Hello, everyone. Thank you for joining us, and welcome to the N-Able second quarter 2026 earnings call. After today's prepared remarks, we will host a question- and- answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Griffin Gyr, Director of Investor Relations. Please go ahead. Thanks, operator, and welcome everyone to N-Able's second quarter 2026 earnings call. With me today are John Pagliuca, N-Able'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.n-able.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 update this information except as required by law. These statements are also subject to a number of risks and uncertainties, including those highlighted in today's earnings release and our filings with the SEC. Additional information concerning these statements and the risks and uncertainties associated with them is highlighted in today's earnings release and in our filings with the SEC. Copies are available from the SEC or on our investor relations website. Furthermore, we will discuss various non-GAAP financial measures on today's call. Unless otherwise specified, when we refer to financial measures, we will be referring to non-GAAP financial measures. A reconciliation of certain GAAP to non-GAAP financial measures discussed on today's call is available on our earnings press release on our investor relations website. I will now turn the call over to John. Thank you, Griffin, and thank you all for joining us today. At N-Able, we believe every business deserves enterprise-grade cybersecurity, and we are working to democratize cyber defense at a moment when the stakes have never been higher. That mission has continued to translate into disciplined growth and profitability. Second quarter ARR was $544 million, growing 6% year-over-year in constant currency, and adjusted EBITDA was $40 million, representing a margin of 29%. Our results this quarter and the promising road ahead are grounded in what we believe is a compelling cybersecurity and AI opportunity. Recent advances in frontier AI models are accelerating both the volume and velocity of cyber risk. Vulnerabilities are being discovered faster, exploit timelines are compressing, and customers need to move from threat detection to remediation with far greater urgency. The data underscores this shift. CVE.org shows the number of vulnerabilities more than tripled between the second quarter of 2022 and the second quarter of 2026. Anthropic's recent research shows how a lone operator can turn a month's worth of patches into working exploits in a single afternoon for only a few thousand dollars and with no specialized expertise. The recent Hugging Face security incident, where an agent broke out of its test environment and autonomously attacked business infrastructure, makes this AI risk even more concrete. At the same time, businesses are deploying agents and continue to digitize their operations, expanding the amount of data and IT assets that need to be protected. This creates a compounding challenge. As adversaries' offensive capabilities grow more powerful, the attack surface they can target is growing right alongside them. We believe this backdrop reinforces the strategic relevance of N-Able's end-to-end portfolio, from patch management and vulnerability remediation in unified endpoint management, to threat detection and response in security operations, to fast, efficient restore capabilities and data protection. With a base of 500,000 businesses and a platform that spans a full attack life cycle, we believe N-Able is well-positioned to capture the large and growing opportunity and deliver growth and profitability over the long term. While we remain excited about the opportunity ahead, we are updating our 2026 top-line guidance, and I want to address this directly. Our update reflects two primary factors. First, the impact from a transition in go-to-market leadership, and second, shifting dynamics in the evolving UEM and EDR markets. While we believe N-Able is performing well and strategically positioned for long-term durable growth and profit, these items are creating near-term financial pressures. Let's assess both. On the go-to-market side, we welcomed Russell Rosa as our new Chief Revenue Officer in July, and his priorities are clear. First, accelerating our full channel strategy to better target partner segments where our platform can deliver value. Second, deepening our upmarket motion, particularly as our portfolio increasingly addresses more complex customer needs across security, data protection, AI, and compliance. Third, driving operational excellence across the revenue organization with a focus on durable productivity and long-term efficiency. Russell brings more than 25 years building and scaling channel organizations. Most recently, he was CRO at Sumo Logic, where he helped deliver constant double-digit security growth, and before that, at Cisco and Actifio, where he built global channel and go-to-market programs from the ground up. That combination of channel DNA and enterprise scale is exactly what this next phase of growth for N-Able calls for. Given the significance of the leadership transition, we expect some near-term variability in our go-to-market execution, which is reflected in our adjusted 2026 guidance. We are making this change now to build a stronger, more enduring growth engine as we look to 2027 and beyond. Turning to UEM and EDR. Managing and securing endpoints remains foundational to IT management and security. But as AI reshapes the landscape, customers now expect greater capabilities on top of these core outcomes. While we're moving fast to meet these needs, this shift is pressing near-term growth in both categories, which is also reflected in our updated guidance. As it relates to UEM, we're executing a roadmap to govern and secure AI agents, deliver more comprehensive exposure management capabilities, and drive value from our AI workflow assistant, N-zo. In EDR, our portfolio expansion plans include AI security for emerging AI-driven threats, FedRAMP-certified EDR capabilities to enhance our appeal with regulated customers, and cloud-native security as workloads move to the cloud. We are also adding managed EDR. This serves customers who do not want the full breadth of our security operations solution, but still want a higher level of protection than EDR alone provides. This lower entry point helps us cover the full range of customer preferences and can serve as a platform wedge for broader estate expansion over time. As agents get deployed and AI-driven attacks elevate the importance of patching, vulnerability management, compliance, and real-time detection and response, we believe the endpoint remains a primary battleground for keeping IT assets and businesses safe. We intend to win this ground while building beyond it. As we execute our mission to protect businesses from cyber threats, we also remain focused on balancing growth and profitability. Aligning investments with our highest priority opportunities, operating a streamlined organization, and driving high levels of productivity have always been a part of that focus, and we are acting with discipline on all three. With that in mind, we plan to implement a series of organizational changes in the second half of the year that will reduce our total headcount by about 6%. Let me explain what is driving this. We see a widening opportunity and more pronounced customer demand in data protection, security operations, and the full channel. Success requires relentless customer focus, and as customers' needs shift, it is imperative that N-Able's resource allocation shift too. Our changes aim to realign our resources with these opportunities while preserving the organizational focus and speed that cybersecurity leadership demands. From a productivity perspective, we are driving real gains from incorporating the latest technologies, including AI, into the way we work. From AI-enabled SDRs and accelerated content marketing and go-to-market, to faster resolutions in customer support, to shipping more code in engineering, new tools are helping drive step change progress across the business. We are seeing particular effectiveness in engineering, with AI-generated code accounting for 47% of all committed code in the second quarter. In some features, shipping 10- 12x faster than prior roadmap estimates. These results give us confidence to move decisively rather than incrementally. While this is a difficult decision, it reflects our commitment to continuing to strengthen N-Able for the long term. We firmly believe our changes will make us better positioned to deliver for our customers, partners, and all stakeholders. Let us now look at our progress throughout the company in the second quarter. These updates share a common thread. Customers are getting faster outcomes and stronger protection with less operational burden. Let us walk through each. In data protection, we launched Disaster Recovery as a Service, or DRaaS, earlier this year. With N-Able DRaaS, customers can restore full operations in minutes rather than days, and there is no separate infrastructure or hardware needed. This means faster restores, less complexity, and execution against our mission to democratize cyber defense. The timing of our launch is notable. DRaaS lets customers avoid CapEx costs, supply delays, and maintenance that comes with owning hardware, an increasingly relevant value proposition. DRaaS has already helped a number of businesses avoid costly downtime, a real proof of the value this capability delivers. We also added automated backup ticketing to streamline backup-related workflows for customers. Looking ahead, our plan to extend coverage to Google Workspace later this year remains on track. The industry is taking notice. Omdia, one of the most respected channel-focused research firms, named N-Able its Backup and Disaster Recovery Champion for the third year running. Customers are telling us the same story. Our data protection solution, which is above $200 million in ARR, continues to grow faster than the total company, and once again, led our net new ARR growth this quarter. Stepping back, we see AI driving a paradigm shift in data protection. As AI agents operate inside businesses, traditional perimeter-oriented defenses such as the endpoint and network no longer suffice to keep organizations protected. When an agent makes a mistake or gets compromised, a strong data protection solution can be the difference between a business extinction event or a routine recovery. We named our solution Cove Data Protection to invoke the calm, protected waters a cove provides. As AI makes the seas choppier than ever, this commitment to safety has never been more relevant. We are excited to continue investing in this market and extend the capabilities of our fast-scaling solution. In UEM, we made progress on our priority roadmap items to govern and secure AI agents, deliver more comprehensive exposure management capabilities, and drive value from our AI assistant, N-zo. We are seeing indications that our vulnerability management capabilities are resonating as we uncovered billions of vulnerabilities across our customer base. On the commercial front, UEM cross-sell to data protection and security customers was up 27% in the quarter, and our targeted displacement campaign increased migrations against a top competitor by 60%. These data points support our confidence in the strategic importance and competitiveness of our Gartner-recognized UEM solution. We also launched Shadow AI Visibility in both UEM and security operations, giving customers insight into where AI tools are being used across their environment. This addresses a blind spot that affects many organizations and addresses a need that we anticipate will only grow over time. This brings us to our AI-powered security operations solution, where we continue to see strong traction for enterprise-grade security delivered in an accessible way. This is driven by several factors. Chief among them is the sheer intensity of the threat environment. Our own research found that the average SOC analyst faces an alert every 30 seconds, a volume no human analyst can realistically absorb. We empower customers to cut through all this noise. By utilizing a vendor-agnostic approach that ingests signals across the endpoint, network, cloud, identity layer, and SaaS application, we give customers a view no single-point solution can match. Our AI capabilities enable customers to act on risk faster than a fragmented stack could. For the threats that do escalate beyond automated containment, we are extending management Incident Response capabilities, giving customers hands-on investigation and response exactly when they need it. Identity in particular has emerged as a leading attack vector, as attackers increasingly target credentials rather than endpoints directly. In fact, we see half of attacks now bypassing endpoint controls entirely, a clear signal that attackers are finding new ways in, and identity has become one of their new favorite paths. We protected over 3 million identities, helping stem this growing tide. That value is showing up in our results. This quarter featured one of our largest new deals ever, and we believe we are gaining market share in this category. Each of these updates point to what we believe is a broader shift. DRaaS allows customers to walk away from hardware and manual disaster recovery. UEM is moving from simply surfacing vulnerabilities to helping remediate them. Our security operations platform is increasingly handling threat responses automatically. In each case, software is taking on work that has historically required dedicated labor. We see this as a meaningful expansion of our opportunity. With that, I'll turn it over to Tim before circling back for closing remarks. Tim? Thank you, John. Thank you all for joining us today. Before we go into the details of the quarter, let's start with the broader takeaways and how we view the business going forward. Our updated full-year top-line guidance is below our ambitions for the business. Still, we firmly believe N-Able remains strong. The drivers of our business remain intact. The organizational changes John discussed give us confidence in greater speed and better execution. We also remain highly profitable with a full year 2026 adjusted EBITDA margin guide of approximately 30% at the midpoint. Given our continued strong free cash flow generation, we intend to be active with our share repurchase program that has a remaining authorization of $45 million, a direct reflection of our conviction in the value of the business. With that context, let's turn to the numbers. For our second quarter results, total ARR was $544 million, growing at 6% year-over-year on a reported and constant currency basis. Total revenue was $138 million, representing approximately 6% year-over-year growth on a reported basis and 5% on a constant currency basis. Subscription revenue was $137 million, representing approximately 6% year-over-year growth on a reported basis and 5% on a constant currency basis. We ended the quarter with 2,706 customers that contributed $50,000 or more of ARR, which is up approximately 7% year-over-year. Customers with over $50,000 of ARR now represent approximately 63% of our total ARR, up from approximately 60% a year ago. Dollar-based net revenue retention, which is calculated on a trailing 12-month basis, was approximately 106% on a reported basis and 103% on a constant currency basis. Approximately 46% of our revenue was outside of North America in the quarter. Turning to profit and margins, note that unless otherwise stated, all references to profit measures and expenses are calculated on a non-GAAP basis and exclude the items outlined in the GAAP to non-GAAP reconciliations provided in today's press release. Second quarter gross margin was 80%, compared to 82% in the same period in 2025. Second quarter adjusted EBITDA was $40 million, representing approximately 29% adjusted EBITDA margin. Unlevered free cash flow was $23 million in the second quarter. CapEx, inclusive of $3 million of capitalized software development costs, was $13 million, or 9% of revenue in the second quarter. We ended the quarter with approximately $116 million of cash and an outstanding loan principal balance of approximately $398 million, representing net leverage of approximately 1.8 x. During the quarter, we also added delayed draw term loan facility of up to $75 million on the same terms as our existing facility. This gives us additional flexibility and capacity as we evaluate capital allocation strategies. Non-GAAP earnings per share was $0.10 in the second quarter based on 189 million weighted average diluted shares. Before turning to guidance, I want to give some context on our results in the second quarter. The second quarter has our largest cohort of contract renewals, and renewal rates in this cohort, primarily in UEM and EDR, came in below expectations. That is the main driver of this quarter's net new ARR performance and updated guidance. We are addressing this head-on. In addition to the organizational changes, expanded UEM and EDR capabilities, and CRO hire we discussed earlier, we are also taking specific steps to strengthen our renewal motion. This includes more dedicated sales engineers on renewal accounts, an improved outreach cadence ahead of renewal dates, facilitating more in-person customer interactions with our top accounts, and an up-leveled support organization to strengthen the customer experience throughout the contract life cycle. Let us now turn to our financial outlook. Our guidance incorporates the following elements. First is the impact of updated FX rates and revised first-quarter results. Regarding FX, we are assuming rates of 1.13 for the euro and 1.33 for the pound. Relative to our guidance last quarter, the changes in FX rates drive approximately $2.5 million of negative impact to full-year revenue and approximately $5 million to full-year ARR. We also revised first quarter 2026 revenue per our filings down $1.3 million. This is a revenue-only item. It does not affect ARR, though it does flow through to adjusted EBITDA. Second, we are accounting for recent business trajectory in UEM and EDR, including the lower-than-expected renewal rates we experienced in the second quarter. While we have clear plans in place to address both, we have updated our guidance to reflect these trends. Third is the change in go-to-market leadership. As John mentioned, we are excited about our new CRO and the leadership he brings. But transitions like this typically carry near-term headwinds as new priorities and processes take hold, and we are factoring that into our guide. All that said, several factors give us confidence in our ability to continue driving solid growth. The renewal cohort in the first half of the year is approximately 40% larger than the second-half cohort, which limits second-half churn exposure and supports our retain and expand motion. We also believe new product launches, in particular DRaaS, Google Workspace Backup, Incident Response, and FedRAMP EDR, are tailwinds. The roadmap extends well past this year. In 2027, we plan to launch Microsoft Entra ID coverage and data protection, expand our security operations platform, and begin monetizing agents. As it relates to profitability, I want to briefly take a step back and discuss the broader strategic context of our adjusted EBITDA and unlevered free cash flow guidance. The opportunity ahead for N-Able is clear. Businesses are navigating a more complex security and IT landscape, with cyber threats growing in speed, scale, and sophistication. Organizations are looking to N-Able to help them respond with greater effectiveness and confidence. For N-Able to continue leading in this environment, we have to evolve as well. Given this, as John mentioned, we plan to implement a series of organizational changes, reducing our annualized operating expenses by approximately $11 million - $13 million. In connection with these changes, which include an approximately 6% reduction in the total size of our workforce, we expect to incur approximately $4 million-$6 million of restructuring charges in the second half of the year. These actions are designed to align investments with our highest priority opportunities, streamline our organization, and improve productivity. We believe these changes make N-Able stronger and better positioned to drive profitable growth over the long term. Moving to the third quarter of 2026, we expect total revenue in the range of $134.5 million-$135.5 million, representing approximately 3% year-over-year growth on a reported basis and 3%-4% on a constant currency basis. We expect third quarter adjusted EBITDA in the range of $41 million-$42 million, representing an adjusted EBITDA margin of approximately 30%-31%. For the full year of 2026, our total revenue outlook is approximately $539 million-$542 million, representing approximately 6%-7% year-over-year growth on a reported basis and 5% on a constant currency basis. Our full-year ARR outlook is $562 million-$565 million, representing 4%-5% year-over-year growth on a reported basis and 5% on a constant currency basis. We expect full-year adjusted EBITDA of $158 million-$161 million, representing an adjusted EBITDA margin of approximately 29%-30%. We expect our unlevered free cash flow to be approximately $116 million-$120 million. We expect CapEx, which includes capitalized software development costs, to be approximately 6% of total revenue for 2026. We expect cash interest payments of approximately $27 million, assuming interest rates remain in line with current levels. We expect total weighted average diluted shares outstanding of approximately 189 million-192 million for the third quarter, and 188 million-192 million for the full year. Finally, we expect our non-GAAP tax rate to be approximately 25%-26% for both the third quarter and the full year. I will turn it over to John for closing remarks. Bringing it all together, AI is reshaping the security landscape, making our mission to democratize cyber defense more critical than ever. We are taking decisive action across the business to better capture this demand. We welcomed Russell Rosa as our new Chief Revenue Officer. We are making organizational changes to align resources with our highest priority opportunities. We are sharpening our roadmaps to bring new products to market faster. Our award-winning platform protects approximately 500,000 businesses across the globe, and our confidence in the road ahead remains strong. With that, operator, we will turn it over to questions. We will now begin the question- and- answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from Mike Cikos with Needham. Please go ahead. Hey, guys. Thanks for taking the question here. I just wanted to zoom out for a second and just get a better view of the shape of Q2. Where I'm going with this is, if I just take a step back and look like 90 days ago, N-Able already had a month under its belt from Q2. They had outperformed the Q1 result and opted to maintain the full-year guide. Then here we are and we're talking about the renewal cohorts really, for that UEM and EDR market, flipping around on us and causing us to downtick here on the guide for the full year. Can you help us think about how much of that renewal cohort is in the final month or final couple of weeks of the quarter? When did that renewal dynamic really show up in the quarter? Hey, Mike. The renewal cohort in Q2 is by far the biggest that we have in the year, just due to the dynamics of how we converted customers into those long-term contracts. The impact of the renewal rate, what we saw was, we were seeing renewal rates in the higher 80s. As we progressed through the quarter, we saw them middling out more in the mid-80s. The impact of that, plus the size of the cohort, is what drove the Q2 performance. As we look at the full-year guide, we've baked similar renewal rates going forward into the remainder of the year. Okay. For those renewal rates, if a customer's not renewing with you, where are they going? What are they doing? Yeah. Hey, Mike. This is John. For you and for everyone, there are a couple of different factors that go into the renewal rate as well. It is also dollars, right? We might renew the customer, but if they are coming in at a lower price point or a lower quantity, that is going to impact the renewal rate. As mentioned, if we just zoom out, data protection and security operations continue to be green from where we stand. Data protection, the product offering continues to hum. Security operations is actually ahead of plan. What we mentioned in the prepared remarks, especially on the renewal rates, was more focused on EDR and UEM. With EDR, we are seeing some pricing pressure. That manifests itself in two ways. One, we might retain the customer, but at a lower price point, which is going to affect GRR and the renewal rate. Then in times, we see pricing pressure, and that might manifest itself in, for them, going to get a SentinelOne type of service from a different type of provider. That is where we are seeing it with EDR, and I will tell you what we are doing to combat some of this in a second. On UEM, similar, right? We might see some pricing pressure from customers that might be coming off of renewal. They might have been a two-year commitment with us, and/or they might have some quantity degradation in their own base at the MSP. Remember, our model is not just selling to an enterprise, we are selling to an MSP. If their quantities drop a little bit and/or they are coming back for more competitive pricing, that is going to show up as a headwind in renewal rate. You cannot just take a straight line and say that the customers are leaving. To answer your question a little bit more succinctly, if they are leaving on EDR, they could actually be going to another provider who might be offering or partnering with a SentinelOne, or they might be going to some of the other names that we know in the industry. On UEM, Mike, it is the usual cast of characters that we have been going with. We do not really see a change, or a significant change, in UEM from a market share ebb and flow, frankly. A lot of this is some of the pricing sensitivity on both of those areas. I did not. From an actions point of view on EDR, just to round the bases on this. On EDR, a couple of things. One, we have entered into or amended our agreement with SentinelOne, which will allow us to do two things. It actually puts a nice good amount of pricing protection for N-Able for the foreseeable future, but it also, more importantly, extends our offerings and SKUs. Sometimes we would lose a customer because they might need a certain offering or a SKU, and we listed them off in the prepared remarks. You might need a FedRAMP type of certified endpoint security offering or SKU. Even if it is for an MSP with 10% or 5% of their customer base, if we did not have that SKU available to us in Q2, we potentially could put that customer in harm's way or have a degradation in renewal rate. We have now amended that agreement with SentinelOne, opening up the SKUs, and we think that will also provide a strengthening of renewal rates, especially for the EDR part of our customer base. Great. Thank you, guys. Your next question comes from Erik Suppiger with B. Riley. Please go ahead. Yeah. Thanks for taking the question. First off, can you remind us what your head count is currently? And I assume that is before you have had any reductions. And then what was the DRaaS contribution in the quarter? And then lastly, on SentinelOne, just to be clear, are they giving better pricing to some of the other channels? Is that an issue, or is it more access to products, like you were talking you extended your offering? Hey, Erik. I will start with the DRaaS one, and then we will take them one at a time. The impact for revenue in Q2 was actually none. DRaaS went GA in July, and we are really excited about this offering. We have had it in customer hands for a good part of the quarter. It is resonating. It is resonating with the smaller shops, it is resonating with the larger shops, and frankly, the timing is perfect. As we all know, hardware costs are going up, labor costs continue to rise, and we are actually taking the hardware and labor parts out of the hands of the MSPs and putting an instance in our cloud so that if they need to fail over, they can fail over immediately. We believe this will be a winner. We are really excited. We did begin starting to sell it in July. As I sit here in August, I continue to have the same level of excitement for DRaaS. So that is that. On the SentinelOne question, I am not going to speak to, I cannot speak to, frankly, what the other pricing folks have in the market. Our differentiation has always been, one, the integration in our UEM, and the strong partnership we have with SentinelOne. We do, I believe, a best-in-class job with the support. It historically has been, and continues to be, a really strong relationship. We believe it is not just the economics, but it is also the complete business resilience story, where we are actually bringing in our UEM and our XDR offering in conjunction with some of the SentinelOne SKUs that makes it the winning combination. We are not out there really looking to just resell EDR as an example. It is really in conjunction with the full attack life cycle with UEM on before the attack, endpoint security during the attack, and a little bit more on the protection side, and then XDR. We do sell the SentinelOne SKU as an add-on to both our UEM and XDR offering. So for us, it is a good winning formula as we go through. On the head count, I will defer to Tim, but we are around- Yeah, it is approximately 2,000 employees as of Q2. And just real quick on the DRaaS, what are you projecting as you look into the second half of the year? Look, I think it will be one of our faster-growing SKUs to $10 million of ARR. I'm not going to put a timeline on it, and we don't really forecast out specific SKUs. But we're pretty bullish on the offering. Data protection continues to be an area that, again, both mid-market enterprises and MSPs of all sizes continue to look to. And frankly, in this AI-forward world where we're beginning to see agents causing a need, I'll say, for fast restore and recovery, that's not really necessarily cyber related. It's now a new use case that we're seeing. I think the need for data protection and offering like DRaaS is even stronger. So we're very bullish on it. The team's done a great job putting the offering together, and it's really been resonating so far. So now it's up to us to continue to drive this pipeline and convert this pipeline as we get into the second half of the year. Thank you. Your next question comes from Jason Ader with William Blair. Please go ahead. Yeah. Thanks. Good morning, guys. I want to get at the sort of MSP versus VAR dynamics. I guess the question is what's happening in the MSP market from a macro or competitive standpoint, and wondering if the apparent pivot somewhat over the last few years to the VAR channel is indicative of more headwinds in the MSP market than in the VAR market. Thanks, Jason. Hey, this is John. In the prepared remarks, we talk about upmarket, and I just want to clarify or make sure folks understand what that means. That's both related to the MSP market that we serve and the mid-market. In the MSP land, we continue to see an uptick in M&A. You can see that I think it's widely known MSPs continue to consolidate, continue to drive a lot of M&A. There's a lot more private equity driving consolidation. As a reminder, that doesn't mean our TAM is shrinking. In fact, as MSPs grow, they're getting exposed more and more to larger enterprises because their level of sophistication and their scale grows. It's definitely a net positive for the industry, but it also requires a little bit of a different selling motion for N-Able, and this is why we brought in Russell. Russell has that enterprise experience. Russell himself comes with the Rolodex and connections to a good number of VARs and MSPs across the landscape. We're seeing more and more six-figure opportunities than we ever have. It has a different rhythm, it requires a different type of seller, and it requires, frankly, just a different cadence into our closing cycle. That's what we're seeing on MSP. I will say from an MSP point of view, from a demand point of view, we continue to see the sell-through part of the equation remain strong. Data protection, excuse me, security operations, security. On MSP where it might be a sell to, people are taking a step back and saying, "Hey, how is AI going to affect the tools for my technicians vis-à-vis solutions that we're putting into our end customers?" For example, that's where UEM plays. The good news story here is I believe our AI vision and our AI story is resonating in the market. We're beginning to deliver that with N-zo. We have AI agents that were slotted to begin to deliver to the back half of the year, and MSPs are taking notice. I believe our AI story is differentiated from the market, and as we continue to deliver more of these AI capabilities, I think it will unlock some of that UEM trepidation when people are trying to figure out, how is my technicians going to be impacted by AI? We're going to help them alleviate some of the burden that a lot of L1 technicians are looking to have this year. I believe more and more of that will really start to surface and be felt in 2027. The AI story is also a strong one, and I think the more mature MSPs are looking for vendors like N-Able to help guide them through that AI fog and give them technology that they can put on top of their existing SaaS platform. On the mid-market, again, this is where I think Russell's strength will really be shown. Russell understands the channel. He comes from the channel. We begin seeing good uptick in the channel, and this is where UEM is not as much of a red ocean. In MSP land, UEM is very much more of a red ocean. In the mid-market, where CIOs like this all-in-one tool where they can combine things like a take control tool, a monitoring capability, vulnerability management, patching management, and reporting all in one tool. Wow. They'll get to replace maybe four or five, potentially even six tools in their stack with one tool at a price point that saves them a good amount of money. So getting that offering into the channel, having the channel understand the power of this tool, we think is an exciting proposition for mid-market CIOs. I'm sure Russell and his channel experience will be able to put this value prop into better hands in the channel. We'll be able to see that uptick as we go through. You're right. We're seeing the UEM market and the demand in mid-market pulling us in that direction for sure. Pulling you in the VAR direction? Pulling us, yeah. It's the mid-market. The VAR is the way that we're going to channel. Mid-market That mid-market. Got you. Okay. Just a sort of zoom-out question. I know you guys have been searching for the right growth formula over the last few years. I guess, what makes you confident that you've found it? Well, look, we believe where we are today is not where we want to be, right? The way I would frame it, Jason, is how do we go from where we are to where we want to be? Look, a lot of that is in NPIs, new product introduction. The second half of this year, we're in a better position from an organic new product introduction, I think, than we've been for many quarters or many years, frankly. With DRaaS in July, we have Google Workspace for our backup offering later this year. We have Incident Response and security operations that we're bringing to market. We're also bringing on a host of SKUs, some of which, again, for endpoint security that are ours on our IP and some that are SentinelOne's. Just like any other company, to drive that NRR to a spot that is much more interesting, you need to have that healthy, steady diet of new products that will resonate in the market. You couple that with what we are doing with AI, and we believe that growth formula will really begin to accelerate as we get into 2027. We are a series of long transactions. We have 25,000 customers, and inevitably, I always refer to it as that snowball. That snowball will take some time to compound. But given the second half's lineup card of new product introductions and with our AI tooling, we believe those snowballs will begin in the second half and really start to accelerate and show up in 2027. Thanks. Good luck. Thanks. Your next question comes from Joe Vandrick with Scotiabank. Please go ahead. John, you mentioned customers are expecting more advanced capabilities in UEM and EDR. Can you maybe elaborate just a little bit more on that point? Remind us going forward, how are you viewing the importance of UEM and EDR to the business, and have you guys quantified how much of the total business these two segments make up? On UEM, Joe, I think it's two dimensions. One, UEM is a real security anchor meaning a good thing, from a security point of view. We're seeing MSPs, both large and small, looking for extended vulnerability management capabilities, exposure management, and we're looking to provide that for them. That's on one part. One of the key parts in our business, and this has been true for the 20-year existence here, it's all about automation. Today, the way that automation is being felt, and the need is really through the artificial intelligence and helping MSPs drive that important metric. For an MSP, for every technician, they want to be able to manage, monitor, and secure about 300 endpoints or devices, right? With AI and automation, we hope to drive that number to a much higher ratio so that the MSPs themselves can become more efficient and drive more profitability for our end customers, the MSP. What they're looking for is help in understanding how they can leverage AI. We have MCP server capability with both of our UEMs. We have AI assistants in our offerings right now, and that's just the start. Later this year, we'll be bringing coworkers, and the difference there is the level of autonomy. With our AI assistants, they can use it as an assistant to help them take action. As we go forward in the future, the AI will not just be an assistant, it'll actually take an autonomous type of action to drive a lot more of that efficiency for the MSP. That's what they're looking for. They're building AI capabilities themselves in-house, but they're really looking for vendors to help with that next step and making sure that they can do so at scale and safely. We're laser-focused there. Again, we believe that our AI vision and our AI strategy will be a differentiator as we begin to deliver that later on this year. Very helpful. One for Tim. Can you help us understand, what's giving you the confidence that net new ARR can pick up in the back half of the year? How much of that guide is supported by what you're seeing in the pipeline today? How much of that is supported by pipeline, and I guess, what are you assuming around improved execution? Yeah, I would say the guide does not really bake in any improved execution. It is really some dynamics of the renewal cohort sizes that are going to drive some of the sequential growth first half versus second half. As an example, the entire second half renewal that we have is generally the same size as we had in Q2. So there is a positive dynamic there in terms of growth. We have assumed similar renewal rates in the second half that we experienced in Q2. We do have a little bit of impact from new product introduction, but that is like a half a point of revenue or so between all the new offerings that are coming out in terms of the outlook. So it is generally immaterial. So it is really that dynamic. We also had some FX impact in the quarter, just as rates came down a bit for Q2, looking forward. All right. Thank you. Your next question comes from Matt Hedberg with RBC. Please go ahead. Great. Thanks for taking my questions, guys. I wanted to dig into the selling environment a little bit more. We've all seen enterprises think through their AI rollout and strategy, and it's complex enough there. I have to imagine in the SMB market, it's even more complex. I guess I'm wondering how much of the buying behavior is impacted by maybe just these businesses trying to themselves understand their own AI strategy, and it's just causing some pause or questions on their existing spend. As we work through some of that AI adoption and digestion, things could also improve. Just curious if there's an element of that in there. Hey, Matt. There's definitely an element to that. Let me bifurcate it, and I mentioned this in an earlier comment. In our business model, we have a sell to element and a sell through. That sell to element is when the MSP, our customer, is consuming the offering to drive their business. Then the sell through is when they're actually taking those offerings and deploying them at their customers and effectively selling through as the phrase implies. On the sell through, especially as it relates to data protection and security and security operations, we're not seeing really much trepidation there or slowdown there. So that's, I would say, business as usual. But you're right. MSPs are stepping back, and I would say, I hate to use the word every, but nearly every conversation, folks want to understand, whether it be N-Able or their other vendors, what is our AI strategy? How are we playing in that equation? Then MSPs are looking whether they want to build some AI capabilities, not to replace. Just to be clear, not to replace the UEM, but to drive some automation on top. Folks are definitely taking a harder look at vendors and understanding what their AI strategy is, and looking how they can make themselves more efficient. We're definitely seeing a pause or a little bit more of a scrutiny as to how a vendor's AI strategy, what they're planning on doing, and how that will impact the sell to, and the life of the technician. We have our chief AI officer, and she's been speaking to hundreds of MSPs, both individually but also at conferences, and we're bringing MSPs here, and I'm confident the large shops, the smaller shops, they're fully supportive of our strategy. Again, we have a multi-pronged approach for those that want just access to their data in a much more AI-friendly way. We have the MCP server capabilities that customers can leverage. We have our AI assistant that people can plug in on top of our SaaS offerings. Then as we're rolling out these more autonomous agents, the MSPs will drive a lot more efficiency there. So, we believe our multi-pronged strategy is resonating with all segments, and it's all about delivering that. But Matt, you're right. We're seeing MSPs wanting to understand, again, our AI strategy and how it's going to impact their labor and their workforce. We're seeing MSPs reimagine even their workforce structurally. They're leveraging the new technology that we're looking to bring on to help them reimagine that workforce, not just for 2026, but for the foreseeable future. Got it. Thanks. As a follow-up to an earlier question on confidence in growth resuming in the second half. It sounds like, Tim, you're not embedding any sort of improvement in your guide. Can you just try to think it through all the changes with the new CRO, the RIF, still maybe some lingering renewal questions, new products that are still early. How should we think about the potential for additional disruption from here, sort of beyond what you've sort of scoped out? It does seem like there's a lot of change going on right now as well. Yeah, I would say, Matt, just to double back on comments earlier. In terms of the renewal rates that we experienced in the quarter, we've assumed similar renewal rates the remainder of the year. From demand assumptions, we've assumed similar demand going forward as well. A lot of the difference in sequential growth in the back half versus the first half is really due to renewal cohort sizes between first half and second half. We're not assuming any real improvement from a guide standpoint. We're obviously operationalizing change to push better improvements across renewal rates, demand as we move forward and execution on the new product introductions that we're bringing to market here in the second half of the year as well. That's just the, I would say, overall color in terms of how we built the guidance up for the remainder of the year. Great. Thanks, guys. Your next question comes from Keith Bachman with BMO. Please go ahead. Hi. Good morning. I wanted to go in a little bit different direction in that if we think about the macro, I think most of the security companies that have a broad spectrum of customers have said and will say that in fact, with Mythos and other incremental security threats, their pipeline has actually increased, which is probably also driving a revenue cadence increase. What you're suggesting is there's been a pause. To Matt's question, the intimation is maybe there's an evaluation period, but that's not what we have heard or will heard, I think, from other security vendors. I'm trying to tie it together. So either, A, the MSP market or maybe even the lower end, so to speak, of the VAR tier is going through a longer cadence of evaluation or is it B, is the incremental competitive threat actually causing vendors to evaluate other products? In other words, what I'm really trying to drill down, is there something you're suggesting go to market may be a contributing factor, but is there something on the product side which is causing N-Able to potentially lose share as security threats increase and incremental threat vectors such as AI become more prominent? How do you think about, and even in your slide deck, you suggest that the market TAM is growing 14%. Obviously, you're under that. With all these changes that you're making, if you're making changes that would enable you to be more successful, when do you think you can get back to improved growth? Really two-prong question. One is- Sure competitive nature, and two is growth. When do you see growth improving? Good morning, Keith. This is John again. Good, thoughtful question as always. Just to double back on that, though, right? What I mentioned to Matt, as it relates to our security offerings that are especially more sell-through in nature are our XDR offering, our data protection, DRaaS offerings. Those continue to show strong uptick. We're seeing a lot of strong demand. No trepidation there. In UEM, remember, UEM is IT management in some elements, and there's a lot of monitoring and management capabilities there. It's that sell-to tool. The UEM is effectively the operational fabric of the MSP. This is where technicians spend their time and handle tickets. So that one's more operational in nature, not necessarily I would say security in nature. That's where I think that little bit of that pause is as MSPs are again reimagining what's the workflow of the ticket, how are they addressing and dealing with IT monitoring and IT management. So maybe that's a little bit of a nuance that I wanted to make sure that you heard. Security elements SecOps, data protection, that continues to remain strong. But the tooling themselves for which MSPs are running their business, I think that's where they're doing a little bit more of a pause and making sure that the solution that they're picking today is, in fact, going to be the solution for tomorrow with the right AI strategy and AI roadmap. As it relates to the competitive environment, really nothing new to report. We continue to see the same players in data protection. We believe we're winning security operations. Again, I think that is an area where we continue to win and do well from a market share point of view. UEM, there is one player that is gaining more market share, I would say, than the other couple, but a lot of that is their focus on the mid-market vis-à-vis MSP. That is at least from what we believe from listening to folks in the industry. So, which maps to a little bit of what our focus was earlier, making sure that we can actually address the channel with our new CRO, making sure that we are getting a lot more go-to-market traction in the mid-market, in addition to MSP. The MSP market continues to be strong. We believe there is a little bit more white space and greenfield opportunity in some of the mid-market areas. Keith, I forgot your second question. When do you think you can get back to- Yeah, sure. something that would be reflective of market growth? For us, a healthy growth algorithm, it starts with making sure that the retention rates are strong, and we're focused on some operational tasks as early as already in place on the renewal rates that we believe we can control and start upticking as early as the back half of this year. The real part of our growth engine is that new product introduction to drive expand. We saw this when we introduced data protection many moons ago. We saw this again when we introduced XDR into our base. That's when we see this nice expansion in the NRR, because our customers trust N-Able. Our customers trust us. When we tell them there's a best-in-class offering, they'll consume that best-in-class offering. They'll plug it into their business and begin either selling it or leveraging it immediately to drive efficiency gains. We have that trust of our customers and that brand recognition. So when we bring in NPIs, when we bring in those new products, that's when we really start to see the growth algorithm get back to where we want it to be. As I mentioned, we have a strong lineup, in particular in data protection and security in Q3 and Q4. Then toward the tail end of the year, that's when we start bringing on more of those offerings for UEM. So we do expect to see more of an accelerated growth in 2027. Okay. Thank you. There are no further questions at this time. I will now turn the call back to CEO John Pagliuca for closing remarks. Thank you all for joining us today and your continued interest in N-Able. We will talk to you in a quarter. This concludes today's call. Thank you for attending. You may now disconnect.