Tenable Announces Third Quarter 2026 Financial Results
Tenable Holdings, Inc. (TENB) filed an SEC Form 8-K — Results of Operations and Financial Condition. Tenable Announces Third Quarter 2026 Financial Results Tenable Exceeds Q3 Revenue and Profit Expectations, Raises Full-Year Outlook • Revenue of $276.4 million, year-over-year growth of 9.5% • GAAP operating margin of 6.0%; Non-GAAP operating margin of 27.1%, year-over-year incre
How this was made
The 30-second read
Why it matters
The earnings beat and raised full‑year outlook provide fresh, material data that can influence trading decisions.
Market read
The new guidance is likely to drive short‑term buying interest in TENB and may lift the cybersecurity sector.
What to watch
Potential headwinds from macro‑economic slowdown could temper growth despite the guidance.
Tenable Exceeds Q3 Revenue and Profit Expectations, Raises Full-Year Outlook
Revenue increased 9.5% year-over-year, GAAP operating income more than doubled to $16.7 million, non-GAAP operating margin expanded to 27.1% from 23.3%, and the company raised full-year outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30GAAP | $276.4M | – | 9.5% |
| Revenue, nine months ended September 30GAAP | $807.0M | – | – |
| Gross profit, three months ended September 30GAAP | $215.1M | – | – |
| Gross margin, three months ended September 30GAAP | 77.8 % | – | – |
| Non-GAAP gross profit, three months ended September 30non-GAAP | $225.2M | – | – |
| Non-GAAP gross margin, three months ended September 30non-GAAP | 81.5 % | – | – |
| Income from operations, three months ended September 30GAAP | $16.71M | – | – |
| Operating margin, three months ended September 30GAAP | 6.0 % | – | – |
| Non-GAAP income from operations, three months ended September 30non-GAAP | $74.89M | – | – |
| Non-GAAP operating margin, three months ended September 30non-GAAP | 27.1 % | – | 380 basis points |
| Net income, three months ended September 30GAAP | $11.30M | – | – |
| Diluted net earnings per share, three months ended September 30GAAP | $0.10 | – | – |
| Non-GAAP net income, three months ended September 30non-GAAP | $72.91M | – | – |
| Non-GAAP diluted earnings per share, three months ended September 30non-GAAP | $0.63 | – | – |
| Net cash provided by operating activities, three months ended September 30GAAP | $72.52M | – | – |
| Free cash flow, three months ended September 30non-GAAP | $64.22M | – | – |
| Unlevered free cash flow, three months ended September 30non-GAAP | $69.40M | – | – |
| Revenue, nine months ended September 30GAAP | $807.0M | – | – |
| Gross profit, nine months ended September 30GAAP | $628.6M | – | – |
| Gross margin, nine months ended September 30GAAP | 77.9 % | – | – |
| Income (loss) from operations, nine months ended September 30GAAP | $37.84M | – | – |
| Non-GAAP income from operations, nine months ended September 30non-GAAP | $202.9M | – | – |
| Net income (loss), nine months ended September 30GAAP | $16.52M | – | – |
| Diluted net earnings (loss) per share, nine months ended September 30GAAP | $0.14 | – | – |
| Non-GAAP net income, nine months ended September 30non-GAAP | $186.4M | – | – |
| Non-GAAP diluted earnings per share, nine months ended September 30non-GAAP | $1.61 | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | $205.2M | – | – |
| Free cash flow, nine months ended September 30non-GAAP | $186.0M | – | – |
| Unlevered free cash flow, nine months ended September 30non-GAAP | $203.3M | – | – |
| Remaining performance obligationsother | $1.06B | – | 14.4 % |
| Remaining performance obligations, short-termother | $747.2M | – | 11.7 % |
| Remaining performance obligations, long-termother | $315.8M | – | 21.5 % |
| Dollar-based net expansion rateother | 107% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Subscription revenue, three months ended September 30Subscription arrangements for software and cloud-based solutions. | $254.6M | – | – |
| Perpetual license and maintenance revenue, three months ended September 30Perpetual licenses and associated maintenance. | $9.71M | – | – |
| Professional services and other revenue, three months ended September 30Professional services and other revenue. | $12.07M | – | – |
| Subscription revenue, nine months ended September 30Subscription arrangements for software and cloud-based solutions. | $746.0M | – | – |
| Perpetual license and maintenance revenue, nine months ended September 30Perpetual licenses and associated maintenance. | $29.74M | – | – |
| Professional services and other revenue, nine months ended September 30Professional services and other revenue. | $31.20M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth quarter of 2026 and year ending December 31, 2026 outlook
- RevenueFourth quarter of 2026: $277.0 million to $280.0 million; year ending December 31, 2026: $1.084 billion to $1.087 billion
- NoteFourth quarter of 2026 non-GAAP income from operations: $67.1 million to $70.1 million
- NoteYear ending December 31, 2026 non-GAAP income from operations: $270.0 million to $273.0 million
- NoteFourth quarter of 2026 non-GAAP net income: $63.6 million to $66.6 million, assuming interest expense of $1.9 million, interest income of $3.8 million and a provision for income taxes of $4.6 million
- NoteYear ending December 31, 2026 non-GAAP net income: $250.0 million to $253.0 million, assuming interest expense of $20.4 million, interest income of $11.8 million and a provision for income taxes of $8.7 million
- NoteFourth quarter of 2026 non-GAAP diluted earnings per share: $0.56 to $0.58
- NoteYear ending December 31, 2026 non-GAAP diluted earnings per share: $2.16 to $2.19
- NoteFourth quarter of 2026 diluted weighted average shares outstanding: 114.0 million
- NoteYear ending December 31, 2026 diluted weighted average shares outstanding: 115.5 million
- NoteYear ending December 31, 2026 unlevered free cash flow: $289.0 million to $295.0 million
- NoteFourth quarter of 2026 forecasted income from operations: $16.1 million to $19.1 million
- NoteYear ending December 31, 2026 forecasted income from operations: $54.0 million to $57.0 million
- NoteFourth quarter of 2026 forecasted net income: $10.8 million to $13.8 million
- NoteYear ending December 31, 2026 forecasted net income: $27.4 million to $30.4 million
- NoteFourth quarter of 2026 forecasted net earnings per share, diluted: $0.09 to $0.12
- NoteYear ending December 31, 2026 forecasted net earnings per share, diluted: $0.24 to $0.26
- NoteYear ending December 31, 2026 forecasted net cash provided by operating activities: $297.6 million to $303.6 million
- NoteYear ending December 31, 2026 forecasted free cash flow: $271.7 million to $277.7 million
Capital returns
- Repurchased 6.8 million shares of common stock for $223.8 million.
- Repurchased 5.3 million shares for $170.5 million in connection with the issuance of convertible senior notes.
- Purchase of treasury stock was $(454,038) for the nine months ended September 30, 2026.
What drove it
- Added 413 new enterprise platform customers and 39 net new six-figure customers.
- Customers increasingly expanded their relationship with Tenable One.
- Integrated Anthropic's Claude Mythos into the Tenable One Exposure Management Platform for Tenable One Adversary View.
- Launched CyberAgents Exchange and expanded Tenable Hexa AI with always-on capabilities.
- Recurring revenue represented 95% of revenue in the three months ended September 30, 2026.
Concerns
- GAAP gross margin was 77.8 %, compared to 77.5 %, while non-GAAP gross margin was 81.5 %, compared to 81.6 %.
- Perpetual license and maintenance revenue was $9,713 in the three months ended September 30, 2026, compared to $11,088 in the prior-year period.
- Interest expense was $(8,270) in the third quarter of 2026, compared to $(7,213) in the third quarter of 2025.
- Total stockholders’ (deficit) equity was $(26,472) at September 30, 2026.
What to watch
- Fourth-quarter revenue delivery against the guided range of $277.0 million to $280.0 million.
- Fourth-quarter non-GAAP operating income delivery against the guided range of $67.1 million to $70.1 million.
- Progress toward year-end unlevered free cash flow of $289.0 million to $295.0 million.
- Dollar-based net expansion rate following the increase to 107% from 106% in the second quarter of 2026.
- Adoption of Tenable One, Tenable One Adversary View, CyberAgents Exchange and expanded Tenable Hexa AI.
Balance sheet and cash flow
- Cash and cash equivalents were $317,401 at September 30, 2026, compared to $187,762 at December 31, 2025.
- Short-term investments were $177,860 at September 30, 2026, compared to $214,419 at December 31, 2025.
- Convertible senior notes, net were $779,016 at September 30, 2026.
- Term loan, net of issuance costs, was $354,209 at December 31, 2025 and was nil at September 30, 2026.
- The company closed an upsized $800 million convertible senior notes offering and a new $400 million secured revolving credit facility.
- Proceeds from issuance of convertible senior notes were $800,000 for the nine months ended September 30, 2026.
- Payments on term loan were $(360,000) for the nine months ended September 30, 2026.
- Deferred revenue was $685,375 current and $178,048 non-current at September 30, 2026.
- Total stockholders’ (deficit) equity was $(26,472) at September 30, 2026, compared to $326,376 at December 31, 2025.
Analysis
Tenable reported third-quarter revenue of $276.4 million, up 9.5% year-over-year. Subscription revenue was $254,600, versus $232,211 in the prior-year quarter, while perpetual license and maintenance revenue was $9,713, versus $11,088. Professional services and other revenue was $12,074, versus $9,141. Recurring revenue represented 95% of revenue, and remaining performance obligations rose 14.4% to $1,063,044, with long-term remaining performance obligations up 21.5% to $315,822. Dollar-based net expansion rate increased to 107% from 106% in the second quarter of 2026.
Profitability improved materially. GAAP income from operations was $16,709, compared with $7,136, and GAAP operating margin rose to 6.0 % from 2.8 %. Non-GAAP income from operations was $74,888, compared with $58,913, while non-GAAP operating margin increased 380 basis points to 27.1 %. GAAP net income was $11,299, compared with $2,260, and non-GAAP net income was $72,912, compared with $51,438. Gross-margin performance was comparatively stable, with GAAP gross margin at 77.8 % versus 77.5 % and non-GAAP gross margin at 81.5 % versus 81.6 %.
Cash generation strengthened in the quarter. Net cash provided by operating activities was $72,516, compared with $53,850, and unlevered free cash flow was $69,399, compared with $58,484. For the first nine months, operating cash flow was $205,203 and unlevered free cash flow was $203,319. The company held $317,401 of cash and cash equivalents and $177,860 of short-term investments at September 30, 2026. Its capital structure changed during the period through an $800,000 convertible senior notes issuance, $(360,000) of term-loan payments and $(454,038) of treasury-stock purchases for the nine months.
Capital return activity was substantial, with 6.8 million shares repurchased for $223.8 million during the quarter, including 5.3 million shares for $170.5 million in connection with the convertible senior notes issuance. Convertible senior notes, net were $779,016 at September 30, 2026, while total stockholders’ (deficit) equity was $(26,472). The company also established a new $400 million secured revolving credit facility.
The outlook calls for fourth-quarter revenue of $277.0 million to $280.0 million, non-GAAP operating income of $67.1 million to $70.1 million and non-GAAP diluted earnings per share of $0.56 to $0.58. Full-year revenue is guided to $1.084 billion to $1.087 billion, with non-GAAP operating income of $270.0 million to $273.0 million and unlevered free cash flow of $289.0 million to $295.0 million. Management attributed commercial momentum to expanding relationships with Tenable One and highlighted new AI-focused product initiatives.
Management, verbatim
We delivered an excellent third quarter, exceeding every one of our guided metrics.
Steve Vintz, Co-CEO of Tenable
As AI creates a structural shift in how organizations manage cyber exposure, security is becoming its own business function tied to business risk and growth, and we believe Tenable is uniquely positioned to lead in this new era.
Steve Vintz, Co-CEO of Tenable
Customers are moving from conversation to commitment, and this quarter that increasingly meant expanding their relationship with Tenable One.
Mark Thurmond, Co-CEO of Tenable
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparisons of actual results with prior guidance are unavailable.
- GAAP gross-margin guidance was not reported.
- Operating-expense guidance was not reported.
- Tax-rate guidance was not reported.
- Quarterly segment revenue percentage changes were not reported for subscription revenue, perpetual license and maintenance revenue, or professional services and other revenue.
- Prior-quarter revenue, profitability, cash flow and balance-sheet comparisons were not reported for most financial metrics.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Tenable Holdings, Inc. (NASDAQ: TENB) disclosed its third‑quarter 2026 financial results via an SEC Form 8‑K filing.
Ticker impact
Tenable reported Q3 2026 results beating expectations and raised its full-year outlook, providing fresh guidance.
likely upward pressure as the market prices in the raised outlook
The earnings beat and raised full-year guidance are new, material information for a mid‑cap cyber‑security firm.
Market effects
May boost sentiment for the broader cybersecurity sector.
U.S. tech investors could see a modest rally.
Limited to investors tracking cyber‑exposure management firms.
Counterpoint
If the raised outlook is already priced in, the stock could face a short‑term pullback.
Key entities
- companyTenable Holdings, Inc.
Cyber‑exposure management firm reporting Q3 results.
