One-glance verdict
Undervalued
$92.30 our estimate vs market $34.24
Wall Street consensus: $35.35 (-61.7% lower than our fair-value estimate)
63% below our estimate, below the bear case
Fundamentals snapshot
Tenable Holdings, Inc.
TENB · NMS · Technology · Software - Infrastructure
Current price
$34.24
52-week range
$15.73 - $43.67
Market cap
$3.77B
Balance sheet
Distressed
-0.21x Concerning
Net debt $123.35M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.4% last year.
- Reward Returns 2.5% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 6/10 years.
- Risk Insider ownership is only 1.5% (peer median: 1.8%).
What this company does
Tenable Holdings, Inc.
Tenable is a cybersecurity company that sells software to help other businesses find weak spots in their computer systems before hackers can. It makes most of its money from subscriptions to its software, which creates a stable and predictable flow of sales known as recurring revenue (income that is likely to continue, much like a Netflix subscription). This matters because as cyber threats increase, more companies need Tenable's ongoing protection to keep their digital information and operations safe.
How the company got here
Tenable's story begins with a free tool called Nessus, created in 1998 by a then 17-year-old Renaud Deraison to help people find security weaknesses in their computer systems. In 2002, Deraison co-founded Tenable to build a business around this popular scanner, focusing on what's known as vulnerability management (the process of finding and fixing digital weak spots). A major turning point was its 2018 initial public offering (IPO), which is when a private company first sells shares of stock to the public, providing money to grow. Since then, Tenable has used acquisitions (buying other companies) to expand from just scanning computers to managing a much broader range of security risks, including those in cloud computing and industrial systems.
What it actually does
Tenable provides cybersecurity software that acts like a security guard for a company's entire digital presence. It scans everything connected to a company's network—from laptops and servers to cloud services and specialized industrial equipment—to find vulnerabilities (weak spots that hackers could exploit). Think of it as a continuous inspection that finds unlocked doors and windows in a building before a burglar does. The software then helps companies prioritize which problems to fix first based on how serious they are, preventing cyberattacks before they happen.
Exposure Management Platform
This is the company's main and unifying business, which it calls 'exposure management.' Instead of selling many separate tools, Tenable offers an all-in-one platform called Tenable One that gives organizations a single view of all their potential security risks across different areas like traditional IT, cloud services, and employee identity systems. Customers, typically large businesses and government agencies, pay a recurring subscription fee to access this platform and its constantly updated threat data. This subscription model provides Tenable with predictable recurring revenue (income that is likely to continue in the future) and is the primary way the company makes money.
What management is betting on now
Management's main focus is on convincing more customers to adopt its all-in-one Tenable One platform instead of just buying individual scanning tools. This strategy aims to secure larger, more strategic deals with companies who want to simplify their security by using fewer vendors. The company is also investing heavily in artificial intelligence (AI) to automatically identify and help fix security risks, especially new ones created as businesses adopt more AI technologies. Finally, Tenable is focused on balancing growth with profitability (making more money than it spends), aiming to become more efficient as the company matures.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$53.87M
FY2024 Q4
$78.80M
FY2025 Q1
$80.85M
FY2025 Q2
$38.12M
FY2025 Q3
$52.98M
FY2025 Q4
$82.70M
FY2026 Q1
$85.38M
FY2026 Q2
$43.34M
Revenue
$268.51M
Net income
$3.81M
Diluted EPS
0.03
Operating cash flow
$44.72M
Free cash flow
$43.34M
Fetching…
Sources
Revenue
$262.06M
Net income
$1.41M
Diluted EPS
0.01
Operating cash flow
$87.97M
Free cash flow
$85.38M
Fetching…
Sources
Revenue
$260.53M
Net income
$-737.00K
Diluted EPS
-0.01
Operating cash flow
$83.03M
Free cash flow
$82.70M
Fetching…
Sources
Revenue
$252.44M
Net income
$2.26M
Diluted EPS
0.02
Operating cash flow
$53.85M
Free cash flow
$52.98M
Fetching…
Sources
Revenue
$247.29M
Net income
$-14.71M
Diluted EPS
-0.12
Operating cash flow
$42.46M
Free cash flow
$38.12M
Fetching…
Sources
Revenue
$239.14M
Net income
$-22.93M
Diluted EPS
-0.19
Operating cash flow
$87.41M
Free cash flow
$80.85M
Fetching…
Sources
Revenue
$235.73M
Net income
$1.87M
Diluted EPS
0.01
Operating cash flow
$81.12M
Free cash flow
$78.80M
Fetching…
Sources
Revenue
$227.09M
Net income
$-9.21M
Diluted EPS
-0.08
Operating cash flow
$54.61M
Free cash flow
$53.87M
Fetching…
Sources
Is it cheap or expensive?
Fair value $92.30 vs current price $34.24
Wall Street consensus is the average analyst price target: $35.35 (-61.7% lower than our fair-value estimate).
Our most-likely fair value is $92.30 a share — about 169.6% above today's price of $34.24, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $123.4M. Interest coverage -0.2x.
Net debt
$123.35M
Interest coverage
-0.21x
Tenable Holdings, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
TENB
BASELINE
Tenable Holdings, Inc.
Total debt $421.56M Interest coverage -0.21x This is the baseline the peer rows are being compared against.
Total debt $961.65M Interest coverage 1.11x This peer still has a real interest-payment cushion, while TENB does not.
Total debt $528.37M Interest coverage -22.31x Neither company has much profit cushion over interest right now.
Total debt $0.00 Interest coverage -1,807.27x Neither company has much profit cushion over interest right now.
What you should know
The case for and against TENB
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.4% last year.
-
Returns 2.5% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
-
Insider ownership is only 1.5% (peer median: 1.8%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
570.67x
Forward P/E
15.67x
P/B
19.06x
P/S
3.61x
EV/EBITDA
75.04x
PEG ratio
1.21x
Profitability
How much profit each dollar creates
Gross margin
78.1%
Operating margin
4.8%
Net margin
0.6%
ROE
2.5%
ROA
2.0%
Health
Liquidity and balance-sheet strength
Debt / equity
2.12x
Current ratio
0.79x
Quick ratio
0.65x
Total debt
$421.56M
Total cash
$298.21M
Growth
How the business has been compounding
Revenue TTM
$1.04B
Revenue 5Y CAGR
16.6%
EPS TTM
0.06
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$269.57M
Free CF TTM
$254.65M
FCF margin
24.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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