Tenable (TENB) Q1 2025 earnings summary

Executive summary

• Revenue reached $239.1 million in Q1 2025, up 11% year-over-year, driven by strong subscription growth, international expansion, and momentum in the exposure management platform, with calculated current billings at $215.4 million.

• Leadership transition to Co-CEOs and appointment of a new Chief Product Officer, with $15.5 million in CEO termination benefits and $14.6 million in accelerated stock-based compensation expense impacting results.

• Acquired Vulcan Cyber Ltd. for $148.5–$149 million, enhancing exposure management and third-party data integration capabilities.

• Maintains #1 market share in vulnerability management, serving ~44,000 customers globally, and recognized as a leader by Forrester, IDC, and Frost & Sullivan.

• Focuses on holistic exposure management across cloud, identity, OT, and hybrid environments, with continued expansion of Tenable One and new identity and exposure management capabilities.

Financial highlights

• Q1 2025 revenue was $239.1 million, up from $216.0 million in Q1 2024, with 96% recurring revenue and 82% non-GAAP gross margin.

• Non-GAAP operating income was $48.7 million (20% margin), and non-GAAP EPS was $0.36, both above guidance; GAAP net loss was $22.9 million ($0.19 per share), impacted by CEO transition costs.

• Unlevered free cash flow hit a record $87 million for the quarter; free cash flow rose to $80.2 million from $47.1 million year-over-year.

• Cash and short-term investments totaled $460.3 million at quarter end, after $149 million spent on the Vulcan acquisition and $60 million on share repurchases.

• LTM $100K+ ACV accounts increased to 2,078, with 361 new enterprise platform customers and 54 net new six-figure customers added.

Outlook and guidance

• Q2 2025 revenue expected between $241–$243 million; non-GAAP operating income $43–$45 million; non-GAAP EPS $0.29–$0.31.

• Full-year 2025 revenue guidance is $970–$980 million; calculated current billings $1.025–$1.045 billion; non-GAAP operating income $205–$215 million; non-GAAP EPS $1.44–$1.52.

• Unlevered free cash flow for 2025 expected at $265–$275 million.

• Guidance reflects increased caution due to macroeconomic and geopolitical uncertainty, especially in the US public sector.

• Operating expenses anticipated to decrease as a percentage of revenue in the second half of 2025 and over the long term.