Key Highlights

  • Revenue of USD 276.4 million grew 9.5% year over year and exceeded the USD 271.6 million consensus estimate.
  • Non-GAAP diluted EPS of USD 0.63 beat the USD 0.51 consensus estimate and rose from USD 0.42.
  • Non-GAAP operating margin widened 380 basis points to 27.1%, while GAAP operating margin reached 6.0%.
  • Tenable One accounted for a record 59% of new business, and the dollar-based net expansion rate reached 107%.

Tenable Holdings, Inc. (NASDAQ:TENB) reported third-quarter 2026 revenue of USD 276.4 million, up 9.5% year over year and above a consensus estimate of USD 271.58 million. Non-GAAP diluted earnings per share were USD 0.63, compared with USD 0.42 a year earlier and a consensus estimate of USD 0.51. GAAP diluted EPS was USD 0.10, up from USD 0.02.

GAAP net income rose to USD 11.3 million from USD 2.3 million, while non-GAAP net income climbed to USD 72.9 million from USD 51.4 million. Recurring revenue made up 95% of the total, and the company added 413 new enterprise platform customers and 39 net new six-figure customers during the period.

Margins, Cash Flow and Balance Sheet

GAAP income from operations was USD 16.7 million, a 6.0% margin versus 2.8% a year earlier. Non-GAAP income from operations reached USD 74.9 million, a 27.1% margin versus 23.3%. Operating cash flow was USD 72.5 million against USD 53.9 million, and unlevered free cash flow was USD 69.4 million against USD 58.5 million.

During the quarter Tenable closed an upsized USD 800 million convertible senior notes offering and a new USD 400 million secured revolving credit facility. It repurchased 6.8 million shares for USD 223.8 million, including 5.3 million shares bought for USD 170.5 million in connection with the notes issuance. Cash and cash equivalents stood at USD 317.4 million and short-term investments at USD 177.9 million at quarter end, while current deferred revenue was USD 685.4 million.

Platform Momentum and Raised Outlook

Co-CEO Mark Thurmond said customers are expanding their use of the Tenable One platform, and Co-CEO Steve Vintz tied demand to AI reshaping how organizations manage cyber exposure. The company integrated Anthropic's Claude Mythos into Tenable One to power a feature called Adversary View, and it widened its Hexa AI agentic engine. New six-figure account annual contract value rose 18% year over year as average deal sizes grew.

For the fourth quarter, Tenable guided to revenue of USD 277.0 million to USD 280.0 million and non-GAAP diluted EPS of USD 0.56 to USD 0.58. For 2026, it guided to revenue of USD 1.084 billion to USD 1.087 billion, non-GAAP diluted EPS of USD 2.16 to USD 2.19, and unlevered free cash flow of USD 289.0 million to USD 295.0 million. Management described the full-year outlook as raised.

Factors to Watch

Four readings frame the next release. Tenable One share of new business is the first, moving from 39% a year ago to 50% last quarter and 59% now. The dollar-based net expansion rate is the second, at 107% versus 106% in the second quarter. The third is the fourth-quarter guide of USD 0.56 to USD 0.58 in non-GAAP EPS against USD 0.63 in the third quarter. The fourth is the balance sheet, where USD 779.0 million of convertible notes sit alongside the new USD 400 million revolver and a 2026 unlevered free cash flow target near USD 289.0 million to USD 295.0 million.