Core Insights - The 2026 Cloud and AI Security Risk Report by Tenable reveals a significant AI exposure gap, with organizations inheriting cyber risks faster than they can manage them [1][2] Group 1: Key Findings - 86% of organizations have installed third-party code packages with critical-severity vulnerabilities, making the software supply chain a major source of cloud exposure [7] - 65% of organizations possess "ghost" secrets, which are unused or unrotated cloud credentials, with 17% of these linked to critical administrative privileges [7] - 70% of organizations have integrated at least one AI or Model Context Protocol (MCP) third-party package, often without central security oversight [7] Group 2: Security Risks - Non-human identities, such as AI agents and service accounts, represent a higher risk (52%) compared to human users (37%), leading to dangerous combinations of permissions [7] - Organizations face severe risks in four key areas: AI security posture, supply chain attack vectors, least privilege implementation, and cloud workload exposure [2][4] - The lack of visibility and governance in AI systems embedded in infrastructure poses critical risks that need to be addressed [4] Group 3: Recommendations - Organizations should secure the AI integration process through comprehensive visibility and identity-centric controls, including enforcing least privilege for AI roles [4] - Steps to reduce extended supply chain exposure include unifying visibility across code packages, virtual machines, identity access, and cloud environments [4] - The report provides actionable guidance for security and business leaders to mitigate risks in cloud and AI environments [2]

Core Insights - Tenable Holdings, Inc. has been recognized as a leader in AI-powered exposure assessment by Gartner in its 2025 AI Vendor Race, highlighting its strong position in the cybersecurity market [1][2]. Company Overview - Tenable is identified as an exposure management company that focuses on closing cybersecurity gaps that can undermine business value, reputation, and trust [6]. - The company serves over 40,000 customers globally, providing a platform that unifies security visibility, insight, and action across various attack surfaces [6]. AI and Exposure Management - Tenable's recognition is attributed to its effective use of AI in enhancing vulnerability assessment, asset discovery, and attack surface analysis [2]. - The company employs AI to aggregate and normalize data related to assets, exposures, and threats, which aids in proactive defense strategies [2][3]. - Tenable One, the company's exposure management platform, integrates discovery, protection, and governance for AI across enterprises, including SaaS platforms and cloud services [3]. Strategic Positioning - Gartner notes that Tenable is positioning its platform as a comprehensive source for all exposure data, which will improve risk assessment and remediation workflows [3]. - The company emphasizes the importance of mastering both defensive AI capabilities and securing AI from threats, positioning itself as a leader in both areas [3].

Core Insights - Tenable is a cybersecurity company focused on exposure management, providing tools to help enterprises patch vulnerabilities before exploitation [1] - With a market capitalization of $2.5 billion, Tenable is significantly smaller than competitors like CrowdStrike and Palo Alto Networks, which are valued around $100 billion [2] - Analysts are optimistic about Tenable, with a consensus rating of "buy" and a price target indicating potential upside [3] Company Overview - Tenable owns Nessus, a widely adopted vulnerability management solution that scans for vulnerabilities in operating systems, networks, and devices [4] - In 2022, Tenable launched Tenable One, a comprehensive exposure management solution that integrates AI to enhance vulnerability identification [5] Financial Performance - In Q4 2025, Tenable One contributed to 46% of new business, indicating strong demand for AI-powered cybersecurity solutions [6] - Tenable achieved a record revenue of $999.4 million in 2025, an 11% increase from the previous year, surpassing management's guidance [7]

Core Insights - Tenable Holdings, Inc. (NASDAQ:TENB) is recognized as a high-growth cybersecurity stock, with Cantor Fitzgerald reaffirming its Overweight rating and maintaining a $30 price target after the company reported strong fourth-quarter 2025 results [1][2]. Financial Performance - In the fourth quarter, Tenable's revenue increased by 11% year-over-year to $260.5 million, while full-year revenue also rose by 11% to $999.4 million [2]. - Current billings for the fourth quarter grew by 8% to $327.8 million, with full-year billings reaching $1.049 billion [3]. - Diluted earnings per share for the fourth quarter improved to $0.48 from $0.41 a year ago, and for the full year, it totaled $1.59 compared to $1.29 in 2024 [3]. Customer Growth and Future Outlook - The company added 502 new enterprise platform customers and 5 net new six-figure customers during the quarter [4]. - For Q1 2026, Tenable expects revenue between $257 million and $260 million, with diluted earnings per share projected to be between $0.39 and $0.42. For the full year, revenue is anticipated to be between $1.065 billion and $1.075 billion, with diluted earnings per share expected to range from $1.81 to $1.90 [4]. Company Overview - Tenable Holdings, Inc. specializes in exposure management, assisting organizations in identifying, prioritizing, and remediating security vulnerabilities across their digital infrastructure. The company is well-known for its vulnerability assessment tool, Nessus [5].

Industry Overview - Cybersecurity is gaining significant attention as companies transition to cloud operations and the demand for cybersecurity solutions is driven by the AI revolution and sophisticated attacks [1][2] - Spending on cybersecurity is increasing due to new security challenges and the widespread adoption of cloud computing and remote work, bolstering investor sentiment in the sector [2] - The WSJ Pro Cyber Index, which tracks the performance of the 20 largest cybersecurity companies, rose by 27% in 2025, with a peak increase of 54%, outperforming the broader equity market [3] Future Outlook - Cyber demand is expected to remain strong in 2026, aligning with broader IT budgets as organizations consolidate vendors to enhance ROI, favoring larger platform vendors [4] - Analysts anticipate more AI-related acquisitions in 2026 as companies invest in generative AI tools to improve threat detection and response times [4][5] Company Highlights Tenable Holdings, Inc. (NASDAQ:TENB) - Tenable reported a 5-year sales growth of 20.48% and has 32 hedge fund holders [9] - In Q4 2025, revenue increased by 11% year-over-year to $260.5 million, with full-year revenue also up 11% to $999.4 million [10] - The company added 502 new enterprise platform customers and announced a $150 million share repurchase program [12] Rapid7 Inc. (NASDAQ:RPD) - Rapid7 achieved a 5-year sales growth of 20.89% and has 34 hedge fund holders [14] - The company reported Q4 2025 earnings per share of $0.44, exceeding expectations, with revenue of $217.39 million [14] - For 2026, Rapid7 expects Q1 revenue of $207–209 million and full-year revenue of $835–843 million, with a focus on operational efficiency and platform consolidation [16]

Core Insights - Tenable Holdings, Inc. (NASDAQ:TENB) is recognized as one of the 14 oversold value stocks to consider for investment [1] - The company reported strong fourth-quarter and full-year results, highlighting the continued adoption of Tenable One and AI-driven security solutions [2] Financial Performance - In Q4, Tenable recorded a revenue growth of 11% year-over-year (YoY) to $260.50 million, with current billings increasing by 8% to $327.80 million [3] - The non-GAAP net income for Q4 rose 13% YoY to $57.30 million, although the company reported a GAAP net loss of $0.70 million [3] - For the full year 2025, Tenable achieved revenue of $999.4 million, also up 11% YoY, with non-GAAP net income at $194.40 million and unlevered free cash flow growing to $277.00 million [4] Shareholder Returns and Guidance - During Q4, Tenable added 502 enterprise customers and expanded its share repurchase program by $150 million [3] - For 2026, the company expects revenue to be between $1.065 billion and $1.075 billion, with non-GAAP EPS projected in the range of $1.81 to $1.90 [5] - Management's optimism is based on strong platform adoption, AI integration, and operational efficiency [5] Business Focus - Tenable specializes in developing cybersecurity solutions, with a portfolio that includes tenable.io, tenable.sc, and Nessus Professional, serving various sectors such as finance, healthcare, energy, cloud, and retail [5]

Core Thesis - Tenable Holdings, Inc. (TENB) is positioned as a leader in proactive cybersecurity, focusing on comprehensive exposure management rather than reactive breach detection [3][4] Company Overview - TENB's share price was $22.47 as of January 28th, with a forward P/E ratio of 13.00 [1] - The company serves 44,000 customers, including approximately 65% of the Fortune 500, with no single customer contributing more than 2% of revenue [4] Product and Market Position - The flagship platform, Tenable One, consolidates various security tools, providing a unified view of the digital attack surface across on-premises IT, cloud applications, operational technology, and remote devices [3][4] - This holistic approach enables companies to prioritize and address critical risks proactively, reflecting a shift in the cybersecurity industry where less than 5% of global spending is currently allocated to preemptive measures [4] Financial Performance - TENB is profitable on a GAAP basis and generates positive free cash flow while investing heavily in R&D to enhance Tenable One's capabilities in AI, cloud, and exposure management technologies [5] - The company has engaged in strategic acquisitions to bolster platform functionality and market position, including Bit Discovery, Ermetic, Eureka Security, Vulcan Cyber, and Apex Security [5] Strategic Initiatives - TENB has returned capital to shareholders through significant buybacks and has aligned management incentives with performance-linked equity [5] - Rumors of a potential sale have emerged, supported by increased professional fees and management's preparation for strategic options [6] Investment Catalysts - TENB's strong market position, deep ties to U.S. federal and public sector clients, and disciplined capital allocation present multiple catalysts for investment, including organic growth, strategic M&A, and potential acquisition upside [6]

Market Overview - The stock market in 2026 has been challenging for investors, particularly in the software sector, due to fears surrounding AI potentially disrupting recurring business models [1] Analyst Background - Gary Alexander has extensive experience in technology companies, having worked on Wall Street and in Silicon Valley, and has advised several seed-round startups [1] Contribution and Influence - Alexander has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications, with his articles also appearing on popular trading apps like Robinhood [1]

Core Insights - The company reported strong demand driven by AI-related security risks, with executives noting that AI is a common topic in customer discussions and highlighting the need for a platform approach to address security gaps [1][4][6] Financial Performance - In Q4, the company achieved revenue of $260.5 million, reflecting a 10.5% year-over-year increase, and an 11% revenue growth for the full year [3][4] - The operating margin for Q4 was reported at 24%, with a non-GAAP gross margin of 82.7%, up from 81.7% a year ago [5][12] - Non-GAAP EPS for Q4 was $0.48, an increase from $0.41, attributed to higher profitability and fewer diluted shares outstanding [13] Customer Growth and Platform Adoption - The company added over 500 new enterprise platform customers in the quarter, with Tenable One accounting for 46% of new business in Q4, marking a record high [2][6] - Management emphasized the importance of Tenable One in consolidating fragmented solutions and addressing customer needs for comprehensive risk management [11][19] Strategic Initiatives - The company is focusing on AI exposure management, having closed significant deals, including a seven-figure contract with a major telecom [6][18] - A departmental realignment was initiated to enhance innovation in Tenable One and AI security, resulting in restructuring expenses [17] Future Outlook - For 2026, the company guided revenue between $1.065 billion and $1.075 billion, marking the first time revenue is expected to surpass $1 billion [14] - The company also projected unlevered free cash flow of $285 million to $295 million for the full year 2026, despite anticipated headwinds from billing patterns [15][16]

Core Insights - Tenable reported revenue of $260.53 million for the quarter ended December 2025, marking a year-over-year increase of 10.5% and exceeding the Zacks Consensus Estimate by 3.51% [1] - The company's EPS for the same period was $0.48, up from $0.41 a year ago, representing a surprise of 15.3% over the consensus estimate of $0.42 [1] Financial Performance Metrics - Current Billings were reported at $327.79 million, surpassing the average estimate of $321.42 million from six analysts [4] - Subscription revenue reached $238.89 million, exceeding the average estimate of $232.86 million, with a year-over-year change of 10.6% [4] - Revenue from professional services and other was $11.04 million, significantly higher than the estimated $8.08 million, reflecting a year-over-year increase of 38.5% [4] - Revenue from perpetual license and maintenance was $10.61 million, slightly below the estimated $10.79 million, showing a year-over-year decline of 10.3% [4] Stock Performance - Tenable's shares have returned -13.9% over the past month, contrasting with the Zacks S&P 500 composite's increase of 0.9% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]