N-able, Inc. (NABL): BCG Matrix [Dec-2025 Updated]

You're looking for a clear map of where N-able, Inc. (NABL) is generating its growth and cash, and the BCG Matrix is defintely the right tool for that. As we stand in late 2025, the analysis reveals Security Operations and XDR as clear Stars, fueling a 14.2% Total ARR growth, while the bedrock Remote Monitoring and Management platform acts as a powerful Cash Cow, delivering an 81.1% Non-GAAP Gross Margin; however, the firm must now decide how much capital to feed into its high-risk, high-reward AI Question Marks, especially since the core base shows limited expansion with a Net Retention Rate of just 102%, suggesting some legacy Dogs need attention-dive in below to see the precise positioning of every major business unit.

Background of N-able, Inc. (NABL)

You're looking at N-able, Inc. (NABL) as of late 2025, and the story here is about a pivot toward unified cyber resilience for the small-to-medium business (SMB) and mid-market space. N-able, Inc. is a global software company that builds an end-to-end platform for Managed Service Providers (MSPs) to manage, secure, and recover their clients' IT environments. Honestly, they've built their reputation on core Remote Monitoring and Management (RMM) tools like N-central and N-sight RMM, but the current strategy is definitely about bundling in more advanced security and data protection.

The numbers from the third quarter of 2025, which ended September 30, show solid execution. Total revenue for that quarter hit $131.71 million, marking a 13.1% year-over-year jump. Subscription revenue, which is the lifeblood of this model, was $130.5 million, growing 13.5% year-over-year. That's the engine running strong.

What this means for the top line is that their Annual Recurring Revenue (ARR) reached $528.1 million as of that Q3 report, which was a 14.2% increase from the prior year. The company, led by President and CEO John Pagliuca and CFO Tim O'Brien, is showing good operational leverage, too. Non-GAAP net income was $25.4 million, yielding $0.13 per share, and the Adjusted EBITDA margin for the quarter was a healthy 31.4%.

When we look at the full-year 2025 expectations, management guided for total revenue between $507.7 million and $508.7 million, representing about 9% growth year-over-year. They are projecting the full-year ARR to land in the $530 million to $531 million range. This suggests a slight moderation in the growth rate compared to the Q3 actuals, which is something we'll need to watch.

The market N-able, Inc. is chasing is substantial. They estimate the total addressable market (TAM) for their core segments-security operations, data protection, and unified endpoint management-at $44 billion, with that entire space growing at 14% annually. Their current Net Revenue Retention (NRR) is sitting around 101% trailing twelve months, which means they are just barely growing revenue from existing customers after accounting for churn. The key action here is leveraging that base to cross-sell their security offerings, like Cove Data Protection, to lift that NRR defintely higher.

N-able, Inc. (NABL) - BCG Matrix: Stars

You're looking at the growth engines for N-able, Inc., the segments that demand heavy investment to maintain their leading position in expanding markets. These are the areas where market share and growth rate are both high, meaning they consume cash as fast as they bring it in, but they are critical for future Cash Cow status.

Security Operations and XDR is definitely one of these Stars, significantly bolstered by the Adlumin acquisition completed in November 2024. The aggregate consideration for Adlumin included approximately $100 million in cash at closing, 1,570,762 shares of Common Stock, and up to an aggregate of $30 million in potential cash earn-out payments payable in 2025 and 2026 based on performance metrics. N-able anticipated this move would be immediately accretive to annual recurring revenue (ARR) and cash flow by the fourth quarter of 2025.

This segment sits within a market N-able views as having substantial potential. The Total Addressable Market (TAM) specifically for security operations is estimated at $24 billion in 2025. This high-growth area requires continuous investment to fend off competitors and capture market share.

The momentum in the data protection side is also clear, with Cove Data Protection earning Champion status again in the 2025 BDR matrix, showing strong momentum. Furthermore, Cove Data Protection received several G2 recognitions for 2025, including Champion status in the 2025 BDR matrix, Best Usability Summer - 2025, Best Est. ROI - Mid Market - Fall 2025, Easiest Setup - Fall 2025, and Momentum Leader 2025 Fall.

These growth drivers are clearly reflected in the top-line financial performance. For the third quarter of 2025, N-able, Inc. reported Total ARR of $528.1 million, which is a 14.2% year-over-year growth rate on a reported basis. This growth rate is what defines a Star-it's the engine pulling the company forward right now.

Here's a quick look at how N-able segments its targeted TAM as of 2025, showing the high-growth areas:

The operational success underpinning these Stars is evident in the recent reported metrics:

• Total ARR for Q3 2025: $528.1 million.
• Total ARR year-over-year growth (Q3 2025): 14.2%.
• Total Revenue (Q3 2025): $131.7 million.
• Subscription Revenue (Q3 2025): $130.5 million.
• Non-GAAP Gross Margin (Q3 2025): 81.1%.
• Adjusted EBITDA Margin (Q3 2025): 31.4%.

The company's strategy involves continued investment to keep these products leading the pack. Finance: draft 13-week cash view by Friday.

N-able, Inc. (NABL) - BCG Matrix: Cash Cows

You're looking at the bedrock of N-able, Inc.'s financial stability here. These Cash Cows are the established products in mature markets where N-able has a commanding position, meaning they generate more cash than they need to maintain their current state. Think of the Core Remote Monitoring and Management (RMM) platform; it's the workhorse, serving over 25,000 MSPs.

This high market share translates directly into superior profitability, which is what we want to see in a Cash Cow. The proof is in the margins. Take a look at the Q3 2025 performance metrics to see this in action:

That 81.1% Non-GAAP Gross Margin in Q3 2025 is defintely the hallmark of a product that has achieved competitive advantage and can command pricing power in its segment. Because the market for core RMM is mature, N-able, Inc. doesn't need to spend excessively on promotion or placement for this product line; it's already known. Instead, the focus shifts to efficiency.

The stability comes from the Subscription Revenue base, which hit $130.5 million in Q3 2025. This recurring stream is exactly what funds the rest of the business. It's the stable, recurring revenue stream funding new product development and acquisitions, keeping the whole portfolio fed. You want to invest just enough to maintain that productivity, or 'milk' the gains passively, so to speak.

The expectation for the full year reinforces this position. Management guided the Expected Full-Year 2025 Adjusted EBITDA to land between $148.2 million and $149.2 million. That consistent, high-margin cash flow is the engine that allows N-able, Inc. to take calculated risks on its Question Marks and support its Stars. It covers the corporate overhead and keeps shareholders happy, which is precisely the role of a perfect Cash Cow.

N-able, Inc. (NABL) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

The characteristics suggesting a Dog portfolio segment within N-able, Inc. (NABL) relate to components not central to the current cyber-resilience platform push, which is driving the overall growth figures.

• Legacy, non-cloud-native IT management tools requiring high maintenance for low return.
• Basic, commoditized RMM features that lack differentiation against low-cost competitors.
• The overall Net Retention Rate (NRR) of 102% (Q2 2025 TTM) indicates limited cross-sell in the core base.
• Older, less-integrated components of the platform that are not part of the cyber-resilience push.

The overall financial performance masks the stagnation in these lower-growth areas. For instance, while Total ARR reached $528.1 million in Q3 2025, growing 14.2% year-over-year, this growth is concentrated in newer, strategic areas like security operations and data protection.

Expensive turn-around plans usually do not help. The focus on growth-oriented investment is directed toward the cyber-resiliency platform, which saw Cove achieve its highest bookings and net new ARR quarter ever (ex-pricing) in Q2 2025. This contrasts with the stagnation implied by the flattish physical device trend.

The need to avoid or minimize these segments is clear when looking at the capital allocation implied by the balance sheet. As of June 30, 2025, total debt stood at $332.1 million against total cash and cash equivalents of $93.9 million. Furthermore, the company began executing its share repurchase program in Q2 2025, suggesting capital deployment might favor shareholder returns or strategic acquisitions over costly revitalization of low-growth assets.

• Non-GAAP Gross Margin was 81.8% in Q2 2025, but GAAP Gross Margin was 78.1%, reflecting higher amortization and cost of revenue, potentially tied to older infrastructure.
• GAAP Net Loss for Q2 2025 was $4.0 million, despite a non-GAAP Net Income of $20.4 million.

N-able, Inc. (NABL) - BCG Matrix: Question Marks

You're looking at the areas of N-able, Inc. (NABL) that are currently demanding cash to fuel high-potential growth but haven't yet secured a dominant market position. These are the classic Question Marks-they operate in markets that are expanding rapidly, but N-able, Inc.'s current slice of that pie is small, meaning they are cash-hungry right now.

The strategic initiatives falling into this quadrant are capital-intensive, requiring investment from the more established Cash Cows to potentially transition into Stars. For instance, the focus on new AI-driven services, such as Anomaly Detection as a Service, is a prime example. This is an early-stage offering that leverages proprietary data from N-able, Inc.'s installed base of 11 million IT assets to embed advanced capabilities across the platform. The integration of the Adlumin security operations solution, acquired in late 2024, is part of this push to lead in AI-driven cybersecurity, positioning these solutions for future market capture.

The push into non-MSP channels, specifically targeting VARs and Systems Integrators (SIs) to capture the mid-market opportunity, is another area consuming resources for future share gain. N-able, Inc. is focused on this segment, which is part of a broader $44 billion total addressable market (TAM) growing at 14% annually. While the reseller pipeline nearly doubled quarter-over-quarter as of Q2 2025, the immediate return is still being built, evidenced by a major mid-market deal win cited at approximately $0.5 million in ARR for UEM solutions.

Similarly, the recently introduced Vulnerability Management features integrated into the Remote Monitoring and Management (RMM) platforms, N-central and N-sight, are in the process of building market share. This feature addresses the critical need to manage the high volume of threats, as N-able, Inc. data indicated an average of 133 CVEs (common vulnerabilities and exposures) disclosed daily in 2025. While N-able, Inc. has a current overall market share of 27.93% as of Q1 2025, these specific new product areas are in the nascent stages of achieving that level of dominance.

These growth vectors necessitate significant capital outlay. For the full year 2025, N-able, Inc. projects Capital Expenditures (CapEx), which includes capitalized software development costs, to be approximately 6% of total revenue. This investment is happening while the company navigates margin pressure; for example, Q3 2025 net income was reported at $1.38 million, a sharp decline from $10.76 million in the prior year, and the first nine months of 2025 showed a net loss of $9.8 million. The company is betting that this investment will convert the high growth potential of these new areas into high market share, supporting the raised full-year 2025 revenue outlook of approximately $507.7 million to $508.7 million.

The success of these Question Marks hinges on quickly increasing market share before the high growth rate slows, which would reclassify them as Dogs. N-able, Inc. must execute on its strategy to convert the momentum seen in the channel pipeline and the strategic relevance of its AI/security offerings into sustainable, high-share revenue streams.

• New AI-driven services like Anomaly Detection as a Service, a high-investment, early-stage offering.
• Strategic expansion into non-MSP channels (VARs, SIs) to capture the mid-market opportunity.
• Vulnerability Management features recently added to the RMM platforms, still building market share.
• These initiatives require capital investment from the Cash Cows to convert high growth potential into high share.