TENB — Tenable Holdings, Inc.

Tenable (TENB) Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: $262.1 million, up 9.6% year-over-year.
• Operating Margin: 24%, with non-GAAP income from operations at $61.9 million (23.6% of revenue).
• Earnings Per Share (EPS): Non-GAAP EPS of $0.47, a 30.6% increase from $0.36 in Q1 2025.
• Recurring Revenue: Maintained at 96%.
• New Customers: Added 406 new enterprise customers, a 12.5% increase year-over-year, including 43 new six-figure deals.
• Cash Flow: Generated $88.6 million in unlevered free cash flow (33.8% of revenue).
• Share Buyback: Repurchased 6.1 million shares for $130 million, with $207.6 million remaining on the buyback authorization.

2. Strategic Updates and Business Highlights

• Tenable One: 41% of new business came from Tenable One, an 8-point increase from the previous year, highlighting its growing adoption.
• Hexa AI: Introduced as an orchestration layer for automating remediation workflows, enhancing the platform's capabilities.
• Market Positioning: Emphasis on exposure management as critical in the evolving AI-driven threat landscape, with a focus on partnerships with AI model providers like Anthropic and OpenAI.
• New Pricing Model: Launched a flexible pricing structure to simplify procurement and encourage broader adoption of Tenable One across various asset types.

3. Forward Guidance and Outlook

• Q2 2026 Revenue Guidance: Expected to be between $263 million and $266 million, representing a year-over-year increase of 7% at the midpoint.
• Full Year 2026 Revenue Guidance: Raised to $1.068 billion to $1.078 billion, a 7.4% increase at the midpoint.
• Operating Income Guidance: Non-GAAP operating income for Q2 projected at $61 million to $64 million, and for the full year at $252 million to $262 million, reflecting a year-over-year increase of 210 basis points.

4. Bad News, Challenges, or Points of Concern

• Sales Capacity and Marketing Growth: Sales and marketing expenses grew less than 5% year-over-year, raising questions about the company's capacity to capitalize on emerging opportunities.
• Short-term Bookings Growth: Reported CCB growth of 0% this quarter, indicating potential challenges in converting heightened customer interest into immediate sales.
• Competitive Pressures: Concerns about the impact of AI models on the cybersecurity landscape and how they may affect traditional vulnerability management tools.

5. Notable Q&A Insights

• Customer Conversations: Increased urgency among customers regarding exposure management due to AI-driven vulnerabilities, but still a need for education on the implications of these changes.
• Sales Cycle Dynamics: While there is heightened interest, some sales cycles may extend as customers evaluate their needs in light of new AI threats.
• Budget Trends: Discussions around security budgets indicate potential increases as organizations recognize the urgency of addressing new vulnerabilities, but there are also concerns about the involvement of additional stakeholders potentially lengthening sales cycles.
• Hexa AI's Role: Positioned as a critical tool for automating remediation and enhancing operational efficiency, with plans for broader availability and integration into Tenable's offerings.

Overall, Tenable reported strong financial results and strategic advancements in its exposure management solutions, while also navigating challenges related to sales capacity and competitive pressures in a rapidly evolving cybersecurity landscape.