Tenable Holdings, Inc.

What they do

Tenable sells subscription-based exposure management and vulnerability management software to enterprises, primarily through a two-tiered channel of distributors and resellers, with a field sales force developing opportunities. Offerings include Tenable One, Tenable Vulnerability Management, Tenable Cloud Security, Tenable Identity Exposure, Tenable OT Security and Tenable Security Center. Subscriptions are primarily one-year terms, increasingly longer but generally not beyond three years, typically invoiced in advance with multi-year deals increasingly billed annually. Recurring revenue was 95% of revenue in the quarter ended June 30, 2026.

Revenue drivers

• Tenable One exposure management platform — The flagship AI-powered platform combining vulnerability, cloud, identity, web app and AI-asset coverage into a single risk view; management credits it for Q2 2026 momentum and it anchors the enterprise platform customer count.
• Enterprise platform customers — Customers licensing Tenable One, Tenable Vulnerability Management, Tenable Cloud Security, Tenable Identity Exposure, Tenable OT Security or Tenable Security Center at $5,000+ annually; the company added 381 new enterprise platform customers and 32 net new six-figure customers in Q2 2026.
• Subscription and recurring revenue — Subscriptions for software (ratable and upon delivery), cloud-based solutions, and maintenance on perpetual licenses made up 95% of Q2 2026 revenue, versus 96% a year earlier.
• New AI-related offerings — Tenable Hexa AI orchestration and AI Exposure capabilities were cited by co-CEO Mark Thurmond as converting customer conversations into action alongside simplified pricing and packaging.

Recent performance

Q2 2026 revenue was $268.5 million, up 8.6% year-over-year from $247.3 million. GAAP income from operations was $12.4 million (4.6% margin) versus a $7.4 million loss a year earlier, and non-GAAP operating margin was 24.7%, up 540 basis points. GAAP net income was $3.8 million, or $0.03 diluted EPS, compared with a $14.7 million loss ($0.12 per share) in Q2 2025. Operating cash flow was $44.7 million and unlevered free cash flow $45.3 million; the company repurchased 5.2 million shares for $100.0 million.

Strategy

Tenable positions exposure management as an extension of vulnerability management and is pushing customers toward the consolidated Tenable One platform rather than point solutions. It has simplified pricing and packaging and is investing in AI-native capabilities, including Tenable Hexa AI orchestration with multi-step reasoning and automated remediation workflows. Partnership and program activity includes joining Anthropic's Project Glasswing and being selected for OpenAI's Trusted Access for Cyber and Daybreak Cyber Partner Programs. It also expanded public-sector reach with FedRAMP High and Impact Level 5 authorization for Tenable One Cloud Exposure and launched cloud detection and response capabilities.

Risks

• History of losses — Tenable has recorded annual net losses every year from 2021 through 2025, including $36.1 million in 2025, and says it may not achieve or maintain profitability.
• Intense competition — The company states it faces intense competition and must keep innovating to address the dynamic cybersecurity landscape or risk losing competitiveness.
• Growth rate sustainability — Management flags that it may not be able to sustain its revenue growth rate in the future; Q2 2026 revenue grew 8.6% year-over-year.
• Reliability and security of data and systems — If Tenable's systems, third-party systems or its solutions fail to detect vulnerabilities, detect them incorrectly, or contain defects, it cites risks including regulatory action, litigation, fines, lost customers and reputational harm.

Outlook

For Q3 2026, Tenable guides revenue of $270.0 million to $273.0 million, non-GAAP income from operations of $66.0 million to $69.0 million, and non-GAAP diluted EPS of $0.49 to $0.52. For full-year 2026, it expects revenue of $1.075 billion to $1.081 billion, non-GAAP operating income of $258.0 million to $264.0 million, non-GAAP EPS of $1.95 to $2.00, and unlevered free cash flow of $289.0 million to $295.0 million. The full-year guidance assumes interest expense of $25.6 million, interest income of $9.7 million and an income tax provision of $12.0 million.