Tenable Holdings (TENB) AI Stock Analysis

• Market Cap: $3.46B
• Dividend Yield: N/A
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: 11.41%
• EPS Growth: 33.76%
• Country: US
• Employees: 1,872
• Sector: Technology
• Sector Strength: 96
• Industry: Software - Infrastructure
• EPS (TTM): 0.34
• Shares Outstanding: 121,094,955
• 10 Day Avg. Volume: 1,929,417
• 30 Day Avg. Volume: 1,429,834
• 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: 1.19
• Enterprise Value/Revenue: 4.34
• Enterprise Value/Gross Profit: 5.56
• Enterprise Value/Ebitda: 96.31
• 1Y Price Target: $39.65
• Price Target Upside: 33.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 60 Neutral
• Price Target: $32.00 ▲(8.04% Upside)

Tenable Holdings' overall stock score is driven by strong revenue growth and positive cash flow management, as highlighted in the earnings call. However, the company's ongoing challenges with profitability and bearish technical indicators weigh down the score. The negative P/E ratio and lack of dividend yield further reflect the need for improved profitability. Despite these challenges, the company's strategic focus on platform adoption and market expansion offers potential for future growth.

Positive Factors

Financial Performance

Tenable outperformed expectations and raised guidance for both CCB and Revenue.

New Acquisitions

Tenable One's competitive differentiation and the role of newly acquired Apex enhance TENB's AI capabilities.

Product Adoption

Tenable One continues to gain traction, driving larger deals in both enterprise and the U.S. Fed.

Negative Factors

Federal Market Challenges

The U.S. federal government environment remains challenging, though concerns persist over new business acquisition as government procurement practices undergo significant changes and remain under scrutiny.

Partnership Risks

TENB noted that their agreement with Ingram Micro allows Ingram Micro to terminate the agreement at their discretion upon 30 days' written notice.

Tenable Holdings Business Overview & Revenue Model

Company Description

Tenable Holdings, Inc. provides cyber exposure solutions for in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Its platforms include Tenable.io, a cloud-delivered software as a service that provides organizations with a risk-based view of traditional and modern attack surfaces; Tenable.cs, a cloud-native application platform that enables organizations to programmatically detect and fix cloud infrastructure misconfigurations; Tenable.io WAS, which provides scanning for modern web applications; and Tenable.ep, an unified platform that helps organizations identify, assess, and accurately prioritize cyber risks across the entire attack surface. The company also offers Tenable.ad, a solution to secure Active Directory environments; Tenable.ot, an on-premises solution that provides threat detection and mitigation, asset tracking, vulnerability management, and configuration control capabilities to protect OT environments, including industrial networks; Tenable.sc, an on-premises solution that provides a risk-based view of an organization's IT, security and compliance posture. In addition, it provides Nessus Professional, a vulnerability assessment solution for identifying security vulnerabilities, configuration issues, and malware; and Nessus Essentials, which includes vulnerability and configuration assessment for a limited number of assets. The company was founded in 2002 and is headquartered in Columbia, Maryland.

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 exhibits strong revenue and cash flow growth, supported by impressive gross margins. However, ongoing net losses and negative EBIT margins present challenges to profitability. The balance sheet shows improved leverage and equity position, though significant liabilities require careful management.

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	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: 29.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 29.62 is below the 20-day moving average (MA) of 31.67, below the 50-day MA of 32.50, and below the 200-day MA of 36.60, indicating a bearish trend. The MACD of -1.07 indicates Positive momentum. The RSI at 36.44 is Neutral, neither overbought nor oversold. The STOCH value of 6.22 is Positive, 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	$4.67B	25.79	39.53%	―	9.69%	9.50%
VRNS	72 Outperform	$6.09B	―	-25.73%	―	14.29%	-14.42%
VRNT	69 Neutral	$1.17B	25.12	5.32%	―	-2.09%	76.96%
S	64 Neutral	$5.26B	―	-26.98%	―	28.19%	-31.34%
Sector *	61 Neutral	$36.31B	7.01	-9.37%	2.01%	7.73%	-9.28%
RPD	61 Neutral	$1.30B	48.22	155.46%	―	4.67%	―
TENB	60 Neutral	$3.46B	―	-12.60%	―	11.41%	33.76%

Tenable Holdings Corporate Events

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.

The most recent analyst rating on (TENB) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on Tenable Holdings stock, see the TENB Stock Forecast page.

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.