Tenable's Adjusted Operating Margin Climbs To 27.1% As Quarterly Sales Rise 9.5%
The cybersecurity software maker guided fourth-quarter revenue to $277.0 million to $280.0 million and bought back $223.8 million of stock.
Tenable, the Maryland cybersecurity software company, said Wednesday that third-quarter revenue rose 9.5% to $276.4 million and that it topped every metric it had guided for. The company's release headline also says it raised its full-year outlook.
Margins and cash flow improve
Tenable makes software that helps organizations find and fix security weaknesses across cloud, identity and other systems. Its adjusted operating margin, which strips out stock pay and other items, rose to 27.1% from 23.3% a year earlier. Adjusted earnings reached $0.63 per share versus $0.42.
Under standard accounting, net income climbed to $11.3 million from $2.3 million, or $0.10 per share versus $0.02. Operating income under that measure was $16.7 million, against $7.1 million a year ago.
Operating cash flow was $72.5 million versus $53.9 million. Remaining performance obligations, the value of contracted revenue yet to be recognized, stood at $1.06 billion at September 30, up 14.4% from a year earlier.
Co-CEO Steve Vintz said the company delivered an "excellent third quarter, exceeding every one of our guided metrics." The company also said it added 413 new enterprise platform customers and that its dollar-based net expansion rate was 107%, compared with 106% in the second quarter.
Buybacks and a new convertible
Tenable repurchased 6.8 million shares for $223.8 million in the quarter, including 5.3 million shares for $170.5 million tied to its convertible notes issuance. It closed an upsized $800 million convertible notes offering along with a new $400 million secured revolving credit facility.
The balance sheet shows $779.0 million of convertible notes where a $354.2 million term loan stood at the end of 2025. Total stockholders' equity was a deficit of $26.5 million at September 30, against positive equity of $326.4 million at year-end.
The outlook and the call
For the fourth quarter, Tenable expects revenue of $277.0 million to $280.0 million and adjusted earnings of $0.56 to $0.58 per share. For the full year it expects revenue of $1.084 billion to $1.087 billion and adjusted earnings of $2.16 to $2.19 per share.
The company hosts its earnings call at 4:30 p.m. Eastern on Wednesday.
Full-year unlevered free cash flow is guided to $289.0 million to $295.0 million.
Sources
- 8-K Filing — Tenable Holdings, Inc. (TENB) — SEC EDGAR
- Exhibit q32026financialresults-ear.htm — Tenable Holdings, Inc. 8-K exhibit — SEC EDGAR
- Tenable Announces Third Quarter 2026 Financial Results — globenewswire.com
