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1. Company Snapshot

1.a. Company Description

Tenable Holdings, Inc.provides cyber exposure solutions for in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan.Its platforms include Tenable.io, a cloud-delivered software as a service that provides organizations with a risk-based view of traditional and modern attack surfaces; Tenable.cs, a cloud-native application platform that enables organizations to programmatically detect and fix cloud infrastructure misconfigurations; Tenable.io WAS, which provides scanning for modern web applications; and Tenable.ep, an unified platform that helps organizations identify, assess, and accurately prioritize cyber risks across the entire attack surface.


The company also offers Tenable.ad, a solution to secure Active Directory environments; Tenable.ot, an on-premises solution that provides threat detection and mitigation, asset tracking, vulnerability management, and configuration control capabilities to protect OT environments, including industrial networks; Tenable.sc, an on-premises solution that provides a risk-based view of an organization's IT, security and compliance posture.In addition, it provides Nessus Professional, a vulnerability assessment solution for identifying security vulnerabilities, configuration issues, and malware; and Nessus Essentials, which includes vulnerability and configuration assessment for a limited number of assets.The company was founded in 2002 and is headquartered in Columbia, Maryland.

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1.b. Last Insights on TENB

Tenable Holdings' recent performance was negatively impacted by concerns over slowing growth, despite the company's Q3 earnings and revenue beat. The stock faces stiff competition in the cybersecurity sector, and high stock-based compensation is a concern. Although Tenable demonstrated double-digit revenue growth and strong recurring revenue, its calculated current billings growth slowed to 8% year-over-year. Additionally, the company's GAAP operating margin was relatively low at 2.8%. (Source: Tenable Announces Third Quarter 2025 Financial Results)

1.c. Company Highlights

2. Tenable's Strong Q3 Earnings Exceed Expectations

Tenable reported a robust Q3 with revenues reaching $252.4 million, representing an 11.2% year-over-year growth, surpassing the guided range. The company's non-GAAP operating margin stood at 23%, demonstrating a strong operational performance. Earnings per share (EPS) came in at $0.42, beating estimates of $0.37. The revenue growth was underpinned by a solid foundation of renewal business, strong Tenable One adoption, and better-than-expected contribution from professional services.

Publication Date: Oct -31

📋 Highlights
  • Revenue Growth & Margin:: Q3 revenue reached $252.4M, up 11.2% YoY, with 23% operating margin, exceeding guidance.
  • Tenable One Adoption:: 40% of new business came from the platform, adding 437 new enterprise customers (+13% QoQ).
  • Full-Year Guidance Raised:: 2025 revenue guidance raised to $988M–$992M, implying 10% YoY growth at midpoint.
  • AI & Platform Integration:: Launched Tenable AI Exposure (via Apex) and surpassed 300 validated platform integrations.
  • Exposure Management Momentum:: Recognized as a leader by 2 top analyst firms; 3,000+ Tenable One customers out of 18,000 total.

Strong Adoption of Tenable One

The company continued to see strong growth from Tenable One, its exposure management platform, which represented approximately 40% of new business during the quarter. Tenable added 437 new enterprise platform customers, a 13% increase compared to Q3 2024. As Steve Vintz mentioned, "We believe our strong new platform traction reflects a fundamental shift in cybersecurity away from detection and response technologies and more toward a preventative and preemptive approach."

Guidance and Outlook

For the fourth quarter, Tenable expects revenue to be in the range of $249.1 million to $253.1 million, representing a year-over-year increase of 6.5% at the midpoint. For full-year 2025, the company raised its revenue guidance range to $988 million to $992 million, representing a year-over-year increase of 10.0% at the midpoint. The non-GAAP operating income guidance was also raised, with a range of $211 million to $215 million or 21.5% of revenue at the midpoint.

Valuation Metrics

Analyzing Tenable's valuation metrics, we observe a P/E Ratio of -103.73, a P/B Ratio of 10.09, and a P/S Ratio of 3.58. The negative P/E ratio is due to the company's net loss. The EV/EBITDA ratio stands at -144.23, indicating that the company's enterprise value is not justified by its EBITDA. For the next year, analysts estimate revenue growth at 7.6%, which may impact the stock's performance.

Growth Prospects

Tenable's growth prospects appear promising, driven by the increasing adoption of Tenable One and the company's expanding exposure management capabilities. The company's focus on AI innovation and its ability to contextualize risk with AI are expected to drive incremental adoption of the platform. As Mark Thurmond highlighted, the company is seeing significant traction with Tenable One, with 40% of new business coming from the platform.

3. NewsRoom

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Tenable Holdings, Inc. (TENB) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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American Century Companies Inc. Acquires 36,581 Shares of Tenable Holdings, Inc. $TENB

Dec -01

Source: defenseworld.net

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Tenable: Strong Execution, Better Margins, Attractive Entry

Nov -16

Source: seekingalpha.com

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1 Small-Cap Growth Stock Down 52% to Buy on the Dip

Nov -06

Source: fool.com

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Tenable: A Value Stock Not To Overlook

Oct -31

Source: seekingalpha.com

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Tenable Holdings, Inc. (TENB) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Tenable (TENB) Reports Q3 Earnings: What Key Metrics Have to Say

Oct -29

Source: zacks.com

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Tenable (TENB) Surpasses Q3 Earnings and Revenue Estimates

Oct -29

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.88%)

6. Segments

Subscription

Expected Growth: 12%

Tenable Holdings, Inc.'s 12% subscription growth is driven by increasing demand for vulnerability management and cyber exposure solutions, expansion into new markets, and strategic partnerships. Additionally, the company's cloud-based offerings and scalable platform have enabled it to capitalize on the growing trend of digital transformation and cloud adoption.

Perpetual License and Maintenance

Expected Growth: 11%

Tenable Holdings, Inc.'s Perpetual License and Maintenance growth is driven by increasing demand for vulnerability management, rising adoption of cloud-based solutions, and growing need for cybersecurity measures amidst escalating threats. Additionally, the company's expanding partner network, innovative product offerings, and strategic acquisitions contribute to its 11% growth.

Professional Services and Other

Expected Growth: 10%

Tenable Holdings' Professional Services and Other segment growth is driven by increasing demand for vulnerability management and cyber exposure solutions, expansion into new markets, and strategic partnerships. The 10% growth rate is also fueled by the company's investments in sales and marketing, as well as its ability to upsell and cross-sell its services to existing customers.

7. Detailed Products

Nessus

A vulnerability scanner that identifies vulnerabilities, configuration issues, and malware

Tenable.io

A cloud-based vulnerability management platform that provides real-time visibility into vulnerabilities

Tenable.sc

A comprehensive vulnerability management platform that provides real-time visibility into vulnerabilities

Nessus Network Monitor

A network traffic analysis tool that provides real-time visibility into network activity

Tenable.ot

An operational technology (OT) security platform that provides real-time visibility into OT systems

Tenable.ad

An active directory security platform that provides real-time visibility into AD security

8. Tenable Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Tenable Holdings, Inc. operates in the cybersecurity industry, which is characterized by rapid innovation and advancements. While there are substitutes available, such as open-source alternatives, Tenable's proprietary technology and strong brand recognition mitigate the threat of substitutes.

Bargaining Power Of Customers

Tenable Holdings, Inc. has a diverse customer base across various industries, reducing dependence on a single customer. Additionally, the company's products and services are critical to customers' cybersecurity infrastructure, giving Tenable a strong bargaining position.

Bargaining Power Of Suppliers

Tenable Holdings, Inc. is not heavily reliant on a single supplier, and the company's technology is largely developed in-house. This reduces the bargaining power of suppliers and minimizes the risk of supply chain disruptions.

Threat Of New Entrants

The cybersecurity industry is highly competitive, and new entrants can easily disrupt the market with innovative solutions. Tenable Holdings, Inc. must continue to innovate and invest in research and development to stay ahead of new entrants.

Intensity Of Rivalry

The cybersecurity industry is highly competitive, with numerous established players and new entrants vying for market share. Tenable Holdings, Inc. must differentiate its products and services through innovation, customer support, and strategic partnerships to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.33%
Debt Cost 6.53%
Equity Weight 48.67%
Equity Cost 8.65%
WACC 7.56%
Leverage 105.46%

11. Quality Control: Tenable Holdings, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Tenable

A-Score: 4.3/10

Value: 5.7

Growth: 7.7

Quality: 4.6

Yield: 0.0

Momentum: 1.0

Volatility: 6.7

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Marqeta

A-Score: 4.2/10

Value: 5.4

Growth: 7.4

Quality: 3.4

Yield: 0.0

Momentum: 5.0

Volatility: 4.0

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MongoDB

A-Score: 4.1/10

Value: 4.0

Growth: 7.9

Quality: 4.2

Yield: 0.0

Momentum: 6.5

Volatility: 2.0

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DigitalOcean

A-Score: 3.8/10

Value: 3.8

Growth: 9.2

Quality: 5.3

Yield: 0.0

Momentum: 2.5

Volatility: 2.0

1-Year Total Return ->

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HashiCorp

A-Score: 3.8/10

Value: 4.2

Growth: 4.4

Quality: 3.6

Yield: 0.0

Momentum: 5.5

Volatility: 5.0

1-Year Total Return ->

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Rapid7

A-Score: 3.6/10

Value: 3.7

Growth: 8.6

Quality: 4.8

Yield: 0.0

Momentum: 0.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.65$

Current Price

26.65$

Potential

-0.00%

Expected Cash-Flows