Summary
Tenable opened fiscal 2025 with double-digit revenue growth but a wider GAAP loss. Revenue rose 10.7% to $239.1 million in the first quarter. Gross profit rose 11.8% to $186.7 million. Gross margin improved 0.7 percentage points to 78.1%. The GAAP operating loss widened to $17.7 million. The GAAP net loss widened to $22.9 million. GAAP diluted loss per share widened to $0.19. Operating margin fell 3.3 percentage points to -7.4%. The wider loss came despite higher gross profit, as operating expenses climbed. The company pointed to costs tied to the Vulcan Cyber acquisition and the leadership transition after the passing of its chairman and CEO. Management said the quarter included significant six- and seven-figure deals.
Cash generation was a bright spot. Operating cash flow rose 73.7% to $87.4 million. Capital expenditures rose 885.4% to $6.6 million. Deferred revenue increased 12.6% to $633.2 million. Remaining performance obligations increased 18.8% to $882.2 million. Calculated current billings, a non-GAAP measure, rose 9% to $215.4 million. On a non-GAAP basis, income from operations was $48.7 million, net income was $44.3 million, and diluted earnings per share was $0.36. Non-GAAP operating margin was 20%. Non-GAAP gross margin was 82%. Unlevered free cash flow was $86.8 million, compared with $54.7 million in the prior-year quarter.
Operationally, Tenable added 361 new enterprise platform customers, including 26 legacy Vulcan customers. The company added 54 net new six-figure customers. The number of customers with $100,000 and greater in annual contract value reached 2,042, up 19%. Dollar-based net expansion rate was 108%, compared with 109% a year earlier. Tenable completed the acquisition of Vulcan Cyber, released Identity 360 and Exposure Center, achieved FedRAMP moderate authorization for Tenable One and Tenable Cloud Security, and published the 2025 Cloud AI Risk Report. The Vulcan acquisition is expected to enhance the company's exposure management platform. Management highlighted momentum with Tenable One, larger deal sizes, and broader platform adoption.
Guidance points to continued expansion but still-negative GAAP results. For the second quarter of 2025, management guided non-GAAP income from operations to $43.0 million to $45.0 million, non-GAAP net income to $36.0 million to $38.0 million, and non-GAAP diluted earnings per share to $0.29 to $0.31. For the full year 2025, guidance calls for calculated current billings of $1.025 billion to $1.045 billion, non-GAAP income from operations of $205.0 million to $215.0 million, non-GAAP net income of $178.0 million to $188.0 million, non-GAAP diluted earnings per share of $1.44 to $1.52, and unlevered free cash flow of $265.0 million to $275.0 million. Management expects sales and marketing expense to decrease as a percentage of revenue in the second half of 2025 and over the long term.
Risks remain. Tenable expects to incur operating losses in the near term and may not sustain positive cash flows. The filing flags a competitive and rapidly changing environment. Macroeconomic conditions and U.S. policy decisions on government funding and tariffs could lengthen the purchasing and approval phases of the sales cycle in 2025. The business is seasonal, with a higher percentage of agreements typically in the third and fourth quarters. Acquisition integration and stock-based compensation remain watch items. The company maintains a full valuation allowance on its deferred tax assets. It may need additional equity or debt financing to fund its operating and capital needs. The company believes its existing cash and short-term investments will be sufficient to fund its operating and capital needs for at least the next 12 months.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $239.1M | $235.7M | +1.4% | $216.0M | +10.7% |
| Gross profit | $186.7M | $184.3M | +1.3% | $167.0M | +11.8% |
| Gross margin | 78.1% | 78.2% | -0.1 pp | 77.3% | +0.7 pp |
| Research & development | $53.2M | $44.7M | +19.0% | $43.7M | +21.7% |
| Sales & marketing | $103.2M | $95.3M | +8.2% | $99.8M | +3.4% |
| General & administrative | $48.0M | $31.2M | +53.6% | $31.0M | +54.7% |
| Total operating expenses | $204.4M | $171.3M | +19.3% | $176.0M | +16.2% |
| Operating income (loss) | -$17.7M | $13.0M | -236.5% | -$8.9M | -98.3% |
| Operating margin | -7.4% | 5.5% | -12.9 pp | -4.1% | -3.3 pp |
| Net income (loss) | -$22.9M | $1.9M | -1327.8% | -$14.4M | -59.4% |
| Net margin | -9.6% | 0.8% | -10.4 pp | -6.7% | -2.9 pp |
| Diluted EPS | -$0.19 | $0.02 | -$0.21 | -$0.12 | -$0.07 |
| Customers | 215,961 | 44,000 | +390.8% | 188,839 | +14.4% |
Risks
A portion of revenue comes from U.S. and foreign government entities and other highly regulated customers. The filing specifically cites the new U.S. presidential administration's spending reduction actions, including DOGE, which could lead to fewer contract opportunities, elongated sales cycles and procurement decisions, or reduced funding for existing initiatives.
MD&A states that current macroeconomic conditions and U.S. policy decisions related to government funding and tariffs could lengthen purchasing and approval phases of the sales cycle in 2025. Risk factors also warn of elongated sales cycles and procurement decisions for government customers and extended enterprise procurement cycles due to tariff uncertainty.
General and administrative expense in the quarter increased 55%, primarily due to $15.5 million of termination benefits and accelerated equity award vesting related to the passing of the Chairman and Chief Executive Officer. This creates leadership continuity and retention risk during the transition.
The filing highlights extreme volatility and disruptions in the global economy, with high interest rates remaining in place, inflation, foreign exchange volatility, and reduced government spending. Higher interest rates and inflation can increase costs, reduce customer budgets, and lengthen sales cycles.
Recent tariff actions and escalating trade tensions increase market uncertainty and operating costs, and may cause private-sector customers to defer or reprioritize purchasing decisions. Retaliatory trade policies or anti-U.S. sentiment may also make customers hesitant to adopt U.S.-based providers and increase preference for local competitors.
As a U.S. government contractor, the company is subject to FAR, government audits, and compliance risks including contract termination, downward price adjustments, civil or criminal penalties, and debarment. Changes to nondiscrimination plan requirements in response to new executive orders could also create hiring and retention challenges.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Calculated Current Billings
New Enterprise Platform Customers Added
Unlevered Free Cash Flow
Free Cash Flow
Net New Six-Figure Customers
Non-GAAP Gross Margin
Dollar-Based Net Expansion Rate (LTM)
Recurring Revenue % of Revenue
Total Customers
Summary, forecast, risks and KPIs are extracted from Tenable Holdings, Inc.'s SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.