Summary
Tenable reported third-quarter fiscal 2025 revenue of $252.4 million, up 11.2% from a year earlier, and year-to-date revenue of $738.9 million, also up 11.2%. The quarter's GAAP gross profit was $195.7 million, up 10.8% from the prior-year quarter, and year-to-date gross profit was $575.2 million, up 11.5%. GAAP operating income was $7.1 million, a swing to a profit from a loss in the prior-year quarter. GAAP net income was $2.3 million, and GAAP diluted EPS was $0.02, both swinging to a profit. For the first nine months, the operating loss narrowed to $18.0 million, the net loss narrowed to $35.4 million, and diluted EPS was a loss of $0.29. Gross margin slipped to 77.5% from the prior-year quarter, while operating margin improved to 2.8%. Deferred revenue, current portion, rose 9.5% to $639.6 million, and remaining performance obligations rose 20.4% to $928.9 million.
Calculated current billings, a non-GAAP measure, was $267.5 million, up 8% year over year. Non-GAAP operating margin was 23.3%, compared with 19.8% in the prior-year quarter, and non-GAAP income from operations was $58.9 million. Non-GAAP net income was $51.4 million, and non-GAAP diluted EPS was $0.42. Non-GAAP gross margin was 81.6%, and non-GAAP sales and marketing expense was 32.8% of revenue, down from 36.6%. The company added 437 new enterprise platform customers, up 13% from the prior-year quarter, and 38 net new six-figure customers. It ended the period with 2,156 customers that have $100,000 or greater in annual contract value, up 16% from a year earlier. Its dollar-based net expansion rate was 106%, compared with 108% in the prior-year period. Recurring revenue represented 95% of revenue in the quarter, compared with 96% a year earlier. Tenable launched Tenable AI Exposure, released a new version of its Vulnerability Priority Rating, and was named a Leader in Worldwide Exposure Management by IDC and in Unified Vulnerability Management by Forrester. It also ranked first in Device Vulnerability and Exposure Management market share by IDC for the seventh consecutive year. The company appointed Matthew Brown as Chief Financial Officer.
Cash generation was mixed. Operating cash flow was $53.9 million, down 1.4% from the prior-year quarter, while year-to-date operating cash flow rose 34.7% to $183.7 million. Free cash flow, a non-GAAP measure, was $51.6 million, and unlevered free cash flow was $58.5 million, compared with $60.8 million in the prior-year quarter. The company repurchased 2.0 million shares for $60.0 million in the quarter. Since the start of its repurchase program through September 30, 2025, it has bought 8.3 million shares for $299.9 million. Management guided fourth-quarter non-GAAP income from operations to a range of $55.7 million to $59.7 million, non-GAAP net income to $47.9 million to $51.9 million, and non-GAAP diluted EPS to $0.39 to $0.43. For the full fiscal year, management guided calculated current billings to $1.040 billion to $1.048 billion, non-GAAP income from operations to $211.0 million to $215.0 million, non-GAAP net income to $185.0 million to $189.0 million, non-GAAP diluted EPS to $1.51 to $1.54, and unlevered free cash flow to $265.0 million to $275.0 million.
Risks and spending patterns remain central to the story. Tenable typically signs a significantly higher percentage of new and renewal agreements in the third and fourth quarters, with the third quarter driven by U.S. government and related agencies and the fourth quarter driven by large enterprise buying patterns. The company warned that macroeconomic conditions and U.S. policy decisions on government funding and tariffs may lengthen purchasing and approval phases of its sales cycle in 2025. It also operates in a competitive and rapidly changing environment. Management expects to keep incurring operating losses in the near term and maintains a full valuation allowance against deferred tax assets. Tenable completed the Vulcan and Apex acquisitions during 2025. Its term loan carried interest rates between 7.18% and 7.22% from January through September 2025. The revolver matures on July 7, 2026, and the term loan matures on July 7, 2028. Tenable said its existing cash and short-term investments will be sufficient to fund operating and capital needs for at least the next 12 months, but it may seek additional equity or debt financing if needed.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $252.4M | $247.3M | +2.1% | $227.1M | +11.2% |
| Gross profit | $195.7M | $192.9M | +1.5% | $176.6M | +10.8% |
| Gross margin | 77.5% | 78.0% | -0.5 pp | 77.8% | -0.2 pp |
| Research & development | $56.3M | $59.2M | -5.0% | $48.0M | +17.2% |
| Sales & marketing | $99.9M | $107.1M | -6.7% | $99.1M | +0.9% |
| General & administrative | $32.3M | $34.0M | -4.8% | $31.6M | +2.4% |
| Total operating expenses | $188.6M | $200.3M | -5.9% | $178.7M | +5.5% |
| Operating income (loss) | $7.1M | -$7.4M | +195.8% | -$2.1M | +442.6% |
| Operating margin | 2.8% | -3.0% | +5.8 pp | -0.9% | +3.8 pp |
| Net income (loss) | $2.3M | -$14.7M | +115.4% | -$9.2M | +124.5% |
| Net margin | 0.9% | -6.0% | +6.9 pp | -4.1% | +5.0 pp |
| Diluted EPS | $0.02 | -$0.12 | +$0.14 | -$0.08 | +$0.10 |
| Customers | 664,290 | 437,202 | +51.9% | 585,404 | +13.5% |
Risks
The filing adds a new risk factor for generative AI features including ExposureAI and Tenable AI Assistant, warning that output may be inaccurate, insecure, harmful, or flawed and that agentic AI may act on flawed output. Emerging rules such as the EU AI Act create regulatory, litigation, and compliance exposure.
Channel partners generated 94% of revenue in the nine months ended September 30, 2025 and 2024, and Ingram Micro accounted for 32% and 34% of revenue in those periods, respectively. A recent ransomware attack on Ingram Micro and a 30-day termination right under its agreement could disrupt distribution.
Revenue from U.S. government and highly regulated entities faces new spending reductions and DOGE-driven funding uncertainty, which the filing says may elongate sales cycles and reduce contract opportunities in the second half of 2025. Government customers can terminate for convenience, and government sales require significant upfront time and expense.
Tariffs, escalating trade tensions, retaliatory or anti-U.S. sentiment, inflation, and high interest rates may cause customers to defer or reprioritize purchases and extend enterprise procurement cycles. MD&A notes international revenue increased 14% in Q3 and the first nine months of FY2025, heightening exposure to these trade and currency risks.
MD&A says seasonality drives a significantly higher percentage of new and renewal agreements in Q3 and Q4, with Q3 tied to U.S. government and related agencies. It expects current macroeconomic conditions and U.S. policy decisions on government funding and tariffs may lengthen purchasing and approval phases in 2025.
Dollar-based net expansion rate was 106% at September 30, 2025 and 108% at September 30, 2024, which could pressure future growth if existing customers expand less or renew at lower levels. The filing also notes revenue growth depends on retaining and expanding existing customers.
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)
Remaining Performance Obligations
Total Customers
Summary, forecast, risks and KPIs are extracted from Tenable Holdings, Inc.'s SEC filings for Q3 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.