One-glance verdict
Undervalued
$86.11 our estimate vs market $37.20
Wall Street consensus: $35.50 (-58.8% lower than our fair-value estimate)
57% below our estimate, below the bear case
Fundamentals snapshot
Tenable Holdings, Inc.
TENB · NMS · Technology · Software - Infrastructure
Current price
$37.20
52-week range
$15.73 - $43.67
Market cap
$4.10B
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: 2.2%).
What this company does
Tenable Holdings, Inc.
Tenable Holdings sells software that helps companies find and fix cybersecurity weaknesses across all their technology, including new AI tools, which is important because protecting data is a top priority for businesses. Their main money comes from customers paying over time for their software subscriptions, a model often referred to as recurring revenue (money that comes in predictably, like a monthly bill). This subscription approach means Tenable can plan its business better because they know how much money to expect from existing customers.
How the company got here
Tenable Holdings, Inc. was founded in 2002 by Ron Gula, Jack Huffard, and Renaud Deraison, with roots in the Nessus vulnerability scanner software created by Deraison in 1998. [1] The company, initially known as Tenable Network Security, Inc., focused on providing vulnerability assessment solutions. A significant turning point was in 2005 when Nessus became proprietary software, moving away from its open-source origins to generate revenue. [1] Tenable has since expanded its offerings beyond basic vulnerability scanning, evolving into a broader cyber exposure management platform. The company went public in 2018, marking a new phase of growth and strategic acquisitions to broaden its capabilities in areas like cloud security and operational technology (OT) security. [4, 6]
What it actually does
Tenable provides cybersecurity solutions that help organizations identify, assess, and reduce their cyber risks. [14] Think of it like a digital security guard for businesses. Instead of protecting a physical building, Tenable's software scans a company's computer systems, networks, and cloud environments to find weaknesses or "vulnerabilities" that hackers could exploit. [11] It then helps businesses understand which of these weaknesses are the most dangerous and how to fix them, essentially giving them a clear picture of their overall "cyber exposure." [11, 15]
Tenable One Exposure Management Platform
This is Tenable's flagship offering, designed to give businesses a unified view of their entire digital footprint and the risks associated with it. [7, 8, 16] It's like a central dashboard that pulls together information from all of Tenable's other tools to show a company all its potential security weak spots, whether they are in its traditional computer systems (IT), its cloud services, or even its operational technology (like the systems that run factories). [8, 11, 16] The platform helps businesses prioritize which security issues to fix first based on how much risk they pose to the business. [11] This segment is a significant focus for Tenable, as it aims to consolidate various security needs into one comprehensive solution. [12, 16]
Tenable Vulnerability Management
This is one of Tenable's core offerings and a foundational part of its business. [1, 6] It focuses on identifying and assessing security weaknesses, or vulnerabilities, within an organization's IT infrastructure. [11] Think of it as a detailed inspection of a company's digital assets to find any unlocked doors or broken windows that could allow unauthorized access. [11] This service is often delivered as a cloud-based software (SaaS - Software as a Service), meaning customers access it over the internet. [2, 3] It provides a risk-based view, helping businesses understand which vulnerabilities are most critical to address. [2, 11]
Tenable Cloud Security
As more companies move their operations to the cloud (like using services from Amazon Web Services or Microsoft Azure), they create new security challenges. [11] Tenable Cloud Security is designed to help these companies secure their cloud environments. [3, 11] It specifically looks for misconfigurations (settings that are not secure), risky permissions given to users, and vulnerabilities within cloud applications. [11] This helps businesses close security gaps that arise from using cloud services, ensuring their data and systems in the cloud are protected. [11]
Tenable OT Security
This segment focuses on securing Operational Technology (OT) environments, which are systems that control physical processes, often found in industries like manufacturing, energy, and utilities. [3, 11] These are the systems that might run a power grid or a factory assembly line. [3] Tenable OT Security provides threat detection, helps track all the devices in these critical environments, manages their vulnerabilities, and controls their configurations to prevent cyberattacks that could disrupt physical operations. [3, 11]
What management is betting on now
Tenable's management is focused on expanding its market leadership in cyber exposure management by scaling its business with its AI-powered Tenable One platform. [11, 15] They aim to increase the adoption of this platform among their existing customer base, encouraging them to move from using individual products to the integrated solution. [12, 16] A key strategy is to balance growth with improving profitability, meaning they want to grow the company's revenue while also making the business more efficient and profitable. [6, 12] They are also investing in areas like AI and OT security, recognizing these as significant growth opportunities, and may pursue smaller acquisitions to enhance their product capabilities. [12]
Price history
How the share price has moved
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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 $86.11 vs current price $37.20
Wall Street consensus is the average analyst price target: $35.50 (-58.8% lower than our fair-value estimate).
Our most-likely fair value is $86.11 a share — about 131.5% above today's price of $37.20, 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 $820.18M Interest coverage -10.47x 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: 2.2%).
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)
620.00x
Forward P/E
16.95x
P/B
20.71x
P/S
3.93x
EV/EBITDA
78.58x
PEG ratio
1.27x
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
0.0%
Payout ratio
0.0%
Last ex-div date
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