Start here if you're new
what it is
Tenable sells software that finds security holes across your cloud, devices, and critical systems before attackers do.
how it gets paid
Last year Tenable made $999M in revenue. vulnerability management was the main engine at $450M, or 45% of sales.
why it's growing
Revenue grew 11.0% last year. The 77.9% gross margin matters most because it says the software model works.
what just happened
Tenable posted EPS of $0.48, beating the $0.43 estimate by 11.63%.
At a glance
B balance sheet — gets the job done, barely
45/100 earnings predictability — expect surprises
15.5x trailing p/e — the market's not buying it — or you found a deal
28.5% return on capital — every dollar works hard here
xvary composite: 45/100 — below average
What they do
Tenable sells software that finds security holes across your cloud, devices, and critical systems before attackers do.
Security teams do not want five dashboards telling five different stories. Tenable sells one view across cloud, identity, apps, and operational technology, which cuts the mess. That matters because revenue hit $999 million in 2025, up 11.0%, and gross margin was 77.9%, which means the software is cheap to deliver once your team is inside.
How they make money
$999M
annual revenue · their business grew +11.0% last year
vulnerability management
$450M
+8.0%
exposure management platform
$250M
+20.0%
cloud security
$150M
+18.0%
ot security
$100M
+12.0%
identity and other security products
$49M
+10.0%
The products that matter
finds and prioritizes cyber exposure
Exposure Management Platform
$999M revenue · +11% growth
it's the entire business. all $999M of annual revenue runs through this platform, so you are buying product depth, sales execution, and customer stickiness in one package.
100% of revenue
Key numbers
15.5x
earnings multiple
You are paying a market-like multiple for a cyber company projected to grow sales 16.0%, which is the whole reason this stock is interesting.
$38
18-month target
That sits $14.05 above the current $23.95 price, or 58.7% upside if execution holds.
0.9%
operating margin
The company still loses money on operations. Plain English: great software economics have not fully reached the income statement yet.
28.5%
return on capital
Return on capital → profit generated from invested money → so what: Tenable turns investment into earnings far better than an average software struggler.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 30 / 100
- long-term debt $355M (11% of capital)
- net profit margin 21.0% — keeps 21 cents of every dollar in revenue
- return on equity 36% — $0.36 profit for every $1 investors have put in
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in TENB 3 years ago → it's now worth $6,350.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Tenable posted EPS of $0.48, beating the $0.43 estimate by 11.63%.
Revenue reached $739 million in the latest reported quarter, up 193% vs. prior year. Gross margin stayed high at 77.9%, which means the issue is operating leverage, not product economics.
$739M
revenue
$0.48
eps
77.9%
gross margin
the number that mattered
The 77.9% gross margin matters most because it says the software model works; management just needs operating costs to stop eating the advantage.
-
tenable holdings has delivered excellent top-line results.
-
revenues have risen, thanks to a jump in the number of new enterprise platform customers.in the most recent quarter, tenable had a major customer win with a national electric utility provider in the emea (europe, middle east, and africa) region.
-
this organization selected tenable as its partner for exposure management.exposure management is the process of identifying, assessing, and mitigating risks associated with a company’s digital assets.
-
tenable is helping the customer to eliminate data silos and protect critical infrastructure.
-
the top line probably expanded 10%, to $990 million, in 2025.
source: company earnings report, 2026
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What could go wrong
the #1 risk is a one-platform growth story losing credibility. when 100% of your $999M revenue comes from one platform, any slowdown stops being a segment issue and becomes the whole story.
med
single-platform concentration
all $999M of annual revenue comes from the Exposure Management Platform. focus is nice. concentration is less nice when customers pause spending or competitors get more persuasive.
100% of revenue is exposed to the success or failure of one product family.
med
profitability whiplash
the full year showed 26.0% operating margin and 18.9% net margin, but the latest quarter posted a -3.6% margin and just $0.02 EPS. that's not the profile of a story the market fully trusts.
if quarterly margins stay negative, the stock's 15.5x trailing p/e can stay cheap for longer than you want.
med
strategic update risk
the may 21, 2026 investor day matters because management is asking investors to believe in the next phase of the platform and the ai angle. high expectations with thin proof is a dangerous combination.
the stock already trades near the low end of its $24–$45 range, so another vague update would likely keep sentiment stuck.
put the risks together and the picture is simple: 100% of revenue sits in one platform, the latest quarter showed a -3.6% margin, and the next strategic update needs to rebuild trust rather than just buy time.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
investor day on may 21, 2026
this is where management needs to turn the ai and platform narrative into something measurable. for a stock at $23.95, words alone will not do much.
metric
quarterly margin recovery
full-year operating margin was 26.0%, but the latest quarter was -3.6%. that gap is the first thing you should be watching.
trend
institutional buying streak
institutions were net buyers for three straight quarters, with 171 buyers versus 117 sellers in 3q2025. if that reverses, pay attention.
risk
one-platform dependence
all $999M of revenue comes from one platform. if growth drops below the recent 11% pace, the concentration risk gets harder to ignore.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think this could lag from here unless execution improves.
risk profile
average
stability score 3 — not especially safe, not unusually dangerous. middle-of-the-road risk.
chart momentum
average
technical score 3 — the chart is not rescuing the story or breaking it.
earnings predictability
45 / 100
earnings are harder to model here than they look at first glance. the recent quarter explains why.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 171 buyers vs. 117 sellers in 3q2025. total institutional holdings: 0.1B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$21
$54
$24
current price
$38
target midpoint · +59% from current · 3-5yr high: $55 (+130% · 23% ann'l return)
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