Financial Performance - Revenue for Q2 2025 was $247.3 million, representing a 12% year-over-year increase[5] - Calculated current billings reached $238.6 million, an 8% year-over-year increase[5] - Non-GAAP income from operations was $47.7 million, compared to $42.8 million in Q2 2024[6] - Unlevered free cash flow was $44.3 million, up from $36.5 million in Q2 2024[6] - Revenue for Q2 2025 reached $247.3 million, a 11.8% increase from $221.2 million in Q2 2024[24] - Gross profit for the first half of 2025 was $379.5 million, up 11.8% from $339.5 million in the same period of 2024[24] - Total revenue for the six months ended June 30, 2025, was $486.432 million, compared to $437.202 million for the same period in 2024, reflecting an increase of 11.3%[30] - Non-GAAP net income for the six months ended June 30, 2025, was $85.687 million, compared to $68.602 million in 2024, an increase of 24.9%[33] Cash Flow and Expenses - Cash and cash equivalents decreased to $175.0 million as of June 30, 2025, down from $328.6 million at the end of 2024[27] - Operating expenses increased to $200.3 million in Q2 2025, compared to $181.3 million in Q2 2024, reflecting a 10.5% rise[24] - Net cash provided by operating activities for the first half of 2025 was $129.9 million, significantly higher than $81.8 million in the first half of 2024[29] - Free cash flow for Q2 2025 was $37.416 million, compared to $28.663 million in Q2 2024, marking a 30.5% increase[30] - Business combinations in the first half of 2025 resulted in cash outflows of $196.2 million, compared to $29.2 million in the same period of 2024[29] Customer Growth and Product Development - Tenable added 367 new enterprise platform customers and 76 net new six-figure customers[6] - The acquisition of Apex Security was completed, enhancing the exposure management platform[6] - Tenable launched new connectors and advanced risk dashboards to improve organizational risk visibility[6] Future Projections - For Q3 2025, revenue is expected to be in the range of $246.0 million to $248.0 million[10] - Non-GAAP diluted earnings per share for Q3 2025 are projected to be between $0.36 and $0.37[10] - Forecasted non-GAAP income from operations for Q3 2025 is expected to range from a loss of $3.1 million to a loss of $1.1 million[37] - Forecasted non-GAAP net income for the three months ending September 30, 2025, is projected to be between $44.0 million and $46.0 million[38] - Forecasted free cash flow for the year ending December 31, 2025, is estimated to be between $238.0 million and $248.0 million[38] - The forecasted GAAP net loss for the year ending December 31, 2025, is expected to be between $(55.4) million and $(45.4) million[38] Stock and Compensation - The company repurchased 2.0 million shares for $65.0 million during the quarter[6] - Stock-based compensation for the first half of 2025 was $102.4 million, an increase of 26.2% from $81.1 million in the same period of 2024[29] - The company anticipates total stock-based compensation for the year ending December 31, 2025, to be between $197.5 million[37] - Forecasted stock-based compensation for the year ending December 31, 2025, is estimated at $197.5 million[38] Balance Sheet - Total assets decreased to $1.66 billion as of June 30, 2025, compared to $1.74 billion at the end of 2024[27] - The company reported a decrease in deferred revenue to $624.5 million as of June 30, 2025, down from $650.4 million at the end of 2024[27] - Remaining performance obligations increased by 19% year-over-year, totaling $889.143 million as of June 30, 2025, up from $747.541 million in 2024[30]

Core Insights - Tenable Holdings, Inc. reported a revenue of $247.3 million for Q2 2025, reflecting a 12% year-over-year growth, driven by the adoption of its exposure management platform [5][6] - The company achieved a non-GAAP operating margin of 19% and a GAAP operating margin of (3%) for the same period [5][6] - Tenable's leadership in exposure management is highlighted by significant customer expansions and strong competitive wins [2] Financial Highlights - Revenue increased to $247.3 million, up 12% year-over-year [5][6] - Calculated current billings reached $238.6 million, an 8% increase year-over-year [5][6] - Net cash provided by operating activities was $42.5 million, compared to $31.4 million in Q2 2024 [5][6] - Unlevered free cash flow was $44.3 million, up from $36.5 million in the same quarter last year [5][6] Business Developments - The company repurchased 2.0 million shares for $65.0 million and announced a $250 million expansion of its stock repurchase program [5][6] - Tenable completed the acquisition of Apex Security, enhancing its exposure management platform [5][6] - The launch of Tenable One connectors and advanced risk dashboards aims to provide a comprehensive view of organizational risk [5][6] Market Position - Tenable was named a "Major Player" in IDC's inaugural MarketScape report for Cloud-Native Application Protection Platforms (CNAPP) [5][6] - The company published the 2025 Cloud Security Risk Report, offering insights into current security challenges faced by organizations [5][6] - Tenable received two AI-powered security awards from the 2025 Globee Awards and 2025 Cybersecurity Excellence Awards [5][6]

Core Insights - Tenable One has achieved over 300 validated integrations, positioning it as the most interconnected exposure management platform in the market, enhancing visibility and risk reduction for security teams [1][2][3] Group 1: Platform Features and Benefits - The platform addresses the fragmentation in cybersecurity tools, which averages 83 per enterprise, by providing a unified view of the attack surface, thus reducing blind spots for security teams [2][3] - Tenable One integrates data from various security tools, including EDR, CNAPP, and PAM, to deliver a contextualized risk view, enabling teams to visualize attack paths and focus on critical exposures [3][4] - The platform automates remediation workflows and enhances collaboration across teams, significantly decreasing the time required to investigate and resolve security exposures [4] Group 2: Customer Impact and Ecosystem - Two-thirds of Tenable One customers utilize its integrations, with reported benefits including up to 10x greater visibility and a 75% reduction in time spent on data aggregation, allowing teams to concentrate on proactive risk management [5] - Tenable is launching a universal integrations connector to facilitate the development of custom integrations, reinforcing its commitment to an open ecosystem and enabling organizations to tailor the platform to their needs [6] Group 3: Partnerships and Industry Collaboration - Partnerships with companies like Splunk and ServiceNow enhance the platform's capabilities, allowing for faster threat detection and response through deep integration of exposure data [7][8] - The collaboration with CyberArk focuses on securing privileged access, combining vulnerability insights with intelligent controls to mitigate risks effectively [8]

Core Insights - Tenable has been recognized as a 2025 Customers' Choice in the Gartner Peer Insights™ 'Voice of the Customer': Vulnerability Assessment, being the only vendor to achieve this recognition in the current report [1][2] Company Overview - Tenable is an exposure management company focused on identifying and closing cybersecurity gaps that can impact business value, reputation, and trust [5] - The company serves approximately 44,000 customers globally, providing an AI-powered exposure management platform that enhances security visibility and action across various environments [5] Product Recognition - The recognition as Customers' Choice reflects Tenable's strong performance in both Overall Experience and User Interest and Adoption, indicating high customer satisfaction with its products [2] - Gartner defines vulnerability assessment solutions as tools that identify, categorize, and prioritize vulnerabilities while orchestrating their remediation, focusing on enterprise risk identification and compliance reporting [2] Customer Feedback - Reviews highlight Tenable's platform as robust and user-friendly, providing comprehensive insights into security posture and enabling quick vulnerability management [2] - Customers have praised Tenable for outstanding customer service and the advanced capabilities of its products compared to competitors [2]

Core Insights - Tenable has announced enhancements to its Vulnerability Priority Rating (VPR) system, utilizing generative AI to improve precision in identifying risks that pose the greatest threat to organizations [1][2]. Group 1: Tenable VPR Enhancements - The updated Tenable VPR now identifies only 1.6% of vulnerabilities as critical, significantly narrowing down from the 60% flagged by the Common Vulnerability Scoring System (CVSS) [2]. - The AI-driven enhancements provide twice the clarity and precision, allowing organizations to focus on vulnerabilities that represent actual business risks [2]. - Enhanced explainability and contextualization lead to faster mean-time-to-remediation and optimized resource allocation [2]. Group 2: User Experience and Feedback - Users, such as Jorge Orchilles from Verizon, have reported that Tenable VPR has significantly reduced the noise from thousands of vulnerabilities, enabling a focus on genuine threats [3]. - The system allows organizations to visualize the importance of exposures, their vulnerabilities, and how to address priority risks effectively [3]. Group 3: Key Features of Tenable VPR - AI-powered insights provide instant clarity on why an exposure matters, how it has been weaponized, and actionable mitigation guidance [4]. - Enhanced filtering and querying capabilities allow organizations to prioritize vulnerabilities based on real-world threats specific to their industry and region [4]. Group 4: Company Overview - Tenable is recognized as an exposure management company that helps organizations close cybersecurity gaps, thereby protecting business value, reputation, and trust [6]. - The company serves approximately 44,000 customers globally, providing a unified platform for security visibility and action across various environments [6].

Group 1 - Tenable has been named a Leader in "The Forrester Wave™: Unified Vulnerability Management, Q3 2025," ranking highest in the Strategy category and receiving the highest scores (5.0) in seven criteria, including Vision and Roadmap [1][3] - Unified Vulnerability Management is defined as a solution that serves as the primary record for organizational vulnerabilities and enhances remediation workflows, with the report evaluating 10 vendors based on 19 criteria [2] - Tenable's ranking is based on its Strategy and Current Offering, the Tenable One Exposure Management Platform, which emphasizes proactive security strategies to address evolving attacker techniques over the next three to five years [3] Group 2 - The Forrester report highlights Tenable's strong roadmap for expanding remediation and response capabilities, focusing on remediation orchestration and a flexible asset-ratio-based pricing model [3][5] - Tenable's exposure management platform provides unmatched visibility across various environments, including IT, cloud, and operational technology, through both native discovery and third-party data ingestion [5] - The reporting capabilities of Tenable are noted for their presentation-ready format, including trending and benchmarking data, which enhances the overall user experience [5]

Group 1 - The S&P 500 continues to rise despite macroeconomic challenges such as tariffs, U.S. government debt concerns, and geopolitical tensions, indicating a strong market performance [1] - Large-cap companies are resuming high valuations, which raises caution among analysts regarding the sustainability of this market trend [1] - Analysts recommend investors to rotate their investments in light of the current market conditions [1] Group 2 - Gary Alexander has extensive experience in technology sectors, having worked on Wall Street and in Silicon Valley, which informs his insights into current industry trends [1] - He has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications, indicating his influence and recognition in the investment community [1]

Financial Performance - Q1 2025 revenue reached $239.1 million[12] - Q1 2025 unlevered free cash flow was $86.8 million[12] - Q1 2025 non-GAAP gross margin was 82%[12] - Q1 2025 recurring revenue was 96%[12] - The company forecasts revenue between $970 million and $980 million for the full year 2025[52] - The company forecasts unlevered free cash flow between $265 million and $275 million for the full year 2025[52] Market Position and Growth - The company is a category leader in Exposure Management[11] - The company has approximately 44,000 customers[12] - The company is ranked 1 in market share in Vulnerability Management[12, 23] - The total addressable market for cyber exposure is estimated at $33 billion with an 18% CAGR[29]

Core Insights - Tenable has been recognized as a Major Player in the inaugural IDC MarketScape: Worldwide Cloud-Native Application Protection Platform (CNAPP) 2025 Vendor Assessment, highlighting its strong position in the 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 [7]. - The company serves approximately 44,000 customers globally, providing a unified security visibility and action platform that spans various environments, including IT infrastructure and cloud [7]. Product Capabilities - Tenable Cloud Security offers a comprehensive CNAPP solution that integrates seamlessly with Tenable One, enabling organizations to secure their entire cloud stack without needing additional tools [3]. - The platform provides tailored visibility for specific cloud providers such as AWS, GCP, Azure, and Oracle Cloud, simplifying the interpretation of security findings for personnel [4]. - It emphasizes context-rich prioritization and identity-intelligent risk analysis, allowing for the identification of critical vulnerabilities and toxic access combinations that may be overlooked by other solutions [4]. Market Recognition - The IDC MarketScape assessment involved structured discussions, interviews with market leaders, and end-user experiences, validating Tenable's strategies and capabilities in the CNAPP space [2]. - Eric Doerr, the chief product officer of Tenable, stated that this recognition underscores the company's commitment to helping customers manage risk across their cloud environments and overall attack surface [5].

Core Insights - The 2025 Cloud Security Risk Report by Tenable highlights the urgent need for unified cloud exposure management due to widespread risks from insecure cloud configurations [1][2] Cloud Security Risks - 9% of publicly accessible cloud storage contains sensitive data, with 97% classified as restricted or confidential, increasing the risk of exploitation [1][2] - Exposed sensitive data, misconfigurations, and poorly stored secrets such as passwords and API keys significantly heighten cloud environment risks [2][5] Organizational Vulnerabilities - Over half of organizations (54%) store at least one secret directly in AWS Elastic Container Service (ECS) task definitions, creating direct attack paths [7] - Similar vulnerabilities are found in Google Cloud Platform (GCP) Cloud Run (52%) and Microsoft Azure Logic Apps workflows (31%) [7] - 3.5% of all AWS Elastic Compute Cloud (EC2) instances contain secrets in user data, posing major risks given EC2's widespread use [7] Toxic Cloud Combinations - The percentage of organizations with a "toxic cloud trilogy" (publicly exposed, critically vulnerable, and highly privileged workloads) has decreased from 38% to 29%, but this remains a significant risk [7] Identity Management Challenges - While 83% of AWS organizations follow best practices in using Identity Providers (IdPs) for cloud identity management, risks persist due to overly-permissive defaults and excessive entitlements [7]