Tenable positioned highest in Ability to Execute and furthest right for Completeness of VisionCOLUMBIA, Md., Nov. 10, 2025 (GLOBE NEWSWIRE) -- Tenable®(NASDAQ: TENB), the exposure management company, today announced it has been named a Leader in the first-ever 2025 Gartner Magic Quadrant for Exposure Assessment Platforms. Tenable was positioned highest for Ability to Execute and furthest to the right for Completeness of Vision. Tenable was also positioned as a Leader in both the IDC MarketScape: Worldwide E ...

Tenable Holdings, Inc. (NASDAQ:TENB) has a negative Return on Invested Capital (ROIC) of -0.97%, indicating it is not generating sufficient returns to cover its Weighted Average Cost of Capital (WACC) of 7.12%.Comparatively, Qualys leads with a positive ROIC of 28% against a WACC of 6.32%, showcasing superior capital efficiency among its peers.Elastic N.V. and Smartsheet, similar to Tenable, display negative ROICs, suggesting challenges in generating returns above their cost of capital.Tenable Holdings, Inc ...

Key Points Tenable is a specialist in the exposure management segment of the cybersecurity industry The company offers a platform called Tenable One that aggregates many of its best products, including some powered by artificial intelligence. Tenable stock trades at a very steep discount to some of its peers in the cybersecurity industry, which could spell opportunity for investors. 10 stocks we like better than Tenable › Cyber attacks are constantly on the rise, and they are increasingly difficu ...

Revenue and Income - Revenue for the three months ended September 30, 2025, was $252,440,000, representing a 11.2% increase from $227,088,000 in the same period of 2024[88] - Net income for the three months ended September 30, 2025, was $2,260,000, compared to a net loss of $9,211,000 in the same period of 2024[88] - For the nine months ended September 30, 2025, total revenue was $738,872,000, an increase of 11% from $664,290,000 in 2024[144] - Subscription revenue increased by $23,657,000, or 11%, to $232,211,000, while professional services and other revenue rose by 35% to $9,141,000[134] Customer Metrics - Recurring revenue accounted for 95% of total revenue for the three months ended September 30, 2025, consistent with 96% in the same period of 2024[88] - The number of new enterprise platform customers added in the three months ended September 30, 2025, was 437, a 13% increase from 386 in the same period of 2024[98] - The number of customers with annual contract values of $100,000 or greater increased by 16% to 2,156 as of September 30, 2025, from 1,853 in 2024[98] - The dollar-based net expansion rate for the twelve months ended September 30, 2025, was 106%, slightly down from 108% in 2024[101] Operating Performance - Calculated current billings for the three months ended September 30, 2025, were $267,506,000, up from $248,441,000 in the same period of 2024, reflecting a growth of 7.4%[93] - Free cash flow for the three months ended September 30, 2025, was $51,630,000, compared to $52,711,000 in the same period of 2024[96] - The company reported a gross margin of 78% for both the three and nine months ended September 30, 2025[144] - Gross profit for the three months ended September 30, 2025, was $195,687,000, reflecting an 11% increase from $176,589,000 in 2024[135] Expenses - Total operating expenses for the three months ended September 30, 2025, were $188,551,000, up from $178,672,000 in 2024, marking a 5% increase[136] - Research and development expenses increased by 17% to $56,265,000 for the three months ended September 30, 2025, up from $48,020,000 in 2024[138] - Sales and marketing expenses for the three months ended September 30, 2025, were $99,949,000, a slight increase of 1% from $99,083,000 in 2024[136] - General and administrative expenses included $15.5 million in termination benefits related to the passing of the Chairman and CEO for the nine months ended September 30, 2025[128] Non-GAAP Metrics - For the three months ended September 30, 2025, the company reported a non-GAAP income from operations of $58.913 million, compared to $44.975 million for the same period in 2024, representing a 31% increase[106] - The non-GAAP operating margin improved to 23.3% in Q3 2025, up from 19.8% in Q3 2024[106] - Non-GAAP net income for the nine months ended September 30, 2025, was $137.125 million, compared to $107.925 million for the same period in 2024, reflecting a 27% increase[108] - The diluted non-GAAP earnings per share increased to $0.42 for Q3 2025, compared to $0.32 for Q3 2024, marking a 31% rise[108] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025, was $183,720,000, compared to $136,357,000 in the same period of 2024[96] - Cash and cash equivalents totaled $171.9 million, with short-term investments at $211.7 million as of September 30, 2025[154] - Deferred revenue reached $810.5 million, with $639.6 million expected to be recognized as revenue in the next 12 months[157] - The company acquired Vulcan and Apex for a combined $196.2 million in cash in 2025[158] Other Financial Metrics - The provision for income taxes for the three months ended September 30, 2025, was $550,000, a significant decrease of 90% from $5,328,000 in 2024[140] - Interest income decreased by $4.99 million (28%) to $12.6 million, while interest expense decreased by $2.97 million (12%) to $21.36 million[152] - Provision for income taxes decreased by $2.35 million (22%) to $8.39 million[153] - The Term Loan interest rates ranged from 7.18% to 7.22% from January to September 2025[162]

Core Insights - Tenable Holdings, Inc. specializes in vulnerability management within the cybersecurity sector, competing with companies like Rapid7, Varonis Systems, Qualys, Elastic N.V., and Smartsheet [1] Financial Performance - Tenable's Return on Invested Capital (ROIC) is -0.97%, which is below its Weighted Average Cost of Capital (WACC) of 7.20%, indicating insufficient returns to cover capital costs [2] - Rapid7 has a positive ROIC of 1.29% against a WACC of 5.90%, resulting in a ROIC to WACC ratio of 0.22, suggesting better capital efficiency than Tenable, though still not optimal [3] - Varonis Systems demonstrates a stronger performance with a ROIC of 9% and a WACC of 6.26%, leading to a ROIC to WACC ratio of 1.43, indicating superior returns on invested capital [3] - Qualys exhibits the highest ROIC of 27.75% and a WACC of 6.58%, resulting in a ROIC to WACC ratio of 4.21, showcasing the best capital utilization among its peers [4]

Market Overview - The stock market is currently perceived as incredibly expensive, particularly in light of weaker-than-expected earnings reports, especially among consumer-facing stocks [1] Analyst Background - Gary Alexander has extensive experience covering technology companies on Wall Street and working in Silicon Valley, providing insights into current industry themes [1]

For the quarter ended September 2025, Tenable (TENB) reported revenue of $252.44 million, up 11.2% over the same period last year. EPS came in at $0.42, compared to $0.32 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $247.52 million, representing a surprise of +1.99%. The company delivered an EPS surprise of +13.51%, with the consensus EPS estimate being $0.37.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...

Tenable (TENB) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +13.51%. A quarter ago, it was expected that this cybersecurity software company would post earnings of $0.3 per share when it actually produced earnings of $0.34, delivering a surprise of +13.33%.Over the last four quarte ...

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Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $252.4 million, representing an 11.2% year-over-year growth [20] - Non-GAAP gross margin was 81.6%, an increase from 81.4% in Q3 2024 [21] - Non-GAAP income from operations was $58.9 million, or 23.3% of revenue, compared to $45 million, or 19.8% of revenue in Q3 2024 [21] - Non-GAAP earnings per share for the quarter was $0.42, an increase of 31.3% from $0.32 in Q3 2024 [22] - Cash and short-term investments totaled $383.6 million, with unleveraged free cash flow of $58.5 million for the quarter [22][23] Business Line Data and Key Metrics Changes - Tenable One, the exposure management platform, represented approximately 40% of new business during the quarter [7] - 437 new enterprise platform customers were added, a 13% increase compared to Q3 2024 [7] - The percentage of recurring revenue remained high at 95% [20] Market Data and Key Metrics Changes - Tenable was recognized as a leader in exposure management by Forrester and IDC during Q3 [13] - The company reported a net dollar expansion rate of 106% [21] Company Strategy and Development Direction - The company is focusing on a shift from reactive to preemptive security, driven by advancements in AI [8][9] - Significant investments in R&D, up over 20% year-to-date, are aimed at enhancing Tenable One [10] - The company is building a comprehensive exposure management platform that integrates various security tools and data sources [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the pipeline and renewal business, indicating minimal exposure to potential government shutdown impacts [31][38] - The company raised its full-year guidance for calculated current billings and revenue, reflecting confidence in sustained growth [24][25] Other Important Information - The company repurchased 2 million shares for $60 million during the quarter, totaling 8.3 million shares repurchased for $300 million since November 2023 [23] - The company launched Tenable AI Exposure to help organizations manage risks associated with generative AI [10] Q&A Session Summary Question: Performance in U.S. Federal vertical - Management noted strong performance in the public sector and U.S. Federal, in line with expectations despite potential shutdowns [31] Question: Impact of CISA 2015 expiration on CVE reporting - Management does not anticipate significant negative impacts from the expiration based on current feedback [39] Question: Changes to guidance philosophy - Management indicated no substantial changes to guidance philosophy, emphasizing a high-functioning team [45] Question: Billings guidance and visibility - Management expressed increased positivity about the year due to strong Q3 performance and visibility into Q4 [47] Question: AI innovation roadmap - Management is considering both organic growth and M&A for AI innovations, focusing on proactive security [74] Question: Percentage of customers on Tenable One - Approximately 3,000 out of 18,000 enterprise customers are using Tenable One, with significant upsell opportunities [64] Question: Demand environment across markets - Demand was consistent across various sectors, with strong performance in new customer acquisitions [92] Question: Multi-cloud support and cloud security performance - Management noted active discussions regarding multi-cloud support and expressed optimism about cloud business growth [99]