Tenable Announces Third Quarter 2025 Financial Results

Tenable Exceeds Q3 Revenue and Profit Expectations, Raises Full-Year Outlook

• Revenue of $252.4 million, year-over-year growth of 11%
• Calculated current billings growth of 8% year-over-year
• GAAP operating margin of 2.8%; Non-GAAP operating margin of 23.3%, year-over-year increase of 350 basis points
  

Tenable Holdings, Inc. ("Tenable") (Nasdaq: TENB), the exposure management company, today announced financial results for the quarter ended September 30, 2025.

"We delivered better-than-expected results on both the top and bottom line driven by strong demand for our Tenable One Exposure Management platform," said Steve Vintz, Co-CEO of Tenable. "Our outperformance reflects the industry's shift toward a more preemptive approach to cybersecurity."

"Tenable is leading the industry's shift to exposure management, helping our tens of thousands of customers build stronger, smarter defenses for the AI era," said Mark Thurmond, Co-CEO of Tenable. "Enterprises are turning to Tenable to move from reacting to risk to staying ahead of it. They are trusting our platform to deliver the visibility and context required to see and take action on threats before they strike."

Third Quarter 2025 Financial Highlights

• Revenue was $252.4 million, an 11% increase year-over-year
• Calculated current billings was $267.5 million, an 8% increase year-over-year
• GAAP income from operations was $7.1 million, compared to a loss of $2.1 million in the third quarter of 2024
• GAAP operating margin was 2.8%, compared to (0.9)% in the third quarter of 2024
• Non-GAAP income from operations was $58.9 million, compared to $45.0 million in the third quarter of 2024
• Non-GAAP operating margin was 23.3%, compared to 19.8% in the third quarter of 2024
• GAAP net income was $2.3 million, compared to a loss of $9.2 million in the third quarter of 2024
• GAAP net earnings per share was $0.02, compared to a net loss of $0.08 per share in the third quarter of 2024
• Non-GAAP net income was $51.4 million, compared to $39.3 million in the third quarter of 2024
• Non-GAAP diluted earnings per share was $0.42, compared to $0.32 in the third quarter of 2024
• Net cash provided by operating activities was $53.9 million, compared to $54.6 million in the third quarter of 2024
• Unlevered free cash flow was $58.5 million, compared to $60.8 million in the third quarter of 2024
• Repurchased 2.0 million shares of our common stock for $60.0 million
  

Recent Business Highlights

• Added 437 new enterprise platform customers and 38 net new six-figure customers
• Appointed industry veteran Matthew Brown as Chief Financial Officer
• Launched Tenable AI Exposure, a comprehensive solution to see, manage and control the risks introduced by generative AI
• Released the next evolution of industry-leading Tenable Vulnerability Priority Rating (VPR), sharpening precision and enabling organizations to focus on risks that pose the greatest threat
• Named a "Leader" in both Worldwide Exposure Management by IDC and Unified Vulnerability Management by Forrester
• Ranked #1 in Device Vulnerability and Exposure Management market share by IDC for the seventh consecutive year

Financial Outlook

For the fourth quarter of 2025, we currently expect:

• Revenue in the range of $249.1 million to $253.1 million
• Non-GAAP income from operations in the range of $55.7 million to $59.7 million
• Non-GAAP net income in the range of $47.9 million to $51.9 million, assuming interest expense of $7.0 million, interest income of $3.2 million and a provision for income taxes of $3.4 million
• Non-GAAP diluted earnings per share in the range of $0.39 to $0.43
• 121.5 million diluted weighted average shares outstanding
  

For the year ending December 31, 2025, we currently expect:

• Calculated current billings in the range of $1.040 billion to $1.048 billion
• Revenue in the range of $988.0 million to $992.0 million
• Non-GAAP income from operations in the range of $211.0 million to $215.0 million
• Non-GAAP net income in the range of $185.0 million to $189.0 million, assuming interest expense of $28.4 million, interest income of $15.8 million and a provision for income taxes of $12.6 million
• Non-GAAP diluted earnings per share in the range of $1.51 to $1.54
• 122.5 million diluted weighted average shares outstanding
• Unlevered free cash flow in the range of $265.0 million to $275.0 million
  

Conference Call Information

Tenable will host a conference call on October 29, 2025 at 4:30 p.m. Eastern Time to discuss its financial results. The conference call can be accessed at 877-407-9716 (U.S.) and 201-493-6779 (international). A live webcast of the event will be available on the Tenable Investor Relations website at https://investors.tenable.com . An archived replay of the live broadcast will be available on the Investor Relations page of the website following the call.

About Tenable

Tenable ^® is the exposure management company, exposing and closing the cybersecurity gaps that erode business value, reputation and trust. The company's AI-powered exposure management platform radically unifies security visibility, insight and action across the attack surface, equipping modern organizations to protect against attacks from IT infrastructure to cloud environments to critical infrastructure and everywhere in between. By protecting enterprises from security exposure, Tenable reduces business risk for approximately 44,000 customers around the globe. Learn more at tenable.com .

Contact Information

Investor Relations
investors@tenable.com

Media Relations
tenablepr@tenable.com

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, our platform's ability to help organizations move to a more strategic and effective defense, manage and control risks introduced by generative AI and focus on risks that pose the greatest threat, and our business strategy and plans and objectives for future operations, are forward-looking statements and represent our views as of the date of this press release. The words "anticipate," "believe," "continue," "estimate," "expect," "intend," "may," "will" and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. These risks and uncertainties are detailed in the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2024 and other filings that we make from time to time with the SEC, which are available on the SEC's website at sec.gov. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements subsequent to the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance the overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important metrics used by management for financial and operational decision-making. We include these non-GAAP financial measures to present our financial performance using a management view and because we believe that these measures provide an additional comparison of our core financial performance over multiple periods with other companies in our industry.

Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.

Calculated Current Billings: We define calculated current billings, a non-GAAP financial measure, as total revenue recognized in a period plus the change in current deferred revenue in the corresponding period. We believe that calculated current billings is a key metric to measure our periodic performance. Given that most of our customers pay in advance (including multi-year contracts), but we generally recognize the related revenue ratably over time, we use calculated current billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers. We believe that calculated current billings, which excludes deferred revenue for periods beyond twelve months in a customer's contractual term, more closely correlates with annual contract value and that the variability in total billings, depending on the timing of large multi-year contracts and the preference for annual billing versus multi-year upfront billing, may distort growth in one period over another.

Free Cash Flow and Unlevered Free Cash Flow: We define free cash flow, a non-GAAP financial measure, as net cash provided by operating activities less purchases of property and equipment and capitalized software development costs. We believe free cash flow is an important liquidity measure of the cash that is available (if any), after purchases of property and equipment and capitalized software development costs, for investment in our business and to make acquisitions. We believe that free cash flow is useful as a liquidity measure because it measures our ability to generate cash. We define unlevered free cash flow as free cash flow plus cash paid for interest and other financing costs. We believe unlevered free cash flow is useful as a liquidity measure as it measures the cash that is available to invest in our business and meet our current debt obligations and future financing needs. However, given our debt obligations, non-cancelable commitments and other contractual obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses.

Non-GAAP Income from Operations and Non-GAAP Operating Margin: We define these non-GAAP financial measures as their respective GAAP measures, excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses, costs related to the intra-entity asset transfers resulting from the internal restructuring of legal entities, and amortization of acquired intangible assets. Acquisition-related expenses include transaction and integration expenses, as well as costs related to the intercompany transfer of acquired intellectual property. Restructuring expenses include non-ordinary course severance, employee related benefits, and other charges to reorganize business operations. We believe that the exclusion of these expenses provides for a useful comparison of our operating results to prior periods and to our peer companies, which commonly exclude restructuring expenses.

Non-GAAP Net Income and Non-GAAP Earnings Per Share: We define non-GAAP net income as GAAP net income (loss), excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses and amortization of acquired intangible assets, including the applicable tax impacts. In addition, we exclude the tax impact and related costs of intra-entity asset transfers resulting from the internal restructuring of legal entities as well as deferred income tax benefits recognized in connection with acquisitions. We use non-GAAP net income to calculate non-GAAP earnings per share.

Non-GAAP Gross Profit and Non-GAAP Gross Margin: We define non-GAAP gross profit as GAAP gross profit, excluding the effect of stock-based compensation and amortization of acquired intangible assets. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of revenue.

Non-GAAP Sales and Marketing Expense, Non-GAAP Research and Development Expense and Non-GAAP General and Administrative Expense: We define these non-GAAP measures as their respective GAAP measures, excluding stock-based compensation, acquisition-related expenses and costs related to intra-entity asset transfers resulting from the internal restructuring of legal entities.

⁽¹⁾ Includes stock-based compensation as follows:

⁽²⁾ Stock-based compensation in the nine months ended September 30, 2025 includes $14.6 million of expense related to the accelerated vesting of equity awards in Q1 for our late CEO.

⁽¹⁾ Recurring revenue, which includes revenue from subscription arrangements for software (both recognized ratably over the subscription term and upon delivery) and cloud-based solutions and maintenance associated with perpetual licenses, represented 95% and 96%, respectively of revenue in the three and nine months ended September 30, 2025 and 96% in the three and nine months ended September 30, 2024.

⁽¹⁾ Deferred revenue (current), beginning of period for the nine months ended September 30, 2025 and 2024 includes, $6.7 million and $0.1 million, respectively, related to acquired deferred revenue.

Free cash flow and unlevered free cash flow for the periods presented were impacted by:

⁽¹⁾ The tax impact of stock-based compensation is based on the tax treatment for the applicable tax jurisdictions.
⁽²⁾ The tax impact of acquisition-related expenses, restructuring and the amortization of acquired intangible assets are not material.
⁽³⁾ An adjustment to reconcile GAAP net earnings (loss) per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.

The following adjustments to reconcile forecasted non-GAAP income from operations, non-GAAP net income, non-GAAP earnings per share, free cash flow and unlevered free cash flow are subject to a number of uncertainties and assumptions, each of which are inherently difficult to forecast. As a result, actual adjustments and GAAP results may differ materially.

⁽¹⁾ The forecasted GAAP net loss assumes income tax expense of $5.6 million and $14.0 million in the three months and year ending December 31, 2025, respectively.

⁽²⁾ Adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.