Tenable Holdings (TENB) AI Stock Analysis

• Market Cap: $4.10B
• Dividend Yield: N/A
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: 11.79%
• EPS Growth: 35.35%
• Country: US
• Employees: 1,872
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): 0.36
• Shares Outstanding: 122,170,670
• 10 Day Avg. Volume: 2,268,869
• 30 Day Avg. Volume: 1,698,932
• PEG Ratio: 2.37
• Price to Book (P/B): 11.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.94
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 3.16
• Enterprise Value/Ebitda: 23.24
• 1Y Price Target: $36.82
• Price Target Upside: 9.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 70 Neutral
• Price Target: $37.00 ▲(9.99%Upside)

Tenable Holdings' stock score is primarily driven by strong financial performance in terms of revenue and cash flow growth, and positive technical indicators. The recent earnings call adds optimism with strategic advancements, though profitability challenges and macroeconomic uncertainties present risks. A negative P/E ratio also weighs on valuation attractiveness.

Positive Factors

Financial Performance

Revenue growth of 10.7% exceeded consensus and the company beat estimates on all profitability metrics.

Market Performance

Tenable delivered solid Q1 results in an otherwise mixed macro, topping all guided metrics.

Product Innovation

Tenable is positioning itself by moving from traditional vulnerability scanning to comprehensive risk visualization across identity, cloud, and AI.

Negative Factors

Government Spending

TENB added additional risk commentary around the Federal vertical, stating the Trump administration's commitment and actions to reduce government spending could lead to fewer contract opportunities, elongated sales cycles and procurement decisions, or reduced funding for existing initiatives.

Market Uncertainty

Tenable noted that they anticipate that these historical trends will be impacted by current macro conditions and U.S. policy decisions related to the funding of government agencies and the imposition of tariffs, which could elongate purchasing/approval phases of their sales cycle in 2025.

Stock Performance

The stock looks to open significantly lower due to 2025 CCB guidance being reduced by $12.5 million as a result of further uncertainty in the macro environment.

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 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 demonstrates strong revenue and cash flow growth with a robust gross profit margin. However, persistent net losses and negative EBIT margins indicate challenges in achieving sustainable profitability, despite improved leverage and equity positions.

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	923.20M	900.02M	798.71M	683.19M	541.13M	440.22M
Gross Profit	720.00M	700.35M	615.13M	528.40M	434.73M	362.67M
EBITDA	24.92M	46.24M	-8.95M	-44.09M	-27.56M	-25.95M
Net Income	-44.85M	-36.30M	-78.28M	-92.22M	-46.68M	-42.73M
Balance Sheet
Total Assets	558.61M	1.74B	1.61B	1.44B	1.25B	690.59M
Cash, Cash Equivalents and Short-Term Investments	212.27M	577.19M	473.97M	567.43M	512.29M	291.85M
Total Debt	45.87M	419.73M	413.31M	420.40M	422.09M	58.34M
Total Liabilities	459.71M	1.34B	1.26B	1.17B	1.03B	539.92M
Stockholders Equity	98.91M	399.95M	346.34M	270.87M	215.31M	150.66M
Cash Flow
Free Cash Flow	241.02M	213.23M	141.10M	112.00M	90.20M	43.95M
Operating Cash Flow	254.56M	217.48M	149.85M	131.15M	96.77M	64.23M
Investing Cash Flow	-161.97M	-41.43M	-212.62M	-128.04M	-391.59M	4.08M
Financing Cash Flow	-116.12M	-79.40M	1.25M	23.32M	397.65M	36.40M

Tenable Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.64
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TENB, the sentiment is Positive. The current price of 33.64 is above the 20-day moving average (MA) of 32.79, above the 50-day MA of 32.43, and below the 200-day MA of 37.81, indicating a neutral trend. The MACD of 0.30 indicates Negative momentum. The RSI at 57.84 is Neutral, neither overbought nor oversold. The STOCH value of 64.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TENB.

Tenable Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QLYS	78 Outperform	$5.25B	29.42	40.23%	―	9.58%	12.41%
VRNT	74 Outperform	$1.12B	27.60	5.32%	―	-2.09%	76.96%
TENB	70 Neutral	$4.10B	―	-12.09%	―	11.79%	35.35%
Sector *	65 Neutral	S$576.87M	14.08	-0.76%	6.50%	4.26%	-65.16%
VRNS	64 Neutral	$5.60B	―	-22.21%	―	13.34%	13.71%
S	64 Neutral	$6.04B	―	-26.98%	―	32.25%	20.56%
RPD	62 Neutral	$1.54B	60.12	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.

Tenable Holdings Appoints Vintz and Thurmond as Co-CEOs

On April 16, 2025, Tenable Holdings announced the permanent appointment of Stephen A. Vintz and Mark Thurmond as co-Chief Executive Officers. This decision follows their successful interim leadership, during which they expanded the company’s customer base and advanced its product offerings, including the strategic acquisition of Vulcan Cyber. The Board expressed confidence in their ability to drive innovation and long-term value, highlighting their collaborative leadership and industry expertise.