Tenable Holdings Inc. Common Stock (TENB)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn durable profits and sell at a sensible price. Tenable is a cyber exposure management and vulnerability management software company, and its revenue has grown from $798.7M in fiscal 2023 to $900.0M in fiscal 2024 to $999.4M in fiscal 2025. The direction is right, but the bottom line has been poor: net losses of $78.3M, $36.3M, and $36.1M in those same years, with diluted EPS of -$0.68, -$0.31, and -$0.30. The latest fiscal Q2 2026, the quarter ended 2026-06-30, finally showed a small profit: revenue $268.5M, net income $3.8M, diluted EPS $0.03, versus a net loss of $14.7M in fiscal Q2 2025. That improvement matters, but one quarter is not a trend. Free cash flow looks better: $254.3M trailing twelve months, a 5.6% yield on the $4.5B market cap, per FairStock. Still, returns are weak - ROE 2.46%, ROCE 1.99% - and the balance sheet shows D/E 2.12 and an Altman Z-Score of 1.26. Valuation is the real problem. At the 2026-10-13 close of $41.29, FairStock calculates a P/E of 688.17, P/B of 22.94, EV/EBITDA of 55.11, PEG of 6.48, and a Graham Number of $1.56; the margin of safety is -2546.79%. The FairStock score is 30/100, and the Lynch category is none because of losses in each of the last four years. The business is cloud-delivered security software, which can create recurring revenue, but the figures do not yet prove a wide moat. The price already assumes the tiny profits become large.

In plain English: Tenable sells cyber security software that helps organizations find and manage weaknesses in their computer systems. Revenue is growing slowly, and the latest quarter showed a small profit, but the company lost money in each of the past few years. At the recent price, the stock looks very expensive compared with today's earnings and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer