Tenable Holdings (TENB) AI Stock Analysis

• Market Cap: $3.62B
• Dividend Yield: N/A
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: 11.41%
• EPS Growth: 33.76%
• Country: US
• Employees: 1,872
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.34
• Shares Outstanding: 121,094,955
• 10 Day Avg. Volume: 1,353,729
• 30 Day Avg. Volume: 1,394,861
• PEG Ratio: 2.37
• Price to Book (P/B): 11.70
• Price to Sales (P/S): 5.20
• P/FCF Ratio: 21.94
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 4.34
• Enterprise Value/Gross Profit: 5.56
• Enterprise Value/Ebitda: 96.31
• 1Y Price Target: $40.53
• Price Target Upside: 37.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 63 Neutral
• Price Target: $32.00 ▲(8.22% Upside)

Tenable Holdings' strong revenue growth and positive earnings call sentiment are significant strengths, supported by the successful adoption of the Tenable One platform. However, the company's ongoing profitability challenges and weak technical indicators weigh on the overall score. The negative P/E ratio and absence of a dividend yield further impact the valuation.

Positive Factors

Revenue Growth

The consistent revenue growth and strong operating margin indicate robust demand for Tenable's solutions, supporting long-term business expansion and market presence.

Platform Success

The success of Tenable One underscores the company's competitive edge in vulnerability management, driving sustained revenue and customer loyalty.

Cash Flow Management

Efficient cash flow management enhances Tenable's financial flexibility, enabling strategic investments and resilience against market fluctuations.

Negative Factors

Profitability Challenges

Persistent profitability issues may hinder Tenable's ability to reinvest in growth and compete effectively, impacting long-term sustainability.

Federal Market Uncertainty

Uncertainty in the federal market could slow revenue growth and affect Tenable's ability to capitalize on public sector opportunities.

Moderated Expansion Rate

A moderated expansion rate suggests potential challenges in upselling and cross-selling, which could limit future revenue growth.

Tenable Holdings Business Overview & Revenue Model

Company Description

Tenable Holdings, Inc. is a cybersecurity company that specializes in providing solutions for vulnerability management and cyber exposure. Founded in 2002 and headquartered in Columbia, Maryland, Tenable offers a range of products designed to help organizations identify, assess, and manage their cybersecurity risks across various environments, including on-premises, cloud, and operational technology. Its flagship products include Tenable.io, Tenable.sc, and Tenable Lumin, which provide comprehensive visibility and insights into vulnerabilities and potential threats.

How the Company Makes Money

Tenable generates revenue primarily through subscription-based software services, which allow customers to access its cybersecurity solutions on a recurring basis. The company's revenue model includes a mix of annual and multi-year contracts, which provide predictable revenue streams. Key revenue sources include licensing fees for its vulnerability management solutions, professional services, and training. Additionally, Tenable benefits from partnerships with other technology providers and systems integrators, which enhance its product offerings and expand its market reach. The growing demand for robust cybersecurity solutions in response to increasing cyber threats further contributes to Tenable's earnings potential.

Tenable Holdings Financial Statement Overview

Summary

Tenable Holdings demonstrates solid revenue growth and cash flow management, which are positive indicators of operational efficiency. However, the company faces challenges in achieving profitability, as evidenced by negative net profit margins and return on equity. While leverage has improved, the focus should be on enhancing profitability to ensure sustainable growth.

Income Statement

Tenable Holdings shows a consistent revenue growth trend, with a TTM revenue growth rate of 2.82%. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin remains strong at 78%, suggesting efficient cost management at the gross level, but the transition to profitability remains a challenge.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.17 in the TTM, indicating better leverage management compared to previous years. However, the return on equity remains negative, reflecting ongoing losses. The equity ratio is stable, suggesting a balanced asset structure, but the negative ROE highlights the need for improved profitability.

Cash Flow

Tenable Holdings has shown a positive free cash flow growth rate of 3.92% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting that the company is generating cash efficiently despite net losses. The free cash flow to net income ratio is also strong, reflecting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	949.25M	900.02M	798.71M	683.19M	541.13M	440.22M
Gross Profit	740.42M	700.35M	615.13M	528.40M	434.73M	362.67M
EBITDA	42.77M	46.24M	-8.95M	-44.09M	-27.56M	-25.95M
Net Income	-44.98M	-36.30M	-78.28M	-92.22M	-46.68M	-42.73M
Balance Sheet
Total Assets	1.66B	1.74B	1.61B	1.44B	1.25B	690.59M
Cash, Cash Equivalents and Short-Term Investments	386.51M	577.19M	473.97M	567.43M	512.29M	291.85M
Total Debt	416.64M	422.31M	413.31M	420.40M	422.09M	58.34M
Total Liabilities	1.31B	1.34B	1.26B	1.17B	1.03B	539.92M
Stockholders Equity	350.70M	399.95M	346.34M	270.87M	215.31M	150.66M
Cash Flow
Free Cash Flow	250.48M	213.23M	141.10M	112.00M	90.20M	43.95M
Operating Cash Flow	265.60M	217.48M	149.85M	131.15M	96.77M	64.23M
Investing Cash Flow	-165.71M	-41.43M	-212.62M	-128.04M	-391.59M	4.08M
Financing Cash Flow	-157.85M	-79.40M	1.25M	23.32M	397.65M	36.40M

Tenable Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TENB, the sentiment is Negative. The current price of 29.57 is below the 20-day moving average (MA) of 30.26, below the 50-day MA of 30.71, and below the 200-day MA of 34.81, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 43.79 is Neutral, neither overbought nor oversold. The STOCH value of 24.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TENB.

Tenable Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPAY	77 Outperform	20.92B	19.85	26.72%	―	9.22%	6.60%
ATEN	76 Outperform	1.32B	26.65	25.01%	1.32%	11.04%	18.70%
QLYS	74 Outperform	4.91B	26.97	36.41%	―	9.69%	9.50%
VRNS	72 Outperform	6.51B	-63.97	-30.14%	―	14.29%	-14.42%
TENB	63 Neutral	$3.62B	―	-12.60%	―	11.41%	33.76%
RPD	52 Neutral	1.26B	46.30	28.21%	―	4.67%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Tenable Holdings Corporate Events

Tenable Holdings Appoints New Chief Financial Officer

On August 19, 2025, Tenable Holdings appointed Matthew Brown as Chief Financial Officer, effective August 21, 2025. Brown, who has extensive experience in the technology sector, succeeds Stephen Vintz, now Co-CEO of Tenable. Brown’s appointment is expected to enhance Tenable’s strategic growth and operational efficiency, aligning with its long-term vision to lead in exposure management.

Tenable Holdings Increases Share Repurchase Program by $250M

On July 28, 2025, Tenable Holdings‘ Board of Directors approved a $250 million increase to its share repurchase program. The company reported strong financial results for the second quarter of 2025, with a 12% increase in revenue year-over-year and a 19% non-GAAP operating margin. The growth was driven by the adoption of Tenable’s exposure management platform, which has positioned the company as a leader in helping organizations manage complex security challenges. Additionally, Tenable completed the acquisition of Apex Security, enhancing its platform’s capabilities, and launched new features to provide a comprehensive view of organizational risk.