8,272)
Income before income taxes4,185 (1,398)2,787 
Income tax expense4,800 (330)4,470 
Net loss$(615)$(1,068)$(1,683)
Other comprehensive loss:
Foreign currency translation adjustment(13,033)1,180 (11,853)
Other comprehensive loss(13,033)1,180 (11,853)
Comprehensive loss$(13,648)$112 $(13,536)
Net loss per share:
Basic loss per share$(0.00)$(0.01)$(0.01)
Diluted loss per share$(0.00)$(0.01)$(0.01)

Consolidated Statements of Cash Flows
(In thousands)

Six Months Ended June 30, 2025
As Previously ReportedAdjustmentsAs Revised
Cash flows from operating activities
Net loss$(11,184)$(668)$(11,852)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization21,281 129 21,410 

Gain on asset disposal— (162)(162)

Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in business combinations:

Current contract assets(3,193)94 (3,099)

Income taxes payable(441)(136)(577)
Deferred revenue(3,641)743 (2,898)

Net cash provided by operating activities43,864 — 43,864 

Three Months Ended March 31, 2026
As Previously ReportedAdjustmentsAs Revised
Cash flows from operating activities
Net loss$(615)$(1,068)$(1,683)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization11,356 92 11,448 

Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in business combinations:

Income taxes payable(1,100)(330)(1,430)
Deferred revenue(4,207)1,306 (2,901)

Net cash provided by operating activities17,471 — 17,471 

15

N-able, Inc.
Notes to Consolidated Financial Statements (Unaudited)

Use of Estimates
The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The actual results that we experience may differ materially from our estimates. The accounting estimates that require our most significant, difficult and subjective judgments include:
•the valuation of goodwill, intangibles, and long-lived assets;
•the valuation of contingent consideration;
•revenue recognition; and
•income taxes.
Money Market Fund Financial Assets
As of June 30, 2026 and December 31, 2025, we have money market fund financial assets of $69.4 million and $68.2 million, respectively, which are included in “cash and cash equivalents” in our Consolidated Balance Sheets. See “Fair Value Measurements” below and Note 6. Fair Value Measurements for further details regarding the fair value measurements of our money market fund financial assets.
Fair Value Measurements
We apply the authoritative guidance on fair value measurements for financial assets and liabilities, such as our money market fund financial assets and contingent consideration liabilities, that are measured at fair value on a recurring basis and non-financial assets and liabilities, such as goodwill, intangible assets and property, plant and equipment that are measured at fair value on a non-recurring basis.
The guidance establishes a three-tiered fair value hierarchy that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as follows:
Level 1: Unadjusted quoted prices for identical assets or liabilities in active markets accessible by us.
Level 2: Inputs that are observable in the marketplace other than those inputs classified as Level 1.
Level 3: Inputs that are unobservable in the marketplace and significant to the valuation.
The carrying values reported in our Consolidated Balance Sheets for cash, accounts receivable, accounts payable and other accrued expenses approximate fair value due to relatively short periods to maturity. See Note 6. Fair Value Measurements for a summary of our financial instruments accounted for at fair value on a recurring basis as of June 30, 2026 and December 31, 2025. As of June 30, 2026 and December 31, 2025, the carrying value of our outstanding debt approximates its estimated fair value as the interest rate on the debt is adjusted for changes in market rates. See Note 8. Debt for further details regarding our debt.
Debt
The Company accounts for debt instruments in accordance with ASC 470, Debt. Debt is initially recorded at the amount of cash proceeds received, adjusted for debt discounts, premiums, and issuance costs, and is subsequently measured at amortized cost using the effective interest method. Debt is classified as current or noncurr