Tenable Announces Fourth Quarter and Full Year 2025 Financial Results

Tenable exceeds all guided metrics for the fourth quarter and full year 2025, announces increase of $150 million to share repurchase authorization

• Fourth quarter revenue of $260.5 million, up 11% year-over-year; full year revenue of $999.4 million, up 11% year-over-year

• Fourth quarter calculated current billings of $327.8 million, up 8% year-over-year; full year calculated current billings of $1.049 billion, up 8% year-over-year

• Full year net cash provided by operating activities of $266.8 million; full year unlevered free cash flow of $277.0 million
  
  

COLUMBIA, Md., Feb. 04, 2026 (GLOBE NEWSWIRE) -- Tenable Holdings, Inc. (“Tenable”) (Nasdaq: TENB), the exposure management company, today announced financial results for the quarter and year ended December 31, 2025.

"We are very pleased with the execution in the quarter and the full year as we delivered better-than-expected results across all of our guided metrics," said Steve Vintz, Co-CEO of Tenable. "Our focus on expanding Tenable One and ensuring AI remains central to every innovation is driving stronger platform adoption and deeper customer engagement."

"We are incredibly proud to be recognized as an industry leader in Exposure Management across all three major industry analyst firms," said Mark Thurmond, Co-CEO of Tenable. "Customers are investing in Tenable One as a long-term platform to turn fragmented security data into a unified, actionable roadmap for risk reduction."

Fourth Quarter 2025 Financial Highlights

• Revenue was $260.5 million, an 11% increase year-over-year

• Calculated current billings was $327.8 million, an 8% increase year-over-year

• GAAP income from operations was $8.9 million, compared to $13.0 million in the fourth quarter of 2024

• Non-GAAP income from operations was $63.7 million, compared to $59.4 million in the fourth quarter of 2024

• GAAP net loss was $0.7 million, compared to $1.9 million of net income in the fourth quarter of 2024

• GAAP net loss per share was $0.01, compared to earnings per share of $0.02 in the fourth quarter of 2024

• Non-GAAP net income was $57.3 million, compared to $50.7 million in the fourth quarter of 2024

• Non-GAAP diluted earnings per share was $0.48, compared to $0.41 in the fourth quarter of 2024

• Net cash provided by operating activities was $83.0 million, compared to $81.1 million in the fourth quarter of 2024

• Unlevered free cash flow was $87.5 million, compared to $85.7 million in the fourth quarter of 2024

• Repurchased 2.3 million shares of our common stock for $62.5 million
  
  

Full Year 2025 Financial Highlights

• Revenue was $999.4 million, an 11% increase year-over-year

• Calculated current billings was $1.049 billion, an 8% increase year-over-year

• GAAP loss from operations was $9.2 million, compared to $6.9 million in 2024

• Non-GAAP income from operations was $219.0 million, compared to $184.1 million in 2024

• GAAP net loss was $36.1 million, compared to $36.3 million in 2024

• GAAP net loss per share was $0.30, compared to $0.31 in 2024

• Non-GAAP net income was $194.4 million, compared to $158.6 million in 2024

• Non-GAAP diluted earnings per share was $1.59, compared to $1.29 in 2024

• Cash and cash equivalents and short-term investments were $402.2 million at December 31, 2025, compared to $577.2 million at December 31, 2024

• Net cash provided by operating activities was $266.8 million, compared to $217.5 million in 2024

• Unlevered free cash flow was $277.0 million, compared to $237.8 million in 2024

• Repurchased 7.9 million shares of our common stock for $247.5 million
  
  

Recent Business Highlights

• Added 502 new enterprise platform customers and 5 net new six-figure customers

• Announced a $150 million expansion of our existing share repurchase program, increasing the total remaining authorization to $338 million

• Appointed Microsoft cloud and AI security veteran Vlad Korsunsky as Chief Technology Officer

• Named a Leader in the 2025 Gartner® Magic Quadrant™ for Exposure Assessment Platforms and named a Customers’ Choice in the 2025 Gartner® Peer Insights™ Voice of the Customer for Cloud-Native Application Protection Platforms

• Named as the company to beat for AI-Powered Exposure Assessment (EAP) in the 2025 Gartner® AI-Powered Exposure Assessment

• S&P Global upgraded our credit rating to BB from BB-

• Announced agreement with GSA OneGov to further invest in FedRAMP-authorized cloud security capabilities
  
  

Financial Outlook

For the first quarter of 2026, we currently expect:

• Revenue in the range of $257.0 million to $260.0 million

• Non-GAAP income from operations in the range of $53.0 million to $56.0 million

• Non-GAAP net income in the range of $46.0 million to $49.0 million, assuming interest income of $2.9 million, interest expense of $6.4 million and a provision for income taxes of $3.1 million

• Non-GAAP diluted earnings per share in the range of $0.39 to $0.42

• 118.0 million diluted weighted average shares outstanding
  
  

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

• Revenue in the range of $1.065 billion to $1.075 billion

• Non-GAAP income from operations in the range of $245.0 million to $255.0 million

• Non-GAAP net income in the range of $214.0 million to $224.0 million, assuming interest income of $10.4 million, interest expense of $25.9 million and a provision for income taxes of $13.3 million

• Non-GAAP diluted earnings per share in the range of $1.81 to $1.90

• 118.0 million diluted weighted average shares outstanding

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

As discussed previously, changes in billing duration due to the shift to annual installment billing is creating negative distortion in calculated current billings that fails to accurately represent our growth rate, and we have transitioned away from relying on calculated current billings to monitor performance of our business. Consequently, we will no longer provide a specific guidance range for calculated current billings in 2026 and forward. However, while we will not provide a specific guidance range, we expect full year 2026 calculated current billings will be in line with current consensus expectations, despite the anticipated billings duration headwinds.

Conference Call Information

Tenable will host a conference call today, February 4, 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 protect enterprises from security exposure, our business strategy 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, 2024, our Quarterly Report on Form 10-Q for the quarter ended September 30, 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.

Calculated Current Billings: We define calculated current billings, a non-GAAP financial measure, as total revenue recognized in a period plus the change in current deferred revenue in the corresponding period. Historically we have used calculated current billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers. The timing of large multi-year contracts and the preference for annual billing versus multi-year upfront billing, may distort calculated current billings growth in one period over another.

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.

_______________

⁽¹⁾        Includes stock-based compensation as follows:

_______________

⁽²⁾        Stock-based compensation in the year ended December 31, 2025 includes $14.6 million of expense related to the accelerated vesting of equity awards in Q1 for our late CEO.

_______________

⁽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 95% and 96% of revenue, respectively, in the three months and year ended December 31, 2025 and 95% and 96% of revenue in the three months and year ended December 31, 2024.

_______________

⁽¹⁾        Deferred revenue (current), beginning of period for the years ended December 31, 2025 and 2024 includes $6.7 million and $0.1 million, respectively, related to acquired deferred revenue.

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

________________

⁽¹⁾        The tax payment on intra-entity asset transfer in 2024 includes $0.3 million of interest that is included in cash paid for interest and other financing costs.

________________

(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 and restructuring charges are not material.

(3)        The tax impact of the amortization of acquired intangible assets is included in the tax impact of acquisitions.

(4)        The tax impact of the intra-entity asset transfer is additional tax incurred related to the 2021 internal restructuring of Indegy.

(5)        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, when applicable.

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 assumes income tax expense of $4.2 million and $18.0 million in the three months ending March 31, 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.