Tenable — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue was $276.4 million, representing a 9.5% year-over-year increase compared to $252.4 million in the third quarter of 2025.
• GAAP income from operations was $16.7 million, up from $7.1 million in the third quarter of 2025.
• GAAP operating margin was 6.0%, an increase from 2.8% in the third quarter of 2025.
• Non-GAAP income from operations was $74.9 million, compared to $58.9 million in the third quarter of 2025.
• Non-GAAP operating margin was 27.1%, a 380 basis point increase from 23.3% in the third quarter of 2025.
• GAAP net income was $11.3 million, compared to $2.3 million in the third quarter of 2025.
• GAAP diluted earnings per share was $0.10, compared to $0.02 in the third quarter of 2025.
• Non-GAAP net income was $72.9 million, compared to $51.4 million in the third quarter of 2025.
• Non-GAAP diluted earnings per share was $0.63, compared to $0.42 in the third quarter of 2025.
• Net cash provided by operating activities was $72.5 million, compared to $53.9 million in the third quarter of 2025.
• Unlevered free cash flow was $69.4 million, compared to $58.5 million in the third quarter of 2025.
• Gross margin was 77.8% in the third quarter of 2026, compared to 77.5% in the third quarter of 2025.
• Non-GAAP gross margin was 81.5% in the third quarter of 2026, compared to 81.6% in the third quarter of 2025.
• Remaining performance obligations were $1,063.0 million at September 30, 2026, an 11.7% increase in short-term and 21.5% increase in long-term obligations compared to September 30, 2025.

Guidance and Future Outlook:

• Q4 2026 revenue is expected to be between $277.0 million and $280.0 million.
• Q4 2026 non-GAAP income from operations is expected to be between $67.1 million and $70.1 million.
• Q4 2026 non-GAAP net income is expected to be between $63.6 million and $66.6 million.
• Q4 2026 non-GAAP diluted earnings per share is expected to be between $0.56 and $0.58.
• Full-year 2026 revenue is expected to be between $1.084 billion and $1.087 billion.
• Full-year 2026 non-GAAP income from operations is expected to be between $270.0 million and $273.0 million.
• Full-year 2026 non-GAAP net income is expected to be between $250.0 million and $253.0 million.
• Full-year 2026 non-GAAP diluted earnings per share is expected to be between $2.16 and $2.19.
• Full-year 2026 unlevered free cash flow is expected to be between $289.0 million and $295.0 million.

Business Segments and Product Lines:

• Added 413 new enterprise platform customers and 39 net new six-figure customers.
• Dollar-based net expansion rate was 107%, compared to 106% in the second quarter of 2026.
• Integrated Anthropic's Claude Mythos into Tenable One Exposure Management Platform to power Tenable One Adversary View.
• Launched CyberAgents Exchange, an open-source, vendor-agnostic cybersecurity-native registry for AI agents, skills, MCP servers, and multi-agent playbooks.
• Expanded Tenable Hexa AI with always-on capabilities, introducing a coordinated fleet of AI agents for continuous exposure identification and remediation.
• Recurring revenue represented 95% of total revenue in the third quarter of 2026.

Market and Competitive Landscape:

• Ranked first in worldwide market share in the IDC Worldwide Device Vulnerability and Exposure Management Market Shares report for the eighth consecutive year.
• Recognized by Gartner as the "Company to Beat" for Preemptive Cybersecurity in AI-Powered Exposure Assessment.

Risks and Challenges:

• The press release includes standard forward-looking statement disclaimers noting that actual results may differ materially due to risks and uncertainties detailed in the company's Form 10-K, including competitive environment and rapidly changing market conditions.

Management Commentary and Tone:

• Co-CEO Steve Vint stated the company delivered an excellent third quarter, exceeding every guided metric, and believes Tenable is uniquely positioned to lead as AI creates a structural shift in how organizations manage cyber exposure.
• Co-CEO Mark Thurmond noted customers are moving from conversation to commitment, expanding their relationship with Tenable One, validating leadership in exposure management as the market expands to cover AI.

Other Key Points:

• Repurchased 6.8 million shares of common stock for $223.8 million, including 5.3 million shares for $170.5 million in connection with the issuance of convertible senior notes.
• Closed an upsized $800 million convertible senior notes offering.
• Established a new $400 million secured revolving credit facility.
• Joined the White House-led Project Watershed initiative to bolster U.S. water and wastewater systems from evolving cyber threats.
• Total liabilities were $1,799.5 million as of September 30, 2026, compared to $1,421.3 million as of December 31, 2025.
• Stockholders' equity was $(26.5) million as of September 30, 2026, compared to $326.4 million as of December 31, 2025.