Free cash flow remains volatile, with margins fluctuating significantly and a 2026Q1 share repurchase program of $130.2 million outpacing the company's $1.4 million in net income.
| Cash from Operations | 268.64M | 266.75M | 217.48M | 149.85M | 131.15M | 96.77M | 64.23M | -10.74M | -2.56M | -6.27M | -2.79M |
| Operating CF Margin % | - | 26.69% | 24.16% | 18.76% | 19.2% | 17.88% | 14.59% | -3.03% | -0.96% | -3.34% | -2.24% |
| Operating CF Growth % | 38.38% | 22.66% | 45.12% | 14.26% | 35.54% | 50.65% | 697.84% | -319.85% | 59.16% | -124.99% | - |
| Net Income | -11.77M | -36.12M | -36.3M | -78.28M | -92.22M | -46.68M | -42.73M | -99.01M | -73.52M | -41.02M | -37.21M |
| Depreciation & Amortization | 42.22M | 41.95M | 33.21M | 27.11M | 22.19M | 16.17M | 10.63M | 6.88M | 6.19M | 4.69M | 3.06M |
| Stock-Based Compensation | 135.26M | 0 | 163.51M | 145.33M | 120.63M | 79.41M | 59.57M | 41.61M | 22.88M | 7.76M | 2.53M |
| Deferred Taxes | 0 | 0 | 0 | 265K | -2.78M | -10.47M | 161K | 4.24M | 0 | -873K | 635K |
| Other Non-Cash Items | 42.63M | 194M | 3.34M | 475K | 5.5M | 3.92M | 1.07M | -784K | 533K | 125K | 953K |
| Working Capital Changes | 60.3M | 66.92M | 53.71M | 54.96M | 77.82M | 54.42M | 35.52M | 36.32M | 41.36M | 23.05M | 27.88M |
| Change in Receivables | -2.45M | -18.24M | -38.73M | -30.04M | -51.26M | -17.23M | -20.01M | -25.94M | -17.41M | -14.77M | -13.56M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.59M | 0 | 0 |
| Change in Payables | -6.4M | 12.15M | -8.26M | 7.07M | 409K | 24.33M | -5.28M | 4.24M | 294K | 1.92M | 825K |
| Cash from Investing | -54.66M | -174.58M | -41.43M | -212.62M | -128.04M | -391.59M | 4.08M | -113.05M | -123.22M | -2.75M | -7.85M |
| Capital Expenditures | -8.14M | -12.1M | -4.25M | -1.7M | -9.36M | -3.89M | -20.28M | -20.67M | -5.73M | -2.75M | -5.78M |
| CapEx % of Revenue | 0.8% | 1.21% | 0.47% | 0.21% | 1.37% | 0.72% | 4.61% | 5.83% | 2.14% | 1.47% | 4.64% |
| Acquisitions | -47.67M | -196.18M | -29.16M | -243.3M | -66.77M | -258.46M | -276K | -74.91M | 0 | 0 | -2.08M |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -5.74M | -3.62M | -2.94M | -7.05M | -9.79M | -2.67M | 0 | 0 | -117.49M | 0 | 0 |
| Cash from Financing | -308.25M | -234.09M | -79.4M | 1.25M | 23.32M | 397.65M | 36.4M | 34.16M | 264.75M | 2.09M | 1.36M |
| Debt Issued (Net) | -3.75M | -3.75M | -3.75M | -3.75M | -3.75M | 375M | 2M | -16K | 0 | -306K | 953K |
| Equity Issued (Net) | -299.73M | -228.37M | -99.98M | -14.93M | 0 | 0 | 34.75M | 34.18M | 268.46M | -385K | -85K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -317.69M | -247.47M | -99.98M | -14.93M | 0 | 0 | 0 | 0 | -75K | -385K | -85K |
| Other Financing | -4.77M | -1.98M | 24.33M | 19.93M | 27.07M | 22.65M | -346K | 0 | -3.71M | 2.78M | 495K |
| Net Change in Cash | -94.25M | -140.88M | 91.52M | -63.73M | 22.59M | 99.81M | 103.86M | -90.75M | 137.91M | -7M | -9.27M |
| Free Cash Flow | 263.18M | 254.65M | 213.23M | 141.1M | 112M | 90.2M | 43.95M | -31.42M | -8.29M | -9.02M | -8.56M |
| FCF Margin % | 25.74% | 25.48% | 23.69% | 17.67% | 16.39% | 16.67% | 9.98% | -8.86% | -3.1% | -4.81% | -6.88% |
| FCF Growth % | 9.19% | 19.42% | 51.12% | 25.98% | 24.17% | 105.22% | 239.9% | -278.9% | 8.08% | -5.37% | - |
| FCF per Share | 2.24 | 2.12 | 1.80 | 1.22 | 1.01 | 0.85 | 0.44 | -0.33 | -0.15 | -0.11 | -0.11 |
| FCF Conversion (FCF/Net Income) | -22.36x | -7.39x | -5.99x | -1.91x | -1.42x | -2.07x | -1.50x | 0.11x | 0.03x | 0.15x | 0.07x |
| Interest Paid | 13.71M | 0 | 30.98M | 34.32M | 16.05M | 4.98M | 335K | 0 | 111K | 79K | 6K |
| Taxes Paid | 6.77M | 0 | 15.18M | 8.98M | 10.58M | 6.48M | 5.73M | 0 | 1.21M | 642K | 307K |
Platform consolidation and budget pressure
Based on reported financial statements, Tenable's operating cash flow frequently decouples from net income, with the OCF/NI ratio exhibiting extreme volatility, including a -114.46 reading in 2025Q4, which suggests that GAAP earnings are currently poor indicators of the company's actual ability to generate cash from operations.
The persistent gap between net income and operating cash flow is largely driven by significant non-cash stock-based compensation and fluctuations in deferred revenue. Investors should monitor whether this divergence narrows as the company matures, as current reliance on accruals to bolster cash flow metrics may obscure underlying operational inefficiencies.
As indicated by quarterly data, Tenable has maintained a positive free cash flow trajectory, with margins peaking at 33.8% in 2025Q1, though the inconsistency of these figures suggests that cash generation remains sensitive to the timing of large enterprise contract renewals and deferred revenue recognition cycles.
While the company has successfully transitioned to positive free cash flow, the volatility in FCF margins warrants caution regarding the sustainability of these levels. The reliance on working capital swings to drive cash flow suggests that organic operational improvements have yet to fully decouple from contract-based timing benefits.
According to recent filings, working capital changes have been a primary contributor to operating cash flow, with a notable $44.4 million inflow in 2025Q1, highlighting the company's dependence on deferred revenue and timing of collections to maintain its liquidity position during periods of net income losses.
The reliance on working capital inflows suggests that Tenable is effectively utilizing its subscription model to pull cash forward, which may mask underlying margin pressure. If the rate of new contract signings decelerates, the company may face a significant headwind to its cash flow generation capabilities.
Based on the provided cash flow data, Tenable has prioritized share repurchases, utilizing $130.2 million in 2026Q1 alone, which appears to be a strategic effort to offset dilution from stock-based compensation despite the company's ongoing struggle to maintain consistent GAAP profitability across recent reporting periods.
The aggressive buyback activity, coupled with historical M&A spending, suggests a management team focused on managing equity dilution and inorganic growth. Investors should evaluate whether these capital deployment choices provide sufficient long-term return on investment compared to the potential benefits of reinvesting in core platform R&D.
Quick answers to the most common questions about buying TENB stock.
Tenable Holdings, Inc. (TENB) generated $266.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Tenable Holdings, Inc. (TENB) generated $254.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Tenable Holdings, Inc. (TENB) spent $12.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Tenable Holdings, Inc. (TENB) spent $247.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.