Executive Summary

Q2 2025 delivered solid execution: revenue $247.3M (+12% y/y), non-GAAP operating margin 19%, and unlevered free cash flow $44.3M . Management noted upside vs guidance, citing Tenable One platform adoption and mix effects .
Results exceeded Wall Street consensus: revenue beat by ~$5.2M (~2.1%), and non-GAAP diluted EPS $0.34 beat by ~$0.037 (≈12%) versus S&P Global consensus*; 21 revenue and 23 EPS estimates contributed to consensus*. Actuals from the 8‑K and press release .*
FY 2025 outlook raised: revenue to $981–$987M (midpoint +$8M; high end +$3M), with non-GAAP operating income $205–$215M and unlevered FCF $265–$275M reiterated .
Strategic actions: completed Apex Security acquisition to expand AI security governance; Tenable One integrations surpassed 300; announced $250M buyback expansion after repurchasing 2.0M shares ($65M) in Q2 .
Near-term stock catalysts: raised FY revenue guide, platform momentum (40% of new sales), improved visibility in federal renewals, and buyback expansion .

What Went Well and What Went Wrong

What Went Well

Platform momentum: Tenable One drove larger deal sizes; ~40% of total new sales in Q2, contributing to beats across guided metrics. “We beat all of our guided metrics…” — Steve Vintz .
Strong KPIs and backlog: Current RPO +12% y/y and total RPO +19% y/y (long-term RPO +41%), signaling multi-year commitments to exposure management .
AI/product execution: Closed Apex Security (AI governance/enforcement), enhanced AI-powered VPR, and surpassed 300 validated integrations, strengthening exposure management differentiation .

What Went Wrong

Federal spending environment: Expansion in U.S. Federal remains constrained with longer procurement cycles; net dollar expansion rate moderated to 107% in Q2 partly due to Fed .
Revenue mix nuance: Q2 revenue outperformance benefited from a more favorable mix with some upfront revenue recognition, which management does not expect to repeat in H2 .
Elevated OpEx from acquisitions: Incremental costs related to Apex and Vulcan lifted R&D and total OpEx, although leverage offset helped maintain 19% non-GAAP operating margin .

Financial Results

Revenue, EPS, and Margins vs Prior Periods and Estimates

Metric	Q4 2024	Q1 2025	Q2 2025	Q2 2025 Consensus*
Revenue ($USD Millions)	$235.7	$239.1	$247.3	$242.1*
GAAP EPS ($)	$0.02	$(0.19)	$(0.12)	N/A
Non-GAAP Diluted EPS ($)	$0.41	$0.36	$0.34	$0.303*
Non-GAAP Operating Margin (%)	25%	20%	19%	N/A
Non-GAAP Gross Margin (%)	82%	82%	82%	N/A

Notes: Consensus values marked with ; Values retrieved from S&P Global.

Year-over-Year Growth

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue YoY Growth (%)	+11%	+11%	+12%

Revenue Components (Segment Mix)

Component ($USD Millions)	Q4 2024	Q1 2025	Q2 2025
Subscription	$215.9	$220.4	$228.0
Perpetual License & Maintenance	$11.8	$11.6	$11.4
Professional Services & Other	$8.0	$7.1	$7.9
Recurring Revenue (% of Total)	95%	96%	96%
Total Revenue	$235.7	$239.1	$247.3

Key Performance Indicators (KPIs)

KPI	Q4 2024	Q1 2025	Q2 2025
Calculated Current Billings ($MM)	$302.2	$215.4	$238.6
Remaining Performance Obligations ($MM)	$867.5	$882.2	$889.1
RPO – Short-term ($MM)	$660.6	$647.6	$641.9
RPO – Long-term ($MM)	$206.9	$234.6	$247.2
Net Cash from Operations ($MM)	$81.1	$87.4	$42.5
Unlevered Free Cash Flow ($MM)	$85.7	$86.8	$44.3
Net Dollar Expansion Rate (%)	N/A	N/A	107%
New Enterprise Platform Customers (Additions)	485	361	367
Net New Six-Figure Customers	135	54	76
Cash & ST Investments ($MM)	$577.2	$460.3	$386.5
Shares Repurchased (Q)	1.2M; $50M	1.6M; $60M	2.0M; $65M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($MM)	FY 2025	$970–$980	$981–$987	Raised (midpoint +$8; high end +$3)
Calculated Current Billings ($MM)	FY 2025	$1,025–$1,045	$1,038–$1,048	Raised
Non-GAAP Operating Income ($MM)	FY 2025	$205–$215	$205–$215	Maintained
Non-GAAP Net Income ($MM)	FY 2025	$178–$188	$179–$189	Slightly Raised
Non-GAAP Diluted EPS ($)	FY 2025	$1.44–$1.52	$1.45–$1.53	Slightly Raised
Unlevered Free Cash Flow ($MM)	FY 2025	$265–$275	$265–$275	Maintained
Diluted Shares (MM)	FY 2025	123.5	123.5	Maintained
Revenue ($MM)	Q3 2025	N/A	$246–$248	New quarterly guide
Non-GAAP Op Income ($MM)	Q3 2025	N/A	$52–$54	New quarterly guide
Non-GAAP Net Income ($MM)	Q3 2025	N/A	$44–$46	New quarterly guide
Non-GAAP Diluted EPS ($)	Q3 2025	N/A	$0.36–$0.37	New quarterly guide
Diluted Shares (MM)	Q3 2025	N/A	123.0	New quarterly guide

Management emphasized raising FY revenue midpoint by $8M and high end by $3M, modestly benefiting Q3 and more so Q4, while absorbing Apex-related OpEx and maintaining FCF guidance .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024; Q1 2025)	Current Period (Q2 2025)	Trend
Tenable One platform adoption	“Strong traction in cloud and Tenable One” in Q4 ; Q1 new sales acceleration with record 7‑figure wins	~40% of total new sales; larger ASPs; high win rates	Strengthening
AI initiatives and governance	Q1: AI Aware usage growth; AI SPM posture; Vulcan ingest/remediation roadmap	Closed Apex (AI misuse governance/enforcement); AI‑enhanced VPR; AI as force multiplier	Expanding scope
U.S. Federal/Public Sector	Q1: cautious H1 outlook; visibility issues; FedRAMP for Tenable One	Renewals visibility improved; expansions still elongated; expecting seasonal strength	Stabilizing renewals; expansions cautious
Cloud security and CNAPP	Q1: outsized cloud growth; multi-cloud wins; Wiz/Google seen as net positive	Strong cloud pipeline; increased RFPs post Wiz-Google; sold primarily via T1	Positive momentum
OT performance	Q1: steady ramp and consolidation into CISOs	Strong Q2; robust pipeline into Q3 across DC buildouts, manufacturing, entertainment	Improving
Integrations/ecosystem	Q1: Vulcan third-party ingest plan	>300 validated integrations; universal connector announced	Broadening ecosystem
Capital allocation	Q4 buybacks $50M	Repurchased 2.0M shares $65M; +$250M buyback expansion	Increasing returns

Management Commentary

“We beat all of our guided metrics during the quarter, delivering 12% revenue growth and 19% operating margin.” — Steve Vintz, Co‑CEO .
“This quarter showcased the exceptional value Tenable One delivers… strong wins against major players.” — Mark Thurmond, Co‑CEO .
“Revenue exceeded the midpoint… driven in part by a more favorable mix of business with upfront revenue recognition… not anticipating in the second half.” — Steve Vintz .
“With the acquisition of Apex Security… we are expanding our AI‑aware and AI SPM capabilities… to secure the rapidly expanding AI attack surface.” — Steve Vintz .
“We recently surpassed 300 validated integrations… making Tenable One the most open and interconnected exposure management platform in the market.” — Management .

Q&A Highlights

Federal trends: Improved visibility within renewals; expansions remain cautious with longer cycles; management expects seasonal federal strength and highlighted FedRAMP authorizations for Tenable One and cloud .
Platform penetration and competitive landscape: Tenable One a key differentiator vs traditional VM and point tools; highest win rates, multiple 6–7 figure deals, hybrid coverage (IT/OT/cloud/identity) .
Cloud security and Wiz-Google impact: Increased RFPs and dual-vendor discussions; strong cloud pipeline, sold primarily via Tenable One .
Mix/recognition nuance: Q2 revenue outperformance included upfront revenue recognition; not expected to persist in H2; VM steady per plan while platform drove beat .
KPIs: Net dollar expansion moderated to 107% (Fed headwind); added 367 enterprise platform customers and 76 net new six-figure customers .

Estimates Context

Q2 2025 actual revenue $247.3M vs S&P Global consensus $242.1M*, beat ~$5.2M (~2.1%); Q2 2025 non-GAAP diluted EPS $0.34 vs consensus $0.303*, beat ~$0.037 (~12%) .*
Estimate counts: 21 for revenue and 23 for EPS in Q2 2025*.*
Implication: Expect upward revisions to FY revenue and possibly EPS trajectories, particularly if platform mix remains favorable and federal renewals sustain improved visibility . Notes: Consensus values marked with ; Values retrieved from S&P Global.

Key Takeaways for Investors

Exposure management platform (Tenable One) is driving mix shift to larger, multi-asset deals, supporting durable growth and margin leverage .
FY 2025 revenue guide raised (midpoint +$8M); FCF guide maintained despite Apex integration costs—signals confidence in H2 execution .
Federal renewals visibility improved; expansions likely to rebound with seasonal tailwinds—watch Q3 conversion cadence .
AI is a strategic moat: Apex adds governance/enforcement; AI‑enhanced VPR and >300 integrations deepen differentiation and remediation workflows .
Cash returns increasing: $250M buyback expansion after $65M Q2 repurchases provides downside support and EPS accretion .
H2 set-up: Expect gross margins flat to modestly lower as third‑party data and AI security scale; operating leverage intact given productivity gains .
Trading lens: Narrative is platform-led beats with cautiously improving public sector; monitor H2 mix (recurring vs upfront), federal expansion conversion, and AI monetization embedded within Tenable One .

Tenable Holdings, Inc. (TENB)·Q2 2025 Earnings Summary