Summary
Tenable closed the June 2025 quarter with revenue of $247.3 million, up 11.8% from $221.2 million in the prior-year quarter. Revenue for the six months ended June 30, 2025 was $486.4 million, up 11.3% year over year. Gross profit of $192.9 million for the quarter rose 11.8%, and gross margin was 78.0%, flat against the prior-year quarter. For the year to date, gross margin was 78.0%, up 0.4 percentage points. Calculated current billings, a non-GAAP metric, reached $238.6 million, up 8% year over year.
GAAP profitability is still negative, though the quarter showed improvement. Loss from operations was $7.4 million, narrower than the $8.8 million loss a year earlier, and operating margin of negative 3.0% improved 1.0 percentage point. On a non-GAAP basis, income from operations was $47.7 million versus $42.8 million, with a 19% operating margin. The bottom line moved the other way. GAAP net loss widened to $14.7 million from $14.6 million, while diluted loss per share of $0.12 was flat with the prior-year quarter. Non-GAAP net income was $41.4 million and non-GAAP diluted earnings per share was $0.34, compared with $0.31. The six-month GAAP trend is weaker. Operating loss widened to $25.2 million, net loss widened to $37.6 million, and diluted loss per share widened to $0.31. Operating margin for the six months was negative 5.2%, down 1.1 percentage points from negative 4.1%. General and administrative expense absorbed significant termination benefits tied to the passing of the chairman and chief executive officer, including accelerated equity award vesting booked in the first quarter.
Cash generation was the quarter's strongest signal. Net cash provided by operating activities was $42.5 million, up 35.1% from $31.4 million in the prior-year quarter, and $129.9 million for the six months, up 58.9% year over year. Free cash flow, which the company defines as operating cash flow less purchases of property and equipment and capitalized software development costs, was $37.4 million versus $28.7 million. Unlevered free cash flow was $44.3 million versus $36.5 million. Capital expenditures rose to $4.3 million from $0.5 million in the prior-year quarter. The balance sheet thinned anyway. Cash, cash equivalents and short-term investments totaled $386.5 million at June 30, 2025, down from $577.2 million at December 31, 2024, after $196.2 million of cash went to the Vulcan and Apex acquisitions.
Backlog and customer data show a mixed picture. Remaining performance obligations were $889.1 million at June 30, 2025, up 18.9% from a year earlier. Long-term RPO rose 41% to $247.2 million and short-term RPO rose 12% to $641.9 million. Current deferred revenue was $624.5 million, up 11.0%. Tenable added 367 new enterprise platform customers and 76 net new six-figure customers in the quarter. Customers with annual contract value of $100,000 or more reached 2,118, up 18% from a year earlier. Two metrics went the wrong way: new enterprise platform customer additions fell 10%, and the dollar-based net expansion rate slipped to 107% from 109%. Management also returned capital, repurchasing 2.0 million shares for $65.0 million, and the board added $250 million to the repurchase authorization in July 2025. Since the program began through June 30, 2025, the company has bought 6.3 million shares for $239.9 million.
Guidance for the third quarter of 2025 calls for non-GAAP income from operations of $52.0 million to $54.0 million, non-GAAP net income of $44.0 million to $46.0 million, and non-GAAP diluted earnings per share of $0.36 to $0.37 on 123.0 million diluted weighted average shares. For the full year ending December 31, 2025, management expects calculated current billings of $1.038 billion to $1.048 billion, non-GAAP income from operations of $205.0 million to $215.0 million, non-GAAP net income of $179.0 million to $189.0 million, non-GAAP diluted earnings per share of $1.45 to $1.53, and unlevered free cash flow of $265.0 million to $275.0 million.
Several risks temper the story. Tenable expects to keep incurring operating losses in the near term, and it carries a full valuation allowance against deferred tax assets. The accumulated deficit stood at $899.0 million at June 30, 2025. Seasonality means a heavier share of new and renewal agreements lands in the third and fourth quarters, with the third quarter tied to U.S. government and related agencies. Management warned that macroeconomic conditions and U.S. policy decisions on government agency funding and tariffs could lengthen the purchasing and approval phases of the sales cycle in 2025. Interest income declined as short-term investments shrank, and the Term Loan carried interest rates between 7.18% and 7.22% from January to June 2025. The first lien net leverage ratio was 0.88, with the Term Loan maturing July 7, 2028.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $247.3M | $239.1M | +3.4% | $221.2M | +11.8% |
| Gross profit | $192.9M | $186.7M | +3.3% | $172.4M | +11.8% |
| Gross margin | 78.0% | 78.1% | -0.1 pp | 77.9% | +0.0 pp |
| Research & development | $59.2M | $53.2M | +11.3% | $45.1M | +31.2% |
| Sales & marketing | $107.1M | $103.2M | +3.8% | $101.1M | +5.9% |
| General & administrative | $34.0M | $48.0M | -29.2% | $30.3M | +12.1% |
| Total operating expenses | $200.3M | $204.4M | -2.0% | $181.3M | +10.5% |
| Operating income (loss) | -$7.4M | -$17.7M | +57.9% | -$8.8M | +15.5% |
| Operating margin | -3.0% | -7.4% | +4.4 pp | -4.0% | +1.0 pp |
| Net income (loss) | -$14.7M | -$22.9M | +35.9% | -$14.6M | -0.9% |
| Net margin | -6.0% | -9.6% | +3.6 pp | -6.6% | +0.6 pp |
| Diluted EPS | -$0.12 | -$0.19 | +$0.07 | -$0.12 | ±$0.00 |
| Customers | 437,202 | 215,961 | +102.4% | 383,875 | +13.9% |
Risks
Revenue derived through the channel network was 94% in both the three and six months ended June 30, 2025, and Ingram Micro alone accounted for 32% of revenue in those periods and 31% of accounts receivable at June 30, 2025. The filing notes a recent ransomware attack that impacted Ingram Micro, and the Ingram Micro agreement can be terminated by Ingram Micro on 30 days' notice, so any disruption could materially reduce sales.
A portion of revenue comes from U.S. government entities and highly regulated customers, and the new U.S. presidential administration's spending reductions, including DOGE-driven actions, may eliminate departments and personnel. The filing states these actions may lead to elongated sales cycles and procurement decisions in the second half of 2025 and could result in fewer contract opportunities or reduced funding for existing initiatives.
The company has incorporated AI features including ExposureAI and Tenable AI Assistant, and the filing warns these can generate misleading, insecure, inaccurate, harmful or otherwise flawed output, with agentic AI compounding those risks. The EU Artificial Intelligence Act and other emerging AI regulations may require significant compliance resources and expose Tenable to enforcement and litigation.
Unstable market conditions, high interest rates, inflation, tariffs, and escalating trade tensions may increase operating costs and extend enterprise procurement cycles, and anti-U.S. sentiment may make customers hesitant to adopt solutions from U.S.-based providers. MD&A states these factors may lengthen purchasing and approval phases of the sales cycle in 2025.
New enterprise platform customers added in the quarter decreased 10% to 367 from 408, and the dollar-based net expansion rate decreased to 107% at June 30, 2025 from 109% at June 30, 2024. These trends could pressure future revenue growth if new customer additions and expansion within existing customers do not improve.
General and administrative expense for the six months ended June 30, 2025 increased 34% and included $15.5 million of termination benefits, with $14.6 million of stock-based compensation tied to accelerated equity award vesting for the late Chairman and CEO. The transition may create execution and retention risk during the company's AI and exposure management expansion.
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
Recurring Revenue % of Revenue
Remaining Performance Obligations
Total Customers
Summary, forecast, risks and KPIs are extracted from Tenable Holdings, Inc.'s SEC filings for Q2 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.