Tenable Holdings Shines in Q3 2025 Earnings Call

Tenable Holdings ((TENB)) has held its Q3 earnings call. Read on for the main highlights of the call.

Tenable Holdings’ Q3 2025 earnings call was marked by a generally positive sentiment, driven by strong revenue growth, increased adoption of the Tenable One platform, and significant investments in research and development. The company also received industry recognition, which further bolstered its market position. While there were some concerns regarding the federal market and minimal inorganic contribution, the overall outlook remains optimistic due to the company’s strategic focus on exposure management.

Strong Revenue Growth

Tenable reported a revenue of $252.4 million for Q3 2025, marking an impressive 11.2% year-over-year growth. This figure not only highlights the company’s robust financial health but also exceeds the high end of their guided range, showcasing their ability to surpass expectations.

Growth in Tenable One Adoption

The Tenable One platform gained significant traction, representing approximately 40% of new business during the quarter. This growth underscores the platform’s effectiveness in exposure management and its increasing importance in Tenable’s business strategy.

Increase in Operating Margin

Tenable achieved a non-GAAP operating margin of 23.3% for the quarter, up from 19.8% in Q3 2024. This improvement reflects the company’s efficient operational strategies and its focus on balancing growth with profitability.

Positive Customer Additions

The company added 437 new enterprise platform customers, a 13% increase compared to Q3 2024. This growth in customer base highlights Tenable’s expanding market reach and the growing demand for its solutions.

Recognition and Leadership in Industry

Tenable was recognized as a leader in exposure management by Forrester Wave and IDC MarketScape during Q3. Such accolades reinforce Tenable’s standing as a key player in the cybersecurity industry and validate its strategic initiatives.

R&D Investments and Innovation

R&D investments increased by over 20% year-to-date, focusing on enhancing the Tenable One platform and AI exposure management. This commitment to innovation is pivotal for maintaining competitive advantage and addressing emerging security challenges.

Share Repurchases

Tenable repurchased 2 million shares for $60 million during the quarter, with $250 million of repurchase authorization remaining. This move reflects the company’s confidence in its financial stability and commitment to returning value to shareholders.

Federal Market Concerns

While the public sector performance was in line with expectations, concerns were raised about potential impacts from government shutdowns and budget constraints. These factors could pose challenges to Tenable’s growth in the federal market.

Inorganic Contribution to Billings

The inorganic contribution to billings was reported as very insignificant for both the quarter and the full year. This suggests that Tenable’s growth is primarily driven by organic factors, emphasizing the strength of its core business operations.

Forward-Looking Guidance

Looking ahead, Tenable raised its full-year guidance, expecting revenue growth of 10% and a non-GAAP operating income increase of 100 basis points year-over-year. The company emphasized its strategic shift towards preemptive security and continued investment in research and development, particularly in AI exposure management. These initiatives are expected to drive future growth and profitability.

In summary, Tenable Holdings’ Q3 2025 earnings call painted a positive picture of the company’s current performance and future prospects. With strong revenue growth, increased platform adoption, and strategic investments in innovation, Tenable is well-positioned to maintain its leadership in the cybersecurity industry. Despite some concerns in the federal market, the overall sentiment remains optimistic, underscoring the company’s commitment to balancing growth with profitability.