Summary
Tenable closed fiscal 2025 with fourth-quarter revenue of $260.5 million, up 10.5% from the prior-year quarter, and full-year revenue of $999.4 million, up 11.0%. Gross profit was $205.2 million for the quarter, up 11.4%, and the quarterly gross margin improved to 78.8% from 78.2%. Results thin out below that line. Operating income fell 31.8% to $8.9 million. Net income swung to a loss of $0.7 million from $1.9 million of net income in the fourth quarter of 2024. For the full year, the net loss of $36.1 million narrowed slightly from $36.3 million, and the diluted loss per share of $0.30 improved on $0.31.
Non-GAAP measures show a far larger profit base, and the gap between the two sets of numbers remains wide. Non-GAAP income from operations was $63.7 million for the quarter versus $59.4 million a year earlier. Non-GAAP net income was $57.3 million versus $50.7 million, and non-GAAP diluted earnings per share was $0.48 versus $0.41. Full-year non-GAAP income from operations reached $219.0 million, up from $184.1 million, and full-year non-GAAP diluted earnings per share was $1.59, up from $1.29. Non-GAAP operating margin slipped to 24.4% from 25.2%, while GAAP operating margin fell to 3.4% from 5.5%. The full-year GAAP operating loss widened to $9.2 million from $6.9 million.
Cash generation held up. Fourth-quarter operating cash flow was $83.0 million, up 2.4%, and full-year operating cash flow was $266.8 million, up 22.7%. Unlevered free cash flow, a non-GAAP measure, was $87.5 million for the quarter and $277.0 million for the year, compared with $85.7 million and $237.8 million in the prior year. Capital expenditures were $0.3 million in the quarter, down 85.6%, but climbed 185.0% to $12.1 million for the full year. Tenable spent $196.2 million on acquisitions during 2025. It repurchased 2.3 million shares for $62.5 million in the fourth quarter, taking the full-year buyback to 7.9 million shares for $247.5 million. A $150 million increase to the repurchase authorization in January 2026 left $338 million available.
Demand metrics were mixed. Calculated current billings were $327.8 million in the quarter and $1.049 billion for the year, each up 8%. Current deferred revenue of $706.9 million rose 8.7%. Remaining performance obligations of $1.06 billion were 22.3% higher. Tenable added 502 new enterprise platform customers in the quarter and 1,667 for the full year, along with 5 net new six-figure customers. Customers with annual contract value of $100,000 or more totaled 2,161 at December 31, 2025, compared with 1,988 a year earlier. The dollar-based net expansion rate was 106% at December 31, 2025, compared with 108% a year earlier. Tenable named Vlad Korsunsky as chief technology officer, was named a Leader in the 2025 Gartner Magic Quadrant for Exposure Assessment Platforms, and received a credit rating upgrade to BB from BB- at S&P Global.
For the first quarter of 2026, Tenable guided to non-GAAP income from operations of $53.0 million to $56.0 million, non-GAAP net income of $46.0 million to $49.0 million and non-GAAP diluted earnings per share of $0.39 to $0.42. For the full year 2026, guidance is non-GAAP income from operations of $245.0 million to $255.0 million, non-GAAP net income of $214.0 million to $224.0 million, non-GAAP diluted earnings per share of $1.81 to $1.90 and unlevered free cash flow of $285.0 million to $295.0 million. The company will stop publishing a specific calculated current billings guidance range, pointing to billings duration headwinds from the shift to annual installment billing.
Several risks stand out. The billing shift keeps distorting billings comparisons against reported revenue. Management flagged that macroeconomic conditions and U.S. policy decisions on government funding and tariffs could lengthen purchasing and approval phases in 2026. The term loan matures in July 2028 and the revolving credit facility matures on July 7, 2026, so refinancing is on the calendar. Competition in exposure management remains intense. The company still carries a valuation allowance against its deferred tax assets after another year of GAAP losses.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $260.5M | $252.4M | +3.2% | $235.7M | +10.5% |
| Gross profit | $205.2M | $195.7M | +4.9% | $184.3M | +11.4% |
| Gross margin | 78.8% | 77.5% | +1.3 pp | 78.2% | +0.6 pp |
| Research & development | $54.9M | $56.3M | -2.3% | $44.7M | +22.8% |
| Sales & marketing | $106.7M | $99.9M | +6.8% | $95.3M | +11.9% |
| General & administrative | $31.6M | $32.3M | -2.3% | $31.2M | +1.2% |
| Total operating expenses | $196.4M | $188.6M | +4.2% | $171.3M | +14.6% |
| Operating income (loss) | $8.9M | $7.1M | +24.1% | $13.0M | -31.8% |
| Operating margin | 3.4% | 2.8% | +0.6 pp | 5.5% | -2.1 pp |
| Net income (loss) | -$737.0K | $2.3M | -132.6% | $1.9M | -139.5% |
| Net margin | -0.3% | 0.9% | -1.2 pp | 0.8% | -1.1 pp |
| Diluted EPS | -$0.01 | $0.02 | -$0.03 | $0.02 | -$0.03 |
| Customers | 40,000 | 664,290 | -94.0% | 44,000 | -9.1% |
Risks
Global economic, political and geopolitical tensions, including tariffs and export controls, could disrupt operations and lengthen sales cycles. Research and development teams maintain a significant presence in Tel Aviv, Israel, and ongoing hostilities in the region may materially impact the ability to deliver on product roadmaps.
Intense competition from larger vendors such as Microsoft, CrowdStrike, Palo Alto Networks and Wiz that can bundle competing products or offer lower pricing. The company has incorporated generative and agentic AI features which are subject to emerging regulations like the EU AI Act, with fines up to 35 million Euros or 7% of worldwide annual turnover, and may generate inaccurate or flawed outputs.
The sales cycle is long and unpredictable, with an average enterprise sales cycle of approximately four months, and has been prolonged by increasing complexity in customer requirements including AI. Macroeconomic uncertainty and additional customer expenditure controls could lengthen the sales cycle further.
The company derives 94% of revenue from channel partners, with Ingram Micro accounting for 32% of revenue in 2025 and 27% of accounts receivable at December 31, 2025. A major distributor experienced a ransomware attack, and agreements allow termination on short notice, which could disrupt distribution.
As a cybersecurity provider, the company is at increased risk of cyberattacks. A recent incident involving Nessus agents going offline impacted availability for certain customers, resulting in service-level credits and potential loss of customer trust. A large-scale compromise could be catastrophic given the company's position in customers' supply chains.
Stringent and changing data privacy and security laws, including GDPR and CCPA, impose compliance obligations and potential fines of up to 20 million Euros or 4% of annual global revenue. The EU AI Act adds further requirements and penalties for non-compliance.
Reliance on highly skilled personnel and senior management; the passing of the former Chairman and CEO resulted in $15.5 million in termination benefits and $14.6 million in accelerated equity vesting. Competition for employees is intense, and remote work increases competition.
Revenue growth may not be sustained; the company expects costs to increase and has incurred operating losses, with FY2025 operating loss widening to $9.2 million from $6.9 million in FY2024. Dollar-based net expansion rate declined to 106% from 108% in the prior year.
Shift to annual installment billing for multi-year deals reduces billing duration and distorts calculated current billings, creating negative distortion that fails to accurately represent business growth. The company has transitioned away from relying on calculated current billings as a key metric.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Calculated Current Billings
New Enterprise Platform Customers Added
Unlevered Free Cash Flow
Free Cash Flow
Dollar-Based Net Expansion Rate
Total Customers
Summary, forecast, risks and KPIs are extracted from Tenable Holdings, Inc.'s SEC filings for Q4 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.