TENB Stock Forecast & Price Target

Tenable Holdings demonstrated solid financial performance in the second quarter, with total revenue increasing by 11% year-over-year to $252.4 million and current billings rising by 8%, aligning closely with market expectations. The company’s Long-Term Remaining Performance Obligations (RPO) experienced robust growth of 41% year-over-year, suggesting a strong future revenue stream, while annual contract value (cRPO) growth accelerated to 13%, significantly outpacing the current billings growth. The increasing contribution from channel partners, which accounted for 94% of projected revenue in CY24, coupled with a potential uptick in the adoption of non-vulnerability management products, positions Tenable for accelerated revenue growth moving forward.

Tenable Holdings has exhibited a decline in key performance metrics, notably a 1 percentage point drop in Net Revenue Retention (NRR) to 106%, with expectations of further deterioration in Q4 before potentially stabilizing in fiscal year 2026. The company's non-GAAP operating margin saw a year-over-year decline, compounded by the decision to lower 2025 operating margin guidance, which reflects increased expenses related to the Apex Acquisition and ongoing challenges with incremental EBIT margins. Furthermore, Tenable's gross margins have been negatively impacted by investments in cloud products and rising third-party infrastructure costs, raising concerns about the sustainability of future growth amidst macroeconomic risks and competitive pressures.