Revenue growth has steadily declined from 15.5% in 2023Q4 to 9.6% in 2026Q1, while operating margins remain thin at 4.3% despite consistent 78.4% gross margins.
| Sales/Revenue | 1.02B | 999.4M | 900.02M | 798.71M | 683.19M | 541.13M | 440.22M | 354.59M | 267.36M | 187.73M | 124.37M |
| Revenue Growth % | 10.74% | 11.04% | 12.68% | 16.91% | 26.25% | 22.92% | 24.15% | 32.62% | 42.42% | 50.94% | - |
| Cost of Goods Sold | 223.15M | 218.94M | 199.67M | 183.58M | 154.79M | 106.4M | 77.55M | 60.82M | 43.17M | 25.59M | 14.22M |
| COGS % of Revenue | - | 21.91% | 22.18% | 22.98% | 22.66% | 19.66% | 17.62% | 17.15% | 16.15% | 13.63% | 11.43% |
| Gross Profit | 799.18M | 780.47M | 700.35M | 615.13M | 528.4M | 434.73M | 362.67M | 293.77M | 224.19M | 162.14M | 110.15M |
| Gross Margin % | 78.17% | 78.09% | 77.82% | 77.02% | 77.34% | 80.34% | 82.38% | 82.85% | 83.85% | 86.37% | 88.57% |
| Gross Profit Growth % | - | 11.44% | 13.85% | 16.41% | 21.55% | 19.87% | 23.45% | 31.03% | 38.27% | 47.2% | - |
| Operating Expenses | 769.07M | 779.27M | 707.21M | 667.29M | 596.22M | 476.5M | 399.1M | 384.57M | 296.77M | 202.9M | 145.99M |
| OpEx % of Revenue | - | 77.97% | 78.58% | 83.55% | 87.27% | 88.06% | 90.66% | 108.46% | 111% | 108.08% | 117.38% |
| Selling, General & Admin | 550.12M | 562.85M | 519.51M | 509.63M | 452.66M | 360.07M | 297.41M | 297.5M | 220.08M | 145.23M | 105.9M |
| SG&A % of Revenue | - | 56.32% | 57.72% | 63.81% | 66.26% | 66.54% | 67.56% | 83.9% | 82.31% | 77.36% | 85.15% |
| Research & Development | 226.21M | 223.67M | 181.62M | 153.16M | 143.56M | 116.43M | 101.69M | 87.06M | 76.7M | 57.67M | 40.09M |
| R&D % of Revenue | - | 22.38% | 20.18% | 19.18% | 21.01% | 21.52% | 23.1% | 24.55% | 28.69% | 30.72% | 32.23% |
| Other Operating Expenses | -1000K | -7.26M | 6.07M | 4.5M | 0 | 0 | 0 | -680K | 1.42M | -91K | -532K |
| Operating Income | 30.13M | 1.2M | -6.86M | -52.16M | -67.81M | -41.77M | -36.43M | -90.8M | -72.58M | -40.76M | -35.83M |
| Operating Margin % | 2.95% | 0.12% | -0.76% | -6.53% | -9.93% | -7.72% | -8.28% | -25.61% | -27.15% | -21.71% | -28.81% |
| Operating Income Growth % | - | 117.52% | 86.86% | 23.08% | -62.36% | -14.64% | 59.88% | -25.1% | -78.07% | -13.75% | - |
| EBITDA | 72.45M | 43.16M | 26.35M | -25.05M | -45.62M | -25.6M | -25.8M | -83.92M | -66.39M | -36.07M | -32.77M |
| EBITDA Margin % | 7.09% | 4.32% | 2.93% | -3.14% | -6.68% | -4.73% | -5.86% | -23.67% | -24.83% | -19.21% | -26.35% |
| EBITDA Growth % | 277.49% | 63.76% | 205.19% | 45.09% | -78.22% | 0.78% | 69.26% | -26.41% | -84.07% | -10.05% | - |
| D&A (Non-Cash Add-back) | 42.33M | 41.95M | 33.21M | 27.11M | 22.19M | 16.17M | 10.63M | 6.88M | 6.19M | 4.69M | 3.06M |
| EBIT | 71.5M | 5.49M | 13.03M | -36.06M | -66.29M | -43.73M | -36.58M | -90.8M | -72.58M | -40.76M | -35.83M |
| Net Interest Income | -56.2M | -12.43M | -8.6M | -6.64M | -12.72M | -6.9M | 1.24M | 5.83M | 2.35M | -75K | 0 |
| Interest Income | 14.11M | 15.99M | 23.32M | 24.7M | 6.28M | 606K | 1.74M | 5.83M | 2.35M | 0 | 0 |
| Interest Expense | 70.31M | 28.42M | 31.92M | 31.34M | 19M | 7.5M | 496K | 0 | 0 | 75K | 0 |
| Other Income/Expense | -28.65M | -24.13M | -12.03M | -15.24M | -17.47M | -8.86M | -641K | 5.15M | 1.42M | -91K | -532K |
| Pretax Income | 1.48M | -22.93M | -18.89M | -67.4M | -85.29M | -50.63M | -37.07M | -85.65M | -71.16M | -40.85M | -36.37M |
| Pretax Margin % | 0.14% | -2.29% | -2.1% | -8.44% | -12.48% | -9.36% | -8.42% | -24.15% | -26.61% | -21.76% | -29.24% |
| Income Tax | 13.24M | 13.19M | 17.41M | 10.88M | 6.93M | -3.95M | 5.66M | 13.36M | 2.36M | 171K | 843K |
| Effective Tax Rate % | 897.9% | -57.49% | -92.21% | -16.15% | -8.13% | 7.81% | -15.26% | -15.6% | -3.32% | -0.42% | -2.32% |
| Net Income | -11.77M | -36.12M | -36.3M | -78.28M | -92.22M | -46.68M | -42.73M | -99.01M | -73.52M | -41.02M | -37.21M |
| Net Margin % | -1.15% | -3.61% | -4.03% | -9.8% | -13.5% | -8.63% | -9.71% | -27.92% | -27.5% | -21.85% | -29.92% |
| Net Income Growth % | 73.76% | 0.5% | 53.63% | 15.11% | -97.57% | -9.23% | 56.84% | -34.67% | -79.22% | -10.25% | - |
| Net Income (Continuing) | -11.77M | -36.12M | -36.3M | -78.28M | -92.22M | -46.68M | -42.73M | -99.01M | -73.52M | -41.02M | -37.21M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.10 | -0.30 | -0.31 | -0.68 | -0.83 | -0.44 | -0.42 | -1.03 | -1.37 | -0.52 | -0.47 |
| EPS Growth % | 74.29% | 3.23% | 54.41% | 18.07% | -88.64% | -4.76% | 59.22% | 24.82% | -163.46% | -10.64% | - |
| EPS (Basic) | - | -0.30 | -0.31 | -0.68 | -0.83 | -0.44 | -0.42 | -1.03 | -1.37 | -0.52 | -0.47 |
| Diluted Shares Outstanding | 117.69M | 120.12M | 118.79M | 115.41M | 111.32M | 106.39M | 101.01M | 96.01M | 53.67M | 78.88M | 78.88M |
| Basic Shares Outstanding | 115.9M | 120.12M | 118.79M | 115.41M | 111.32M | 106.39M | 101.01M | 96.01M | 53.59M | 78.88M | 78.88M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Platform consolidation and budget pressure
As reported in recent financial statements, Tenable's year-over-year revenue growth has steadily decelerated from 15.5% in 2023Q4 to 9.6% by 2026Q1, indicating that the company is transitioning into a more mature phase of its lifecycle as market penetration for core vulnerability scanning reaches saturation levels.
The consistent decline in top-line expansion suggests that the firm is struggling to maintain high-growth momentum amidst a tightening enterprise security budget environment. Investors should monitor whether the shift toward the Tenable One platform can successfully re-accelerate growth or if the current trajectory reflects a permanent shift toward lower-growth, utility-like demand.
Based on the provided income statement data, Tenable has maintained a consistent gross margin profile hovering near 78%, which reflects the inherent scalability of its software-as-a-service model despite the competitive pressures inherent in the infrastructure security market compared to higher-margin legacy peers like Check Point.
While the 78% margin is robust, it remains structurally lower than pure-play security vendors with more consolidated architectures, suggesting that the cost of supporting diverse deployment environments remains a persistent drag. This stability implies that Tenable possesses sufficient pricing power to offset inflationary cloud compute costs, though it lacks the margin expansion potential seen in more mature, less R&D-intensive software models.
According to the quarterly income statement, Tenable's operating income has fluctuated significantly, with the company only recently achieving a modest 4.3% operating margin in 2026Q1, highlighting the difficulty of scaling profitability while maintaining heavy investment in sales and marketing to defend its market position.
The data suggests that the company has historically prioritized top-line growth over operational efficiency, as evidenced by the high SG&A-to-revenue ratio. Future margin expansion appears contingent on the company's ability to leverage its existing customer base for automated upsells, thereby reducing the incremental cost of acquiring new revenue.
Analysis of the reported figures reveals that Tenable consistently issues significant stock-based compensation, often exceeding $40 million per quarter, which frequently masks the underlying GAAP net income volatility and suggests that the company's path to sustainable, non-dilutive profitability remains highly speculative for long-term shareholders.
The discrepancy between GAAP net income and the high levels of SBC indicates that the company's reported earnings are heavily influenced by non-cash accounting adjustments. Investors should be cautious, as this reliance on equity-based incentives may continue to dilute shareholder value even if the company achieves nominal GAAP profitability in future periods.
As noted in recent industry trends, the consolidation of security budgets into integrated platforms like Microsoft Defender poses a significant threat to Tenable's standalone vulnerability management model, potentially forcing the company to lower prices or increase marketing spend to maintain its current market share and growth trajectory.
The risk of 'good enough' security solutions from hyperscalers may undermine Tenable's value proposition, particularly if customers prioritize vendor consolidation over best-of-breed technical superiority. This warrants further investigation into whether the Tenable One platform can provide sufficient differentiation to prevent a long-term erosion of its pricing power and operating margins.
Quick answers to the most common questions about buying TENB stock.
For fiscal year 2025, Tenable Holdings, Inc. (TENB) reported total revenue of $999.4M. This represents a 703.6% increase compared to $124.4M in 2016.
Tenable Holdings, Inc. (TENB) reported a net loss of $36.1M for the fiscal year ending 2025.
Tenable Holdings, Inc. (TENB) reported an operating income of $1.2M, resulting in an operating profit margin of 0.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Tenable Holdings, Inc. (TENB) generated $780.5M in gross profit for the year, representing a gross profit margin of 78.1%. This demonstrates the company's core pricing power and production efficiency.