TENB earnings analysis
What we found in TENB's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Tenable delivered Q2 revenue of $268.508 million, up 9% year over year, while GAAP operating income improved by $19.816 million to $12.368 million and GAAP diluted EPS turned positive at $0.03. Gross margin remained approximately stable at 78%, and cash generation was healthy, with $132.687 million of six-month operating cash flow. Offsetting factors include a $2.1 million decline in revenue from new customers, elevated cloud costs, and the expiration of the $50.0 million revolver without replacement.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth remained solid
- Q2 revenue rose 9% year over year to $268.508 million from $247.295 million, and was approximately 2.5% above Q1 2026 revenue of $262 million. Subscription revenue increased 9% to $248.261 million.
- Profitability inflected positive
- GAAP operating income improved to $12.368 million from a $7.448 million operating loss a year earlier, lifting operating margin to 4.6% from negative 3.0%. GAAP diluted EPS turned positive at $0.03 versus a $0.12 loss.
- Gross margin held near 78%
- Gross profit increased $15.314 million to $208.175 million. Gross margin was 78% in both Q2 2026 and Q2 2025, despite a $3.2 million increase in cloud-infrastructure costs.
- International and enterprise base expanded
- International revenue increased $13.9 million, or 12%, while U.S. revenue increased $7.3 million, or 6%. Customers with at least $100,000 in annual contract value rose 6% to 2,236.
- Cash generation remained strong
- Six-month operating cash flow rose to $132.687 million from $129.870 million; Q2 free cash flow was approximately $39.165 million after $1.373 million of property-and-equipment purchases and $4.178 million of capitalized software development.
- Large repurchase deployment
- The company repurchased 5.2 million shares for $100.0 million in Q2, with $107.621 million remaining under the authorization at June 30, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- New-customer contribution declined
- Revenue from new customers declined $2.1 million in Q2, partly offsetting a $23.3 million increase from existing customers. Dollar-based net expansion rate also eased to 106% from 107%.
- AI regulation and liability exposure
- The updated AI risk factor notes that non-compliance with the EU AI Act can result in administrative fines of up to €35 million or 7% of prior-year worldwide annual turnover, whichever is higher.
- Cloud-provider concentration risk
- The updated infrastructure risk factor states AWS can terminate its agreement with two years' written notice and can, in certain circumstances, temporarily restrict hosting access without prior notice. Tenable One is hosted on AWS.
- Debt maturity and revolver expiry
- The Term Loan's final $350.6 million payment is due July 7, 2028, while the $50.0 million revolving credit facility expired July 7, 2026 and was not replaced.
- Restructuring costs emerged
- Q2 restructuring expense was $0.651 million, and six-month restructuring expense was $3.082 million, reflecting non-ordinary-course severance and employee-related benefits.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.03
- Gross margin
- 77.5%
- Operating margin
- 4.6%
- Segment
- Subscription revenue: $248.261 million, up 9% year over year.
- Segment
- Perpetual license and maintenance revenue: $9.862 million, down 14% year over year.
- Segment
- Professional services and other revenue: $10.385 million, up 32% year over year.
What they said about what is next.
The 10-Q contains no explicit quantitative revenue or EPS guidance. Management expects operating expenses to increase in absolute dollars but decline as a percentage of revenue, and believes $125.4 million of cash and cash equivalents plus $172.9 million of short-term investments are sufficient for at least the next 12 months.
The filing reads better than the one before it.
What came before.
- 10-Q · May 5, 2026
- Tenable reported Q1 2026 results showing a revenue increase of 10% year-over-year to $262.1 million, exceeding analyst expectations of $258.9 million. The company posted earnings of $0.01 per share, significantly better…
- 10-K · February 27, 2026
- Tenable positions itself as a leader in exposure management with an AI-powered platform (Tenable One) that unifies visibility across IT, cloud, identity, OT and AI assets. Business momentum is visible in a material…
- 10-Q · May 6, 2025
- Tenable reported Q1 revenue of $239.137 million, up from $215.961 million a year earlier, with gross profit of $186.677 million (gross margin ~78.1%). Operating loss widened to $(17.711) million (operating margin -7.4%)…
- 10-Q · August 6, 2024
- Tenable reported Q2 revenue of $221,241,000 (three months ended June 30, 2024), up from $195,036,000 a year earlier, with gross profit of $172,443,000 and gross margin ~77.9%. Operating loss narrowed to $(8,818,000)…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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