📊 TENB Key Takeaways
Is Tenable Holdings, Inc. (TENB) a Good Investment?
Tenable generates solid revenue growth (11% YoY) and exceptional free cash flow (32.6% FCF margin), but is fundamentally unprofitable with net margin of just 0.5% on a software company business model. Excessive leverage (1.45x Debt/Equity, 1.1x interest coverage) and deteriorating liquidity (0.85x current ratio) create solvency risk that outweighs the strong cash generation.
Why Buy Tenable Holdings, Inc. Stock? TENB Key Strengths
- Strong gross margins at 78.4%, indicating healthy underlying unit economics in the software business
- Exceptional free cash flow generation of $85.4M (32.6% of revenue) providing debt service capacity
- Solid double-digit revenue growth of 11% YoY demonstrating market demand
TENB Stock Risks: Tenable Holdings, Inc. Investment Risks
- Critical profitability failure: 0.5% net margin and 3.3% operating margin are far below software industry standards, indicating severe operational inefficiency
- Liquidity crisis risk with current ratio of 0.85x (below 1.0x threshold) and quick ratio matching, suggesting potential short-term solvency stress
- Dangerous leverage position with 1.45x Debt/Equity ratio and minimal interest coverage of 1.1x leaving no safety margin if revenues decline
- Returns to equity are negligible (ROE 0.6%, ROA 0.1%), destroying shareholder value despite generating positive cash flow
- Profit growth decoupling from revenue growth: net income up only 0.5% YoY while revenue grew 11%, signaling deteriorating unit economics
Key Metrics to Watch
- Operating margin trend - critical to determine if path to profitability exists or if cost structure is structural
- Current ratio trajectory - liquidity position must improve above 1.0x to eliminate refinancing/capital raise risk
- Interest coverage ratio - must improve above 2.0x to demonstrate sustainable debt service capability without revenue disruption
Tenable Holdings, Inc. (TENB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 32.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
TENB Profit Margin, ROE & Profitability Analysis
TENB vs Technology Sector: How Tenable Holdings, Inc. Compares
How Tenable Holdings, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Tenable Holdings, Inc. Stock Overvalued? TENB Valuation Analysis 2026
Based on fundamental analysis, Tenable Holdings, Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Tenable Holdings, Inc. Balance Sheet: TENB Debt, Cash & Liquidity
TENB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Tenable Holdings, Inc.'s revenue has grown significantly by 85% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.68 indicates the company is currently unprofitable.
TENB Revenue Growth, EPS Growth & YoY Performance
TENB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $239.1M | $1.4M | $0.01 |
| Q3 2025 | $227.1M | $2.3M | $0.02 |
| Q2 2025 | $221.2M | -$14.6M | $-0.12 |
| Q1 2025 | $216.0M | -$14.4M | $-0.12 |
| Q3 2024 | $201.5M | -$9.2M | $-0.08 |
| Q2 2024 | $195.0M | -$14.6M | $-0.12 |
| Q1 2024 | $188.8M | -$14.4M | $-0.12 |
| Q3 2023 | $174.9M | -$15.6M | $-0.13 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Tenable Holdings, Inc. Dividends, Buybacks & Capital Allocation
TENB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Tenable Holdings, Inc. (CIK: 0001660280)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 15, 2026 | 4 | xslF345X06/wk-form4_1778879567.xml | View → |
| May 15, 2026 | 4 | xslF345X06/wk-form4_1778879562.xml | View → |
| May 15, 2026 | 4 | xslF345X06/wk-form4_1778879557.xml | View → |
| May 15, 2026 | 4 | xslF345X06/wk-form4_1778879551.xml | View → |
| May 15, 2026 | 4 | xslF345X06/wk-form4_1778879545.xml | View → |
❓ Frequently Asked Questions about TENB
What is the AI rating for TENB?
Tenable Holdings, Inc. (TENB) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TENB's key strengths?
Claude: Strong gross margins at 78.4%, indicating healthy underlying unit economics in the software business. Exceptional free cash flow generation of $85.4M (32.6% of revenue) providing debt service capacity.
What are the risks of investing in TENB?
Claude: Critical profitability failure: 0.5% net margin and 3.3% operating margin are far below software industry standards, indicating severe operational inefficiency. Liquidity crisis risk with current ratio of 0.85x (below 1.0x threshold) and quick ratio matching, suggesting potential short-term solvency stress.
What is TENB's revenue and growth?
Tenable Holdings, Inc. reported revenue of $262.1M.
Does TENB pay dividends?
Tenable Holdings, Inc. does not currently pay dividends.
Where can I find TENB SEC filings?
Official SEC filings for Tenable Holdings, Inc. (CIK: 0001660280) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TENB's EPS?
Tenable Holdings, Inc. has a diluted EPS of $0.01.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TENB a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Tenable Holdings, Inc. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TENB stock overvalued or undervalued?
Valuation metrics for TENB: ROE of 0.6% (sector avg: 22%), net margin of 0.5% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy TENB stock in 2026?
Our dual AI analysis gives Tenable Holdings, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TENB's free cash flow?
Tenable Holdings, Inc.'s operating cash flow is $88.0M, with capital expenditures of $2.6M. FCF margin is 32.6%.
How does TENB compare to other Technology stocks?
Vs Technology sector averages: Net margin 0.5% (avg: 18%), ROE 0.6% (avg: 22%), current ratio 0.85 (avg: 2.5).