Tenable Holdings (TENB) AI Stock Analysis

• Market Cap: $4.09B
• Dividend Yield: N/A
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: 11.79%
• EPS Growth: 35.35%
• Country: US
• Employees: 1,872
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 0.36
• Shares Outstanding: 122,170,670
• 10 Day Avg. Volume: 1,245,505
• 30 Day Avg. Volume: 1,687,220
• PEG Ratio: 3.81
• Price to Book (P/B): 10.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.83
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 9.94
• Enterprise Value/Gross Profit: 117.19
• Enterprise Value/Ebitda: -47.43
• 1Y Price Target: $37.18
• Price Target Upside: 12.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 67 Neutral
• Price Target: $36.00 ▲(8.86%Upside)

Tenable Holdings receives a moderate score of 67, reflecting strong financial growth and positive earnings call outcomes. However, persistent profitability challenges and a cautious macroeconomic outlook, particularly affecting the valuation, weigh on the overall score. The company's strategic focus on cloud security and AI positions it well for future growth, but significant liabilities and market uncertainties remain concerns.

Positive Factors

Large-Deal Activity

Large-deal activity remained strong, with a record number of seven-figure deals and several eight-figure deals driven by the adoption of Tenable One.

Product Momentum

The setup for the second half of the year looks increasingly constructive with easing comps and strong momentum in Tenable One, Apex/Vulcan, and AI Aware.

Negative Factors

Federal Spending Uncertainty

There is significant uncertainty related to U.S. Federal spending, which could affect the ability to raise CCB guidance for FY25 back to the original range.

Impact on Sales Cycles

DOGE related personnel cuts have elongated lead times for procurement decisions in the US federal sector, impacting 15% of revenue.

Tariff Uncertainties

Ongoing tariff uncertainties could cloud the growth trajectory as 36% of revenue comes from outside the US.

Tenable Holdings Business Overview & Revenue Model

Company Description

Tenable Holdings, Inc. is a cybersecurity company that operates in the software and technology sector. The company is known for its innovative solutions in cyber exposure, providing organizations with a comprehensive view of their attack surface. Tenable's core products include Tenable.io, a cloud-based platform for vulnerability management, and Nessus, a widely used vulnerability assessment solution. These tools help businesses identify and mitigate cybersecurity risks, ensuring the security of their digital assets and data.

How the Company Makes Money

Tenable Holdings primarily makes money through the sale of its cybersecurity software and services. The company's revenue model is centered around subscription-based licensing, which provides customers with access to its platforms, such as Tenable.io and Nessus, on a recurring basis. This model ensures a steady stream of revenue as clients renew their subscriptions to maintain cybersecurity defenses. Additionally, Tenable offers professional services, such as consulting and training, which further contribute to its earnings. Key revenue streams include direct sales to organizations and partnerships with resellers and managed security service providers (MSSPs), which help expand the company's market reach. Significant factors contributing to Tenable's earnings include the growing demand for cybersecurity solutions due to increasing cyber threats and regulatory compliance requirements.

Tenable Holdings Financial Statement Overview

Summary

Tenable Holdings shows impressive revenue and cash flow growth, underpinned by strong gross margins, which bode well for future profitability. However, persistent net losses and negative EBIT margins highlight profitability challenges. Improved leverage and equity position indicate financial stability, but significant liabilities pose a risk if revenue growth slows.

Income Statement

Tenable Holdings has demonstrated consistent revenue growth, with a notable increase from $440 million in 2020 to $923 million in TTM 2025. The gross profit margin remains strong, consistently above 75%, indicating efficient production processes. However, the company is struggling with profitability, as indicated by persistent net losses and negative EBIT margins, posing a challenge to achieving sustainable profitability.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, which has improved over time, indicating better financial leverage management. Stockholders' equity has been growing, and the equity ratio has increased, reflecting strengthening financial stability. However, the company carries significant liabilities, which could pose a risk if revenue growth slows.

Cash Flow

Cash flow statements show robust free cash flow generation, with a significant increase in operating cash flow over the years. The company maintains a strong operating cash flow to net income ratio, suggesting efficient cash conversion despite net losses. However, fluctuations in capital expenditures indicate potential variability in investment strategies.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	900.02M	798.71M	683.19M	541.13M	440.22M
Gross Profit	700.35M	615.13M	528.40M	434.73M	362.67M
EBITDA	46.24M	-8.95M	-44.09M	-27.56M	-25.95M
Net Income	-36.30M	-78.28M	-92.22M	-46.68M	-42.73M
Balance Sheet
Total Assets	1.74B	1.61B	1.44B	1.25B	690.59M
Cash, Cash Equivalents and Short-Term Investments	577.19M	473.97M	567.43M	512.29M	291.85M
Total Debt	419.73M	413.31M	420.40M	422.09M	58.34M
Total Liabilities	1.34B	1.26B	1.17B	1.03B	539.92M
Stockholders Equity	399.95M	346.34M	270.87M	215.31M	150.66M
Cash Flow
Free Cash Flow	213.23M	141.10M	112.00M	90.20M	43.95M
Operating Cash Flow	217.48M	149.85M	131.15M	96.77M	64.23M
Investing Cash Flow	-41.43M	-212.62M	-128.04M	-391.59M	4.08M
Financing Cash Flow	-79.40M	1.25M	23.32M	397.65M	36.40M

Tenable Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.07
• 50DMA: Positive
• 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 33.07 is below the 20-day moving average (MA) of 33.54, above the 50-day MA of 32.94, and below the 200-day MA of 37.32, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 48.32 is Neutral, neither overbought nor oversold. The STOCH value of 42.42 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
QLYS	75 Outperform	$5.10B	28.68	40.23%	―	9.58%	12.41%
VRNT	74 Outperform	$1.34B	28.63	5.32%	―	-2.09%	76.96%
TENB	67 Neutral	$4.09B	―	-12.09%	―	11.79%	35.35%
VRNS	64 Neutral	$5.80B	―	-22.21%	―	13.34%	13.71%
S	64 Neutral	$6.48B	―	-26.98%	―	32.25%	20.56%
Sector *	63 Neutral	$34.70B	4.89	-11.39%	1.66%	5.53%	-19.00%
RPD	58 Neutral	$1.47B	57.26	164.75%	―	6.19%	―

Tenable Holdings Corporate Events

Tenable Holdings Expands Board with New Appointments

On May 14, 2025, Tenable Holdings, Inc. expanded its Board of Directors to ten members, appointing Stephen A. Vintz and Mark Thurmond as Class I directors, with terms expiring at the 2028 Annual Meeting of Stockholders. Additionally, during the 2025 annual meeting of stockholders, all nominees for director positions were elected, Ernst & Young LLP was ratified as the independent registered public accounting firm for 2025, and the compensation of the company’s named executive officers was approved.

The most recent analyst rating on (TENB) stock is a Hold with a $49.00 price target. To see the full list of analyst forecasts on Tenable Holdings stock, see the TENB Stock Forecast page.