Tenable’s third quarter was marked by strong engagement with its exposure management platform, Tenable One, and a positive market reaction to the results. Management credited the quarter’s performance to expanding adoption of Tenable One, which accounted for a significant portion of new business, as well as strength in new enterprise customer additions. CEO Stephen Vintz highlighted that 437 new enterprise platform customers were added, and approximately 40% of new business came from exposure solutions. Management also pointed to sustained investment in research and development, particularly around AI-driven security, as key to maintaining product differentiation.
Is now the time to buy TENB? Find out in our full research report (it’s free for active Edge members).
Tenable (TENB) Q3 CY2025 Highlights:
- Revenue: $252.4 million vs analyst estimates of $247.3 million (11.2% year-on-year growth, 2.1% beat)
- Adjusted EPS: $0.42 vs analyst estimates of $0.37 (13.4% beat)
- Adjusted Operating Income: $58.91 million vs analyst estimates of $53.2 million (23.3% margin, 10.7% beat)
- Revenue Guidance for Q4 CY2025 is $251.1 million at the midpoint, roughly in line with what analysts were expecting
- Management raised its full-year Adjusted EPS guidance to $1.53 at the midpoint, a 2.3% increase
- Operating Margin: 2.8%, up from -0.9% in the same quarter last year
- Annual Recurring Revenue: $1.17 billion vs analyst estimates of $1.38 billion (19.5% year-on-year growth, 15.1% miss)
- Billings: $265.1 million at quarter end, up 6.6% year on year
- Market Capitalization: $3.37 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Tenable’s Q3 Earnings Call
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Saket Kalia (Barclays) asked about Tenable’s performance in the U.S. federal sector and potential risks from government shutdowns; CEO Stephen Vintz replied that federal results were in line with expectations and that past experience suggests limited exposure in future quarters.
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Brian Essex (JPMorgan) questioned the deceleration implied in fourth quarter revenue guidance; CFO Matthew Brown responded that renewed visibility and strong pipelines support the outlook, with minimal exposure to federal sector seasonality.
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Meta Marshall (Morgan Stanley) inquired about Tenable’s operational technology (OT) strategy and R&D investments; Co-CEO Mark Thurmond explained that demand for unified IT/OT solutions is rising and that R&D spending is focused on integration and AI capabilities.
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Jonathan Ho (William Blair) asked about the percentage of customers using Tenable One and upsell potential; CEO Stephen Vintz disclosed that over 3,000 enterprise customers are on Tenable One, representing ongoing expansion opportunities.
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Joseph Gallo (Jefferies) sought clarity on exposure management’s budget prioritization among customers; Co-CEO Mark Thurmond noted that exposure management is now a recognized category with dedicated budgets, reflecting strong momentum in both customer and partner adoption.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace of Tenable One adoption and upsell activity across the customer base, (2) the impact of new AI-powered features and third-party integrations on deal sizes and customer retention, and (3) progress in expanding into critical infrastructure and operational technology markets. Continued investment in R&D and execution on platform enhancements will also be important signposts for sustained growth.
Tenable currently trades at $28.20, down from $28.63 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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