Enable (NABL) Q4 2025: Adlumen Cross-Sell Lifts Upmarket ARR to 61% of Total
Enable’s upmarket momentum accelerated in Q4, driven by successful cross-sell of Adlumen’s AI-powered security to both large and small MSPs, expanding ARR concentration and platform stickiness. The company’s multi-pronged AI strategy is translating into product differentiation, higher retention, and new monetization levers, while operational discipline is preserving 30% EBITDA margins. Investors should watch for the impact of new AI SKUs and disaster recovery launches to further drive ARR growth in 2026.
Summary
- Upmarket Expansion Accelerates: Large-customer ARR share rose to 61% as Adlumen cross-sell outperformed expectations.
- AI Embedded Across Platform: Product innovation is now a core growth lever, with AI agents and automation driving customer value and efficiency.
- 2026 Hinges on New SKUs: Disaster Recovery as a Service and Google Workspace coverage are set to expand addressable market and growth trajectory.
Performance Analysis
Enable delivered solid top-line growth in Q4, with total revenue and ARR both up double digits year over year, reflecting robust demand across its cybersecurity platform. The integration of Adlumen, AI-driven security operations provider, was a clear highlight, contributing a full quarter of revenue and catalyzing cross-sell momentum. Notably, ARR from customers generating over $50,000 annually jumped to 61% of total, up from 57% a year ago, underscoring Enable’s successful upmarket push.
Profitability remained a hallmark, with adjusted EBITDA margin steady at 30% for both Q4 and the full year. Cash flow execution was strong, and the company maintained a healthy balance sheet after refinancing its credit facility, increasing financial flexibility for capital allocation. Gross margins moderated slightly due to integration and product mix, but operational leverage offset these pressures.
- Upmarket Cohort Drives Retention: Large customers now represent a majority of ARR and retain at higher rates, validating the cross-sell strategy.
- AI-Driven Product Mix: Security operations, data protection, and unified endpoint management all saw increased adoption of AI features, supporting higher ASP and stickiness.
- Channel Expansion Pays Off: VAR (Value Added Reseller) channel investments are broadening reach, with notable traction for unified endpoint management in enterprise accounts.
Enable’s balanced approach to growth and profitability is evident in its ability to scale AI investments, expand upmarket, and deliver consistent free cash flow, all while maintaining a disciplined capital allocation strategy.
Executive Commentary
"AI is embedded across our cybersecurity platform, reducing risk and improving customer efficiency. Each solution has exciting progress and use cases."
John Paliuca, President and CEO
"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."
Tim O'Brien, EVP and CFO
Strategic Positioning
1. Multi-Pronged AI Monetization Strategy
Enable’s AI roadmap is central to its value proposition, with three distinct monetization vectors: embedded AI in core products, in-product AI workflow agents (like Enzo), and AI-specific SKUs carrying premium pricing. This layered approach both enhances customer outcomes and opens incremental revenue streams, while also positioning Enable as an innovation leader among MSP-focused cybersecurity vendors.
2. Upmarket and Channel Diversification
The company’s upmarket expansion is yielding tangible results, with larger customers now accounting for the majority of ARR and exhibiting superior retention. The VAR channel is emerging as a critical growth lever, particularly for unified endpoint management, as enterprises seek to consolidate vendors and streamline IT security operations.
3. Product Breadth and Platform Stickiness
Enable’s three-pillar platform—security operations, data protection, and unified endpoint management—creates cross-sell and consolidation opportunities, reducing customer churn and increasing average spend per account. The company’s ability to displace multiple point solutions with a single platform is resonating, as evidenced by recent large customer wins that consolidated spend across all three pillars.
4. Capital Allocation Flexibility
Recent credit facility expansion provides capital for both organic and inorganic growth, including potential M&A, further R&D, and share repurchases. Management signaled a balanced approach, weighing buybacks, targeted acquisitions, and continued investment in AI and go-to-market capabilities to drive long-term value.
5. TAM Expansion with New Offerings
Upcoming launches in Disaster Recovery as a Service and Google Workspace protection are set to expand Enable’s total addressable market, particularly among mid-market and education customers. These initiatives respond directly to customer pain points and are expected to accelerate net new ARR in the second half of 2026.
Key Considerations
Enable’s Q4 results highlight a business in transition, leveraging AI and channel expansion to drive upmarket growth while maintaining operational rigor. The following considerations will shape the company’s forward trajectory:
Key Considerations:
- AI Differentiation as a Moat: Enable’s integration of AI across its platform is both a defensive and offensive lever, supporting customer retention, higher ASP, and new SKUs.
- Upmarket Retention and Expansion: Large customer cohort now drives the majority of ARR and retains better than the company average, validating the upmarket focus.
- Channel Strategy Maturity: VAR and MSP channel development is broadening market reach, but execution will be critical to sustain new logo growth.
- Capital Allocation Optionality: Increased credit facility and strong cash flow provide flexibility for M&A, R&D, and buybacks, but disciplined execution is required to avoid dilution or misallocation.
Risks
Enable faces several risks as it executes its AI-driven growth plan: Competitive intensity in the cybersecurity and MSP software markets could pressure pricing or slow net new ARR. Macro uncertainty, especially in SMB end-markets, may dampen device growth or IT spend. Large customer concentration, while improving retention, could also introduce volatility if churn increases. Finally, the pace of AI adoption and monetization remains a key execution risk, as new SKUs must demonstrate clear ROI to customers.
Forward Outlook
For Q1 2026, Enable guided to:
- Total revenue of $131 to $132 million, 11% to 12% YoY growth reported, 6% to 7% constant currency
- Adjusted EBITDA of $35.5 to $36.5 million, margin of 27% to 28%
For full-year 2026, management raised guidance to:
- Total revenue of $554 to $559 million, 8% to 9% YoY growth reported, 7% to 8% constant currency
- ARR of $581 to $586 million, 8% to 9% YoY growth
- Adjusted EBITDA of $167 to $171 million, margin of 30% to 31%
- Unlevered free cash flow of $114 to $118 million, up 17% at the high end
Management highlighted several factors that will influence results:
- Seasonality: Net new ARR is expected to be weighted toward the second half, as new products move from preview to general availability.
- Product Adoption: Success of AI workflow agents and disaster recovery offerings will be critical to achieving the upper end of guidance.
Takeaways
Enable’s Q4 performance underscores a business scaling both upmarket and technologically, with AI at the core of its differentiation and growth strategy.
- Adlumen Integration Outperforms: Cross-sell success is driving increased ARR concentration among large customers and validating the upmarket expansion thesis.
- AI Monetization Pathway Emerging: Enable’s three-pronged AI approach is beginning to yield higher ASP, stickier customers, and new SKU opportunities.
- 2026 Execution Watchpoint: Investors should monitor the ramp of new AI-powered products and disaster recovery services, as these represent the next leg of ARR acceleration.
Conclusion
Enable enters 2026 with a fortified upmarket presence, a robust AI-infused product suite, and strong operational discipline. The company’s ability to monetize AI innovation, capitalize on channel expansion, and deliver on new product launches will determine whether it can sustain its growth and margin trajectory in a competitive cybersecurity landscape.
Industry Read-Through
Enable’s results reinforce several key trends in the cybersecurity and MSP software sector: AI is rapidly becoming table stakes for security operations, with automation and workflow assistants driving both efficiency and customer value. Upmarket migration and channel diversification are critical for sustained ARR growth, especially as SMB and mid-market customers seek integrated solutions. The success of cross-sell initiatives and new product launches, such as disaster recovery services, highlights the importance of platform breadth and TAM expansion. Competitors should note the growing customer appetite for consolidation and the willingness to pay for differentiated, AI-driven outcomes.