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Tenable Holdings (TENB)
NASDAQ:TENB
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Tenable Holdings (TENB) AI Stock Analysis

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TENB

Tenable Holdings

(NASDAQ:TENB)

Rating:63Neutral
Price Target:
$32.00
▲(4.07% Upside)
Tenable Holdings' overall stock score is driven by strong earnings call results and positive corporate events, which are offset by challenges in profitability and a bearish technical outlook. The company's strategic initiatives and platform success provide a positive long-term outlook, but current valuation and technical indicators suggest caution.
Positive Factors
Earnings
Tenable delivered a solid performance with revenue growth and raised guidance, indicating strong demand and a robust pipeline.
Leadership Changes
Matthew Brown's appointment as CFO reflects Tenable's intent to align leadership with its broader transformation toward cloud-first exposure management.
Product Demand
Tenable One's increasing share of new deals and total sales highlights strong demand for its unified exposure visibility solutions.
Negative Factors
Channel Partner Dependency
TENB added a risk that their reliance on their channel partners also means that any significant interruption to their systems could harm TENB's business.
Competition
Risks include competition, commoditization of the legacy model, vendor consolidation, and integration challenges.
Government Contracts
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.

Tenable Holdings (TENB) vs. SPDR S&P 500 ETF (SPY)

Tenable Holdings Business Overview & Revenue Model

Company DescriptionTenable 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 MoneyTenable 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 Key Performance Indicators (KPIs)

Any
Any
Current Billings
Current Billings
Reflects the total value of invoices sent to customers during the period, providing insight into short-term revenue trends and sales momentum.
Chart InsightsTenable Holdings' current billings show a consistent upward trend, reflecting strong business momentum. The recent earnings call highlights a 12% year-over-year revenue growth, driven by the Tenable One platform's success, which now represents 40% of new sales. Despite challenges in the U.S. Federal market, the company's positive outlook is bolstered by increased RPO and an expanded share repurchase program, signaling confidence in future profitability. This strategic focus on platform adoption and market expansion could sustain the upward trajectory in billings.
Data provided by:Main Street Data

Tenable Holdings Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
Tenable's earnings call highlighted strong revenue growth and success with the Tenable One platform, supported by notable customer wins and industry recognition. However, challenges in the U.S. Federal market and a moderated net dollar expansion rate were noted. The overall sentiment is positive, with highlights significantly outweighing the lowlights.
Q2-2025 Updates
Positive Updates
Revenue Growth and Operating Margin
Tenable reported a 12% year-over-year growth in revenue and a 19% operating margin, beating all guided metrics for the quarter.
Tenable One Platform Success
Tenable One accounted for 40% of total new sales, with the platform seeing high selling prices, close rates, and renewal rates.
Public Sector Performance
The public sector, specifically the U.S. Federal market, showed improvement in visibility and contributed to the quarter's success.
AI and Apex Acquisition
The acquisition of Apex Security is expanding Tenable's AI capabilities, positioning the company to secure the AI attack surface.
Strong Customer Wins
Notable customer wins included large deals in the public sector and private sector, with organizations consolidating on Tenable One.
Industry Recognition
Tenable was named a leader in unified vulnerability management by Forrester and recognized in IDC's CNAPP MarketScape.
Share Repurchase Program
An additional $250 million increase to the share repurchase program was announced, demonstrating a commitment to returning capital to shareholders.
Negative Updates
Net Dollar Expansion Rate
The net dollar expansion rate moderated to 107%, attributed to a constrained spending environment in the U.S. Federal market.
Federal Market Uncertainty
Despite improvements, the U.S. Federal market remains a headwind with deals taking longer to transact due to scrutiny and review processes.
Modest Growth in Calculated Current Billings
Calculated current billings grew 8% year-over-year, reflecting a slower growth rate compared to other metrics.
Company Guidance
During Tenable's second quarter 2025 earnings call, the company reported strong performance, surpassing all guided metrics. They achieved a 12% year-over-year revenue growth and a 19% operating margin. The success was largely attributed to the growing adoption of their exposure management platform, Tenable One, which accounted for 40% of total new sales. The company also saw an addition of 76 net new six-figure customers and 367 new enterprise platform customers, with a net dollar expansion rate of 107%. Tenable's current deferred revenue was $625 million, providing significant visibility into future revenue. The company's guidance for the third quarter 2025 includes revenue between $246 million and $248 million and non-GAAP net income between $44 million and $46 million. For the full year 2025, Tenable expects revenue between $981 million and $987 million, calculated current billings between $1.038 billion and $1.048 billion, and non-GAAP diluted EPS between $1.45 and $1.53.

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
65
Positive
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
58
Neutral
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
72
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue949.25M900.02M798.71M683.19M541.13M440.22M
Gross Profit740.42M700.35M615.13M528.40M434.73M362.67M
EBITDA42.77M46.24M-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 Assets1.66B1.74B1.61B1.44B1.25B690.59M
Cash, Cash Equivalents and Short-Term Investments386.51M577.19M473.97M567.43M512.29M291.85M
Total Debt416.64M422.31M413.31M420.40M422.09M58.34M
Total Liabilities1.31B1.34B1.26B1.17B1.03B539.92M
Stockholders Equity350.70M399.95M346.34M270.87M215.31M150.66M
Cash Flow
Free Cash Flow250.48M213.23M141.10M112.00M90.20M43.95M
Operating Cash Flow265.60M217.48M149.85M131.15M96.77M64.23M
Investing Cash Flow-165.71M-41.43M-212.62M-128.04M-391.59M4.08M
Financing Cash Flow-157.85M-79.40M1.25M23.32M397.65M36.40M

Tenable Holdings Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price30.75
Price Trends
50DMA
31.87
Negative
100DMA
32.07
Negative
200DMA
35.81
Negative
Market Momentum
MACD
-0.25
Negative
RSI
49.81
Neutral
STOCH
60.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TENB, the sentiment is Neutral. The current price of 30.75 is above the 20-day moving average (MA) of 30.08, below the 50-day MA of 31.87, and below the 200-day MA of 35.81, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 49.81 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TENB.

Tenable Holdings Risk Analysis

Tenable Holdings disclosed 53 risk factors in its most recent earnings report. Tenable Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Tenable Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$4.83B27.0739.53%9.69%9.50%
72
Outperform
$1.23B26.214.72%-2.32%7.70%
72
Outperform
$6.61B-25.73%14.29%-14.42%
65
Neutral
$6.29B-27.34%25.39%-42.90%
63
Neutral
$3.74B-12.60%11.41%33.76%
61
Neutral
$35.09B8.26-10.58%1.90%8.56%-9.51%
52
Neutral
$1.34B48.29155.46%4.67%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TENB
Tenable Holdings
30.75
-9.14
-22.91%
VRNT
Verint Systems
20.41
-9.46
-31.67%
QLYS
Qualys
135.88
12.02
9.70%
VRNS
Varonis Systems
55.43
0.38
0.69%
RPD
Rapid7
20.42
-16.29
-44.37%
S
SentinelOne
18.02
-5.09
-22.03%

Tenable Holdings Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Tenable Holdings Appoints New Chief Financial Officer
Positive
Aug 21, 2025

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.

M&A TransactionsStock BuybackFinancial Disclosures
Tenable Holdings Increases Share Repurchase Program by $250M
Positive
Jul 30, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 21, 2025