TENB — Tenable Holdings, Inc.

Tenable Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: $268.5 million, up 8.6% year-over-year.
• Recurring Revenue: Maintained at 95%.
• Net Dollar Expansion Rate: Improved to 106%, marking the first quarter-over-quarter increase since Q1 2022.
• Non-GAAP Gross Margin: 81.4%, slightly down from 82.0% in Q2 2025.
• Non-GAAP Income from Operations: $66.2 million (24.7% of revenue), a 38.8% increase year-over-year.
• Non-GAAP Earnings Per Share: $0.51, a 50% increase from $0.34 in Q2 2025.
• Cash and Short-term Investments: $298.2 million; generated $45.3 million in unlevered free cash flow.
• Share Repurchases: 5.2 million shares for $100 million during the quarter.

2. Strategic Updates and Business Highlights

• Tenable One Adoption: 50% of new business came from the Tenable One platform, a record high, driven by new pricing and packaging strategies.
• Hexa AI: Significant adoption with over 80% of users engaging actively; it automates remediation and enhances operational efficiency.
• Partnerships: Strengthened relationships with leading AI labs (Anthropic and OpenAI) to enhance vulnerability discovery and security capabilities.
• Market Recognition: Gartner named Tenable a leader in AI-powered exposure assessment, validating its market position.
• New Customer Wins: Notable contracts included a 7-figure deal with a financial services company and a significant expansion with a global manufacturing firm.

3. Forward Guidance and Outlook

• Q3 Revenue Guidance: Expected between $270 million to $273 million (7.6% year-over-year increase).
• Full Year 2026 Revenue Guidance: Raised to $1.075 billion to $1.081 billion (7.9% year-over-year increase).
• Non-GAAP Operating Income Guidance: Raised to $258 million to $264 million for the full year.
• Non-GAAP Earnings Per Share Guidance: Increased to $1.95 to $2.00 for the full year (24.2% year-over-year increase).

4. Bad News, Challenges, or Points of Concern

• Competitive Pressures: Increased competition from larger platform vendors, including Microsoft, which has launched new VM programs.
• Revenue Growth: Despite positive trends, some analysts expressed concerns about the pace of revenue growth not reflecting the heightened market activity.
• Market Volatility: Potential for continued volatility in customer spending and decision-making due to the evolving threat landscape and economic conditions.

5. Notable Q&A Insights

• Net Dollar Expansion Rate: Executives expressed confidence that the 106% rate would hold steady for the remainder of the year.
• Customer Demand: Strong demand for exposure management driven by urgency from customers in light of recent AI threats.
• Pricing and Packaging: The new pricing model has led to a higher adoption of the Advanced offering, with a 2:1 ratio over Foundation.
• Automated Remediation: Customers are increasingly looking for automation in remediation processes, indicating a shift towards more proactive security measures.
• Hiring Plans: Plans to increase hiring in the second half of the year to support growth, reflecting confidence in business momentum.

Overall, Tenable's Q2 2026 results indicate strong performance and strategic positioning in the evolving cybersecurity landscape, particularly with the integration of AI capabilities and a focus on exposure management. However, competitive pressures and market volatility remain areas to watch.