Tenable (TENB) investor relations material

Executive summary

• Q3 results exceeded the high end of guidance across metrics; revenue was $276.4M, up 9.5% YoY, and FY26 outlook was raised.

• Tenable One reached a record 59% of new business; net dollar expansion was 107%, while CCB grew 9%.

• Recurring revenue was 95%; TTM revenue reached $1.0675B in Q3'26, with a stated 12% CAGR.

Financial highlights

• Q3 GAAP operating income was $16.7M and net income was $11.3M; non-GAAP operating income was $74.9M and net income was $72.9M.

• Non-GAAP operating margin was 27.1%, up 380 bps YoY; non-GAAP diluted EPS was $0.63 versus $0.42.

• GAAP diluted EPS was $0.10 versus $0.02; a one-time $3.3M tax benefit added $0.03 to non-GAAP EPS.

• Q3 operating cash flow was $72.5M and unlevered free cash flow was $69.4M, up 18.7% YoY; cash and short-term investments totaled $495.3M.

• Non-GAAP gross margin was 81.5%, versus 81.6% in Q3 2025; gross margin was 77.8%.

Outlook and guidance

• FY26 revenue guidance was raised to $1.084B–$1.087B; non-GAAP operating income guidance is $270.0M–$273.0M.

• FY26 non-GAAP net income guidance is $250.0M–$253.0M, diluted EPS is $2.16–$2.19, and unlevered free cash flow is $289.0M–$295.0M.

• Q4 revenue forecast is $277.0M–$280.0M; non-GAAP operating income is $67.1M–$70.1M.

• Q4 non-GAAP net income forecast is $63.6M–$66.6M, diluted EPS is $0.56–$0.58, and diluted weighted-average shares are 114.0M.

• Management expects Q4 net dollar expansion to hold at 107% and CCB growth to edge up from Q3's 9%.