Tenable Announces First Quarter 2026 Financial Results

Tenable Exceeds Q1 Revenue and Profit Expectations, Raises Full-Year Outlook

• Revenue of $262.1 million, year-over-year growth of 9.6%

• GAAP operating margin of 3.3%; Non-GAAP operating margin of 23.6%, year-over-year increase of 320 basis points

• Net cash provided by operating activities of $88.0 million; Unlevered free cash flow of $88.6 million
  
  

COLUMBIA, Md., April 29, 2026 (GLOBE NEWSWIRE) -- Tenable Holdings, Inc. ("Tenable") (Nasdaq: TENB), the exposure management company, today announced financial results for the quarter ended March 31, 2026.

"We delivered better-than-expected results in Q1, driven by the strong adoption of Tenable One and the growing market realization that exposure management is essential in an AI-accelerated threat landscape," said Steve Vintz, Co-CEO of Tenable. "The introduction of Hexa AI further positions Tenable as a leader in helping organizations move from reactive response to coordinated machine-speed risk reduction."

"There is a heightened level of urgency across our customers who are looking to prepare for the significant increase of threats and vulnerabilities that AI models will introduce," said Mark Thurmond, Co-CEO of Tenable. "As the cybersecurity landscape shifts at an unprecedented pace, customers are reaching out to us to help them navigate this environment."

First Quarter 2026 Financial Highlights

• Revenue was $262.1 million, a 9.6% increase year-over-year

• GAAP income from operations was $8.8 million, compared to a loss of $17.7 million in the first quarter of 2025

• GAAP operating margin was 3.3%, compared to (7.4)% in the first quarter of 2025

• Non-GAAP income from operations was $61.9 million, compared to $48.7 million in the first quarter of 2025

• Non-GAAP operating margin was 23.6%, compared to 20.4% in the first quarter of 2025

• GAAP net income was $1.4 million, compared to a loss of $22.9 million in the first quarter of 2025

• GAAP net earnings per share was $0.01, compared to a net loss of $0.19 per share in the first quarter of 2025

• Non-GAAP net income was $55.6 million, compared to $44.3 million in the first quarter of 2025

• Non-GAAP diluted earnings per share was $0.47, compared to $0.36 in the first quarter of 2025

• Net cash provided by operating activities was $88.0 million, compared to $87.4 million in the first quarter of 2025

• Unlevered free cash flow was $88.6 million, compared to $86.8 million in the first quarter of 2025

• Repurchased 6.1 million shares of our common stock for $130.0 million
  
  

Recent Business Highlights

• Added 406 new enterprise platform customers and 43 net new six-figure customers

• Introduced Tenable Hexa AI, an agentic AI engine that automates security workflows and turns exposure intelligence into action at machine speed

• Recognized as the "Company to Beat" for AI-powered exposure assessment in a 2026 Gartner® report⁽¹⁾

• Named a Challenger in the 2026 Gartner® Magic Quadrant™ for CPS Protection Platforms, recognizing Tenable’s ability to secure cyber-physical systems across critical infrastructure and industrial operations⁽²⁾

• Announced our upcoming investor day on May 21, 2026, where we will discuss our exposure management leadership position, AI strategy, platform innovation roadmap, market opportunity and long-term financial targets

• Released new research identifying a growing “AI Exposure Gap” fueled by supply chain risks and a lack of identity controls
  
  

Financial Outlook

For the second quarter of 2026, we currently expect:

• Revenue in the range of $263.0 million to $266.0 million

• Non-GAAP income from operations in the range of $61.0 million to $64.0 million

• Non-GAAP net income in the range of $53.0 million to $56.0 million, assuming interest expense of $6.5 million, interest income of $2.3 million and a provision for income taxes of $3.5 million

• Non-GAAP diluted earnings per share in the range of $0.46 to $0.48

• 116.0 million diluted weighted average shares outstanding
  
  

For the year ending December 31, 2026, we currently expect:

• Revenue in the range of $1.068 billion to $1.078 billion

• Non-GAAP income from operations in the range of $252.0 million to $262.0 million

• Non-GAAP net income in the range of $222.0 million to $232.0 million, assuming interest expense of $25.8 million, interest income of $10.4 million and a provision for income taxes of $13.3 million

• Non-GAAP diluted earnings per share in the range of $1.90 to $1.98

• 117.0 million diluted weighted average shares outstanding

• Unlevered free cash flow in the range of $285.0 million to $295.0 million
  
  

Conference Call Information

Tenable will host a conference call on April 29, 2026 at 4:30 p.m. Eastern Time to discuss its financial results. The conference call can be accessed at 877-407-9716 (U.S.) and 201-493-6779 (international). A live webcast of the event will be available on the Tenable Investor Relations website at https://investors.tenable.com. An archived replay of the live broadcast will be available on the Investor Relations page of the website following the call.

About Tenable

Tenable^® is the exposure management company, exposing and closing the cybersecurity gaps that erode business value, reputation and trust. The company’s AI-powered exposure management platform radically unifies security visibility, insight and action across the attack surface, equipping modern organizations to protect against attacks from IT infrastructure to cloud environments to critical infrastructure and everywhere in between. By protecting enterprises from security exposure, Tenable reduces business risk for over 40,000 customers around the globe. Learn more at tenable.com.

Contact Information

Investor Relations
[email protected]

Media Relations
[email protected]

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, our platform's ability to help our customer base prepare for the significant increase of threats and vulnerabilities associated with the use of artificial intelligence technologies, our ability to accelerate global market opportunities for AI Exposure Management, our business strategy, market opportunity and plans and objectives for future operations, are forward-looking statements and represent our views as of the date of this press release. The words “anticipate,” "believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. These risks and uncertainties are detailed in the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2025 and other filings that we make from time to time with the SEC, which are available on the SEC's website at sec.gov. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements subsequent to the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance the overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and are helpful to investors in comparing our financial results over multiple periods with other companies in our industry.

Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.

Free Cash Flow and Unlevered Free Cash Flow: We define free cash flow, a non-GAAP financial measure, as net cash provided by operating activities less purchases of property and equipment and capitalized software development costs. We believe free cash flow is an important liquidity measure of the cash that is available (if any), after purchases of property and equipment and capitalized software development costs, for investment in our business and to make acquisitions. We believe that free cash flow is useful as a liquidity measure because it measures our ability to generate cash. We define unlevered free cash flow as free cash flow plus cash paid for interest and other financing costs. We believe unlevered free cash flow is useful as a liquidity measure as it measures the cash that is available to invest in our business and meet our current debt obligations and future financing needs. However, given our debt obligations, non-cancelable commitments and other contractual obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses.

Non-GAAP Income from Operations and Non-GAAP Operating Margin: We define these non-GAAP financial measures as their respective GAAP measures, excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses, costs related to the intra-entity asset transfers resulting from the internal restructuring of legal entities, and amortization of acquired intangible assets. Acquisition-related expenses include transaction and integration expenses, as well as costs related to the intercompany transfer of acquired intellectual property. Restructuring expenses include non-ordinary course severance, employee related benefits, and other charges to reorganize business operations. We believe that the exclusion of these expenses provides for a useful comparison of our operating results to prior periods and to our peer companies, which commonly exclude restructuring expenses.

Non-GAAP Net Income and Non-GAAP Earnings Per Share: We define non-GAAP net income as GAAP net income (loss), excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses and amortization of acquired intangible assets, including the applicable tax impacts. In addition, we exclude the tax impact and related costs of intra-entity asset transfers resulting from the internal restructuring of legal entities as well as deferred income tax benefits recognized in connection with acquisitions. We use non-GAAP net income to calculate non-GAAP earnings per share.

Non-GAAP Gross Profit and Non-GAAP Gross Margin: We define non-GAAP gross profit as GAAP gross profit, excluding the effect of stock-based compensation and amortization of acquired intangible assets. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of revenue.

Non-GAAP Sales and Marketing Expense, Non-GAAP Research and Development Expense and Non-GAAP General and Administrative Expense: We define these non-GAAP measures as their respective GAAP measures, excluding stock-based compensation, acquisition-related expenses and costs related to intra-entity asset transfers resulting from the internal restructuring of legal entities.

Reports Referenced

(1)    Source: Gartner, “AI Vendor Race: Tenable Is the Company to Beat for AI-Powered Exposure Assessment,” by Elizabeth Kim, Isy Bangurah, Mitchell Schneider, February 19, 2026

(2)    Gartner, “Magic Quadrant for CPS Protection Platforms,” by Katell Thielemann, Ruggero Contu, Wam Voster, Sumit Rajput, March 3, 2026

Gartner Disclaimer The Gartner content described herein, (the "Gartner Content") represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and are not representations of fact. Gartner Content speaks as of its original publication date (and not as of the date of this earnings press release) and the opinions expressed in the Gartner Content are subject to change without notice.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. And/or its affiliates and are used herein with permission. All rights reserved.

_______________
⁽¹⁾        Includes stock-based compensation as follows:

⁽²⁾        Stock-based compensation in the three months ended March 31, 2025 includes $14.6 million of expense related to the accelerated vesting of equity awards for our former Chairman and Chief Executive Officer.

_______________
⁽¹⁾        Recurring revenue, which includes revenue from subscription arrangements for software (both recognized ratably over the subscription term and upon delivery) and cloud-based solutions and maintenance associated with perpetual licenses, represented 96% of revenue in the three months ended March 31, 2026 and 2025.

Free cash flow and unlevered free cash flow for the periods presented were impacted by:

________________
⁽¹⁾        The tax impact of stock-based compensation is based on the tax treatment for the applicable tax jurisdictions.
⁽²⁾        The tax impact of acquisition-related expenses, restructuring and the amortization of acquired intangible assets are not material.
⁽³⁾         An adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.

The following adjustments to reconcile forecasted non-GAAP income from operations, non-GAAP net income, non-GAAP earnings per share, free cash flow and unlevered free cash flow are subject to a number of uncertainties and assumptions, each of which are inherently difficult to forecast. As a result, actual adjustments and GAAP results may differ materially.

________________
⁽¹⁾        The forecasted GAAP net (loss) income assumes income tax expense of $4.5 million and $17.8 million in the three months ending June 30, 2026 and year ending December 31, 2026, respectively.
⁽²⁾        Adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.