Tenable Holdings, Inc. Annual Report - Fiscal Year Ended December 31, 2025

This summary outlines key information from Tenable Holdings, Inc.'s annual report for the fiscal year ended December 31, 2025, providing insights into the company's business, financial performance, risks, and future outlook.

1. Business Overview Tenable leads the cybersecurity industry, focusing on solutions that identify and manage digital weaknesses and potential entry points for attackers. In fiscal year 2025, the company significantly expanded its market presence and improved its product offerings through key acquisitions and internal development, marking a strong year of growth.

2. Financial Performance Tenable delivered strong financial results in fiscal year 2025. Total revenue increased by approximately 18% year-over-year, reaching $850 million. This growth stemmed from rising subscription sales and robust demand for its cloud security products. The company earned a net profit of $45 million, a substantial improvement over the prior year, demonstrating better operational efficiency. Gross margin held steady at about 80%, though operating expenses rose due to strategic investments in research and development and the integration of newly acquired companies.

3. Risk Factors Investors should consider several key risks:

• Customer Concentration: A single major distributor accounts for approximately 15% of Tenable's sales. Any disruption to this relationship or financial difficulties at this distributor could significantly impact Tenable's revenue.
• Sales Channel Dependence: Tenable heavily relies on its network of partners and resellers. Poor management of these channels or underperforming partners could impede sales growth and market penetration.
• Intense Competition: The cybersecurity market is highly competitive, with many established companies and new entrants. Tenable must continuously innovate and differentiate its products to maintain market share.
• Acquisition Integration: Recent acquisitions pose risks to successfully integrating technologies, personnel, and customer bases. Ineffective integration could lead to operational inefficiencies or fail to deliver expected benefits.
• Cybersecurity Threats: As a cybersecurity company, Tenable itself is a target for cyberattacks. A significant breach of its own systems could harm its reputation and customer trust.

4. Management Discussion (MD&A Highlights)

• Strategic Acquisitions: Tenable significantly expanded its capabilities and market presence through key acquisitions. In June 2025, it acquired Apex Security Inc., strengthening its ability to manage cloud security posture (CSPM), which helps identify and fix misconfigurations in cloud environments. Earlier, in February 2025, the acquisition of Vulcan Cyber Ltd. improved its platform for orchestrating vulnerability remediation, enabling customers to prioritize and fix security weaknesses more efficiently. The June 2024 purchase of Eureka further boosted its offerings for securing operational technology (OT) systems, such as those used in industrial control. These acquisitions are crucial to Tenable's strategy of offering a comprehensive platform to manage an organization's entire digital "attack surface" – all potential entry points for cyber threats.
• Challenges: Despite strong growth, Tenable encountered challenges. These included intense competition in the cybersecurity market, the complexities of integrating multiple acquired companies, and managing rising operational costs from global expansion and talent acquisition. Economic uncertainties also posed difficulties in some market segments.
• Market Trends and Regulatory Changes: Tenable is well-positioned to benefit from several key market trends. These include the accelerating adoption of cloud computing, the increasing complexity of the digital attack surface (including industrial control systems and internet-connected devices), and growing regulatory demands for strong cybersecurity. The company also benefits from the global shortage of cybersecurity professionals, as its solutions automate and streamline security operations. Evolving data privacy regulations (e.g., GDPR, CCPA) continue to fuel demand for comprehensive security and compliance solutions.

5. Financial Health As of December 31, 2025, Tenable demonstrated a strong financial position. The company held approximately $300 million in cash and cash equivalents, providing significant liquidity for operations and strategic investments. Total debt amounted to about $200 million, mainly from convertible senior notes (debt that can be converted into stock), reflecting a manageable debt level compared to its equity. Its current ratio, a key measure of short-term liquidity, stood strong at 2.5x, indicating Tenable can readily cover its short-term liabilities. The company's market capitalization was approximately $4.5 billion, with about 115 million shares outstanding.

6. Future Outlook Looking ahead, Tenable plans to accelerate its cloud security offerings, further integrate acquired technologies, and expand its global market presence. The company expects to continue investing in research and development to counter evolving cyber threats and maintain its competitive advantage. Management projects sustained revenue growth in the upcoming fiscal year, driven by strong demand for proactive cybersecurity solutions. Tenable's strategy for FY2025 centered on expanding its platform for managing the digital attack surface through targeted acquisitions and internal product development. This aims to provide a unified view of cyber risk across IT, operational technology (OT), and cloud environments. While no major executive leadership changes occurred during the fiscal year, the strategic integration of acquired companies underscores Tenable's ongoing commitment to innovation and market leadership in vulnerability and exposure management.

7. Competitive Position Tenable operates in a highly competitive cybersecurity market, competing primarily with companies that offer vulnerability management, cloud security, and attack surface management solutions. Key competitors include Qualys, Rapid7, CrowdStrike (in specific segments), and various specialized software providers. Tenable differentiates itself with its comprehensive platform approach, strong emphasis on proactive vulnerability management, and growing capabilities in cloud and operational technology security. Its Nessus scanner is an industry-standard tool, widely recognized for its effectiveness.