Summary
Tenable reported FY2026 Q2 revenue of $268.5 million, up 8.6% from the prior-year quarter. Gross profit was $208.2 million, up 7.9%, while gross margin slipped to 77.5% from 78.0%. The company swung to operating income of $12.4 million from an operating loss in the prior-year quarter. Operating margin was 4.6%, up 7.6 percentage points from negative 3.0%. Net income was $3.8 million, compared with a net loss in the prior-year quarter, and diluted EPS was $0.03, compared with a loss per share in the prior-year quarter. On a non-GAAP basis, income from operations was $66.2 million, compared with $47.7 million. Non-GAAP operating margin was 24.7% versus 19.3%. Non-GAAP net income was $57.9 million versus $41.4 million, and non-GAAP diluted EPS was $0.51 versus $0.34. Stock-based compensation totaled $46.3 million in the quarter.
For the first half of FY2026, revenue was $530.6 million, up 9.1%. Gross profit was $413.6 million, up 9.0%. Operating income was $21.1 million, compared with an operating loss in the prior-year period, and operating margin was 4.0%, up 9.2 percentage points from negative 5.2%. Net income was $5.2 million, compared with a net loss in the prior-year period. Diluted EPS was $0.05, compared with a loss per share in the prior-year period. Subscription revenue drove the mix, and recurring revenue represented 95% of revenue in the quarter, compared with 96% in the prior-year quarter.
Q2 operating cash flow was $44.7 million, up 5.3%. Capital expenditures were $1.4 million, down 68.4%. Free cash flow was $39.2 million, and unlevered free cash flow was $45.3 million. For the six months, operating cash flow was $132.7 million, up 2.2%, and capital expenditures were $4.0 million, down 63.7%. Deferred revenue, current portion, was $670.1 million, up 7.3%. Remaining performance obligations were $1.03 billion, up 15.4%. The company added 381 new enterprise platform customers in the quarter. Customers with $100,000 and greater in annual contract value reached 2,236, up 6% from 2,118. The dollar-based net expansion rate was 106%, compared with 107%.
Recent business highlights included joining Anthropic's Project Glasswing, selection by OpenAI for the Trusted Access for Cyber and Daybreak Cyber Partner Programs, new multi-step reasoning and automated remediation workflows for Tenable Hexa AI, FedRAMP High and Impact Level 5 authorization for Tenable One Cloud Exposure, and new cloud detection and response capabilities for Tenable One. Tenable repurchased 5.2 million shares for $100.0 million in the quarter and 11.4 million shares for $230.0 million in the first half. The board increased the repurchase authorization by $150 million in January 2026. Management flagged a competitive and rapidly changing environment, macroeconomic conditions and U.S. policy decisions as factors that could lengthen purchasing and approval phases of the sales cycle. Cloud infrastructure costs could pressure gross margin as cloud-based subscriptions grow as a share of revenue. The Revolving Credit Facility expired on July 7, 2026, and the company did not enter a new facility. The Term Loan matures on July 7, 2028.
Guidance for the third quarter of 2026 calls for non-GAAP income from operations of $66.0 million to $69.0 million, non-GAAP net income of $58.0 million to $61.0 million, and non-GAAP diluted EPS of $0.49 to $0.52. The third-quarter plan assumes 118.0 million diluted weighted average shares outstanding, interest expense of $6.4 million, interest income of $2.1 million and a provision for income taxes of $2.9 million. For the full year 2026, Tenable guided non-GAAP income from operations to $258.0 million to $264.0 million, non-GAAP net income to $228.0 million to $234.0 million, and non-GAAP diluted EPS to $1.95 to $2.00. Full-year unlevered free cash flow guidance is $289.0 million to $295.0 million, with 117.0 million diluted weighted average shares outstanding assumed.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2026 | Q1 FY2026 | QoQ | Q2 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $268.5M | $262.1M | +2.5% | $247.3M | +8.6% |
| Gross profit | $208.2M | $205.4M | +1.4% | $192.9M | +7.9% |
| Gross margin | 77.5% | 78.4% | -0.8 pp | 78.0% | -0.5 pp |
| Research & development | $57.0M | $55.8M | +2.2% | $59.2M | -3.8% |
| Sales & marketing | $105.9M | $107.0M | -1.0% | $107.1M | -1.1% |
| General & administrative | $32.3M | $31.4M | +2.7% | $34.0M | -5.0% |
| Total operating expenses | $195.8M | $196.6M | -0.4% | $200.3M | -2.2% |
| Operating income (loss) | $12.4M | $8.8M | +41.1% | -$7.4M | +266.1% |
| Operating margin | 4.6% | 3.3% | +1.3 pp | -3.0% | +7.6 pp |
| Net income (loss) | $3.8M | $1.4M | +169.1% | -$14.7M | +125.9% |
| Net margin | 1.4% | 0.5% | +0.9 pp | -6.0% | +7.4 pp |
| Diluted EPS | $0.03 | $0.01 | +$0.02 | -$0.12 | +$0.15 |
| Customers | 486,432 | 239,137 | +103.4% | 437,202 | +11.3% |
Risks
The filing materially expands AI risk disclosure covering generative and agentic AI features such as ExposureAI, Tenable AI Assistant and Hexa AI within Tenable One, with EU AI Act fines of up to 35 million Euros or 7% of total worldwide annual turnover. Federal designation of Anthropic as a supply chain risk could prohibit use of frontier models in its solutions and force rapid decoupling or replacement of integrated technologies, and adverse designations against third-party AI providers could disrupt government contracts.
Because it sells cybersecurity products, the company may be at increased risk of being a target of attacks, and a compromise of its solutions could simultaneously affect a significant number or in some instances all customers. The filing cites a prior incident on December 31, 2024 when Nessus agents versions 10.8.0 and 10.8.1 went offline under certain conditions, and notes that AI advances may increase the speed and effectiveness of cyberattacks and shorten remediation time.
The company relies on third-party cloud infrastructure including AWS and Snowflake, whose agreements limit their liability, and AWS can terminate its agreement with two years' written notice or temporarily restrict access without prior notice. The filing cites recent disruptions affecting AWS data centers in the UAE and Bahrain linked to regional hostilities involving Iran as highlighting business continuity risk from a single facility.
A portion of revenue comes from U.S. and foreign government and highly regulated entities subject to public sector budget cycles, funding delays including a U.S. government shutdown, termination for convenience, FAR compliance, audits and potential debarment. The administration's spending reduction priorities, including those driven by the Department of Government Efficiency, could elongate sales cycles and procurement decisions and reduce contract opportunities or funding for existing initiatives.
MD&A states new and renewal agreement volumes peak in the third and fourth quarters and that macroeconomic conditions and U.S. policy decisions may lengthen the purchasing and approval phases of the sales cycle. In the quarter, the revenue increase included a $23.3 million increase from existing customers as of July 1, 2025, partially offset by a $2.1 million decrease in revenue from new customers, and for the six months new-customer revenue decreased $4.2 million.
Dollar-based net expansion rate was 106% at June 30, 2026 compared with 107% at June 30, 2025, and growth increasingly depends on expansion within existing customers rather than new logos. New enterprise platform customers added in the quarter rose only 4% to 381, while customers with $100,000 and greater annual contract value grew 6% to 2,236.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Unlevered Free Cash Flow
Free Cash Flow
Net New Six-Figure Customers
Dollar-Based Net Expansion Rate
Remaining Performance Obligations
Total Customers
Remaining Performance Obligations, Short-Term
Summary, forecast, risks and KPIs are extracted from Tenable Holdings, Inc.'s SEC filings for Q2 FY2026 (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.