Tenable’s fourth quarter was marked by solid execution, as the company reported results that exceeded Wall Street’s revenue and non-GAAP profit expectations, leading to a notable positive market reaction. Management attributed the performance to accelerating adoption of its Tenable One platform, particularly as organizations sought more comprehensive solutions for managing increasingly complex cyber risk. Co-CEO Stephen Vintz highlighted that demand for AI exposure management was “unbelievably prevalent,” with Tenable One representing a record portion of new business in the quarter.
Is now the time to buy TENB? Find out in our full research report (it’s free for active Edge members).
Tenable (TENB) Q4 CY2025 Highlights:
- Revenue: $260.5 million vs analyst estimates of $251.8 million (10.5% year-on-year growth, 3.5% beat)
- Adjusted EPS: $0.48 vs analyst estimates of $0.41 (15.9% beat)
- Adjusted Operating Income: $63.69 million vs analyst estimates of $58.25 million (24.4% margin, 9.3% beat)
- Revenue Guidance for Q1 CY2026 is $258.5 million at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for the upcoming financial year 2026 is $1.86 at the midpoint, beating analyst estimates by 5.2%
- Operating Margin: 3.4%, down from 5.5% in the same quarter last year
- Annual Recurring Revenue: $1.24 billion vs analyst estimates of $1.47 billion (20.4% year-on-year growth, miss)
- Billings: $349.3 million at quarter end, up 8.7% year on year
- Market Capitalization: $2.71 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Tenable’s Q4 Earnings Call
- Robbie Owens (Piper Sandler) asked how Tenable reconciles strong new business momentum with lower net additions among large customers. Co-CEO Stephen Vintz replied that while net new large customer additions were lower, expansion within existing large customers adopting Tenable One was robust, driving higher value deals.
- Saket Kalia (Barclays) questioned which modules within Tenable One are most popular and how this influences competitive win rates. Vintz explained that customers prioritize holistic risk visibility, with growth in modules covering cloud, web applications, and AI attack surfaces, and noted that platform sales now outweigh individual product focus.
- Joseph Gallo (Jefferies) probed the deceleration in guided growth versus current trends. Vintz and Brown clarified that Tenable One is growing much faster than legacy offerings, and as it becomes a larger share of the business, overall growth rates are expected to stabilize and eventually reaccelerate.
- Jonathan Ho (William Blair) inquired about the pricing uplift and asset coverage when customers move to Tenable One. Brown stated that platform migrations can deliver up to 80% uplift in average selling price, with expanded asset and risk coverage driving higher utilization and stickier relationships.
- Shaul Eyal (TD Cowen) sought clarity on pricing trends and competitive pressures. Co-CEO Mark Thurmond said there was no pricing pressure observed, with Tenable One transactions commanding higher prices due to broader coverage and consolidation benefits.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely watch (1) the rate at which customers migrate from legacy products to Tenable One, (2) the success of new AI-powered features in driving larger platform deals, and (3) the impact of expanded professional services and remediation offerings on customer adoption and retention. Continued execution on margin expansion and platform innovation will also be key signposts for sustained growth.
Tenable currently trades at $22.91, up from $19.72 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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